Market Analysis Charts Using Gold as Currency (Y-Axis)? [closed]

Question

I wish to analyze the historical value of individual assets in a wide range of asset groups; Commodities, Stocks, Bonds, Currencies, etc; in milligrams of Gold; using time as the x-axis and gold as the y-axis, plotting monthly/weekly average price of an asset.

Is there market analysis charts which allow one to measure in Gold, as if it was a currency?

Not looking for specific recommendations, more a general idea; does something like this exists, does it has a specific name, how would I go about searching for it, would I be better off downloading historical data from somewhere and coding some software to do it, etc?

Answer 1

The math to do this is the same as if you were measuring return in any currency:

1. Calculate the growth of $1 (or one EUR, JPY, etc) invested in the asset
2. Multiply the entire series by the price of 1 mg of gold on the first day of the time series
3. For each day in the time series, divide the result of step 2 by that day's price of 1 mg of gold

Answer 2

I see where you're going with this, and the effort to look at things differently is commendable. However, you will have to choose a monetary currency to use to determine how many milligrams of gold will equate to whatever asset class you're comparing.

Regardless of whatever currency you choose (e.g. price in Indian rupees or British pound), you will end up realizing that you've pretty much chosen the USD given the benchmark status of the contract traded in the US and how all other global references move relative to it. All the above is just a way of saying, there is a reason why things are all quoted in a single comparative currency.

However, to directly answer your question. I have never encountered such a chart and believe this is something you would have to get the historical data and build/code yourself (should be easily doable in MS Excel). You would have to be very careful in reading such a chart because each "price" change will be telling you about several things, at a minimum - the value of the asset class, the value of gold, and the value of your converting currency (USD).