27 NOVEMBER 2025
The chart below speaks to the heart of what’s driving the gold price materially higher and was originally produced by Tavi Costa of Crescat Capital.
It shows the gold price divided by the total US money supply, dating back to the 1960s.
Money supply refers to the total amount of money circulating in the economy and rises during periods of expansionary monetary policy (and vice versa).
The supply of US dollars has surged in recent years, reflecting the Federal Reserve’s near constant liquidity injections to help boost growth and underpin stability in a heavily indebted financial system.
However, the recent gold price increase is relatively modest in the context of the money supply growth, particularly compared to the late 1970s.
With “dollar debasement” policies unlikely to reverse any time soon, the gold bull market may still have a lot further to run.
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