10/9/2025
This is a ratio chart. It details the ratio of the DOW Industrials to the price of gold. When the ratio rises, the DOW is outperforming gold. It did this in the late 1990s peaking in 2001. Then the price of gold began rising faster than the DOW, sure the dot.com collapse at the time helped. But evern after that low in 2002, the ratio continued falling. The ratio bottomed in 2013 as the gold price fell, see bottom panel. But over the last few years, the ratio has stalleed around the 20 level. THis year it has fallend below all four moving averages. The reason gold is a store of value ever since and before the Three Wise Men Biblical story, is that there is a limited supply of gold. That is not true of stock certificates which can expand freely. It is nt true of paper money which politicians can print with abandon.
Put another way, the US Dollar is now worth 1/4,000 pf am ounce of gold. Talk about inflating the money supply. Silver has reached $50 in 1980.1 and again a few years back . But $50 silver today is worth a fraction of $50 in 1980. So silver coudl easily have much further to go on the upside. I would have to apply an inflation measure to compare $4,00 gold today with $800 gold in 1980 but that is a 5x gain, not much more than inflation.
Social mood is ppistive to to metals and negative to the US Dollar.
Google has introduced a new feature in blogspot. It searches for waords of interest and provides links. This is the first time I have used it, do you like or dislike.
Jamie Dimon cautions on chance of stock sell off
dennis.elam@att.net
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