Fine-Gold & Gold Jewelry
Dow Jones Average VS Gold Price Ratio
There are various tools investors can use to help determine the future price of gold. One of the Primary method is Dow Jones Average VS Gold Ratio.This ratio looks at how many ounces of gold it takes to purchase the Dow, assuming every point in the index represents a dollar.This ratio also reflects the markets confidence's in paper versus phisical assets like gold.
There is historical relationship where at certain points in time gold and Dow trade at 1:1 or a 2:1 ratio, where ones or two ounce of gold can purchase by Dow. When this happens gold has reached its peak in terms of puchasing power relative to other financial assets. There are period where investors have lost confidence in paper assets. Its occured in 1896, 1929, 1980 and we believe we are approaching this ratio again.
Yesterday 10.2 ounces of gold purchase by Dow. Yet During the height of technology market in 1999 it took 44 ounces. The number of ounces it takes to buy by Dow is now less than half. we believe this ratio will once again be 2:1.
There is historical relationship where at certain points in time gold and Dow trade at 1:1 or a 2:1 ratio, where ones or two ounce of gold can purchase by Dow. When this happens gold has reached its peak in terms of puchasing power relative to other financial assets. There are period where investors have lost confidence in paper assets. Its occured in 1896, 1929, 1980 and we believe we are approaching this ratio again.
Yesterday 10.2 ounces of gold purchase by Dow. Yet During the height of technology market in 1999 it took 44 ounces. The number of ounces it takes to buy by Dow is now less than half. we believe this ratio will once again be 2:1.
