Message:

<p>[QUOTE=&quot;Collector1966, post: 1267554, member: 17919&quot;]The first 50-60 years of those charts don&#039;t really mean anything because the price of gold was kept at $20.67 per ounce for the first 33 years or so of that graph, then it was artificially controlled by Uncle Sam, who didn&#039;t let Americans fully participate in the gold market until December 31, 1974. </p><p><br /></p><p>In the early 1960s, Uncle Sam had actually tried to make it harder for Americans to own bullion gold coins by severely restricting ownership and sales of foreign gold coins dated after 1960, but by 1967 or 1968 Americans were buying pre-1961 foreign gold bullion coins (especially Mexican gold coins, sovereigns, and 20 francs) in increasing numbers, and essentially the last remaining gold restrictions that Uncle Sam was enforcing were the restrictions on trading in gold bars, and buying modern gold coins from overseas suppliers (you needed a special permit to import modern-- post-1960-- foreign gold coins). At the same time, the melt value of 90% silver was starting to exceed the face value, so really the comparisons should start from that time.</p><p><br /></p><p>So let&#039;s look at this chart which plots the DOW versus gold from 1968 to 2009. The higher areas on the graph indicate times when stocks had an advantage, while the lower areas on the graph indicate times when gold had the advantage. Gold basically did better than the DJIA from 1968 until 1980, then gold and stocks were essentially keeping apace with each other (with stocks having a slight advantage) until stocks started to take off again after the 1987 crash, and outpaced gold until 1999 or so, when gold began to gain ground on stocks. If this chart were extended to 2011, it would show an even bigger advantage for gold since 1999, and a bigger advantage for gold compared to its 1968 position.</p><p><br /></p><p><a href="http://www.chartingstocks.net/2010/05/dowgold-ratio-historical-chart-1968-2009/" target="_blank" class="externalLink ProxyLink" data-proxy-href="http://www.chartingstocks.net/2010/05/dowgold-ratio-historical-chart-1968-2009/" rel="nofollow">http://www.chartingstocks.net/2010/05/dowgold-ratio-historical-chart-1968-2009/</a></p><p><br /></p><p>It should also be noted that in just the last 10 years, the stock market has crashed twice-- once in 2001 after the September 11 events, and again in 2008-2009. Today, the Dow Jones Industrial Average is below its 1999 peak, while gold has increased in value 6X from its 1999 high.[/QUOTE]</p><p><br /></p>

Your name or email address:

Do you already have an account?

• No, create an account now.
• Yes, my password is:
• Forgot your password?

Stay logged in