|A comparison chart of gold price and the US money supply metric, Money-Zero-Maturity (MZM). Again the gold price is far from being in a "bubble-state". If the gold price were to reach the same heights as in Jan-1980 relative to MZM, in today's dollars gold would need to be $8,500/oz. This number should be considered a point-of-reference rather than a prediction for future prices.|
There is a good paper by then Deputy Governor, Bank of England, Mervyn King, on the relationship between money supply and inflation called: "No money, no inflation—the role of money in the economy"