Macro Research · Seventeen Indicators · Four Chapters

The Spectacular Long View
of US Financial Markets

Seventeen macro indicators in four chapters — Fiat Erosion, The Debt Machine, Late-Cycle Signals, and Valuations & The Golden Mirror — each one a piece of the same story.

Data through 2026 · Sources: BLS, Federal Reserve FRED, US Treasury / OMB · LBMA · Robert Shiller · Cboe
Chapter I · 4 indicators

Fiat Erosion

Is money holding its value? A century of purchasing-power decay across two major currencies, the one currency that resisted — and the monetary engine driving it all.

USD purchasing power · 1913–2026
01Purchasing Power of the US Dollar
02Purchasing Power of the Euro
03USD / CHF Exchange Rate
04M2 Money Supply
Open chapter →
Chapter II · 3 indicators

The Debt Machine

The price and burden of money: sovereign leverage beyond its wartime peak, real rates that punished savers for a decade, and the bond market’s most reliable recession alarm.

Federal debt / GDP · 1940–2026
05Federal Debt as % of GDP
06Real Interest Rates
07Yield Curve Inversions & Recessions
Open chapter →
Chapter III · 5 indicators

Late-Cycle Signals

How investors behave near tops: leverage accelerating, mood diverging from price, the labor cycle turning — or refusing to — and the compensation for holding equities over bonds quietly vanishing.

Margin debt 9-month % change · 1997–2026
08Margin Debt 9-Month % Change
09Consumer Sentiment vs S&P 500
10Labor Market — Unemployment & Sahm Rule
11Equity Put/Call Ratio vs S&P 500
12Equity Risk Premium (ERP)
Open chapter →
Chapter IV · 5 indicators

Valuations & The Golden Mirror

What you pay determines what you get. The most-watched valuation gauges in history, the price of a dollar of revenue decomposed into its engines, the index re-priced in hard money — and the asset that reflects back what real yields say about paper money.

Gold price $/oz · 1971–2026
13Shiller CAPE Ratio
14Price, Sales & the Margin Wedge
15Buffett Indicator — Market Cap / GDP
16S&P 500 in Gold Terms — SPX/Gold
17Gold vs 10-Year Real Yield
Open chapter →
Chapter I

Fiat Erosion

Is money holding its value? A century of purchasing-power decay across two major currencies, the one currency that resisted — and the monetary engine driving it all.

01 /

Purchasing Power of the US Dollar

What $1.00 in 1913 buys today — a 98% loss, equivalent to +4,719% cumulative inflation over 113 years, or ~3.5% annualised. The first 58 years under Bretton Woods ran at ~2.5%/yr; the 55 years since Nixon closed the gold window in 1971 have averaged ~4.6%/yr. Since 2020 alone the annualised rate hit ~10%.

Purchasing power — relative to period start
$1.000
Year: 1913  ·  Lost: 0.0% since 1913
Nixon shock (1971)
$0.180
Post-Volcker (1983)
$0.100
Post-GFC (2010)
$0.085
Post-COVID (2025)
$0.020
Source: US Bureau of Labor Statistics CPI. Purchasing power = 1 / (CPI_year / CPI_1913). Hover to inspect values.
02 /

Purchasing Power of the Euro

Since its 1999 launch the euro has lost 57% of its purchasing power — a cumulative inflation of +134%, or ~3.1% annualised. The first 22 years were relatively contained at ~1.7% per year. The last five have been brutal: a 23% loss since 2021 alone, equivalent to ~5.3% annualised, as post-COVID supply shocks and the energy crisis did in half a decade what the previous two decades had barely managed.

Purchasing power — relative to period start
€1.000
Year: 1999  ·  Lost: 0.0% since 1999
Pre-GFC (2008)
€0.815
Post-sovereign crisis (2015)
€0.745
Pre-COVID (2019)
€0.711
Post-energy shock (2025)
€0.579

USD vs EUR — side by side

Over comparable periods, the USD has lost more in absolute terms (96% since 1913) but the EUR has devalued faster on an annualised basis: 2.2%/yr vs 3.1%/yr for USD since 1971. The 2021–2023 inflationary episode hit both similarly hard — the EUR lost 16% of purchasing power in just 3 years, versus 14% for the USD over the same window.

