What is M2 Money supply?
- Cash, checking deposits, and other deposits readily convertible to cash, such as CDs, are considered liquid money and are measured by the Fed’s M2 money supply measurement.
- M1 is included in M2 but only measures cash, savings accounts, checking accounts, and travelers’ checks.
- Understanding how much money is circulating in the economy impacts interest rates, inflation, and the economy.
For consistency with modern statistical reporting I will use the term money supply as defined by M2 primarily as currency and credit expansion rather than money in the classical sense. (Gold, silver).
The increase in monetary terms of M2 from 1969, $589 Billion to 2025 is $22.686 TRILLION is an increase of 3760% a 38.5 x expansion.
Population growth accounts for an increase in money supply, the numbers are much more contained, from 201.6 million in 1959 to 341.8 million at the 2025 census an increase of only 69.5%
In personal terms, money supply went from $2916.00 in 1969 per person to $66383.00 per person today, a 2177% increase.
The percentage growth of M2 expanded 54 times faster than the people it should serve. Why are most people substantially poorer? Where has the money gone? Of course the ‘blessing’ of receipt of the funds is not equal. The Cantillon effect is very much alive and well. (Cantillon effect – people, companies closest to the government get the money first, white it still holds its value).
Let’s look at the velocity chart below:
Velocity has collapsed so the money is sitting in increased savings accounts, debt reduction, larger cash balances, slower lending, M2 growing faster than GDP. This is not a good sign.
By creating so much money, the velocity decreases, the turnover becomes diluted. During 2020 – 2021 rapid M2 expansion, saw collapsing velocity.
This shows that the system is massively overinflated relative to the population numbers and productive base. Measured by M2 per capita, currency expansion has exceeded population growth by approximately 22 fold. I see no let up in sight.
Looking at the CPI (Consumer Price Index), the average in 1969 was 36.7, April 2026 the number is 332.4 an increase of 806%, making prices today about 9 times what they were in 1969.
1969 to 2026 UP by:
- CPI 9.1x
- US Population 1.7x
- M2 money supply 38.6x
- M2 Per Capita 22.7x
How does this affect gold and silver?
- If we measure by CPI Gold, From $35.00 x 9.1 = $319.00
If we measure by M2 and take population growth into account we find that over the full period gold gained 56 times more purchasing power since 1969. It has preserved purchasing power far better than cash.
Silver has only gone up 27 times but M2 went up 38.5 times so it has lost half of its purchasing power over the period. On a per capita basis it is down about 85%. In 1969 the gold to silver ratio was 27:1 it is now about 60:1. Silver is underperforming.
In my opinion, we will experience lots more inflation. If the FED stops pumping funds into the system it freezes. The system has become extremely dependent on liquidity and credit expansion. This limits the FED’s flexibility. They really are between a rock and a hard place. Print more currency and create more inflation and higher interest rates, or shrink the money supply and freeze the economy. Either route leads to tough financial consequences.
PLATINUM
SELL: On the Daily chart (18 May 2026).
URANIUM
SELL (12 May 2026) URA.
BITCOIN AND GOLD
Gold outperforms Bitcoin (06 May 2026). 17.06 One ounce gold coins buys one bitcoin, this was over 41 ounces August 2025
ETHUSD: SELL: ( 26 April 2026)
BTCUSD: SELL: 13 May 2026. NASDAQ (Cyan).
GOLD AND SILVER STOCKS
13 May 2026 Gold outperforms gold stocks.
Silver outperforms silver stocks (15 April 2026). A dicey start.
GOLD AND SILVER
Silver to Gold Ratio
Gold outperforming Silver. (28 April 2026) Silver is coming out of the ground at about 8:1 and the Gold: Silver ratio is 59.87:1.
GOLD TO USD
USD outperforms Gold, (18 May 2026).
Copper (SELL: 18 May 2026)
GOLD AND SILVER CHARTS
| Today | Last Week | |
|---|---|---|
| Gold Price | $4,529.00 | $4,677.00 |
| Silver Price | $76.64 | $84.66 |
| Gold:Silver ratio | 59.27:1 | 55.40:1 |
| Gold Miners bullish percent index | 26.92 | 46.15 |
| Dollar Index | 99.20 | 98.78 |
| Dow: Gold Ratio (BahaUS 49,410.00 Gold price, 4,529.00) | 10.91 | 10.70 |
| Current USA inflation rate (Dept. of Statistics) | 3.8% | 3.3% |
| Mannarino Market Index – Extreme Risk | 284.0 | |
Buffet Index Strongly overvalued markets | 219% | |
| 10 Year Yield | 4.63% |
Gold’s low of the week was $4,480.00, and the high was $4,584.00, now trading at around $4,541.00.
- Gold Monthly: is a SELL. (25 March 2026) From $1800.00 to $4513.00. Attempting a recovery.
- Gold Weekly: (SELL 19 March 2026) Candlestick signs of a turnaround, no conventional signals yet.
- Gold Daily: (BUY 07 May 2026).
The low for Silver this week was $72.80 and the high $78.87 trading around $76.60 at present.
- Silver Monthly: (SELL: 20260430. ( Buy $24.00 March 2024 to Sell May 2026 $73.13 = 204% Gain in 2 years 2 months). I like what I see on this chart as a potential recovery. Looks more exciting, but no buy yet.
- Silver Weekly: (SELL: 09 February 2026). If I were holding physical, I would not be releasing it at these prices. As a trade, I would follow the signal. No new buy on the indicators yet. Looking positive.
- Silver Daily: SELL (15 May 2026).
Our partner has stock of both gold, silver and Goldbacks in our vaults available in Panama. Please contact us for more information.
A video by Mike Adams on the Goldbacks.
Well worth a look!
On the Stockcharts.com charts, the blue vertical lines are our proprietary system buy signals and the red vertical lines are system sell signals – for information purposes only
An interview with Josh, owner of Scottsdale Mint: watch here
If you are interested in an overview of Fort Kobbe, you may want to have a look at this video: Mike Brown, Director, Fort Kobbe, International Vaults, A DotCom Magazine Exclusive Interview
This is my interpretation of the market and is not to be taken as financial advice. Before making any buy or sell decisions, I recommend that you consult with your professional financial advisor.
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