Gold Price Fundamentals

S&P 500 Index/Gold Price (1871–2002)

1870

2000

1880

1890

1900

1910

1920

1930

1940

1950

1960

1970

1980

1990

Gold has a dual personality:

Following peaks, gold has risen

vs. deep recession/depression

S&P 500 Gold

12/29 – 01/34 -63% 69%

12/68 – 12/74 -34% 347%

08/00 – 06/02 -35% 13%

Financial Asset vs. Hard Asset

Source: Bloomberg