Many thanks to Sir Rambus for his insight on the Dow/Gold ratio. However, I do believe this ratio will get to ~ 1/1 sometime within the next 15 years based on this chart. Try not to laugh at the 15 year comment. That is a relatively short period of time when you account for the incredibly epic structural changes that will occur in our civilization in order for that ratio to achieve 1/1.

The Log chart shows that the ratio only made it approximately halfway to its ultimate destination in 2011 where it bounced hard. That bounce continues to this day. I think this bounce could continue up to the 1/21 ratio. As you can see, the combination of strong resistance and the 38.2 Fib retracement make that area a juicy target. If the ratio continues its current bounce and were to break up through the 21 area, I will be forced to reexamine my view on this ratio, and my entire economic philosophy.

The first half of the drop in this ratio was deflationary. The second half of this drop will be inflationary IMHO.