Look at an interesting data relationship: multiplying the total supply of above-ground gold by the price per ounce, then dividing by the US money supply (M2), what can it reflect?

This formula actually tells a story—the real purchasing power of gold relative to the US dollar. When this ratio declines, what does it mean? The dollar is being issued more, but gold is not. In other words, the dollar in your hand is becoming lighter.

A detail worth pondering: this ratio has experienced significant fluctuations from the 1970s to now. Every jump corresponds to major decisions by the Federal Reserve—expanding or shrinking the balance sheet, cutting or raising interest rates. Gold has served as a mirror during these moments, reflecting the true impact of monetary policy.

Many people talk about the devaluation of the dollar, but it's hard to explain with just one chart. This data set does exactly that—showing the traces of monetary expansion in the most straightforward way. Want to understand why inflation always strikes suddenly? Curious why some assets suddenly appreciate during certain periods? Look at the trajectory of this ratio, and the answer might be right there.