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Gold/Mining/Energy : GOLD -- Ignore unavailable to you. Want to Upgrade?

To: maceng2 who wrote (49)	2/15/2002 8:25:56 AM
From: Tommaso	Read Replies (1) \| Respond to of 203

Strikes me that your quotation is an even stronger argument for shorting the Dow than for going long gold. I am doing both: "For a third reason why this rally is for real, Wall Street should simply look at how many ounces of gold are required to buy the Dow Jones Index. The Dow/gold ratio was at 1 in 1897, went up to 18 in 1929, crashed to 2 by 1932, went up to 28 by 1966, reverted back to 1 in 1980 and currently stands at 32, after having peaked at 45 at the top of the bull market in paper assets in 2000. A reversion to historical patterns could bring this ratio back to 1, with the Dow at 3000 and gold at Dollars 3,000 per ounce. But this would clearly not be an idea that Wall Street would like either to buy or to sell.