Gold Money Index (James Turk)

There is this Gold Money Index that gives the fair price of gold. (James Turk)



                                   Central bank foreign exchange reserves (USD)

Gold Money Index =    ----------------------------------------------------------------------

                                        Central Bank Gold Reserves (ounces)



I quickly took some numbers from Wikipedia for foreign exchange reserves:



 China 3197 billion USD

 Japan 1137 billion USD

 Eurozone 886 billion USD

 Russia 510 billion USD

 Saudi Arabia 456 billion USD

...



Total ~ 12000 billion USD





Then I quickly took some numbers from Wikipedia for gold reserves in central banks:



 USA 8133 tonnes

 Germany 3401 tonnes

 Italy 2452 tonnes

 France 2435 tonnes

 China 1054 tonnes

 Switzerland 1040 tonnes

 India 946 tonnes

 Russia 836 tonnes

...



Total ~ 1000 million ounces of gold





Gold Money Index = 12000 billion USD / 1000 million ounces = 12000 USD/ounce





So basically we have a gold price of 1500 USD/ounce today and are supposed to have a fair price of 12000 USD/ounce of gold. That's an eightfold increase in the gold price. If what James Turk says is a good valuation of gold, then we're in for a big ride upwards.



To learn more about the Gold Money Index, please go to:

Gold Money Index

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