Dow/Gold Ratio Remains Low On Historical Basis
By Kirk Lindstrom:As of the November 30, 2012 close of 7.59, the Dow-Gold Ratio is up 32.9% from its 21-year low of 5.71 set last year on August 22, 2011. The Dow-Gold Ratio is a measure of inflation and stock market sentiment. It shows how many ounces of gold it takes to buy the 30-stock Dow Jones Industrial Average.(click to enlarge) This next chart shows the DOW:GLD ratio.GLD is the exchange traded fund for Gold which is much easier for individual investors to own than physical gold, especially in IRA accounts.
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My favorite GLD Charts and Intraday GLD Chart
Is GLD a Buy Today?
This chart shows the price of gold is much closer to all-time highs than its 30 year low of $253.20. With central banks around the world have printing presses running at full speed, the value of all currencies is falling thusComplete Story »