Gold Stocks relative to Stocks

Perception must not blind you from the truth. Many investors have the perception that gold stocks have and will continue to under perform the stock market. While gold stocks have been grinding higher since 2003, they will soon accelerate relative to stocks. This will be illustrated by a sharp downward push in the U.S. Large Cap Stocks Capital Appreciation Index to S&P Gold Ratio. The downward push will resemble those of 1929-1932, 1932-1938, 1970-1974, 1976-1980, and 2000-2003.

U.S. Large Cap Stocks Capital Appreciation Index (LCSCAI); S&P 500 to S&P Gold Ratio (GPM)*:* S&P Gold from 1945, Barron's Gold Stock Index from 1939-1945, Homestake Mining