Where Are We ?
1a DOW GOLD Ratio
I'm not a gold nut. The reason this chart is on the list is because we need to measure with something that is constant. An ounce of gold does not change in Real Value, simply said an ounce of gold a thousand years ago and an ounce of gold today is still an ounce of gold, the same value it was than. Gold has NEVER gone to zero, it is aways worth something.
To begin to understand WHERE ARE WE, we must use a standard measurement that stays the same value and paper currencies never stay the same value, they change daily.
We can measure using paper currencies but must pay attention to the value that paper currencies are worth against each other. So since gold NEVER changes in Real Value it is an excellent way to measure Real Value.
In the early 1980s the US dollar was stronger then it is today. Same paper money but weaker today. 2 ounces of gold in the early 1980s got you one DJIA and at the dot-com/tech peak early 2000s you needed 42 ounces of gold to get the same amount of DJIA. So let's watch this chart and see what the long trend does over time.