Gold’s Repricing

The ratio currently sits near 12.0, below its 50-year post-1971 historical average (~15.0). Unlike past market crises where equities collapsed while gold surged, today’s market features a rare tug-of-war where both stock earnings and gold prices are climbing simultaneously.

Global central banks (led heavily by China) are engaging in structural, multi-year accumulation of physical gold to diversify away from U.S. dollar reserves and fiat debasement, establishing an unprecedented institutional floor under gold prices.