Saturday, November 27, 2010

$GOLD:$SPX - Gold in S&P 500 Terms - Monthly

... Spot GOLD in S&P 500 terms topped out in early 2009 ...


  1. long term tops in gold/s&p500 ratio 1974 : 3, 1980 : ~7.

    we can see 3 tops in gold chart in $. So what? I think the ratio gold/s&P500 is bullish but i'm not sure gold will rise in $. The only way to see a bullish ratio without increasing gold price would be a great depression in assets like in 2009.

    What's your opinion ?



  2. I was highlighting the fact that GOLD became less attractive vis a vs EQUITIES in early 2009 - this despite the well publicized rise in GOLD since that time... This is because since early 2009 - EQUITIES have benefited from the FED induced liquidity, low rates, and natural rebound off of the lows... It is true that the only way to get a decrease in this ratio if GOLD declines is an even more precipitous decline in EQUITIES... We shall see... GOLD currently consolidating its most recent big up move...

  3. Anonymous12:58 AM

    So going forward, next 6-18 months, what does your read on the charts say will outperform, gold or SPX