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| The ratio of the Dow Jones Industrial Average to an ounce of gold has been falling for over a decade now, from a high of around 44:1 in late 1999. The decline really got going exactly ten years ago. The ratio currently stands at 8.25:1. Our target is simply a rough estimation of a cycling back to the early eighties just before the massive stock market bull, when gold went crazy. Sometimes these targets overshoot. Will it be a slow decline from here? Probably not - probably more like the 1997 - 1999 period on the upside. |
Dow vs. Gold: The Second Decade of Decline
