Monday, February 2, 2026

Just a Dip for the Metals?? Or a Cyclical Correction?? IMO Metals Remain in a Bull Market! Buckle up We're in for a Bumpy Ride!


How to Judge
the Dow to Gold Ratio

The Dow to Gold Ratio is calculated by dividing the Dow Jones Industrial Average by the price of one ounce of Gold.

The Dow-Gold ratio is a market indicator that helps investors decide where to put their money and when to do it. 

Be Ahead of the Herd

Since the Dow's inception in 1896, the markets have witnessed three peaks and valleys in the Dow to Gold Ratio.

Each peak and valley has been an example of over-exuberance in the markets, only to be squashed by reality.

In every bull market, some investors have mentioned "The Good Times are Never Going to End," but eventually, they do.

DYI Comment:  An almost vertical price increase for gold and especially silver that increases significantly a shakeout correction for the metals.  As this massive overvaluation for U.S. stocks eventually plays out to the downside in the meantime we’ll experience a see saw ride upward for precious metals.  Again expect a shakeout correction for the metals.

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