GOLD 0.51% $1,391.7 gold futures

US debt crises to push Gold higher, page-31

  1. 599 Posts.
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    Now that you're done debating the dollar strength you want to discuss the Dow vs Gold. Hardly resting your case, rather starting a new discussion

    Ok, so I agree stocks will give you better long term returns as an investment. Successful stock picking will be even better than the Dow.However the Dow/Stock ratio is cyclic and since fiat currency being introduced it has become very volatile. Imo the Dow could have outperformed gold further if we were still on the gold standard, the Dow is actually down against gold ~70% since 1999. There is a slight chance the stock bull market continues for another few years but it's inevitable there will be a recession, perhaps even a depression, and when this occurs the ratio will move in golds favour.

    Imo it's far to risky to invest in an index at this point in time. IMO gold is a much wiser "investment" for a 10-20 year outlook. Yes I said investment, not just as a store of wealth vs the dollar.

    100yr Dow/Gold ratio chart:
    https://hotcopper.com.au/data/attachments/1450/1450815-2885816ece14876133906f5519912f16.jpg

    200 year Dow/Gold ratio
    https://hotcopper.com.au/data/attachments/1450/1450818-8fd1611fd9debb7bd0ee029237b95840.jpg

 
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