Will the price of gold one day be higher than the Dow Jones Industrial Average?

stevek

I was just wondering?

pmcollectour

Yes.

DoubleEagle59

Of course....no brainer...slam dunk guaranteed!!

pf70collector

Selling stock(paper) to buy physical maybe.

Baley

No, never ever ever, not a chance.

johnny9434

you never know. it just might

derryb

<< <i>No, never ever ever, not a chance. >>

jmski52

I honestly don't know. I have to assume that the ship of state will right itself before the dollar gets to that level. I give it 25% odds or so.

roadrunner

<< <i>

<< <i>No, never ever ever, not a chance. >>



>>



derryb's chart shows a perfect Edwards and McGee broadening top pattern over decades. The price objective after that upper line is touched for the 3rd time is often
the bottom line, esp. once things start free-falling. And things are certainly already headed in that direction. I'd put the odds at no worse than 50-50. We could end
up at 2-3 or even 0.5 to 1.0. Since Sinclair states that around $7300 gold is needed to balance our sovereign debt, a Dow to Gold ratio of 1-1 at 7300 Dow/Gold would
achieve that. That same method produced gold's actual peak in 1980 to within 5% accuracy.

roadrunner

Baley

Remind us again how the Dow Jones Industrial Average was calculated, for the chart, for dates prior to it's first use in 1896?

At any rate, taken at face value, the chart seems to indicate that a return of the ratio to 21 is more likely than a drop to 1, like it was in the 1860's

jmski52

Let's not forget that the Dow is skewed to favor a higher average, as failed and failing companies have routinely been replaced with more robust and innovative companies on the way up.

Correct for that, and your 1:1 ratio will be much lower.

roadrunner

At any rate, taken at face value, the chart seems to indicate that a return of the ratio to 21 is more likely than a drop to 1, like it was in the 1860's

Back in the 1800's we were a growing industrial power than was more often on a gold standard than not. Hard money circulated for much of the time. That "wolf" wave that
started cycling just after the FED was created was the first indication that we were shifting to a fiat money standard. After WW1 the world never really returned to a
true gold standard because there were no longer any real bills, an no extinguishing of debt via gold. That Wolf wave will probably cycle even wider until the system
just breaks. That seems much more likely to me than a return to 21. If you time out the current wave to hit the bottom line it doesn't do that until 2025. Seems like too long a
time to drag this all out. 2014 is when the 120 yr economic cycle bottoms to form similar 4th turning bottoms as we had in 1894 and 1774.

It all started back in 1914 when the world essentially left the gold standard to fight WW1. The chart shows the change quite clearly. 2 totally different eras.

roadrunner

percyb

<< <i>No, never ever ever, not a chance. >>



I concur. Too many solid companies with great growth prospects.

percyb

<< <i>Remind us again how the Dow Jones Industrial Average was calculated, for the chart, for dates prior to it's first use in 1896?

At any rate, taken at face value, the chart seems to indicate that a return of the ratio to 21 is more likely than a drop to 1, like it was in the 1860's >>



I can not understand the chart. Someone please explain it.

percyb

<< <i>Let's not forget that the Dow is skewed to favor a higher average, as failed and failing companies have routinely been replaced with more robust and innovative companies on the way up.

Correct for that, and your 1:1 ratio will be much lower. >>



Very good point!! You're correct to note this. Failed cos get jettizoned from the DJIA.