Proof That Gold Is Not a Bubble

The Motley Fool ^ | March 22, 2011 | Christopher Barker

[Travis McGee]

This chart is more useful.

[USFRIENDINVICTORIA]

If you added some vertical lines, labeled with the events mentioned in the article, you'd have exactly the type of chart I was trying to describe. Thanks for posting this. (Of course, the article uses the ratio of the value of gold to the value of all assets — but, the DJIA is a reasonable proxy. In fact, I'm not really sure by what the authors meant by “all assets” — but, the DJIA is a well-known metric.)

This chart provides a lot more information, than the one in the article. You can see the trends — before and after the events, represented in the bar graphs. You can also see that gold is not a sure bet (note the precipitous drops).

[Atlas Sneezed]

Thanks. What do you think that one might learn from that? (A gold bug might point to 25 years ahead of the Dow being below 10Au - or a plausible baseline of Dow=2-3Au = Dow 10,000, Gold $5000)

[Travis McGee]

I think we’ll see gold and the dow pass around 5,000.

[Kenny500c]

Hey Trav, you are aware that Meyer’s boat was named the “John Maynard Keynes?”