Monday, January 2, 2012

Look at Gold/Dow Ratio instead of Dow/Gold Ratio for Perspective

Oftentimes people look at the Dow/Gold ratio when determining how much further gold has to run in terms of historical ratios. Many believe that the ratio will approach 1:1 before there is a reversal in the gold bull and dow bear markets. However, a look at the Gold/Dow ratio instead of the Dow/Gold ratio show just how much further upside there is in gold. The Dow/Gold ratio, at this stage in the game, doesn't do a good job of demonstrating this to the naked eye. Long way more before the 1:1 level is reached.

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