S&P 500 And Gold Price Racing Toward $10,000 By 2029?

We first began writing about our Roaring 2020s scenario in 2020. So far, so good. Both the S&P 500 and the price of gold have been roaring ahead to new record highs this year (chart). We wouldn't be surprised if both hit 10,000 by the end of the decade.

The stock price index and the gold price have exhibited an inverse cyclical correlation, but their long-term upward trends have been remarkably similar. The ratio of the two has fluctuated around 1.7. They appear to converge and become equal every 10-20 years, although the data are limited because the price of gold was fixed until President Richard Nixon stopped pegging it in 1971 (chart).