Source: European Central Bank — Harmonised Index of Consumer Prices (HICP). Base year: 1999 = €1.00 (EUR inception). Data via Eurostat / ECB.
03 /

USD / CHF Exchange Rate

The Swiss franc has been one of the strongest secular appreciators against the dollar over the floating-rate era — from 4.32 CHF per dollar at Bretton Woods' end to under 0.80 today, a cumulative USD loss of ~80% or ~2.9%/yr annualised. Key breaks: the 1985 Plaza Accord reversal, the 2011 SNB EUR floor and its 2015 abandonment (the largest single-day move on record for a major currency), and the sustained 2025 dollar slide.

Latest CHF / USD
Loading…
Showing CHF per USD — a falling line means the dollar is weakening against the franc. Vertical markers flag regime breaks: Nixon shock (1971), floating rates (1973), Plaza Accord (1985), Lehman (2008), SNB EUR floor set (2011) and abandoned (2015), COVID (2020), and the 2025 USD slide.
Source: Federal Reserve H.10 / FRED DEXSZUS · daily spot rate · 1971–2026
04 /

M2 Money Supply

The mechanical engine behind dollar devaluation. $6.3 trillion was created in roughly 24 months during COVID — more than was created in the entire prior century. Milton Friedman's "inflation is always and everywhere a monetary phenomenon" plays out literally here.

M2 money supply — 2026
$21T
Was $4.6T in 2000 — a 4.6× expansion in 24 years
2020–2022 expansion
+$6.3T in 2 yrs
Growth since 2008 GFC
+$13T
Avg growth 1960–2000
8% / yr
Source: Federal Reserve (FRED). M2 includes cash, checking/savings deposits, and money market funds.
Chapter II

The Debt Machine

The price and burden of money: sovereign leverage beyond its wartime peak, real rates that punished savers for a decade, and the bond market’s most reliable recession alarm.

05 /

Federal Debt as % of GDP

The US has now exceeded its WW2 debt peak — and unlike 1946, there is no obvious deleveraging path. Post-war growth, financial repression, and moderate inflation drove the prior decline. That playbook looks far harder to execute today.

Debt / GDP — 2026
125%
Exceeds WW2 peak (119% in 1946) — Q4 2025: 125.2% total / 122% held by public
Source: FRED / US Treasury / CEIC. Total public debt as % of GDP, through Q4 2025. Note: "held by public" series (excl. intragovernmental) = 122%; total gross debt = 125.2%.
06 /

Real Interest Rates

Fed Funds Rate minus CPI inflation — the true cost of money. Negative real rates are a hidden tax on savers and a subsidy for debtors. They also tend to inflate asset prices. The 2020–2022 period produced the most deeply negative real rates since the 1970s.

Real Fed Funds Rate — 2026
+1.2%
Real rate +1.2% (Apr 2026) — positive for 3rd consecutive year. Financial repression has ended.
Positive real rate (savers rewarded)
Negative real rate (financial repression)
Worst repression (2022)
−6.5%
Volcker peak (1981)
+8.4%
Post-GFC avg (2009–21)
−0.5%
Source: Federal Reserve (FRED). Real rate = Effective Fed Funds Rate − CPI YoY. Annual averages.
07 /

Yield Curve Inversions & Recessions — 6 of 7

The bond market's most reliable recession oracle — 6 of 7 distinct inversion episodes since 1976 preceded a recession. The notable exception: the 2022–2024 inversion, the deepest since 1981, has not (yet) triggered one — challenging the signal's historical record.

Predictive record since 1976
6 of 7
6 inversions preceded a recession. 2022–24 inversion: no recession yet.
Positive spread
Inverted (negative)
Recession
Source: Federal Reserve (FRED). Red bars = 10Y–2Y below zero. Grey shading = NBER recession dates.
Term structure
Yield Curve Shape — 1976 to 2026
3M
2Y
10Y
10Y − 2Y
Term structure shows the full yield curve from 3-month to 30-year maturities across 50 years of rate history.
Selected snapshot Apr 2026 reference
Source: Federal Reserve H.15 · monthly averages · linear interpolation between anchor observations · 1976–2026
Chapter III

Late-Cycle Signals

How investors behave near tops: leverage accelerating, mood diverging from price, the labor cycle turning — or refusing to — and the compensation for holding equities over bonds quietly vanishing.

08 /

Margin Debt 9-Month % Change vs S&P 500

FINRA margin debt — money borrowed by investors to buy securities — has hit a record $1.42 trillion, growing 54% year-over-year. The S&P 500 overlay reveals the feedback loop: margin peaks tend to coincide with or slightly precede market peaks, and crashes are amplified by forced selling as margin calls cascade.

