Mohacsy's Safe Portfolio Member Forum

[santafe2]

In 1980 the DOW and an ounce of gold were roughly equivalent in price. Both were about 800 with gold peaking and the market bottoming. In 2000, after 20 years that relationship had reached another extreme of about 40:1, caused by a collapse in the value of gold and the great bull market of the last generation. Today that relationship stands at about 25:1. At a minimum, I expect this will move to 5:1 before the trend again reverses.

This is not an argument for buying gold stocks as they are currently as overpriced as the rest of the market. But it is a worthwhile to be aware of the current trend.