I want to turn to gold...
Now I want
to turn to gold and the dollar.
The chart below
shows the Dow/gold ratio. History tells us that ultimately the
ratio drops to 1 to 1. In other words, one share of the Dow buys
one ounce of gold. At the recent 1999 highs, the Dow/gold ratio
climbed to a record high of just over 40. The ratio has now dropped
to 24.2, a decline in the ratio of 40 percent. Over time, I see
one chart of the Dow again buying just one ounce of gold, at
which time the Dow/gold ratio will again be at 1.
I might that very few people are aware of his fundamental relationship between the Dow and gold.
more follows for subscribers...
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