Fascinating chart from David Singer; I am still struggling to decipher just what it means.
The Bar Chart is the ratio of Dow Industrials to Gold; it asks, how much Dow does an ounce of Gold buy? The line on the chart is the Dow.
It makes some sense that there is a parallel between Gold and the Dow, given the impact of inflation and geopolitical risks on both.
The divergence since 2003 — when interest rates were slashed to generational lows, and the War in Iraq began.
If anyone has another theory or explanation, I am all ears . . .