Me: If the major markets were priced in gold, would they still be at record highs?
Grok: No, the major US stock indices (Dow, S&P 500, Nasdaq) are not at record highs when priced in gold (i.e., when you divide the index level by the gold price per ounce to get ounces of gold needed to "buy" the index).
Current Snapshot (as of mid-May 2026)Dow Jones closed at ~50,063 on May 14. Gold was trading around $4,600–$4,700/oz (recent range ~$4,614–$4,735, with earlier 2026 peaks near $5,500+).
Dow/gold ratio ≈ 10.5–11 ounces of gold to match the Dow.
goldsilver.com
S&P 500 recently hit ~7,400–7,500.S&P/gold ratio ≈ 1.6 ounces.
longtermtrends.com
These are not all-time highs in gold terms. Stocks have made nominal USD records amid AI/tech optimism and other factors, but gold has risen sharply too (up dramatically over the past 1–2 years, with multiple records in 2025–early 2026).
wsj.com
Historical ContextThe Dow/gold ratio (ounces of gold to buy the Dow) shows relative performance:All-time peak: ~43 ounces in 1999 (dot-com bubble peak; stocks extremely expensive vs. gold).
mikesmoneytalks.ca
Other highs: ~29 in 1966; ~19 in 1929.
mikesmoneytalks.ca
Low extremes: ~1.3–2 ounces in 1980 and 1933 (gold strong, or stocks crushed).
macrotrends.net
Long-term average (decades): Often in the mid-teens or higher in stock-favoring eras.
bullionvault.com
Current levels (~10–11 for Dow) are well below historical stock-bull peaks and closer to more balanced or gold-favoring periods. Similar dynamics apply to the S&P 500/gold ratio.
macrotrends.net
Why This MattersNominal USD records reflect fiat currency dynamics, inflation expectations, money supply growth, and sector-specific booms (e.g., tech/AI).
Gold-denominated views strip out some of that and show "real" purchasing power in a hard asset. Gold has acted as a strong performer/safe haven amid geopolitical tensions, dollar shifts, central bank buying, and inflation concerns in recent years.
goldsilver.com
Stocks can hit USD highs while underperforming gold (or real assets) over stretches—this has happened in multi-year cycles before.
In short, while USD stock indices are at or near records, they are not in gold terms. The Dow/gold ratio would need to climb significantly (toward 20–40+) for that to be true, which historically aligns with major equity overvaluations relative to hard assets. This doesn't mean stocks can't keep rising in dollars, but it highlights gold's outperformance in the current environment. Always consider your time horizon, diversification, and risk tolerance.
Me: If the major markets were priced in gold, would they still be at record highs?
Grok: No, the major US stock indices (Dow, S&P 500, Nasdaq) are not at record highs when priced in gold (i.e., when you divide the index level by the gold price per ounce to get ounces of gold needed to "buy" the index).
Current Snapshot (as of mid-May 2026)Dow Jones closed at ~50,063 on May 14. Gold was trading around $4,600–$4,700/oz (recent range ~$4,614–$4,735, with earlier 2026 peaks near $5,500+).
Dow/gold ratio ≈ 10.5–11 ounces of gold to match the Dow.
goldsilver.com
S&P 500 recently hit ~7,400–7,500.S&P/gold ratio ≈ 1.6 ounces.
longtermtrends.com
These are not all-time highs in gold terms. Stocks have made nominal USD records amid AI/tech optimism and other factors, but gold has risen sharply too (up dramatically over the past 1–2 years, with multiple records in 2025–early 2026).
wsj.com
Historical ContextThe Dow/gold ratio (ounces of gold to buy the Dow) shows relative performance:All-time peak: ~43 ounces in 1999 (dot-com bubble peak; stocks extremely expensive vs. gold).
mikesmoneytalks.ca
Other highs: ~29 in 1966; ~19 in 1929.
mikesmoneytalks.ca
Low extremes: ~1.3–2 ounces in 1980 and 1933 (gold strong, or stocks crushed).
macrotrends.net
Long-term average (decades): Often in the mid-teens or higher in stock-favoring eras.
bullionvault.com
Current levels (~10–11 for Dow) are well below historical stock-bull peaks and closer to more balanced or gold-favoring periods. Similar dynamics apply to the S&P 500/gold ratio.
macrotrends.net
Why This MattersNominal USD records reflect fiat currency dynamics, inflation expectations, money supply growth, and sector-specific booms (e.g., tech/AI). Gold-denominated views strip out some of that and show "real" purchasing power in a hard asset. Gold has acted as a strong performer/safe haven amid geopolitical tensions, dollar shifts, central bank buying, and inflation concerns in recent years.
goldsilver.com
Stocks can hit USD highs while underperforming gold (or real assets) over stretches—this has happened in multi-year cycles before.
In short, while USD stock indices are at or near records, they are not in gold terms. The Dow/gold ratio would need to climb significantly (toward 20–40+) for that to be true, which historically aligns with major equity overvaluations relative to hard assets. This doesn't mean stocks can't keep rising in dollars, but it highlights gold's outperformance in the current environment. Always consider your time horizon, diversification, and risk tolerance.