[In the years to come] 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
[and one can expect the above] to continue until the financial system experiences a major reset. [After all,] it is an exponentially increasing world!
The Gold Price + the S&P 500 Index Trend
Since both gold and the S&P 500 Index 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 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.
Gold to S&P 500 Index Ratio Trend
Since 1990 the ratio of gold to the S&P 500 Index (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. The ratio is currently low, consistent with the fact that gold hit a multi-year low in December 2015. 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. The ratio could easily triple from here.
Do your own research, but based on the above charts, 2016 looks like a good time to accumulate more gold for the long term.