It is a ratio, nothing more, nothing less. Both the DOW & gold can increase or decrease at the same time. The DOW doesn't look strong and gold really looks weak.
I knew I was going to get a smart aleck remark...and I had a feeling from you too. LOL. Shots of Tequila in celebration of victory. We won. We got really, really cheap silver.
_.._ .' .-'` / / | | \ \ '._'-._ ``` F F O r a f too yeah to the M t O o O n O O m y N ... a a well y d be one
if you believe in technical analysis then you believe in the tooth fai.. i mean international ratings companies..
When the price is going through the roof everyone seems to buy and buy because it is going to go to $100 an oz. When the price goes through the floor no-one wants it because it is so cheap and it is a crappy, crappy poo poo thing that no-one would touch with a stick. I spend my money on hookers and beer so I am fine
Our septic forum friends have been quite these past few days: Read more at http://www.caseyresearch.com/cdd/instead-of-puking-do-this
This chart says gold is going to $850: http://finance.yahoo.com/blogs/talking-numbers/this-chart-says-gold-is-going-to--850-140106065.html
Another 'channel' constructed out of two touches on each rail. Pretty primitive. At least it's two touches. Martin Armstrong was trying on a channel dating back hundreds of years constructed from a 'channel' with two touches of one rail and only one on the other.
Could someone explain to me the value of charting when only till recently we've been living in a world of arbitrary price fixing? Why would the ratio from the 70's be transferable to today? Didn't we come off the gold standard in the 70's which left the prices of gold and silver set by fiat? Not trying to sound rhetorical but it seems like an analysis of who controls the open interest and their ensuing agenda would be more informative. I suppose that if we were looking at a chart of the Shanghai exchange which actually deals in bullion, then technically and fundamentally, observations about the movement of ratios would be more reliable. Rumor has it that Shanghai too will arbitrarily set the price of their gold in a one off revaluation, likely double the comex ask, with an invitation for arbitrage which will pull the covers off NY and London forcing them to admit they don't actually have any gold to sell in the first place. In the meantime, until every transaction is backed by an actual physical asset such as the non-cabal trading platforms are wiring themselves up for, where does one see the value in reading charts?
Richard Nixon ended usd convertibility to Gold in 1971, so any period after that should be comparable at the least. DJIA:Gold ratio had its temporary spike up to 10:1 in 1975-76 coinciding with a plunge in gold and uptrend in DJIA over that time I'd love to believe that theory has legs! I don't know. I tend to go for visual explanations. I'd argue it's still depicting demand and supply, even if the demand supply is for something phoney. I'm just as interested in the phoney fiat price for gold as its true value as it's the fiat price that lets me sell it and buy stuff.
Normally (seen over a couple decades) golds price should go under $1000, but as long as current silver buyers continue, central banks and their buddies will continue support gold, as to lure people away from silver to gold, the market they control much better.
