Marius said: "Holding some physical gold outside the financial system and keeping it until the Dow/gold ratio drops to 2 or below or the public stampedes into gold might be worthwhile though."
If I held gold, I'd start to sell between 3 and 5.
Down the line, at what DJIA:oz.Gold would you want to accumulate gold?
ounces of gold per DJIA
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You could use http://home.earthlink.net/~intelligentb ... dow-au.htm to divide actions into buy, hold, and sell.
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I agree Steve. *IF* I were one to speculate in the yellow stuff, selling between 3-5 would be prudent. Here's a good chart on that:
http://home.earthlink.net/~intelligentb ... dow-au.htm (Edit: Jacob beat me to it.)
However, it depends on one's reason for buying gold. As a doomer? As some sort of a hedge against inflation? Speculation?
For me, I have better uses for my money than to buy an inert metalic commodity.
http://home.earthlink.net/~intelligentb ... dow-au.htm (Edit: Jacob beat me to it.)
However, it depends on one's reason for buying gold. As a doomer? As some sort of a hedge against inflation? Speculation?
For me, I have better uses for my money than to buy an inert metalic commodity.
Thanks for the link guys, good stuff... I look at how high the ratio is and I think now is still a decent entry on gold. Especially, with pressures on the dollar, political distrust, over-valued equities, historic interest rate lows.
I agree with the selling in the 3-5 range. However, I might wait for for the right end of the "V" to sell.
I we can't "catch" things and SHTF then the ratio could easily make new all time lows. Such protections are a reason I own gold to begin with and I'm willing to lose other opportunities for the insurance.
I agree with the selling in the 3-5 range. However, I might wait for for the right end of the "V" to sell.
I we can't "catch" things and SHTF then the ratio could easily make new all time lows. Such protections are a reason I own gold to begin with and I'm willing to lose other opportunities for the insurance.