Gold Money Index (James Turk)

There is this Gold Money Index that gives the fair price of gold. (James Turk)

                                   Central bank foreign exchange reserves (USD)
Gold Money Index =    ———————————————————————-
                                        Central Bank Gold Reserves (ounces)

I quickly took some numbers from Wikipedia for foreign exchange reserves:

 China 3197 billion USD
 Japan 1137 billion USD
 Eurozone 886 billion USD
 Russia 510 billion USD
 Saudi Arabia 456 billion USD
…

Total ~ 12000 billion USD

Then I quickly took some numbers from Wikipedia for gold reserves in central banks:

 USA 8133 tonnes
 Germany 3401 tonnes
 Italy 2452 tonnes
 France 2435 tonnes
 China 1054 tonnes
 Switzerland 1040 tonnes
 India 946 tonnes
 Russia 836 tonnes
…

Total ~ 1000 million ounces of gold

Gold Money Index = 12000 billion USD / 1000 million ounces = 12000 USD/ounce

So basically we have a gold price of 1500 USD/ounce today and are supposed to have a fair price of 12000 USD/ounce of gold. That’s an eightfold increase in the gold price. If what James Turk says is a good valuation of gold, then we’re in for a big ride upwards.

To learn more about the Gold Money Index, please go to:
Gold Money Index