S&P 500 Priced in Gold

sequoia

With equities correcting over the last few weeks and gold rallying to record highs, the price of gold has once again exceeded the price of the S&P 500.  It now takes 0.96 ounces of gold to buy the S&P 500.  This is considerably less than the long-term average of 1.74 since 1980, and a far cry from July 1999 when it took over 5.5 ounces of gold to buy the S&P 500.  The question now is, if gold eclipses 1,100, will its time above that level be as brief as it recently was for the S&P 500?

sequoia

interesting to note that we have been in big bear market since 2000, if we use gold as value measure rather than paper money.  Price of SPX and gold are now almost 1:1, but the ration in 80's is less than 0.5:1.

coexist

interesting charts. Thanks