Gold does not do anything but sit there and look at you. - Warren Buffett Buy Gold and get out of the market. - Stanley Druckenmiller No two investors have the same opinion on gold. Some call it a pet rock and the other call it best inflation hedge in the money-printing world. The Ratio of Gold to various assets is an important way to assess the relative value of Gold. These ratios show how much of an asset you can buy for an ounce of gold. For example, Gold-to-Silver ratio tells how many ounces of Silver can be bought for an ounce of Gold. One important measure that is used by prudent investors for their portfolio allocations between precious metals and stock market is Gold-to-Stock Market ratio. This has been historically proven to be a good measure of frothiness or cheapness in stock market. Open Interest in Gold Futures indicates the level of interest of traders in Gold markets. A rising Open Interest indicates more money coming into the gold market. Whenever a new buy or seller comes into the market the open interest increases. Another important indicator to follow is the Short Percentage in open interest. It tells the direction in which the market sentiment is rising. A rising short percentage indicates more traders than usual betting that the Gold price shall fall.