Invest in Gold Now
Invest in Gold Now - Here is Another Good Reason Why
By Jeff Sneeringer
There are many reasons why you should invest in gold, now. Some reasons are more convincing than others. A good indicator I have seen recently is the Dow Jones vs Gold Price ratio.
Photo: smh.com.au
The Dow Jones vs Gold Price ratio looks at how many ounces of gold it takes to purchase the Dow, assuming that each point in the Dow Index equals one dollar.
Throughout history there have been certain points in time where the ratio was near a 1:1 or 2:1 ratio, meaning it would take one or two ounces of gold to purchase the Dow.
In 1896 the ratio was 1.28:1, in 1932 it was 2.07:1 and the last time the Dow vs gold ratio came close was in 1980 when it was 1.33:1. Analysts predict we are nearing that point once again.
At the time of this article the Dow was about 12,000 and the spot gold price was $903, making the ratio about 13:1. This is well below the all time high ratio of 41:1, in 1999, but still far from a 1:1 or 2:1 ratio.
You can easily see that for the gap to close, either the stock market will have to take a huge drop, the price of gold will have to increase dramatically, or both.
With all the uncertainty in the U.S. such as the shrinking dollar, the economy, a housing crisis and the ever growing national debt, adding gold to ones portfolio is really a no-brainer.
Plus, with all turmoil in the rest of the world, gold is becoming more of a safe haven investment than ever before in history.
But of all the reasons why you should invest in gold, take a hard look at the Dow Jones vs Gold Price ratio. This could be the biggest sign of all!
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Jeff Sneeringer, author of the Gold Investment System, is an expert on how to buy gold low. For over 20 years he’s been buying gold below 50% of spot price and he can teach you how to do the same. |
