Gold Price to National Debt

Notice that there has been a direct correlation with the amount of our country’s debt and the price of gold over the past 30 years.  From 1987-2002 our national debt averaged $3.4 Trillion dollars and the price of gold averaged roughly $340 per ounce.  Further notice that from 1996 to 2000 as we paid down our national debt from $4 Trillion to $2.7 Trillion the price of gold dropped from $400 per ounce to $270 per ounce.  You can also easily see that from 2001 - 2011, as our national debt rose from $3 Trillion to $15 Trillion, the price of gold went from $300 per ounce to $1500.   

According to this metric, in 2011 when gold spiked to $1900 while we were only $15 Trillion in debt, the price of gold was overvalued.  Conversely today, with our national debt at over $20 Trillion and the price of gold under $1300 and not $2000 or more, gold is significantly undervalued.