The Dow on Gold's terms:
- During January 2000 gold traded at an average price of $284.32
- January 2000 the Dow was 10,900
- 10,900/$284.32 per ounce = 38.33 gold ounces to buy the Dow
Today gold is trading at $1570.90 while the Dow Jones (DJIA) continues to break records, up another 30 points as I write to 14,284.
"At first, the drop in the dollar simply offset the apparent rise in home prices, and prices in gold worked sideways until 2006. But when home prices began to fall in dollar terms, and dollars were themselves falling in value, the double-whammy pushed true home prices down to levels not seen since the late 1980s. In fact, they set a new record, the lowest level since the index was first published. This means that most homes purchased in the last 20 years are now worth less than the original purchase price, even if they show gains of 100%, 200%, or more, in dollar terms." ~ pricedingold.com
