Fred's Intelligent Bear Site brought to you by Fred Filskov. Public, private, and commercial distribution of this material is permitted as long as a link to this site is attached.


Fred's Intelligent Bear Site brought to you by Fred Filskov. Public, private, and commercial distribution of this material is permitted as long as a link to this site is attached.

DYI Comments:  Gold and more importantly the mining companies have become far less pricey.  This is opposed to the bargain days of 2000 when gold was dirt cheap and basic stocks were flying to the moon. The Dow/Gold Ratio was 43 to 1 at that time.  Currently the ratio is 12.76 to 1 making gold pricey but still has room to run on the upside.  This is why DYI's modeled portfolio has the mining stocks at 25% as compared to 60% during the bargain days.  As the ratio moves downward DYI will cut back the percentage.  Eventually years in the future the asset category will be replaced with REIT'S.  At that time gold will go into a speculative "blow off" just like the high tech companies at the top of that market.  The Dow/Gold Ratio at that time will most likely be below 3 to 1 signifying the end of the bull market in gold.

DYI