Monday, January 18, 2010

Gold and US Stock Market Facts



Gold 1975-Present





US Stock Market (S&P500 )1980-Present




US Stock Market is falling or moving sideways

from 2001-2010 as shown in the chart

but Gold Rallied from 250$ to 1200$

during the same period.Its reverse happened in

1981-2000 period as Gold moved down or

sideways for 20 years and US market rallied in

1981-2000.This derives to the conclusion that

if Gold rallies then StockMarkets and Economy

goes down ie Gold is inversely proportional to

US Stock Market for last 30 years.



Reference:Gold Price chart taken from http://www.kitco.com/scripts/hist_charts/yearly_graphs.plx



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