GOLD $50,000 AND DOW 50,000 IN BULLISH SCENARIO
So how does this relate to the number one wealth preservation asset in the world – gold?
Well, it is consistent with what I have been saying for quite a few years. I believe that gold will continue to outperform the general stock market as it has for the last 20 years. And I still believe that the Dow/Gold ratio will go to 1:1 as in 1980 when gold was $850 and the Dow was 850. I actually think that it will go below 0.5:1 but that might take a bit longer.
So in a high inflation scenario, gold can go to $50,000 and the Dow to 50,000. This would mean that the Dow doubles and gold goes up more than 25x. Sounds very plausible in my mind."
- Softly spoken Egon Von Greyerz wrote on GoldBroker...I won't bother calculating the profits! DYOR
