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<p>[QUOTE=&quot;mikem2000, post: 2314518, member: 30574&quot;]The Gold/Dow ratio is event more ridiculous than the G/S ratio.</p><p>Kurt touched on this already as it is two very differnet things.&nbsp; The DOW grows, Gold does not.&nbsp; Over time (at least hopefully) the &quot;DOW&quot; expands and there is more real estate, machinery, products, improved technology, etc., etc. than there was before. So not only does the Dow increase in value, the actually physical assets the paper represents increases also.&nbsp; This would be similar if you put an oz of Gold in the safe, and 10 years laters you go to pull it out, and it has grown to two ounces.&nbsp; (Wouldn&#039;t that be cool)&nbsp; Of course the value of the the Gold may increase, but the actually asset just sits there like a lump.&nbsp; This is the primary reason why equities are almost guaranteed to outperform PM&#039;s in the long run.</p><p>&nbsp;</p><p>The second point is really the same as for the G/S ratio. Let&#039;s just assume that there is merit in the Gold/Dow ratio.&nbsp; You state that Gold is undervalued compared to historical norms, but you just guessed and there is absolutely no way to know that.&nbsp; It could be that the DOW is overvalued.&nbsp; It coulds also be that they are BOTH overvalued, it is just the DOW is overvalued more.</p><p>&nbsp;</p><p>The botton line is pay no attention to these ratio&#039;s they are nothing more than propaganda put out by the Bullion pumpers to separate folks from their fiat.[/QUOTE]</p><p><br /></p>

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