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Post by unlawflcombatnt on Sept 29, 2011 22:17:30 GMT -6
Though this is based on the price of paper gold, it still gives a great idea of the comparsion between the prices of gold and the Dow: Gold prices are actually up roughly 300%, or 4x their price in late 2004.
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Post by graybeard on Sept 30, 2011 7:14:42 GMT -6
Gold was $260 at end of 2000, when Bu$h took over. It was about $440 in late 2004, IIRC.
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Post by jeffolie on Sept 30, 2011 8:22:41 GMT -6
Wall Street lore: hold gold until the ratio between gold and the DJIA is 1 to 1, then trade your gold for stocks.
For example, move from gold into stocks when Gold is say $4000 and the DJIA is 4000, equal.
Very longer term charts tend to support this lore.
There are problems applying this approach such as recent history in Argentina & the USSR where the currency collapsed, governments collapsed, confiscation of pension systems and bank closing happened, USSRs stocks collapsed to near zero, etc.
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Post by unlawflcombatnt on Sept 30, 2011 11:46:18 GMT -6
I don't think it's ever going to be a good idea again to move into stocks, unless you find some of the rare, particularly good ones.
Adjusting for inflation, the stock market has lost a good -25% to -30% over the last decade.
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