Market Indicators

Gold to Dow Jones Index – May 2017

We’re not going to join the chorus of market timers that are trying to pick a peak price for gold. Instead, we’re going to watch golds relationship to the Dow Jones Industrial Index. As our thermometer indicates, the ending ratio of the price of an ounce of gold, compared to the DJI, increased with each gold bull market over the past 110 years – in 1904, 1933 and 1980. We think that this time gold will not stop rising until the dollar value of an ounce of gold will buy one share of the Dow.

As of May 31, 2017 one ounce of gold at $1,275.00 would buy 0.06 of a share of the Dow Index, trading at 21009.  This means that over the next 5 to 10 years, gold is likely to increase by a factor of 16.5, or the Dow will drop by a factor of 16.5 or – more likely – some combination of the above. We update our thermometer monthly and invite you to tune in to watch gold’s progress.

Get in touch

The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. Some of this material was developed and produced by Family Business Office Inc, to provide information on a topic that may be of interest. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.

Copyright © 2011-2017 Family Business Office Inc. All rights reserved.