from NIA:
Even though QE3 has ended, the Fed is expected to at least maintain the current size of its balance sheet moving forward. In December 2014, the Fed Monetary Base averaged $3,900 billion and gold averaged $1,200 per oz for a gold/monetary base ratio of 0.308 – up slightly from October’s all time low gold/monetary base ratio of 0.303.
Going all the way back to 1918, the median gold/monetary base ratio has been 1.063. We last had a gold/monetary base ratio above the long-term median in March 2008 when it reached a peak of 1.128.
Following the inflationary crisis of the 1970s, the gold/monetary base ratio reached a peak monthly average in January 1980 of 5.106. The all time high monthly average gold/monetary base ratio of 5.159 was reached in July 1933 during the Great Depression.
Read more about Why Gold Prices Will Rise Dramatically Very Soon
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