Afasilver shared an interesting post in which Apple stock was determined by various fundamental models and Wall Street estimates to have a “fair value” of $157.62 More interesting, Apple’s current price of $152.29 suggests these models and the market are nearly 97% in agreement.

So if we took that fair value estimate of $157.62 for AAPL stock, could we use that to find the fair value of Gold?

If we draw up a long term ratio chart of AAPL vs $GOLD, we see a long term upwards sloping channel. In late 2014 through 2015, the AAPL:$GOLD ratio appeared to hit a resistance level around the 0.100 ratio level (Apple shares priced 1/10th or 10% the price of Gold). The ratio broke through the 0.100 level in 2017, but after a 38% drop in the ratio in late 2018, we see that the ratio may test the 0.100 level again. In addition, another retest of the 0.100 level may coincide with a test of the top rail of a long term upwards sloping channel.

If the “fair value” of Apple stock is $157.62 and the AAPL:$GOLD ratio tests the 0.100 level, that implies a possible “fair value” of Gold to be $1,576.20

That’s an interesting possibility and I’m sure my gold miner positions would love that! -Harry