Troilus Gold brings potential funding from ECAs to $1.3 billion
The company has signed an additional LOI with Export Development Canada worth $300 million.
The gold to monetary base ratio is at an all-time low. And before anyone says monetary base growth is not necessarily bad if the economy is growing, the velocity of money is also at an all-time low.
The velocity of money is the rate that money is exchanged from one transaction to another. It measures how much money is used in a given period of time, usually calculated by dividing a country’s GNP by the total supply of money. The higher the number is, the more robust the economy is.
For the last eight years, the United States Government has been printing money at an unprecedented rate and just by looking at the chart, something has to give. It’s obvious the United States’ economy is not healthy, and cannot be propped by the Feds forever.
If the gold to monetary base ratio were to revert back to its median, using today’s money supply we calculate a gold price of $3,770 per ounce. Let’s go gold.
