Thursday, January 25, 2007

dow vs gold / chart of the day

its quite a difference between nominal and real numbers...........isn´t it....?
thanks to

ein kleiner unterschied ob man nominale oder reale nummern vergleich, oder.......?

Despite today's lackluster performance, the Dow still trades near all-time highs. For some further perspective into the current rally, today's chart presents the Dow divided by the price of one ounce of gold. This results in what is referred to as the Dow / gold ratio or the cost of the Dow in ounces of gold.

For example, it currently takes 19.2 ounces of gold to “buy the Dow.” This is considerably less that the 44.8 ounces back in the year 1999. When priced in gold, the current stock market rally hasn't amounted to much. In fact, the longer-term trend is actually down! Stay tuned…

disclosure: long gold, long goldbugs



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