I rounded the numbers YTD for May back to 2001 and here is what I get for Dow/gold ratios.(How many ounces of gold to buy the dow. I rounded down on the oz ratio and even numbers on the dow & gold so there is a slight variance in the final #s (because im that lazy)
May 2001 10,900 $270 40 oz
May 2002 9700 $310 31 oz
May 2003 8500 $350 24 oz
May 2004 10000 $380 26 oz
May 2005 10400 $420 24 oz
May 2006 11000 $680 16 oz
May 2007 13000 $665 19 oz
May 2008 12500 $880 14 oz
May 2009 8500 $920 9 oz
Today 10926 $1168 9 oz
Now as you can see there are alot of swing downs in the gold/dow ratio of 20% or more some years and some years it stays the same or close and then moves big. If we continue down this road, its logical to assume that this time next year if we see the dow at 13,000 gold will surely be about $1,800. If the Dow drops to 9,000 gold will go to $1,250(this is all speculation based on a 20% move in the gold/dow ratio.)
Ah...remember a few years ago when we said $600 gold was expensive? 3 years from now, we will say $1,200 gold was cheap.
May 2001 10,900 $270 40 oz
May 2002 9700 $310 31 oz
May 2003 8500 $350 24 oz
May 2004 10000 $380 26 oz
May 2005 10400 $420 24 oz
May 2006 11000 $680 16 oz
May 2007 13000 $665 19 oz
May 2008 12500 $880 14 oz
May 2009 8500 $920 9 oz
Today 10926 $1168 9 oz
Now as you can see there are alot of swing downs in the gold/dow ratio of 20% or more some years and some years it stays the same or close and then moves big. If we continue down this road, its logical to assume that this time next year if we see the dow at 13,000 gold will surely be about $1,800. If the Dow drops to 9,000 gold will go to $1,250(this is all speculation based on a 20% move in the gold/dow ratio.)
Ah...remember a few years ago when we said $600 gold was expensive? 3 years from now, we will say $1,200 gold was cheap.
:eek:
