A simple viewer question sparked a deep discussion in the latest episode of the GoldSilver Show:
Has gold peaked?
In this episode, Mike Maloney and Alan Hibbard take on a topic few others are talking about: the M2 money supply-to-gold ratio.
Mike and Alan explore whether this rarely-referenced metric suggests we’re at a top for gold… or at the base of its next breakout.
Why the M2-to-Gold Ratio Matters
The M2 money supply represents all the cash and easily liquid assets in circulation. When compared against the price of gold, it provides a macro-level view of how “expensive” gold is relative to the amount of currency sloshing around the system.
Historically, this ratio has had predictive power, signaling turning points in the gold market. In the video, Alan recreates the viewer’s chart using clean Federal Reserve and gold price data, revealing that this ratio is currently hugging a key trendline.
What does that mean? According to Mike, it suggests gold may be undervalued relative to the massive expansion in currency over the past several years.
Logarithmic Clarity and Historical Parallels
One major highlight in the video is Alan’s use of logarithmic charts, which offer a truer representation of percentage changes over time. Looking at decades of data, Mike and Alan explore how gold behaved during past bull markets, including the explosive run-up in the 1970s.
Surprisingly, today’s levels suggest that gold is less overvalued now than it was even in the early 1970s — and we all know what happened next: gold more than quadrupled in price by 1980.
A Head-and-Shoulders Shift?
Mike also points out a potential technical pattern forming in the charts: a head-and-shoulders formation. When this pattern breaks, it often signals a major move. In this case, it could mean that a powerful upward move for gold has only just begun.
Couple that with ongoing central bank gold accumulation, concerns over fiat currency dilution, and mounting global debt — and you have a recipe for a historic shift in monetary perception.
Looking Ahead: Gold, the Dollar, and a Potential Reset
The conversation then expands beyond the ratio to include broader macroeconomic forces, including the Dow-to-gold ratio and potential monetary system resets. As Mike notes, the U.S. dollar remains significantly overvalued by many metrics, and if we do see a global move back toward real money, gold is likely to play a central role.
In fact, Mike believes that what we’re witnessing may be the early stages of a transition as significant as those that occurred in 1933, 1944, and 1971.
“This time, it won’t just be a small adjustment behind the scenes. It could be a giant step back toward something real — something the world can trust.”
Watch the Full Analysis
If you’re a serious gold investor or someone who follows macro trends, this episode offers a wealth of insight that most analysts are missing.
