Gold hasn’t been this cheap relative to the Dow since 2008
From Chris Lowe, Analyst, Bonner & Partners:
Compared with stocks, gold is trading on the “bargain counter.”
That’s the message of today’s chart, which tracks the price of gold relative to the index level of the Dow.
When the line on the chart is rising, gold is becoming more expensive relative to the Dow. When it’s falling, the Dow is becoming more expensive in relative terms.
As you can see, the gold-to-Dow ratio hit a high in the summer of 2011 when the yellow metal hit a peak of more than $1,900 an ounce.
Since then, the ratio has been falling – meaning gold has been getting cheaper relative to the Dow.
It’s left gold at its cheapest level relative to the Dow since 2008.
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