Rajandran R Founder of Marketcalls and Co-Founder Algomojo. Full-Time Derivative Trader. Expert in Designing Trading Systems (Amibroker, Ninjatrader, Metatrader, Python, Pinescript). Trading the markets since 2006. Mentoring Traders on Trading System Designing, Market Profile, Orderflow and Trade Automation.

DOW-GOLD Ratio touched new low

43 sec read

The Dow/Gold Ratio chart shows the ratio of the price of the Dow to the price of gold. Another way to look at it is the number of ounces of gold it takes to buy one share of the Dow. For example, with the Dow at 10,000 and gold at 500, it requires 20 ounces of gold to buy one share of the Dow, so the ratio is 20. The reason for using gold is that gold is the most unbiased form of money in existence. Fake government paper money comes and goes, but gold has been money for thousands of years. It is the ultimate store of wealth.


 

Currently Dow-Gold Ratio is near 8.99(multi year low) shows increased interest towards gold than US equities.

Paper assets excel when everyone is fixated on growth. When the growth phase ends, and preservation of wealth becomes the paramount concern, gold tends to excel.

 
Simply to say Dow is loosing its value and priced in gold.

Peter Schiff have some explaination on DOW-GOLD Ratio. Check out the videos

[youtube=http://www.youtube.com/watch?v=ocG7oGFPfzE&hl=en&fs=1]

When paper burns, gold shines.

Rajandran R Founder of Marketcalls and Co-Founder Algomojo. Full-Time Derivative Trader. Expert in Designing Trading Systems (Amibroker, Ninjatrader, Metatrader, Python, Pinescript). Trading the markets since 2006. Mentoring Traders on Trading System Designing, Market Profile, Orderflow and Trade Automation.

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11 Replies to “DOW-GOLD Ratio touched new low”

  1. Hi Rajandran.This is Chirag and I write a blog IndianMoneyPlus.ComCan I use your EOD NIFTY technicals.I will mention credit below it linking you.Wating for your reply.Regards.

  2. @Rashmi Dow-Gold Ratio is pointing lack of intrest inEquities. Remember Gold is directly propotional to inflation. i.e if inflation increases gold should increase. But what is happening is even in this deflated economy gold is moving higher. It means money is being transferred from Equities to Gold. May be hyper-inflation will be simulated in coming months. And this may reflect in indian equities also

  3. Hi Raj r u planning to start paid services too. if yes please let us know. i would like to be the first paid member.. your mentioned levels are mostly accurate. last time you told that 2860 level will not be crossed on closing basis but it happened. Does it mean that fresh buying can be initiated in nifty. regardsnitin

  4. No nitin iam not intrested in any kind of services. Iam here to share what i learn.Nitin i explained my view about nifty in my last post. Still one should wait till Twigg’s money flow indicator to turn positive

  5. Rajandran I have Applied it on my blog thanks with ur credits under it.The new look of your site is really great.

  6. sir, i found ur nsetracker is very usefull, can u please creat some tracker system for comodity trading also for gold, oil and metals. thank u, anand

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