Is the ratio peaking or does it have a long way up to go?
Gold reveals the true nature of Federal Reserve created inflation.
For some perspective on the long-term performance of the stock market, today’s chart presents the Dow priced in another global currency — gold. Today’s chart illustrates how it currently takes approximately 13 ounces of gold to ‘buy the Dow’ (i.e. the Dow / gold ratio) — well off the 44.8 ounces it took back at its peak in 1999. Priced in gold, the Dow had been in a massive 13-year bear market. However, back in the summer of 2011, gold peaked while the Dow continued to rally. While the Dow (priced in gold) has been rallying since 2011, the Dow (priced in gold) remains well below its 1999 highs.
