The Dow-gold ratio is right at its long-term, down-trending resistance level. The Dow-gold ratio is defined as the ratio of the price of the Dow Jones Industrial Average (DJIA) divided by the price of gold.
Charts of the Dow-gold ratio price ratio and the price of gold plus the rest of my Seeking Alpha article at:
At 8.96, the DJIA, measured in how many ounces of gold it takes to buy the 30-stock Dow, is up 27.5% from its 17-year March 6, 2009 low of 7.03. But, as the chart shows, the ratio has been in a fairly flat, two-year trading range as it moved from long-term support to resistance.
Hi Kirk: Thanks for this great information. As I recall back in the early 1980's the gold/silver ratio was 40:1. Am I correct? Thanks.
ReplyDeleteJerry
Smith
Jerry
ReplyDeleteIt got down just under 32 in 1981. See
Gold Silver Price Ratio Definition and Charts
I will expand the x-axis on my next article update.