Today's chart presents the Dow divided by the price of one ounce of gold: it currently takes 9.8 ounces of gold to “buy the Dow.” This is considerably less that the 44.8 ounces it took back in 1999. When priced in gold, the US stock market has been in a bear market for the entire 21st century and is currently trading 78% off its 1999 highs. The recent five-month rally, however, has the Dow (priced in gold) putting in a significant test of resistance of an accelerated downtrend that began in mid-2007.
Note that in 1980, the ratio was approximately 1.5, i.e. +/- 6 times less than today.
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