They say a picture speaks a thousand words, but in this case, a picture speaks over $150 Trillion Dollars. In spite of the incredible volatility that the past 14 years have brough us, global financial 'wealth' has more than doubled, to just shy of $160 Trillion dollars. Most of that 'wealth' has come in the form of new debt issuance, which has tripled from circa $33 to circa $100 Trillion, whilst the market valuation of listed equities has grown from $49 to $66 Trillion, a rise of a mere $17 Trillion, or 30%. A by product of this explosion in debt issuance is that the ratio of equity to debt has dropped from 60% to 40% in just 14 years. As you'll see in the image at the link below, despite the five fold increase in gold prices since 2000, it still makes up but a fraction of the total. (VIEW LINK)


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James Marlay

Good chart Jordan. That period from 2000 - 2010 really stands out on the expansion of debt. Also looks like a significant period in growth for gold ownership.