M2/Gold Ratio
A valuation metric comparing total global M2 money supply to the market capitalisation of all above-ground gold (quantity × spot price). When M2 expands faster than the gold price, the ratio rises — indicating fiat currency debasement without corresponding hard asset appreciation. Historically, extreme readings in either direction have been followed by reversion.
Live Intelligence Answer
-1.84σ
Gold is trading at a premium relative to historical monetary supply. Bullish for hard asset backing.
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M2/Gold = Global M2 Money Supply / (Above-Ground Gold × Spot Price)
Why It Matters
During the 2020 stimulus cycle, global M2 expanded by ~$25 trillion in 18 months while gold rose ~25% — the M2/Gold ratio surged to its highest level in 30 years. This precedent has historically been followed by a structural gold re-rating over the subsequent 3–5 years.
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Related Concepts
Debt/Gold Z-Score
A proprietary ratio comparing total US Federal Debt to the dollar value of US officially-reported gold reserves at current spot prices, normalised as a Z-score against a 25-year rolling window. It measures how many "gold equivalents" the US government would need to redeem its entire debt — a thought experiment derived from the classical gold standard era.Gold/Silver Ratio
The number of ounces of silver required to purchase one ounce of gold at current spot prices. The long-run historical average is approximately 55–65x. Extreme readings above 90x have historically—in 1991, 2003, 2009, and 2020—preceded significant silver outperformance as the ratio mean-reverts. Industrial silver demand growth (solar panels, EVs) creates an additional structural tailwind.Gold/Oil Ratio
A valuation metric measuring the price of one ounce of gold in terms of barrels of West Texas Intermediate (WTI) crude oil. Historically, the ratio averages around 16:1. A high ratio (above 25:1) suggests that oil is cheap relative to gold (often during recessions), while a low ratio (below 12:1) suggests energy is expensive or gold is undervalued relative to real-world energy costs.Ready to see this live?
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