The simple ratio of GOLD / S&P500 provides clarity of when it is best to be invested in Gold or Stocks: - When the ratio index > 200 week moving average, Gold has historically outperformed stocks (S&P500). - When the ratio index < 200 week moving average, investing in stocks yielded the best returns.
Following this simple strategy from 2001 would have yielded a 14.5% annual return versus just 5% for the S&P500, and 9% for Gold.