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THE DOW IN GOLD

22 May 2010 by Guest 2 Comments

By Chart of the day:

How is the stock market performing? It all depends on how you measure. When measured in US dollars, the Dow currently trades approximately 28% below its all-time record high. However, when measured with that other world currency (gold), the picture is even more bleak. To help illustrate the point, today’s chart presents the Dow divided by the price of one ounce of gold. This results in what is referred to as the Dow / gold ratio or the cost of the Dow in ounces of gold. For example, it currently takes 8.5 ounces of gold to “buy the Dow.” This is considerably less that the 44.8 ounces back in the year 1999. When priced in gold, the US stock market has been in a severe bear market for the entire 21st century.

Notes:
- Where’s the Dow headed? The answer may surprise you. Find out right now with the exclusive & Barron’s recommended charts of Chart of the Day Plus.

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Comments
  • boatman

    5-8 yrs more to run buddy…headed for at least “2″

    i’m sure everyone knows my position by now….i’ll spare you…..

    05/22/2010 at 6:13 PM
  • Tim Yla

    Buy gold at any price at anytime at anywhere… you will need it.stop.
    etf-gold-stockc.com

    05/24/2010 at 10:45 AM