Wealth comes from profit-making businesses. The profit is the measure of how much wealth they create; it is the difference between the cost of doing something...and what that thing is actually worth.
Bill is right and its hard to know given the enormous distortions. I thought well, if btc can go to $100K+, homes to $1.5M in CAD terms $.5M USD surely gold could go to $10K ? Personally I wish the entire market imploded but I dont believe I'll get that wish. They will print, and print....... a crack-up boom. Those psycho's are all in now committed, although, they should be committed.
BB-Thank you. This is what I singed up for. Your vision for where the economy is going. Gold to Dow at ‘5’ is a good measurement. Do more of this and less politics. This would make me happy and I’m sure most of your following. AP
It appears, throughout the years, that whenever there was a “sourpuss” company in the Dow, that it was replaced with another “better” company, just to keep the Dow propped up. As long as that’s the case, when will you ever know the proper entry point to exchange gold for the Dow?
One of the few things Keynes got right is, "Markets can remain irrational longer than (you) can remain solvent."
The counter-balance is, "Gold is money. Nothing else is."
Bill is right and its hard to know given the enormous distortions. I thought well, if btc can go to $100K+, homes to $1.5M in CAD terms $.5M USD surely gold could go to $10K ? Personally I wish the entire market imploded but I dont believe I'll get that wish. They will print, and print....... a crack-up boom. Those psycho's are all in now committed, although, they should be committed.
What if the DOW/GOLD ratio bottoms out at 5.1 ?
Or worse, at 2 or 1 and you bought at 5?!?
Up. Down. Sideways. Good grief. All of this gives me a headache. At least, not (yet) an ulcer.
I think I'll stay off of the roller-coaster; just sit tight...and go fishing.
Great, insightful post, Bill, thank you.
Pricing aside, it's still one of the few places you can hang out without being exposed to the counterparty risk associated with a credit meltdown
BB-Thank you. This is what I singed up for. Your vision for where the economy is going. Gold to Dow at ‘5’ is a good measurement. Do more of this and less politics. This would make me happy and I’m sure most of your following. AP
Bill, question…..
It appears, throughout the years, that whenever there was a “sourpuss” company in the Dow, that it was replaced with another “better” company, just to keep the Dow propped up. As long as that’s the case, when will you ever know the proper entry point to exchange gold for the Dow?
Hey Bill, do you have a Dow silver ratio as well?
Interesting question.