M2 to Gold Owned by the United States

One gold valuation method is considering M2 to the gold owned by the United States. The logic is that the United States, by virtue of being a world superpower, having the world reserve currency, as well as a lot of gold holdings, has a large say in the value of gold.

From the Federal Reserve Economic Data (FRED), get the M2 here. The M2 is $19,514,300,000,000 at time of writing. A definition of M2 is that it is M1 plus savings deposits, small-denomination time deposits, and balances in retail money market mutual funds.

From the Treasury Department, get the gold owned by the United States. The estimate of the gold owned by the United States at time of writing is 261,498,926.241 troy oz.

We divide the M2 by the gold owned by the United States get a valuation for gold of $19,514,300,000,000 / 261,498,926.241 troy oz = $74,624.78 / troy oz.

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