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.
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.