What does the S&P to Gold ratio show?

This is a straightforward macro study showing the performance of S&P against Gold.

We see that from 1980 to 1999/2000 S&P outperformed Gold, while from 2000 to 2011 Gold outperformed S&P. We are currently (since 2011) in a stage where S&P is again outperforming Gold and the uptrend may soon break higher in a parabolic move.

The conclusions drawn are that S&P is still a better investment over Gold at least for another 4 - 5 years. Although the ratio's next high is expected to be higher than the previous in 1999/2000, buying Gold will start becoming an option again near that high.







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