Comments on: When someone says the stock market is worth so much in gold, what does that mean? http://goldrushmagazine.com/when-someone-says-the-stock-market-is-worth-so-much-in-gold-what-does-that-mean about the Gold Stock and more... Sun, 18 Jul 2010 00:51:06 +0100 http://wordpress.org/?v=2.9 hourly 1 By: Hal (GT) http://goldrushmagazine.com/when-someone-says-the-stock-market-is-worth-so-much-in-gold-what-does-that-mean/comment-page-1#comment-2680 Hal (GT) Wed, 10 Feb 2010 19:01:30 +0000 http://goldrushmagazine.com/when-someone-says-the-stock-market-is-worth-so-much-in-gold-what-does-that-mean#comment-2680 Great explanation. It is not hard to imagine that we are approaching one of those historical occurrences yet again. So yeah. I agree. With all the world economic woes and the way our gov is printing money it's just a matter of time. Great explanation. It is not hard to imagine that we are approaching one of those historical occurrences yet again. So yeah. I agree. With all the world economic woes and the way our gov is printing money it’s just a matter of time.

]]> By: When someone says the stock market is worth so much in gold, what … Gold just to Me http://goldrushmagazine.com/when-someone-says-the-stock-market-is-worth-so-much-in-gold-what-does-that-mean/comment-page-1#comment-2677 When someone says the stock market is worth so much in gold, what … Gold just to Me Wed, 10 Feb 2010 01:11:14 +0000 http://goldrushmagazine.com/when-someone-says-the-stock-market-is-worth-so-much-in-gold-what-does-that-mean#comment-2677 [...] post: When someone says the stock market is worth so much in gold, what … tags: certain-points, historical-relationship, its-peak, purchase-the-dow, two-ounces | [...] [...] post: When someone says the stock market is worth so much in gold, what … tags: certain-points, historical-relationship, its-peak, purchase-the-dow, two-ounces | [...]

]]> By: Dan http://goldrushmagazine.com/when-someone-says-the-stock-market-is-worth-so-much-in-gold-what-does-that-mean/comment-page-1#comment-2673 Dan Tue, 09 Feb 2010 01:46:59 +0000 http://goldrushmagazine.com/when-someone-says-the-stock-market-is-worth-so-much-in-gold-what-does-that-mean#comment-2673 As of Feb 5 Close Dow Jones Industrial Average Index = $10012.23 Gold (1oz with a purity of .9999 or 24K) = $1066.60 Dow Jones Index / Gold Price = 9.39 oz or Gold price ratio 8.5 oz of gold to dow jones ratio was weeks ago. Explanation why Gold Price Ratio is used: There are various tools investors can use to help determine the future price of gold. One of the primary methods used by US Gold is the Dow Jones versus Gold ratio. This ratio looks at how many ounces of gold it takes to purchase the Dow, assuming every point in the index represents a dollar. This ratio also reflects the market's confidence in paper versus physical assets like gold. There is a historical relationship where at certain points in time the gold and the Dow trade at a 1:1 or a 2:1 ratio, where one or two ounces of gold can purchase the Dow. When this happens gold has reached its peak in terms of purchasing power relative to other financial assets. These are periods where investors have lost confidence in paper assets. It occurred in 1896, 1929 and 1980 and we believe we are approaching this ratio again.<br><b>References : </b><br>http://www.usgold.com/about-gold/ As of Feb 5 Close
Dow Jones Industrial Average Index = $10012.23
Gold (1oz with a purity of .9999 or 24K) = $1066.60

Dow Jones Index / Gold Price = 9.39 oz or Gold price ratio

8.5 oz of gold to dow jones ratio was weeks ago.

Explanation why Gold Price Ratio is used:
There are various tools investors can use to help determine the future price of gold. One of the primary methods used by US Gold is the Dow Jones versus Gold ratio. This ratio looks at how many ounces of gold it takes to purchase the Dow, assuming every point in the index represents a dollar. This ratio also reflects the market’s confidence in paper versus physical assets like gold.

There is a historical relationship where at certain points in time the gold and the Dow trade at a 1:1 or a 2:1 ratio, where one or two ounces of gold can purchase the Dow. When this happens gold has reached its peak in terms of purchasing power relative to other financial assets. These are periods where investors have lost confidence in paper assets. It occurred in 1896, 1929 and 1980 and we believe we are approaching this ratio again.
References :
http://www.usgold.com/about-gold/

]]> By: AZNYC http://goldrushmagazine.com/when-someone-says-the-stock-market-is-worth-so-much-in-gold-what-does-that-mean/comment-page-1#comment-2672 AZNYC Tue, 09 Feb 2010 00:56:59 +0000 http://goldrushmagazine.com/when-someone-says-the-stock-market-is-worth-so-much-in-gold-what-does-that-mean#comment-2672 For example, the dow closed at 10,012, gold is at 1,053 per ounce. 10012 / 1053 = 9.5 So dow jones is worth 9.5 oz of gold. Maybe it's as simple as that? I'm not aware of this concept, but it sounds like its a rough way of making a comparison.<br><b>References : </b><br> For example, the dow closed at 10,012, gold is at 1,053 per ounce. 10012 / 1053 = 9.5 So dow jones is worth 9.5 oz of gold. Maybe it’s as simple as that? I’m not aware of this concept, but it sounds like its a rough way of making a comparison.
References :

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