GLD ratio vs S&P

GLD has been selling off relative to SPY in 2012.  It is returning to a level that may be supportive based on the following 5 year chart:

In the above chart, the black line is GLD/SPX, and the blue line is the S&P.  The highlighted areas simply note that major gains in gold relative to equities have occurred during market selloffs of varying severity.  The current bullish period looks like it is not a bad time to be accumulating gold for the long term investor.

Advertisements
  1. No comments yet.
  1. No trackbacks yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: