Gold/S&P 500 Ratio at Generational Lows KATUSA RESEARCH
55-Year Chart Shows Extreme Compression: Either Stocks Crater or Gold Explodes
⚠️ EXTREME READING ALERT
Current ratio of 0.55 is at levels seen only 15% of the time since 1970. Historical reversions from such extremes have been violent.
US Recessions (NBER)
Historical Extremes
1980 Peak: 4.50
1999 Trough: 0.19
2011 Peak: 1.25
Current (2025): 0.55
Reversion Scenarios
• Stock crash: S&P to 3,000 (-50%)
• Gold surge: Gold to $6,000 (+83%)
• Both: S&P -33%, Gold +52%
• Target ratio: 1.0-1.25
Key Pattern
Ratio typically bottoms during late-cycle euphoria and explodes higher during recessions. With current readings near historic lows, risk/reward heavily favors gold.