S&P to GOLD actual value!!! Buy GOLD

in #gold6 years ago

S&P to GOLD and vice versa

I have created this chart in which the red line represents how many S&Ps you have to pay for 1 ounce of gold and the blue line represents how many ounces of gold you have to pay per 1 S&P.

I have marked only the points when the price was at its highest/lowest points of both gold and S&P. It is almost impossible to predict the price in dollars since everyday there are new dollars created meaning the "value" of dollar is decreasing.

In this graph you can see how the price moves very well and also that when one asset is at its peak the other one is at its low which is what all investors are looking for. They are looking for UNDERVALUED assets.

sps.PNG

Now we are in situation that right after the stocks to gold crashed it went back up. I think it can go up fo a while but that would mean that gold would have to be stagnating or going down and I would say if it goes up it won't last long since gold is down in comparison to dollar and have suffered a major crash already while the stocks have been going up from the whole beginning in comparison to USD of course!

You can also see that gold had its highest price/dollar in 1980 and have not overrun it yet. It is techically impossible because there was over 20x LESS dollars (inflation) in existence than there is today!!

Therefore stocks are really overpriced in comparison to gold but they definitely could go up in comparison to dollar for a while tho I would say that it is much smarter to buy gold than stocks just by looking at the graph .

oz of gold / dollar
gold.PNG

S&P / dollar
sandp.PNG

I will be making more of these graphs (real estate, oil, bitcoin,...). I will compare silver to these assets as well but making these charts is quite time consuming and I do not have lot of free time.

I make these from one reason and that is because you cannot measure the value of these assets in dollar because dollar has no real value just as much value as we believe it has. And even that value is going down because of the huge amount of dollars that is being printed every single day.

inflation.PNG

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Interesting, but do remember the case of LTCM (Long Term Capital Management).

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