Short Term Prediction

The Gold/S&P ratio will reach parity. This is something that hasn’t happened since 1990. In 1980 the S&P 500 was lower than 150 and Gold was at 800. By 1990, the S&P climbed past gold and hasn’t looked back since. I think that very soon the x-factor will reverse and Gold will once again sell for more than the S&P. This time it will be Gold that won’t look back (at least for a while).

I can see this happening very soon, within the next 3-5 months. Many analysts now look to the S&P as a general benchmark than do the Dow. If the above scenario should occur I think it have serious repercussions in the financial industry. As for us, it will just be another great day!

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