Watch the S&P 500-to-gold ratio. If it reaches 0.1566, the S&P 500-to-Gold ratio has reached its historical low.
Today’s S&P 500-to-gold ratio has not yet fallen to its historical low of 0.1566. To reach historical lows set in 1981, the S&P 500 would either need to fall to 290, gold would need to rise to $7275/oz or some combination of the two would have to occur.
Source: Seeking Alpha