Posted on 12/24/2014 7:33:03 AM PST by SeekAndFind
“Kaboom! Dow 18K” is the headline atop the Drudge Report.
It links to a story on the Bloomberg wire reporting that the Dow Jones Industrial Average “rallied past 18,000 for the first time, after data showed the world’s largest economy grew at the fastest pace since 2003 last quarter.” By 4 p.m. the Dow had gained 64.73 points and hit 18,024, while Standard and Poor’s 500 Index hit a record 2,082.17 and the American economy was expanding at an annualized 5% in the third quarter as, the Bloomberg noted, “consumers and businesses spent more than was previously estimated.”
What the story failed to note is that the value of the Dow — that is, its worth in ounces of gold — is nowhere near a record. This can be glimpsed in the charts that are kept by pricedingold.com. The chart illuminates that even with the kurrent kaboom, the current value of the Dow, at just under 450 ounces of gold, is below where it was at the start of the Obama administration, when it was near 350 ounces, and way down from its record of 1,400 ounces part way through 1999. The value of the Dow has certainly been trending upward in recent months, the chart of pricededgold.com suggests. It ducked under 200 ounces of gold at one point during the Great Recession.
It is, however, nowhere near a record. We note this not in the spirit of parceling out stock market tips (the only suggestion we’ve ever made to investors is “never take financial advice from a newspaperman”). Rather we are interested in the principles of political economy — in the regulation of the value of the dollar by Congress in the spirit in which the Founders intended.
(Excerpt) Read more at nysun.com ...
The reason the Dow is so high is the value of the dollar has been decimated by Hussian Obama’s crony bailouts and printing of stimulus money.
When the Zimbabwe effect gets to full steam, the DOW will be in the millions, and it will take a million to buy dinner.
Real financial health is when the Dow is down not up, if they had left the correction in place and not inflated the bubble back up we would be in good shape now. The Dow is vastly over valued at many many time the annual return.
gold is not high, tiz down.
If millions of Americans would Parish, it would save millions from perishing.
True that. But I wonder why there was no comparison to, say, silver or a bushel of corn. And I wonder just how meaningful a gold-Dow comparison really is.
Judging by this graph the next thing to happen in the next decade is a big high in stocks and a big low in gold.
Judging by this graph the next thing to happen in the next decade is a big high in stocks and a big low in gold.
An enormous amount of gold came out of California from the late 1840’s through the 1870’s. Enormous amounts of gold again came out Alaska in the 1880’s-1910. However this graph shows only that gold prices were relatively high during these periods.
So I’m not so sure an apples to apples comparison quite works.
That phrase “enormous amount” is a bit misleading. If you had all of the gold in all of the world in all of time that has been found..... you could fill about two olympic size swimming pools with it. That’s it.
450 ... is below ... 350
Excuse me?
Companies’ stocks soar when they announce layoffs of Americans; why would we rejoice in the “soaring Dow”? It is more indicative of the financial health of Asia’s middle class than ours.
A DOW based on inflating dollars creates illusory gains that enrich the IRS.
Silver and corn are too much affected by supply. Gold supply doesn't vary much at all from year to year.
For no other reason other than that silver and corn are much more influenced by supply and demand. The quantity of gold doesn't change by more than a per cent or two each year. And it's industrial use is nil.
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