Margin debt 9-month change — May 2026
+33.6%
9-month change May 2026  ·  Above +1σ threshold (+28%)
Growth >+2σ (+48%)
Growth +1σ to +2σ
Decline −1σ to −2σ
Decline <−2σ (−32%)
S&P 500 (right axis)
Margin debt and S&P 500 from 1997–2026 showing correlated peaks and troughs at major market turning points.
Dot-com surge (2000)
+55.3%
GFC crash (2009)
−40.5%
COVID surge (2021)
+61.4%
2025 re-acceleration
+47.6%

The feedback loop

When prices fall, brokers issue margin calls → investors are forced to sell → prices fall further → more margin calls. This self-reinforcing spiral amplified the 2000, 2008, and 2022 crashes. With YoY growth running at +48% in 2025 — matching the velocity seen before the 2000 and 2021 peaks — the potential energy stored in this mechanism is at historically dangerous levels.

Source: FINRA Rule 4521 margin statistics / NYSE (pre-2010). S&P 500: Standard & Poor's / Multpl. Annual data 1997–2026. Margin debt = debit balances in customers' securities margin accounts.
Level companion
Margin Debt as % of GDP — 1997 to 2026
4.40% · All-time high

The oscillator above asks how fast leverage builds; this asks how large it is against the economy. At 4.40% of GDP (May 2026), margin debt is 16% above the October 2021 record (3.78%), far beyond dot-com (2.95%) and 2007 (2.86%), and 1.9× the 29-year mean. The two currently disagree instructively — momentum merely elevated, level unprecedented: record stock of leverage on moderating flow is a classic late-cycle configuration. Historically the ratio’s rollover from an extreme led S&P monthly-close tops by ~5 months (2000), ~3 (2007), ~2–3 (2021). It has not rolled over yet.

Margin debt / GDP
Mean 2.32%
Oct-2021 record 3.78%
Margin debt to GDP at 4.40%, 1.9 times its 29-year mean and 16% above the 2021 record.
Current (May 2026)
4.40%
Prior record (Oct 2021)
3.78%
Dot-com peak (Mar 2000)
2.95%
Mean 1997–
2.32%
Source: FINRA customer debit balances (margin-statistics.xlsx, monthly 1997–present, direct). GDP: BEA quarterly, interpolated monthly; 2025–26 fitted to BEA’s $30.76T annual figure. S&P 500: Robert Shiller / Yale.
09 /

Consumer Sentiment vs S&P 500

University of Michigan Consumer Sentiment Index plotted against the S&P 500, both normalised to Z-scores (standard deviations from their 48-year means). The shared axis makes divergences directly legible. Since ~68% of US GDP is consumer-driven, persistent gaps between market valuations and consumer confidence tend to resolve by the market falling toward sentiment rather than the reverse. The current spread of +6.2σ is the widest on record — blown out further by May 2026’s all-time-low sentiment print of 44.8.

S&P 500 Z  
Sentiment Z  
Spread  
Z-score = (value − 48yr mean) / std dev  ·  CS mean 83.2 σ14.1  ·  S&P mean 1433 σ1446  ·  Sources: UMich UMCSENT via FRED · S&P 500 monthly closes · NBER recession shading
10 /

Labor Market vs S&P 500 — Unemployment & the Sahm Rule

The chapter’s only real-economy gauge. Employment lags the economy but not the market: unemployment’s cycle lows mark maximum optimism and sit beside major tops (3.8% in 2000, 4.4% in 2007, 3.5% into 2020), while its peaks mark generational bottoms. The trigger version — the Sahm rule, the cleanest single-series recession detector in macro — fired in all eleven recessions from 1950–2020 with one 1959 false alarm. This cycle broke the streak: it fired at 0.53 in July 2024 with no recession, feinted at 0.47 in November 2025, and has receded to 0.10 as of June 2026 with unemployment back at 4.2% — either a soft landing achieved, or the longest topping process on record.

