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As of 5/22/20

Dow/Gold Ratio

14 to 1 

(rounded)

In 1913 the US central bank began (i.e., Federal Reserve) and in that time frame, the US dollar has lost over 98.5% of its value to gold.

I fully expect with the current gold fundamental investment backdrop today to again see a similar fall in the Dow Gold Ratio akin to the 1976-1980 version.

Perhaps this coming rollover shall have a longer duration and further to fall as we are coming off two of the most gigantic US stock market bubbles ever formed (2001, 2019).

The lack of median Baby Boomer savings and underfunded pension dynamics guarantee the financial authorities will again intervene in our supposed free markets attempting still to prop up paper asset values as best they can, for as long as they can.

Will the Dow Jones Industrial Average index eventually reach parity with the fiat Federal Reserve Note price of gold? Or will we have had a currency crisis and financial restructuring before witnessing such a moment in the time ahead?

We suggest now is time to consider owning a prudent position in gold bullion for all stock price bubbles eventually give way to precious monetary commodity values in time. Just look at the charts above, and then ask yourself which way you think they generally will go in the coming decade.

DYI