This is a chart of how many ounces of Gold it takes to buy 1 "share" of the Dow . The Dow Jones Industrial Average is a price weighted index that contains 30 blue chip companies. This chart is measuring what the DOW is really worth. If the US government prints money and inflates prices, the index will rise (there are other factors here, ie. usd fx rate, leverage of the companies). This causes a problem. How does one know what the DOW is really worth if it is measured it a FIET currency ? Price it against the hard currency of gold. Since 1999 the index has loss 80% of its value and 57% in just the last 2 years. From a high of 44 to closing yesterday at 8.34. Many and myself included believe this index/ratio will fall to 1.
(chart source: Bloomberg)
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