The example I keep using for the Dow Gold Ratio is DJIA 5000, Gold $5000. Of course it could be anywhere, but it makes more and more sense that it's coming.
The real question is, will anyone have the balls to leave gold and buy equities at that ratio? It's different this time! :lol:
The ratio will close, But Gold perhaps will not rise a great deal. Moreover the Dow will drop a shit load. PS :- I should add, By not rising a great deal - I mean that gold could hit $4500 - $5000......Not $10,000-$25,000 that some google adverts mention. My call is gold $5000 tops, Silver $350-$400 tops.
gervase, "My call is gold $5000 tops, Silver $350-$400 tops." I am inclined to think that the top (gold) predictions are based on a return to a Gold Standard. That will put gold well over US$5000. The level up to that point will be lucky to top US$3000. All that in the next 3 years. OC
A return to the gold standard ? - Maybe, But how will they do it ? By stealing our gold ? - F**King bastards ! I think countries will trade in there own dollars, Or maybe in commodities. We will be safe here in Australia, Maybe a bumpy road from time to time.......But no problems. Not for the next 20-30 years anway.
"We will be safe here in Australia, Maybe a bumpy road from time to time.......But no problems." I am simply NOT willing to bet the welfare of my wife and children on that assumption. As before, I will hope for the best and prepare for the worst. OC
From a youngish codger to an old codger, I agree 110% with what your saying. Goverments, Not matter what party is running them cannot be trusted, Espcecially with your family welfare. Its time for all people not just people like you & me, But time for all people to start taking responsilbity for there own welfare, Now & in retirement and stop relying and believing that goverments will do it for us. They market has dropped 20% in the past few months, That means we are in a bear market, It means that the market has crashed......I am not surprised nor do I really care. I sold out 3 weeks before the Japan diaster......Not because I knew that Japan was having an earth quake, But because I have always believed the bottom of the Aussie market was below 3000 points....The market started selling off before the Japan Earthquake, And not because of it. Like the media tried telling everyone. I hope the market drops even more, As I have some cash to invest in the aussie market......And will look for OIL,SILVER,GOLD,ENERGY plays...And maybe some farming stocks. The gold price has been going up, However Gold stocks have been lagging a little....However with the drop over the past week in stocks we are seeing a even higher gold price, But this time some gold stocks have started to rise, Whilst everything else dives..... Exciting times ahead, I think all silver stackers and gold for that matter will have a grin on there face.......$2000 Gold & $70 silver not far away.....That would be a nice christmas present.... Best of luck to all PM holders
You're absolutely right OC. As of figures in 2007, taking the stated 800 tonnes of gold claimed to be held by the USA, and then calculating that out over the fiat in circulation would have led to gold being $34,000 per ounce if the gold standard were reintroduced. I wonder what those numbers are like today (I will bet my left shoe, and a cold beer, the number will be considerably higher).
