President Richard Nixon

“Suspended the convertibility”

for U.S. dollars into gold on

August 15, 1971

DYI:  To stay ahead of the inflation monster there is a simple method in investing giving you a leg up on this beast.  The Dow to Gold Ratio will give you basic parameters for how much gold to hold and how much in stocks.

GOLD
Updated Monthly

100 x ( Curr. DG - Avg. DG / 4 )

________________________________

(Avg. DG x 2 - Avg. DG /2)

Avg. Dow/Gold Ratio DG  10

Current Dow/Gold Ratio  12

% Allocation  63% in gold

% Allocation 37% in stocks

Using DYI’s averaging formula you’ll know the basic percentage between gold and stocks. This method is for very long term investing moving through business and inflation cycles generally lasting one or two decades in length.  

Till Next Time