Categories: General Market Commentary / Precious Metals
Topics: General Market Commentary / General Precious Metals

Too much money, not enough gold

Aug. 25, 2016

Too much money, not enough gold

Palisade Global Investments Ltd.

The gold to monetary base ratio is at an all-time low. And before anyone says monetary base growth is not necessarily bad if the economy is growing, the velocity of money is also at an all-time low.

The velocity of money is the rate that money is exchanged from one transaction to another. It measures how much money is used in a given period of time, usually calculated by dividing a country’s GNP by the total supply of money. The higher the number is, the more robust the economy is.

To continue reading please click link http://www.mining.com/web/too-much-money-not-enough-gold/