Free Republic
Browse · Search
News/Activism
Topics · Post Article

To: simon says what
I do find it interesting though that for the past 1,2,3,4,5,6,7,and 8 years, the price of Gold has outperformed the price performance of the S&P 500.

Another thing that is really interesting is that the Dow:gold ratio stayed between 3 and 5 from 1900 all the way to the early 1980s, except for during the bull markets of the 1920s and 1950-1960s. And then when the bull collapsed, the ratio fell back to the norm.

Right now, the Dow:gold ratio is about 20 (down from a peak of 40 or so). That tells me that gold has a long way to go before it peaks this time around.

178 posted on 12/07/2005 5:44:08 PM PST by Mulder (“The spirit of resistance is so valuable, that I wish it to be always kept alive" Thomas Jefferson)
[ Post Reply | Private Reply | To 74 | View Replies ]


To: Mulder
Another thing that is really interesting is that the Dow:gold ratio stayed between 3 and 5 from 1900 all the way to the early 1980s, except for during the bull markets of the 1920s and 1950-1960s. And then when the bull collapsed, the ratio fell back to the norm.

Absolutely! The Dow/Gold ratio did not have an affect on the price of Gold when Gold was set at $35/oz. It was always the Dow that caused the ratio fluctuations. Since Gold was freed in 1971 Gold goes up when the Dow comes down.


189 posted on 12/07/2005 6:30:44 PM PST by simon says what
[ Post Reply | Private Reply | To 178 | View Replies ]

Free Republic
Browse · Search
News/Activism
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson