What the Gold to S&P 500 Ratio Is Telling Investors

In this appearance on the Flyover Conservatives Show, Dr. Kirk Elliott looks past the day to day price action and works through two longer term signals. He reviews the idea, raised recently by economist Nomi Prins, that silver could one day be treated as a tier one asset, meaning an asset held on equal footing with currency for settlement between nations. Elliott explains why gold fits that description naturally, and why he remains skeptical about silver, since silver is consumed in manufacturing and its available supply diminishes over time. He then walks through the long term ratio between the S&P 500 and gold, noting that the ratio compressed because equities outpaced gold rather than because gold declined, and that it now sits near the top of a long standing trend line. He also revisits why he views silver as undervalued relative to gold, and invites viewers to schedule a consultation with the KEPM team.