Monetary Base Vs. Gold Reserves

The following chart shows the U.S. Monetary Base Vs. U.S. gold reserves.

These two should match with each other. Either the price of gold goes up, or the U.S. gold reserves should go up. This is why I include the monetary base in the Gold Forecaster Index, because it is correlated to the gold price. The more the Federal Reserve prints money, the more U.S. gold reserves are needed. The more gold reserves are acquired, the higher the gold price.

Today, the gold price should be at $5000/ounce.