Back when I was a Gold bug...

JC Parets
March 28, 2024

In the early stages of my Wall Street career, it was cool being a Gold Bug.

All my heroes were Gold bugs.

I learned in the early 2000s that pricing assets in Gold helped put market trends into context.

The Dow/Gold ratio was the ultimate Gold Bug Chart at the time.

You can see the Dow/Gold ratio here plotted in black, compared to the Dow Jones Industrial Avg itself overlaid in green.

Notice how throughout the 2000s, the black line went straight down the whole time.

That falling line represents Gold outperforming Stocks.

Then throughout the 2010s, that black line was mostly rising. This represents Gold underperforming stocks.

More recently over the past few years, the Dow/Gold ratio has been mostly flat.

The resolution here, higher or lower, will likely be very indicative of the direction of these major trends.

Gold is breaking out to new all-time highs.

The Dow Jones Industrial Average is at new all-time highs.

Where would we rather be?

The Rocks or the Stocks?

Check out our latest Precious Metals Chartbook and Trade Ideas here.

We'll also be discussing this all on Monday night during our LIVE Monthly Charts Strategy Session.

We'll get going LIVE @ 6PM ET on April 1st.

Make sure to Register Here if you haven't already.

JC

 

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