Loading ...Dow:Gold Ratio
This Ratio is one that Goldbugs love to discuss.
In 1980 it was 1 ( One)
Gold and the Dow were both 800 for a brief moment in time. Apparently that is the “Correct ” Ratio ( tongue in cheek)
Shortly after that Gold entered a 20 year bear and the Dow took of on a 20 year Bull
The Ratio Topped out in 2000 at 44 ( Forty Four)
During the Great Gold Bull of the Naughties…Bugs were betting that the ratio would fall back to 1 eventually.
This was an absolute !
Well 11 years later in 2011 Gold Topped and the Dow didn’t !
“All” we got was a ratio of 6 …Gold was circa $2000 and the Dow 6 x more at (12,000)
Since then The Dow has outperformed Gold again.
Sure anything ca happen bUt this is a long term chart and we haven even yet had a Fibo retrace. So by being fixated in Gold and Gold Stocks we are “betting” against this trend. This is an important concept to understand …no ?
In Rambus Blockbuster post last night he was Highlighting this Ratio.
Paraphrasing : There is a Time to Own Gold and There is a Time to Own Stocks…
Which begs the question ..What time is it ?
Can’t wait to see the hate mail from this one.
Incoming !
Some gold bubbles only last a few years, that said ,gold and the dow can go up at the same time as being a fear trade parking cashola.
Patience my friend. 19.5 years from bottom in 1980 to the top in 1999, 19.5 years from the top in 1999 to the bottom in, let’s say late 2018 – early 2019. We’re talking a massive crash here. I say this in jest, but it could happen.
I did notice that breakout in this ratio the other day BTW. Also, I don’t think anyone says the 1 to 1 ratio is the “correct” ratio, just that it returns to that ratio when the piper is finally paid and all is said and done. It also got to that ratio or very close to it during the Great Depression as I understand it.
What time is it?
Time to get ?
https://www.youtube.com/watch?v=183gMqy1tfw
So Fully, Rambus is bullish for a long time yet? Jaws of life?
Its a secret
🙂
Oh thanks! I even posted a friendly video. Why that kind of behavior is going to make me buy a subscription to Rambus’ site.
T bone…If you think its really a secret look at these charts again… the answer is there.
So how come you don’t get a subscription if you care about what Rambus is seeing ?
PS….the video says “not available”
Yes very disappointing T Bone no video of the Beastie boys! Not sure if I am upset or not.
Slammed 2 ways..ouch.