You won’t hear this on CNBC.
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 14.7 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. From the 1990 peak until 2011, the Dow (priced in gold) endured a massive bear market. Since 2011, gold has struggled while the Dow has continued to rally. All of this has resulted in the Dow (priced in gold) rallying in a well-defined, upward sloping trend channel. Despite this strong rally, however, the Dow (priced in gold) remains well below its 1999 peak and has just broke below support of its four-year upward sloping trend channel.
It’s cheap because there’s a glut of it, no one wants the stuff.
@ Anonymous “It’s cheap because there’s a glut of it, no one wants the stuff.”
Your talking about the DOW right?
Took my 6yo son for his first gold purchase today, a quarter ounce chain to wear his tiny gold Buddha around his neck, traditional Thai style.
Gold is money in his country, always has been, always will be.
Too bad physical gold is globally valued in US dollars, which gives a false valuation to the occupants of the US of A.
Look at the valuation of physical gold where other global currencies are concerned. It is up in almost all other currencies except the US dollar.
When the US dollar falls back to earth and the rush to physical gold begins, Americans will find that there is none on offer. At any fiat price.
crap does this mean the privately owned central banks can print up that much more currency ?
Just curious )