Thursday , 21 November 2024

A Look at Gold vs. Silver, the Dow & the USD Index (+3K Views)

Comparing the gold or silver price to another assets is a great way to create an understanding of the true value [of each]. The long term charts [below] indicate that this bull market is very strong; the fundamentals keep on strengthening by the day, week, month, year….The wise lesson you can draw from these charts: the trend is your friend.

So say edited excerpts from the introduction of a post* on http://goldsilverworlds.com entitled Gold to silver price ratio, Dow Jones to gold price, gold vs US dollar rate. 

This post is presented compliments of www.munKNEE.com (Your Key to Making Money!) and the Intelligence Report newsletter (It’s free – sign up up in top right hand corner of page) and may have been edited ([ ]), abridged (…) and/or reformatted (some sub-titles and bold/italics emphases) for the sake of clarity and brevity to ensure a fast and easy read. Please note that this paragraph must be included in any article re-posting to avoid copyright infringement.

The post goes on to say:

We are able to share the following charts with you thanks to Sharelynx:

  1. the Dow:gold ratio, from 1970 till 2012
  2. the long term Dow:gold ratio, from 1900 till 2012
  3. the very long term gold:silver ratio, from 1344 till 2012
  4. gold:US Dollar Index ratio, from 1970 till 2012
  5. the US dollar purchasing power versus the gold price, from 1774 till 2012

1. The Dow:Gold ratio, from 1970 till 2012

dow jones to gold ratio 1970 20121

2. The long term Dow:Gold ratio, from 1900 till 2012

dow gold ratio long term chart 1900 20121

3. The very long term Gold:Silver ratio, from 1344 till 2012

gold silver ratio very long term 1344 2012

4. The Gold:US Dollar Index ratio, from 1970 till 2012

gold vs US dollar 1970 2012

5. The US dollar purchasing power versus the gold price, from 1774 till 2012

US dollar purchasing power vs gold 1774 2012

Editor’s Note: The author’s views and conclusions in the above article are unaltered and no personal comments have been included to maintain the integrity of the original post. Furthermore, the views, conclusions and any recommendations offered in this article are not to be construed as an endorsement of such by the editor.

*http://goldsilverworlds.com/gold-to-silver-price-ratio-dow-jones-to-gold-price-gold-vs-us-dollar-rate/ (©  2013 Gold Silver Worlds. All rights reserved.)

Related Articles:

1. Gold & Silver in Super Cycles: When Will They Go “Boom” & Then “Bust”?

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2. Gold:Silver Ratio Suggests Much Higher Future Price for Silver – MUCH Higher!

The majority of analysts maintain that gold will reach a parabolic peak price somewhere in excess of $5,000 per troy ounce in the next few years. Given the fact that the historical movement of silver is 90 – 95% correlated with that of gold suggests that a much higher price for silver can also be anticipated. Couple that with the fact that silver is currently greatly undervalued relative to its average long-term historical relationship with gold and it is realistic to expect that silver will eventually escalate dramatically in price. How much? This article applies the historical gold:silver ratios to come up with a range of prices based on specific price levels for gold being reached. Words: 691

3. What Does a “Troy” Ounce of Gold Mean? What Does 18 or 24 “Karat” Gold Mean?

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4. The USD & U.S. Dollar Index – What Affect Are They Having On the Price of Gold?

The U.S. Dollar Index is made up of a basket of [6] currencies that are, themselves, not static and, indeed, are involved in various forms of debasement as nations have taken the view that a weaker currency will boost their exports. As each nation enacts such policies, the result is gridlock, as every action taken to weaken one’s currency is neutralized by a similar action taken by the competing currencies. That is currently what is happening with the constituents of the U.S. Dollar Index and why, as such, the U.S. dollar has not weakened. [Given the fact that] gold tends to have an inverse relationship with the dollar, and has increased when the value of the dollar has declined, we could, as a result, continue to see a capping in the advance of gold prices, at least in dollar terms. [Let me explain in further detail.] Words: 804; Charts: 1

5. Past Bubble Movements Suggests a Parabolic Peak Price of $9,000 for Gold & $250 for Silver Is NOT Unreasonable – Take a Look

Bubbles tend to follow the 80/20 ratio indicated in the Pareto Principle where approximately 80% of the price move occurs in the LAST 20% of the time. That being the case it would appear that gold and silver could conceivably top out around $9,000 per troy ounce and $250/ozt respectively .This is not a prediction of future prices of gold and silver; it is an indication of what could happen in a speculative bubble environment based on the history of previous bubbles. Words: 1280; Charts: 1

6. Startling Relationship Between Gold Price & U.S. Gov’t Debt Suggests What Price for Gold in 2017?

The price of gold, on a quarterly basis, is 86% correlated – yes, 86%! – to total government debt going back to 1975… and a shocking 98% over the past 15 years! [As such,] it would seem like a no-brainer investment thesis to buy gold… as a proxy for the not-otherwise-investable thesis that US total government debt will increase in the future. [But there is more – and it is disappointment for gold bugs – read on!]