Established in 2006 as a Community of Reality

Welcome to the Neno's Place!

Neno's Place Established in 2006 as a Community of Reality

Iraq Dinar/News is a popular topic among many topics this board offers.

See the footer of the board for our Facebook and My business pages.

Be sure and join our Dinar Only Newsletter Email list. It is located on the right. Your User Account Email when joining the board is for with in Neno's Place use of board information which you can control in your profile settings.


For "Advertising" with in my board to our Membership and Visitors see our "Sponsor Ad Info" in the Navbar. Neno's Place receives a low of 50,000 views a week to over 100,000 plus many times thru out the year.

I can be reached by phone or text 7am-7pm cst 972-768-9772 or, once joining the board I can be reached by a (PM) Private Message.
Established in 2006 as a Community of Reality

Longest Dinar holding Community. Reach Admin by Private Message. Copyright © 2006-2017

Ad Space M-1

Board Rules

October 2016


Calendar Calendar

Ad Space M-2

Revv Worldwide

IQD/Oil/Commodities Charts


Ad Space M-3

Top posting users this month

Ad Space M-4

Dow/Gold Ratio



Posts : 16542
Thanked : 805
Join date : 2013-01-12

Dow/Gold Ratio

Post by Lobo on Sun 11 Oct 2015, 5:51 pm

Dow/Gold Ratio

Posted on October 11, 2015 by Martin Armstrong

A number of people have written asking about the proposition that gold should rise to be equal to the Dow because that is where it had reach in 1980. Sorry – no way. When gold was $875 in 1980 and the Dow 1,000, that was the end of a Public Wave which peaked 1981.35. The difference between gold and the Dow is very important. Gold is a hedge against government for the individual; it is not an institutional investment. The reason is rather simple – gold pays no dividend.
As we can see from the above chart of this ratio back to 1790, The major support on this ratio is 3 to 3.3 and the resistance stands at 20:1. The low in the ratio took place in 2009 during the panic. Therefore, the decline was more associated with the decline in the Dow rather than gold. To reach that 20 level on a decline in the Dow again would mean if gold went all the way to the Yearly Bearish Reversal at 680 and the Dow made new lows, it would have to reach the 13,700 area.

Nevertheless, the proposition that the Dow and gold should be 1:1 and therefore gold will rise to 20,000, is just pipe-dreams. As this chart illustrates, the relationship is like everything else – a cycle. Picking a 1:1 relationship and claiming that is the NORM, is the same absurdity of claiming the silver gold ration should be 16:1 because that is what Congress did during the 19th century when the open market was 30:1 by the Panic of 1893. These types of relationships are by no means realistic  just distorted delusion to sell precious metals.
This entry was posted in Uncategorized by Martin Armstrong. Bookmark the permalink.

    Current date/time is Sun 23 Oct 2016, 10:27 pm