gold $2000 /oz in 2009, page-49

Bernard99,

History doesn't repeat but the cycles do. This chart of the DOW gold ratio shows that Gold equalled DOW in 1980 (ratio of 1). But there were other times last century when the ratio went down to 2-3. In 2000/01 the ratio had reached 43 and started rolling over. I couldn't foresee future events obviously but it was time to get out of general stocks and into gold. Who knows what the final catalyst will be to drive the ratio down to 1,2 or 3 this time around then start turning higher? But it will be different to 1980 and time to buy stocks again.

By the way, since this chart was created the ratio has fallen from 17 to 7.

Rowingboat.