Justa's Dive Bar

[Ace Hanlon]

I view any further market advance here as kind of a final blowoff.

Re: gold interesting to compare it with the Dow.

At the $720 peak last May the Dow sold at about 15 times the gold price.

Today with gold at $685 the Dow is about 19 times the gold price.

I expect the Dow/ gold ratio to drop to at least the 15 level previously hit and probably lower before the next intermediate peak. Assuming the Dow hits 13000 this means a gold price of $800 plus.

A year ot two hence I look for a Dow/gold ratio of 10 or less.

Just like any other asset gold will climb at an accelerated pace once blowoff action begins.