Dow-to-Gold Ratio

The St. Louis Fed’s FRED charting site just added gold prices to their database so I was playing around with some charts.

Here’s a look at the Dow divided by the price of gold.

I have no larger point to make with this chart. I just think it’s interesting to see how this relationship has played out.

At the beginning of 1980, the Dow and gold were nearly even. By August 1999, the Dow was 45 times gold. Then the trend reversed itself and the ratio fell below 6 by last August. Today the ratio is up to 8.0.

Posted by on July 10th, 2012 at 11:20 am


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