Gold price divided by the S&P 500 index level
One ounce of gold equals 0.84 S&P 500 points
Stocks are outperforming gold significantly. This was seen during the dot-com bubble when the ratio hit 0.2.
Relatively balanced territory. Both assets are performing within normal historical ranges.
Gold is significantly outperforming stocks. Often seen during crises or high inflation periods.
| Year | Ratio | Event |
|---|---|---|
| 1980 | 7.50:1 | Gold peaks at $850 |
| 1985 | 2.10:1 | Bull market begins |
| 1990 | 1.20:1 | Stable economy |
| 1995 | 0.60:1 | Tech boom |
| 2000 | 0.20:1 | Dot-com peak - lowest ratio |
| 2002 | 0.40:1 | Post dot-com crash |
| 2007 | 0.50:1 | Pre-financial crisis |
| 2008 | 0.90:1 | Financial crisis |
| 2011 | 1.40:1 | Gold peaks at $1,900 |
| 2015 | 0.60:1 | Dollar strength |
| 2018 | 0.50:1 | Low volatility |
| 2020 | 0.60:1 | COVID spike |
| 2022 | 0.50:1 | Inflation concerns |
| 2024 | 0.60:1 | Gold rally begins |
| 2026 | 0.84:1 | Current |
The S&P 500 is considered a better representation of the overall US stock market than the Dow Jones, as it includes 500 of the largest publicly traded companies across all sectors. This makes the Gold:S&P ratio a more comprehensive measure of gold vs stocks performance.
Market-cap weighting means the index reflects the actual value of the stock market, making it the benchmark of choice for institutional investors and index funds worldwide.
The Gold to S&P 500 ratio is calculated by dividing the price of gold per ounce by the S&P 500 index level. It measures the relative performance of gold against the broad US stock market.
The S&P 500 represents 500 companies compared to the Dow's 30, providing a more comprehensive view of the stock market. Many institutional investors prefer the S&P 500 as their benchmark.
A rising Gold:S&P ratio indicates gold is outperforming stocks. This often happens during periods of economic uncertainty, high inflation, or geopolitical risk when investors seek safe-haven assets.