Dow / Gold

Friday, October 20, 2006 | 11:15 AM

Yesterday, the Dow closed above the 12,000 for the first time.

For some further perspective into the current rally, Chart of the Day presents the Dow divided by the price of one ounce of gold:

This results in what is referred to as the Dow/Gold ratio or the cost of the Dow in ounces of gold. For example, it currently takes 20.1 ounces of gold to “buy the Dow.”

This is considerably less that the 44.8 ounces back in the year 1999. When priced in gold, the current stock market rally hasn't amounted to much. In fact, the longer-term trend is actually down!


Source:  Chart of the Day

Friday, October 20, 2006 | 11:15 AM | Permalink | Comments (69) | TrackBack (0) add to | digg digg this! | technorati add to technorati | email email this post



TrackBack URL for this entry:

Listed below are links to weblogs that reference Dow / Gold:


Or you could plot the Dow versus the price of computer megaFLOPS! C'mon, I see this one all the time and it is a curiosity at best. The DJIA is a terrible index: it is price-weighted, for the love of mike, to say nothing of representing an ad-hoc crumble of just a few stocks. Gold hasn't been real currency since FDR, and today is consumed mostly in the form of jewelry.

Posted by: wcw | Oct 20, 2006 11:34:09 AM

The comments to this entry are closed.

Recent Posts

December 2008
Sun Mon Tue Wed Thu Fri Sat
  1 2 3 4 5 6
7 8 9 10 11 12 13
14 15 16 17 18 19 20
21 22 23 24 25 26 27
28 29 30 31      


Complete Archives List



Category Cloud

On the Nightstand

On the Nightstand

 Subscribe in a reader

Get The Big Picture!
Enter your email address:

Read our privacy policy

Essays & Effluvia

The Apprenticed Investor

Apprenticed Investor

About Me

About Me
email me

Favorite Posts

Tools and Feeds

AddThis Social Bookmark Button

Add to Google Reader or Homepage

Subscribe to The Big Picture

Powered by FeedBurner

Add to Technorati Favorites


My Wishlist

Worth Perusing

Worth Perusing

mp3s Spinning

MP3s Spinning

My Photo



Odds & Ends

Site by Moxie Design Studios™