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Gold Eagle/Frank Holmes/4-15-2020
“‘Unprecedented global monetary stimulus is a worthy catalyst for the per-ounce price of gold to revert to its long-term mean vs. the S&P 500 Index, in our view,’ McGlone explains. … This has happened before …. As recently as March 2013, both spot gold and the S&P 500 were trading in the same 1,500 to 1,600 range. Before that, in May 1990, it was a 330 to 360 range. A reversion to the mean now – again, assuming the S&P continues to trade at its current level – would put the yellow metal at approximately $2,800 an ounce, a new record high by far.”
USAGOLD note: Whether or not the S&P will hold in its current range is an open question. At the same time, there have been instances when less than ounce of gold bought the S&P Index. Please see chart below.
Chart courtesy of MacroTrends.net