Thursday, July 28, 2011

The Dow-Gold ratio

The Dow Jones Industrial Average dipped below 8:1 recently.  During the Great Depression, the ratio dropped to 2:1, and plummeted to its all-time low of 1:1 in 1980, when gold peaked around $850/oz.

The DJIA is currently at 12,375.  The price of gold is $1,607.  Draw your own conclusions.
Click on image to enlarge.

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