gold news

 This chart here is basically what convinced me to buy gold. I went, "Oh my god, we're so overvalued with with stocks and gold is so cheap." Uh so this is the reason that I I got involved in all of this. The Dow has been crashing since the year 2000 measured in gold. You think the Dow is going up, that the stock market is going up. Well, it's not measured in gold. So now uh the the market is not going up measured in gold and uh it you know we've had such a great return in the last year and a half

on gold that it should be uh are you looking at the Dow gold ratio now Alan I see you yes I am I was I'm trying to dig up some things on my computer I was just working on the Dow gold ratio today um so yeah I put this chart together and and we're in the twelves with yesterday's numbers right I didn't update it with today's close um but as of Yesterday the Dow gold ratio is 12 point something. Wow. And yeah and going going back here um this is this is a um logarithmic chart so it's a little hard

to interpolate here but if I remember this was about 22. This peaked at about 22. So it's so gold has outperformed the Dow by almost a factor of two in like the last five years. So yeah. Okay. Ever since uh gold uh bottomed and started coming back. So you know I want to point out with to everybody uh this is not a this is probablyual data or monthly. This I think is daily data. Yeah this is daily. Well the ratio in uh 1929 was 18 not uh 15 or 14. Um uh because the it was a breath away from uh the Dow

was a breath away from 400 points. It was 390 something and uh the and gold was fixed at $20.67 an ounce and then the Dow fell all the way to 40.22 points in 1932. And so I I don't think that that's that is not intraday data. I know that. Uh anyway, so it went the the bottom in 1932 was a ratio of 2 ounces of gold equaled the points of one share of the Dow. Um in 1980 it was gold and the Dow were $873 and 873 points at the same time. That was an intraday high. And so it was a ratio of one. And so when it's further

out of whack to one side, if when it overshoots, it's going to be go further to the other side. Now, that didn't go right along with a shift in the world monetary system. Uh I I think that it's very possible that we could be seeing gold's price at double the points of the Dow. Uh if it's because of gold going up, that's great. If it's the Dow going down, a lot of people are going to suffer a lot. But I have a feeling it's going to be a combination because that re that revaluation that was going on uh

of the stocks versus gold from 29 to 32 that is only uh the that's only the stock market moving. Gold was $2067 an ounce. the revaluation from 71 to 1980. Uh that is pretty much gold moving and not stocks. The Dow hit its head on uh 1,000 points uh in 1966 and it chopped. So it did go up and down. That big jag in the middle is actually uh a bare market in gold and a bull market in uh the Dow and S SNP from I think uh it it bottomed at the end of 74 and then went up throughout 75. I think that that's what that Jag is it in

there. So they're both moving, but basically the Dow hit its head on a thousand points and couldn't break through until 1982. That whole line falling there is pretty much gold uh going from uh $422 uh to $873 down to just uh one ounce of gold equaling the points on the Dow. And now we have both of them moving simultaneously. And that is a magnifier. And I I truly So we're at how many? You said 12. Yeah, about 12.6 I think. Yep. Okay. So, uh, you should have you should be able if you're in gold right now. So,

this is gold, not silver. If you're in gold right now, and it does go down to one, you're going to be able to buy 12 times more stocks with your gold. If it goes down to a half, it's 24 times more stocks. And that's from where we're at right now. Uh, I've been riding this ever since the the peak. And this was what this chart here is basically what convinced me to buy gold. I went, "Oh my god, we're so overvalued with with stocks and gold is so cheap." Uh, so

this is the reason that I I got involved in all of this back in uh n and in 2000 in 2022 2020, no 20 2002, sorry, 2002. Yeah, that makes sense. Yeah, this is one of the more convincing charts for me as well. Um, you know, when you taught me about wealth cycles and the Dow Dow gold ratio is like one example. Um because it's like you know we know the dollar is phony baloney you know like it's it's voodoo. It is we know it's a terrible measuring stick. So if you're you know curious about the price of gold

measured in dollars you know that's that's half nonsense right? It's just just pay attention to how many ounces of gold you own. Um similarly how many shares of stocks do you own and then you know you ride out the volatility measure measured in dollars. But if you want to, you know, build your wealth over time, you just cut out the middleman, the voodoo dollar and just, you know, look at these two assets compared to each other. It makes so much sense to me. And then you just be patient, you know,

because these swings take a couple decades to play out. So you just stock up on one, no pun intended, but you stock up on one of the assets, wait a couple decades, and then transfer it into the other and stock up on that other asset. So it's it seems like such a foolproof, easy, you know, low stress, you know, easy way of investing. So, I'm I'm super thankful you you taught me about it, Mike. Well, thanks. Uh, you can see here also that there's sort of an equilibrium where they're both in

fair value to one another. If you look at 1910, 1920, uh, between like two and four or maybe even five, somewhere in the middle of this whole thing. And so, it shows that we're still in a hyperbubble with stocks and gold is undervalued. And this is one of the things. Gold has been taking a run from 250 all the way up to 3100 at this point. And a lot of people are going, "Oh, I missed it." In my opinion, nobody missed it. This is uh still one of the greatest opportunities in history. I've

often said there are these rare moments in history where the safe haven asset, the place that everybody runs to in times of crisis, becomes not just the safe haven, but also the asset class with the single greatest potential gains in purchasing power. This is where we are right now. That's where we are. Uh, and so I'm just I hope that more people uh take, you know, but I've been hoping that for a long