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Old 01-09-2013, 08:08 PM   #499
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Originally Posted by baja View Post
Please explain.
The Dow/Gold ratio is the DJIA divided by the price of gold/oz. Stocks are the best buy when the ratio begins to rise. Hold stocks for decades as the ratio gets bigger. Keep buying stocks on the dips. It was good time to buy stocks in 1980. The ratio was about 1/1 (866dow/850oz gold)

The best time to buy gold is when that ratio is at it's peak. In hindsight, we know that was 1999-2000 when it was above 40/1. The peaks in the ratio are getting higher. If the dips get lower, it could go below one.

Translation: the trend points at gold eventually trading at a price higher than the dow which is above 13,000 today. It will likely be lower if gold matches or exceeds it, but who knows?

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