[Chart] Gold price vs. balance sheets of major central banks 1999-2012

[swissaustrian]

Gold is a great hedge against monetary inflation.

[Jordan]

Any pre-1999 data?

[Zippyjuan]

Yes- that just shows that two things moved up together- not necessarily any cause and effect. It would be intersting to see if that was also true from 1980 to 2002 when the price of gold was declining. A graph showing cell phone sales or internet usage over the same time frame would have a similar shape. Does that mean they are related too?

Tape together these two charts- the US Federal Reseve Balance Sheet 1975 to 1985 and 1985 to 1995 (more in the series at link if interested):

http://www.zerohedge.com/news/guest-...sets-1915-2012



Actually you don't have to tape them. It is obvious that the balance sheets are rising. All the other charts there show the same thing. Then we can look at what the price of gold was doing. Not rising along with their balance sheets for most of that time. Seems to indicate a lack of cause and effect.

http://buying-gold.goldprice.org/200...e-in-1980.html