“Gold is forever. It is beautiful, useful, and never wears out. Small wonder that gold has been prized over all else, in all ages, as a store of value that will survive the travails of life and the ravages of time.” – James Blakely
For some perspective on the market, today’s chart presents the Dow priced in another global currency — gold. Today’s chart illustrates how it currently takes 16.1 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, however, the Dow priced in gold has rallied within the confines of an upward sloping trend channel. More recently, the Dow/gold ratio successfully retested support and then surged in a post-election rally.
Gold is having a good day today, only down a little over 15 bucks/oz so far.
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