The Gold Tesla Ratio

Is there a stock market bubble? Tesla stock has certainly seen massive price increases over the past year. The Gold Tesla ratio is also very interesting to consider.

I am interested in investigating whether this price increase is due to the debasement of the dollar. Perhaps it would be interesting to look at how the stock has performed when priced in gold, silver and other commodities.

The Gold Tesla ratio, over the last 12 months.

The graph represents the price of a single Tesla share vs the price of 1 oz of gold. On 2019-09, the ratio was 7:1. You could buy 7 Tesla shares in return for selling 1oz of Gold.

This image was generated on August 30th 2020. At time of writing, the Gold Tesla ratio stands at 1 : 0.889.

The Gold Tesla Ratio

Tesla Silver Ratio

The graph below represents the Tesla to Silver ratio over the last two years. The graph represents the price of a single Tesla share vs the price of 1 oz of silver.

The Silver Tesla Ratio

This is truly spectacular. There is no doubt that, in hindsight, many silver investors should have moved their funds into Tesla back at the start of 2018. If they had done so, and sold their Tesla today and jumped back into Silver, they would have 35ozs of silver for every 5oz they sold in 2018.

Obviously hindsight is 20:20.

Personally, I consider Tesla’s insane 2020 stock performance to be a worrying signal of the beginnings of a crack up boom.