Unemployment (U-3) — June 2026
4.2%
Sahm gap: 0.10  ·  threshold 0.50  ·  cycle low 3.4% (Apr 2023)
Unemployment rate
S&P 500 (log, right)
NBER recession
Unemployment and the S&P 500 across twelve recessions, 1948–2026.
Sahm gap (3-mo avg − 12-mo low)
Trigger 0.50
Sahm gap with 0.50 trigger; spikes clipped at 1.3 for readability.
Jul 2024 trigger
0.53
Nov 2025 feint
0.47
Current gap (Jun 26)
0.10
Strike record 1950–2023
11 / 11

The whipsaw is the finding

A signal that never failed for seventy years has now fired falsely once and feinted twice in a single cycle — post-COVID labor-supply swings, immigration-driven labor-force growth, and the late-2025 shutdown all made the unemployment rate a noisier thermometer than usual. The contrarian level still says late-cycle (4.2% is tight territory), but the trigger has fully receded while leverage (08) sits at all-time extremes. When these disagree, history’s tiebreak: leverage extremes date the fragility, the labor turn dates the break.

Source: BLS U-3 via Michaillat/Saez FERU archive + BLS Employment Situation releases (tail cross-checked: Jul-2024 real-time Sahm 0.53 reproduced exactly). S&P 500: Robert Shiller / Yale. NBER recession dating. Sahm gap computed on revised data; real-time prints differ slightly near BLS annual revisions.
11 /

Equity Put/Call Ratio vs S&P 500

Total put volume divided by call volume in single-stock options on Cboe — the classic contrarian gauge of speculative positioning. Where the Michigan survey asks how the crowd feels, the options tape shows how it is positioned: heavy put buying marks fear, historically a 3–6 month buying setup, while a call-heavy tape marks complacency that has often preceded weak stretches. Smoothed with a 10-day average; zone thresholds ≈ the 15th/85th percentiles of the sample (0.66 / 0.92). The current 10-day reading of 0.70 sits in the 62th percentile of its trailing year — modestly elevated hedging, no extreme.

S&P 500  
P/C 10d MA  
1-yr percentile  
Equity-only option volume on Cboe, full-day snapshots  ·  buy zone ≥ 0.92 (fear) · sell zone ≤ 0.66 (complacency)  ·  Nov–Dec 2022 spikes partly inflated by deep-ITM dividend-trade puts  ·  Sources: Cboe daily market statistics (May 2022–Jul 2026) · S&P 500 via FRED
12 /

Equity Risk Premium (ERP)

The earnings yield of the S&P 500 (1 ÷ trailing P/E) minus the 10-year Treasury yield. Measures what extra return stocks offer over risk-free bonds. The ERP has turned negative in 2023–2026 — the first sustained negative reading since the dot-com bubble. This means Treasuries are currently yielding more than the S&P 500's earnings yield, a rare condition that historically signals expensive equities.

Equity risk premium — Jul 2026
−1.4%
Earnings yield 3.1% minus 10Y Treasury 4.5%  ·  Bonds beat stocks on yield
Positive ERP (stocks attractive)
Negative ERP (bonds beat stocks)
ERP was strongly positive from 2008-2021 (financial repression era), then collapsed as rates rose. Currently -1.4%.
Post-GFC peak (2012)
+5.8%
Dot-com low (1999)
−1.9%
Post-GFC avg (2009–21)
+4.5%
Current (Jul 2026)
−1.4%

The ERP and the free money era

From 2009 to 2021, near-zero rates made the ERP deeply positive — stocks were the only game in town. That was financial repression working as intended. Now, with the 10-year at 4.4%, investors can earn real returns from bonds for the first time in 15 years. The negative ERP is not predicting a crash — but it removes one of the pillars that justified high equity valuations throughout the 2010s.

Source: S&P 500 trailing P/E (earnings yield = 1/PE) minus 10-year US Treasury constant maturity yield (FRED DGS10). Annual averages 1980–2026. ERP = earnings yield − risk-free rate.
Chapter IV

Valuations & The Golden Mirror

What you pay determines what you get. The most-watched valuation gauges in history, the price of a dollar of revenue decomposed into its engines, the index re-priced in hard money — and the asset that reflects back what real yields say about paper money.

13 /

Shiller CAPE Ratio

The cyclically adjusted P/E — stock prices divided by 10-year average inflation-adjusted earnings — is arguably the gold standard of long-run valuation. At 41.6, it sits at the 2nd highest level in 154 years, exceeded only by the December 1999 dot-com peak of 44.2. Historical evidence: CAPE above 30 has preceded every major bear market. The long-run median is 16.

