Home› Precious Metals

interesting chart S & P priced in gold

bronco2078bronco2078 Posts: 10,211 ✭✭✭✭✭
in Precious Metals


S & P priced in grams of gold


That ACC site itself has some interesting daily posts about crony capitalism , check it out image

Comments

  • derrybderryb Posts: 36,788 ✭✭✭✭✭
    " No better evidence exists of Weimar dependence than an economy in depression while major stock indexes register record highs. Roll out the electronic wheel barrows." - Jim Willie

    "Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey

  • s4nys4ny Posts: 1,569 ✭✭✭
    Interesting chart S&P priced in gold. Going back to 1960 the S&P was at 58 and is now 1541.

    Gold was price controlled, but let's say 40 and is now 1582.

    Very similar returns. S&P did better when dividends are added in, especially if reinvested.
  • bronco2078bronco2078 Posts: 10,211 ✭✭✭✭✭



    Thats all well and good if you want to ignore inflation. If you could discount inflation since 1960 would you have made anything?


    If you look at where that graph goes flat in jan 09 what happened at that point in time?
  • jmski52jmski52 Posts: 22,820 ✭✭✭✭✭
    I love reading the comments after the article. For every opinion, there is an opposing opinion. I am guilty of forgetting that most people are still believers in the dollar, and most people have vested interests in the dollar and the stock market, so their opinions will always lean towards conventional stock market & bond investing. The public opinion is always going to be generally in favor of stocks & bonds because most people have their retirements in those vehicles. That's probably why there isn't much outrage over QE. Free bread and circuses, except that they aren't really free.

    The real issue is that the stock market price chart is now only an artifact that is created as a result of the Fed's QE programs. Company earnings statements now have more to do with QE than they do with output, quality or productivity. Stock prices don't actually measure anything other than the endpoint of Fed intervention. (Baley, yes I do realize that some individual companies are exceptions, but I'm talking about aggregates, as shown in the chart.) Supporting stock prices is clearly the objective now and they say as much.

    What really gets me is that these people have any credibility at all.

    Q: Are You Printing Money? Bernanke: Not Literally

    I knew it would happen.
  • bronco2078bronco2078 Posts: 10,211 ✭✭✭✭✭


    << <i>Interesting chart S&P priced in gold. Going back to 1960 the S&P was at 58 and is now 1541.

    Gold was price controlled, but let's say 40 and is now 1582.

    Very similar returns. S&P did better when dividends are added in, especially if reinvested. >>




    When you say that , how are you modeling the effect of


    A: being taxed on dividends and capital gains all along the way

    and

    B: watching the dollars purchasing power systematically destroyed year over year




Sign In or Register to comment.