Market Intelligence
This ratio divides the gold price by the S&P 500 — the cleanest gauge of hard assets versus stocks. When it’s high, gold is dear and equities are cheap; when it’s low, stocks are expensive and gold is the overlooked bargain. Today it sits near the bottom of its half-century range.
Extreme reading: at 0.55, the ratio sits in the lower third of its readings since 1970.
Gold / S&P 500 Ratio
55-year history · log scale
Historical extremes
- 1980 peak ~6.0
- 2000 low 0.18
- 2011 spike 1.68
- Today 0.55
Reversion scenarios (illustrative)
- Stocks −40% → ~0.92
- Gold +50% → ~0.83
- Both at once → ~1.4
Key pattern
The ratio has bottomed near major stock-market peaks (2000, 2021) and surged in resource bull markets (the 1970s, and 2008–2011). Extremes have marked turning points, not permanent states.
Ratio = gold price ÷ S&P 500 index level.
What the gold / S&P 500 ratio means
This single line captures a tug-of-war that has driven markets for a century: hard money versus financial assets. Dividing the gold price by the S&P 500 tells you how many “units” of the stock market one ounce of gold can buy — a quick read on which side of that trade is cheap.
When the ratio is high (1980, 2011), gold is expensive and stocks are unloved. When it’s low (2000, 2021, and today), stocks are richly valued and gold is the overlooked bargain. It’s a macro compass, not a timing signal — but the extremes have repeatedly marked major turns.
How to read it
The chart is on a log scale so both the 1980 spike and the 2000 trough are legible. The dashed green line marks today’s level so you can see how rarely the ratio has been this low. Stretches well below that line have historically rewarded gold and hard-asset buyers.
- High ratio → gold dear, stocks cheap. Low ratio → stocks dear, gold cheap.
- Peaked above 6 in 1980; bottomed near 0.18 in 2000.
- Today ≈ 0.55 — the lower third of the 55-year range.
Frequently asked questions
What is the gold-to-S&P-500 ratio?
It’s the gold price divided by the S&P 500 index level — a one-line gauge of how hard assets are valued against U.S. stocks. When it’s high, gold is dear and equities are cheap; when it’s low, stocks are expensive and gold is the overlooked side of the trade.
Is gold undervalued compared to stocks?
By this yardstick, gold is inexpensive: at about 0.55 the ratio sits in the lower third of its 55-year history, despite gold’s strong run — because stocks have run even harder. Stretches like this have historically favored hard-asset buyers, though the ratio is a compass, not a timing signal.
What was the highest gold-to-S&P-500 ratio ever?
Within this chart’s 55-year window, the ratio peaked just above 6 in early 1980 — gold mania meeting a depressed stock market — and bottomed near 0.18 in 2000 at the peak of the dot-com boom. Today’s 0.55 sits far closer to the bottom than the top.
Keep exploring
More free monitors
Commodity Bargain Monitor
3-year returns across 16 commodities — who’s cheap, who’s hot.
Bitcoin vs. Gold Market Cap
How far has “digital gold” closed the gap on the real thing?
Disclaimer. For informational purposes only and not investment advice or a recommendation. Reversion scenarios are hypothetical illustrations, not forecasts. Built from third-party price data and not guaranteed to be accurate or complete. Always do your own research.