Shiller CAPE — July 2026
41.6
Long-run median: 16.0  ·  2nd highest in 154 years
CAPE ratio
Long-run median (16)
Danger zone (>30)
CAPE peaked at 44.2 in 1999, troughed at 8.9 in 1975, and currently stands at 41.6.
Dot-com peak (2000)
44.2
GFC trough (2009)
13.3
Long-run median
16.0
Current (Jul 2026)
41.6

The caveat

CAPE has been "elevated" since the mid-1990s. Structural changes — intangible capital, tech dominance, globalised profits — may justify a higher baseline. The signal matters most at the rate of change: CAPE at 38 after 3 years of rapid expansion is different from CAPE at 38 after 10 years of stability.

Source: Robert Shiller / Yale (Irrational Exuberance data). Annual Jan 1 values. CAPE = current S&P price ÷ 10-year avg CPI-adjusted earnings. Long-run median 16.0 from 1871–2026.
14 /

Price, Sales & the Margin Wedge — P/S Decomposition

Every equity return decomposes as price = sales × margin × multiple, and sales are the honest layer — slow, GDP-anchored, nearly unmanipulable. Since December 2000 the index’s price has compounded at +7.0%/yr on revenues doing +4.0%; the wedge is margin expansion (GAAP net margins 6.4% → 11.5%) plus multiple gain. The resulting price-to-sales ratio of 3.67 is an all-time record, more than double the 1.64 median. And the engine mix has just rotated: the 2013–21 bull ran on margins; the advance since late 2022 runs on the multiple (+9.6%/yr of P/E expansion) — the least durable engine of the three, now the largest.

S&P 500 price-to-sales — July 2026
3.67
All-time record  ·  median 1.64  ·  low 0.80 (Mar 2009)  ·  Dec-2021 peak 3.04
Price (implied, indexed, log)
Sales per share (indexed)
The wedge
Price and revenues indexed from 2000; the widening gap is margins and multiples.
Price / Sales (quarterly)
GAAP net margin (annual, right)
Median 1.64
P/S from 0.80 at the 2009 trough to a record 3.67; margins from 6.4% to 11.5%.

Three-engine attribution (%/yr, log-additive)

Dec 2000 → Jun 2026:  price +7.0 = sales +4.0 + margin +2.3 + P/E +0.6
Dec 2012 → Dec 2021:  price +14.3 = sales +4.1 + margin +6.1 + P/E +3.5
Sep 2022 → Jun 2026:  price +21.7 = sales +4.8 + margin +4.8 + P/E +9.6
P/S median 2000–
1.64
GFC trough (Mar 09)
0.80
2021 peak
3.04
GAAP net margin
11.5%

The double bet

Sales contribute the same steady +4–5% in every era; everything above that rests on the two layers history mean-reverts. At 3.67× sales on ~11.5% margins, the index compounds two bets at once — that record margins persist and that a P/E above 30 on those margins persists. Reversion of P/S merely to 2.5 over a decade costs ~3.9 points of annual return; to the median, ~7.7. CAPE (13) prices the earnings; this panel shows what the earnings are made of.

Source: S&P Dow Jones Indices via Multpl (TTM sales per share & P/S, quarterly; latest reported sales Sep 2025 — ~3-quarter S&P lag). Implied price = P/S × SPS (identity exact). Margin = P/S ÷ P/E on matching dates, nominal. Window opens Dec 2000, after the true dot-com P/S peak (~2.2 on intra-2000 constructions).
15 /

Buffett Indicator — Market Cap / GDP

Total US stock market capitalisation (Wilshire 5000) divided by GDP. Warren Buffett called it "probably the best single measure of where valuations stand at any given moment." At 232%, it is near its all-time high. The structural uptrend since 1995 means the raw ratio should be compared to its trendline rather than its historical mean — on a de-trended basis, the market is approximately 2.0–2.4 standard deviations above trend.

Buffett Indicator — July 2026
232%
Historical mean: 123%  ·  2.0–2.4σ above trendline
Market cap / GDP (%)
Historical mean (123%)
Overvalued zone (>150%)
Buffett indicator rose from 73% in 1971 to 232% in July 2026, with a major surge post-2010.
Dot-com peak (1999)
157%
GFC trough (2009)
75%
Pre-COVID (2019)
143%
Current (Jul 2026)
232%

The structural uptrend caveat

The ratio has trended upward since 1995, possibly because US multinationals earn profits globally that aren't captured by domestic GDP, and because technology companies carry high market values relative to their asset base. De-trended, the current reading is still approximately 2.0–2.4 standard deviations above the regression trendline — firmly in overvalued territory.

