Commodities Alert for 7/12/2019

THE DARWIN METALS ANALYSIS SHOWS PALLADIUM IS ON TOP

With Gold prices at around $1406.70 per ounce, and the S and P 500 at around $3004.00 the Darwin Gold Ratio is 2.14. This tells you how many ounces of gold it would take to buy the S and P 500. Historically values around 1 are average for the market and usually mean the market is at least showing some level of value. When values are below .5 it usually marks a point of extreme value for stocks in the long run. Values above 1 usually mean that the market is overvalued and portfolios should continue to ride market trends however begin to allocate more to gold than normal. Currently the ratio is above its average which means this trend could still continue for some time.

THE DARWIN GOLD RATIO ANALYSIS FOR SP500/GOLD

With Gold prices at around $1406.70 per ounce, and the S and P 500 at around $3004.00 the Darwin Gold Ratio is 2.14. This tells you how many ounces of gold it would take to buy the S and P 500. Historically values around 1 are average for the market and usually mean the market is at least showing some level of value. When values are below .5 it usually marks a point of extreme value for stocks in the long run. Values above 1 usually mean that the market is overvalued and portfolios should continue to ride market trends however begin to allocate more to gold than normal. Currently the ratio is above its average which means this trend could still continue for some time.

Trade smart,

Paul "Bulldog" Hudson, Chief Investment Officer
Darwin Investing Network