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<p>[QUOTE=&quot;medoraman, post: 963518, member: 26302&quot;]I am calling a great big BS on this one. There are liars, big liars, and statistics. I do not know what this graph is trying to represent with their gold to Dow ratios, but I do know ANYONE trying to compare gold versus stocks and saying they are equal is just telling one great big lie.</p><p><br /></p><p>Doing just a simple calculation, compounding $35 from 1926 at 7%, (and stocks have been more than that), gives a price today of $12,602.60 versus gold price today. True, if you know the compounding factors and the fact losses are proportionally worst than gains, you could argue with this a little. This is why I discounted the compounding to 7%. </p><p><br /></p><p>The source you listed is the Bullionvault.com. I would suspect they are twisting something to try to get you to buy gold. There is simply no mathematical way gold has come close to stocks in the listed time frame. I am not saying in the future they couldn&#039;t, since there has been an incredible increase in multiples in the market the last 30 years, but to try to say they are equivalent from 1926 to today is simply not true.</p><p><br /></p><p>Edit: On thinking about it, the chart could be true on years where one beat the other. What is untrue or not stated is the SCOPE of one beating the other, and the inferred investment potential. If gold beat stocks one year by 3%, but lost the next year by 23%, it would be 1 to 1 right?[/QUOTE]</p><p><br /></p>

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