Source: Wilshire 5000 Full Cap Price Index / US GDP (BEA). Annual data 1971–2026. Current reading per currentmarketvaluation.com / GuruFocus as of Jul 2026.
16 /

S&P 500 in Gold Terms — SPX/Gold Ratio

The index priced in hard money: how many ounces of gold buy the S&P 500. It strips the monetary-debasement component out of equity returns and turns nominal price history into three enormous secular waves — peaks in 1967 (2.74) and 2000 (5.41), troughs in 1980 (0.16) and 2011 (0.66). Since the December 2021 peak of 2.61 the S&P has advanced roughly 60% in nominal terms while losing 30% priced in gold — a nominal advance unconfirmed in hard money, the same signature the 2003–07 cycle carried. The current reading is 1.81, the 63rd percentile of the free-float era.

SPX/Gold ratio — July 2026
1.81 oz
63rd percentile since 1971  ·  −30.5% from Dec-2021 peak while SPX made nominal highs
SPX / Gold (log scale)
Bretton Woods era (gold fixed at $35)
Falling regime (hard money outruns paper)
SPX/Gold ratio: peaks 2.74 (1967), 5.41 (2000), 2.61 (2021); troughs 0.16 (1980), 0.66 (2011); current 1.81.
1980 trough
0.16
Dot-com peak (Aug 2000)
5.41
2011 trough
0.66
Dec-2021 peak
2.61

The unconfirmed advance

Every nominal all-time high the S&P has made since early 2024 has gone unconfirmed in gold terms — the ratio peaked in December 2021 and fell as much as 47% into March 2026 while headlines celebrated record closes. The 2003–07 bull market carried the identical signature: new nominal highs, no new high priced in gold, an advance driven by liquidity rather than real earnings power. When the CAPE and Buffett Indicator say equities are expensive in dollars, this ratio adds that the dollars themselves have been shrinking against hard money.

Sources: S&P 500 monthly average (Robert Shiller / Yale). LBMA gold price monthly average (USD/oz). Current month appended from spot (SPX close ÷ gold spot, 02 Jul 2026). Pre-Aug-1971 shown muted — gold fixed at $35 under Bretton Woods parity, so the ratio carries no signal and is excluded from percentile ranks.
17 /

Gold vs 10-Year Real Yield — 55 Years

Extended back to 1971 using a proxy real yield (10Y nominal Treasury minus trailing CPI) for 1971–2003, switching to actual TIPS market yields from 2004 onward. The proxy era is shown dashed; the TIPS era solid. Three defining episodes now visible: the 1974–1980 stagflation surge, the Volcker shock collapse, and the 2022–2026 breakdown of the inverse relationship.

Gold (spot Jul 2026) vs real yield
$4,125 / oz
Real yield: +2.25% — historically this level would suppress gold. It hasn't.
Gold price $/oz (left axis)
TIPS real yield inverted (solid)
Proxy 10Y−CPI (dashed)
55-year chart showing gold and real yields with proxy data 1971-2003 and TIPS data 2004-2026.
1974–80 stagflation peak
$615 (real −2%)
Volcker shock trough
$317 (real +7%)
COVID repression peak
$2,075 (real −1%)
Current breakdown
$4,125 (real +2.25%)

The 2022–2026 anomaly

The classical model says gold at $4,125/oz — even after a 14% Q2-2026 crack, its worst quarter since 2013, off the February peak near $5,020 — with real yields at +2.25% makes no sense: you are being paid 2.25% above inflation to hold Treasuries instead. Yet gold has more than doubled since 2022 and is at all-time highs. The explanation: central bank buying has hit record levels (1,000+ tonnes/yr for three consecutive years), driven by de-dollarisation from China, Russia, India and Turkey. The relationship hasn't broken — a new structural buyer has entered who doesn't care about opportunity cost.

Sources: LBMA gold price annual avg. 10Y Treasury: Federal Reserve H.15. CPI: BLS. Real yield 1971–2003 = proxy (10Y nominal − trailing CPI). Real yield 2004–2026 = TIPS market yield (FRED DFII10). Proxy series shown dashed; TIPS shown solid. Correlation ≈ −0.82 per Erb & Harvey.