Advertise | Bookmark | Contact Us | E-Mail List |  | Update Page | 

Commentary : Gold Review : Markets : News Wire : Quotes : Silver : Stocks - Main Page >> News >> Story  Disclaimer 
Latest Headlines

Gold Seeker Closing Report: Gold Gains While Stocks Drop
By: Chris Mullen, Gold Seeker Report

Ira Epstein's Metals Video 3 19 2018
By: Ira Epstein

GoldSeek Radio: Gerald Celente and Wolf Richter, and Chris Waltzek

SWOT Analysis: Tightened Supplies Could Be Good for Copper
By: Frank Holmes

Technical Scoop - Weekend Update Mar 19
By: David Chapman

Larry Kudlow Toes Wall Street’s Anti-Gold Company Line
By: Clint Siegner

The Wealth Machine That Rising Interest Rates Create And The Conflict With The National Debt (Part 2)
By: Daniel R. Amerman, CFA

2018 Reversal Dates for Gold, Silver and Gold Stocks
By: Przemyslaw Radomski, CFA

Standing Ready to Lease Gold
By: Keith Weiner

Is The U.S. Economy Really Growing?
By: Peter Cook, CFA


GoldSeek Web

Signals – From Gold and the SPX

 -- Published: Thursday, 19 May 2016 | Print  | Disqus 

By Gary Christenson

Thanks to High Frequency Trading and the rise of the machines in the electronic markets, gold and the S&P 500 Index are difficult for non-machines to understand and predict on a short term basis.

What do they tell us in the longer term?

It is an exponentially increasing world!  Both gold and the S&P 500 Index have risen exponentially for fifty years.  Since they often move counter to each other, take the sum of the gold price plus the S&P 500 Index and you can see the overall trend more easily.


The exponential trend since 1990 is clear.  We can reasonably expect they will continue to rise until we experience a massive reset in the financial systems.

What about the RATIO of gold to the S&P 500 Index?

M-GC-SP ratio

Since 1990 the ratio (weekly data) has varied widely, from under 0.20 to 1.60.  The two low points in the ratio are marked with green ovals, and the high point in 2011 is marked with a red oval.

Conclusion:  At green ovals buy gold and sell the S&P.  At red ovals sell gold and buy the S&P.

What about actual gold prices?


The above gold chart – log scale since 1990 – supports those conclusions.  At green ovals, which are the same ovals as on the ratio chart, buy gold and at red ovals sell gold.


  • Prices for gold and the S&P 500 rise exponentially. We can thank central banks, runaway debt, continual currency devaluations, and fractional reserve banking, but regardless, expect those exponential increases to continue until the financial system experiences a major reset.
  • The ratio of gold to the S&P 500 Index is currently low, consistent with the fact that gold hit a multi-year low in December 2015. The ratio can easily triple from here.
  • Green ovals indicate long-term opportunities to buy gold and probably to sell the S&P 500 Index.
  • Do your own research, but based on the above charts, 2016 looks like a good time to accumulate more gold for the long term. When the gold to S&P 500 Index ratio approaches 1.2 – 1.6, reconsider both markets.
  • Expect: More currency devaluations, higher prices for commodities, volatile markets, increasing central bank desperation as shown by craziness such as negative interest rates, more QE, and continued zero-interest rate policy.  Central banks do NOT have your back – unless you are a member of the political and financial elite.


Doug Casey:  Casey on the Greater Depression

Jim Grant:  Central Banks Have Lost Their Marbles

Gold thrives, paper dies!

Gary Christenson

The Deviant Investor

| Digg This Article
 -- Published: Thursday, 19 May 2016 | E-Mail  | Print  | Source:

comments powered by Disqus


Increase Text SizeDecrease Text SizeE-mail Link of Current PagePrinter Friendly PageReturn to >> Story

E-mail Page  | Print  | Disclaimer 

© 1995 - 2017 Supports

©, Gold Seek LLC

The content on this site is protected by U.S. and international copyright laws and is the property of and/or the providers of the content under license. By "content" we mean any information, mode of expression, or other materials and services found on This includes editorials, news, our writings, graphics, and any and all other features found on the site. Please contact us for any further information.

Live GoldSeek Visitor Map | Disclaimer

The views contained here may not represent the views of, its affiliates or advertisers. makes no representation, warranty or guarantee as to the accuracy or completeness of the information (including news, editorials, prices, statistics, analyses and the like) provided through its service. Any copying, reproduction and/or redistribution of any of the documents, data, content or materials contained on or within this website, without the express written consent of, is strictly prohibited. In no event shall or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.