Dow to Gold Ratio

The Dow to Gold ratio is calculated by dividing the current Dow Jones Industrial Average (DJIA) by the current spot price of an ounce of gold. A high ratio indicates stocks are expensive relative to gold, suggesting a potential market peak.  A low ratio suggests gold is expensive relative to stocks, indicating potential economic instability and a possible opportunity to buy stocks.  Historically, significant shifts in this ratio have often preceded market downturns or upturns, signaling a potential rotation from stocks to gold or vice versa.

Simply put DYI uses our averaging formula to determine the percentage whether gold, stocks, bonds, or cash (short term notes) as these assets rise or fall above or below their long term averages.  Over the long term having more assets in a secular bull market; less or none in assets that are in secular bear markets improving your overall performance.  Please note when approaching market tops or market bottoms you’ll be out of step of the current investors/speculators making our contrarian approach a lonely place. 

Today (9-29-2025) the Dow Jones is trading at 46,169 and gold at $3,856 with the ratio at 11.97 to 1.  Gold purchasing (along with the mining shares) are no longer the super bargain during the late 1990’s however there is room for further upside with precious metals possibly moving to 5 to 1.

 Updated Monthly

AGGRESSIVE PORTFOLIO - ACTIVE ALLOCATION - 10/1/25

Active Allocation Bands (excluding cash) 0% to 50%

46% - Cash -Short Term Bond Index - VBIRX

32% -Gold- Global Capital Cycles Fund - VGPMX **

 22% -Lt. Bonds- Long Term Bond Index - VBLTX

 0% -Stocks- Total Stock Market Index - VTSAX

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** Vanguard's Global Capital Cycles Fund maintains 25%+ in precious metal equities the remainder are domestic or international companies they believe will perform well during times of world wide stress or economic declines.