Stock market under gold standard

We have seen that stocks + gold can make a perfect combination to greatly reduce the volatility of a portfolio. With the graph of our right we want to show their correlation by charting the SP500 paid in gold, not in USD. We have used the latest monthly data. It's amazing how perfect we see the movement now. Since mid 2000, gold has been outperforming shares, with only two minor stops (marked on the graph by 2 rectangular boxes). The indicators are getting up and have room for descend.

We think SP500/GLD will remain steady, perhaps a little bit upwards, during the next months. After that, it might well continue to go down, which means the gold is not dead. In any case, being right or wrong, it could be a great idea to own both.