The Dow/Gold ratio peaked in 1999 and is now in a downtrend. Once the current correction is finished the ratio will continue down towards the 1:1 level
like in 1980 when the Dow was 850 and Gold was $850. The only question is at what level the Dow and gold will be when they reach the 1:1 ratio. Will it
be Dow 10,000 and Gold $10,000? Or will we see hyperinflationary levels of 100,000 Dow and $100,000 gold? The absolute level is really irrelevant.
Because at whatever level they meet it will involve a catastrophic loss of real capital for a stock market investor. (Source: KWN Egon von Greyerz)
DOW / GOLD - A98 % FALL NEXT
like in 1980 when the Dow was 850 and Gold was $850. The only question is at what level the Dow and gold will be when they reach the 1:1 ratio. Will it
be Dow 10,000 and Gold $10,000? Or will we see hyperinflationary levels of 100,000 Dow and $100,000 gold? The absolute level is really irrelevant.
Because at whatever level they meet it will involve a catastrophic loss of real capital for a stock market investor. (Source: KWN Egon von Greyerz)
DOW / GOLD - A98 % FALL NEXT