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Index In Real Money/Gold

Updated September 9, 2023 - We have a crash and a solid downtrend for ALL stock markets expressed in Fiat Gold Money!

 

THIS IS THE MOST IMPORTANT SECTION OF THE SITE!

  • This is what really counts...It is underestimated and not understood by the bulk of investors.
  • We could publish a chart of any investment vehicle expressed in Real Money or Gold. As they all look alike (except for those on the Investment roster), we limit ourselves to the charts of the major stock market indexes.
  • Very few know that GOLD has outperformed stock markets since the beginning of this century. The charts below show that global equities have lost 80% vs. gold since 2000 and will likely lose another 95% in the next 3-6 years.

 The charts below speak and tell us that the Gold and silver sector will perform BETTER than the traditional Stock markets will!

indugold pf1 INDUGOLD candle2

Dow in Gold lost 40% in 2009 and 80% since 2001!
 The SP500 in Gold lost +87,26% since 2000!

"What sense does it make to accumulate Fiat Money (Treasuries & bank deposits) which are slowly but surely becoming worthless..."
  • We advise staying away from any stock market as long as it sits in a BEAR market trend expressed in Gold or Real Money. Stocks, however, will perform better than BONDS, MONEY MARKET FUNDS, and SAVING ACCOUNTS/BANK DEPOSITS.
  • The chart to the left of the Dow (click to enlarge) is a better example of the general trend. The performance of many Stock Market Indexes is even worse...
  • For the Secular Downtrend to remain in force, GOLD must rise more than the stock markets, or the Stock markets must fall if Gold moves sideward.
  • It is not because a stock is quoted in Dollars or British pounds that it is, in fact, a Dollar or Pound investment instrument. Shares can be quoted on stock markets of different countries, and the share price will reflect the origin currency.
  • Under the actual conditions, Equities are a BETTER investment than any available BOND.
  • The Dow/Gold ratio peaked in 1999 and is now in a downtrend. Once the current correction is finished, the ratio will continue toward the 1:1 level, like in 1980 when the Dow was 850, and Gold was $850. The only question is at what level the Dow and gold will be when they reach the 1:1 ratio. Will it be the Dow Index at 10,000 and Gold at $10,000? Or will we see hyperinflationary levels of 100,000 Dow and $100,000 gold? The absolute level is really irrelevant. Because whatever level they meet will involve a catastrophic loss of real capital for a stock market investor.
Charts (except China and Japan, showing a fresh breakdown) all look similar and are extremely Bearish.

These PF charts answer an essential question and show what REALITY looks like!

The best way to measure the Dow in real terms is against gold. Gold is the only money that has survived in the last 5,000 years – furthermore, GOLD represents stable purchasing power. Over time, gold doesn’t go up. Instead, paper or fiat money goes down until it reaches zero.
The charts below are charts of Indexes expressed in FIAT GOLD. Expressed in Physical Gold, they look a lot worse than those expressed in Fiat Money! 

Green colored charts = Bull trends, Red = bear trends, White = sideward & we don't know yet!
AVERAGE LOSS is 80% for leg #1 - Average EXPECTED loss for leg #2 = 80%
German DAX Spanish Ibex French CAC Footsie Gold
 Japan Nikkei
daxgold pf1 ibexgold pf1 cacgold pf1 ftsegold pf1 nikkgoldpf1
 Downtrend
 Downtrend Downtrend Downtrend Downtrend
Greek drama Swiss index Belgium Dow
 Dutch AEX South Africa
atggold pf1 smigold pf1 BEDOWGold pf1 ZADOWGold pf1
Downtrend Downtrend Downtrend Downtrend Downtrend
India Sensex China -80% USA- Dow Jones Bank Index  
bsegold pf1 ssecgold Indu-Gold
Historic gold
  Downtrend Downtrend Downtrend Downtrend
Nasdaq in Gold SP500 in Gold Majors in Gold Juniors in Gold  Bitcoin in Gold
COMPQGold pf1 SPXGold pf1 HUIGold pf1 GDXJGold pf1 BitcoinGold pf1
Downtrend Downtrend Downtrend Bottom?  
AEX BEDOW DAX Bonds in Gold  Real Estate in Gold
AEXGold BEDOWGold DAXGold HPIGold bar
downtrend downtrend downtrend  Downtrend For all the wisenoses still pretending Real Estate is a GOOD investment!!

One of the best ways to gain some perspective on stock markets and gold is to look at the Dow Jones Industrials (DJI)/Gold ratio. The Dow/Gold ratio has a long history, as the 200-year chart above attests. The ratio had had a considerable movement over the years, which is an accomplishment since gold was, until August 1971, fixed roughly at $20.67 and then at $35 in April 1933, when the Roosevelt administration revalued gold to devalue the US.

The devaluation of the US dollar was a part of the currency wars of the 1930s. The Roosevelt administration also forbade the hoarding of gold, gold bullion, and gold certificates, and the US administration purchased gold at the then-fixed rate of $20.67. The resulting profit was used to fund the Exchange Stabilization Fund (ESF), established by the Gold Reserve Act of 1934. One thing that stands out in the above chart is that following the creation of the Fed in 1913, the Dow/Gold ratio has become much more volatile.

dow gold LT.png

When the Dow/Gold ratio reaches 1:1, this means a loss of more than 90% in real terms for stock market investors – $ 1 million in stocks would be worth less than $100,000 in today’s money. And remember that the last time a 90% fall happened in the Dow was in 1929-32. It took 25 years to return to the previous peak.

A different story: Stock market expressed in real money (Gold) since 1861

© - All Rights Reserved - The report's contents may NOT be copied, reproduced, or distributed without the explicit written consent of Goldonomic.

23
September
2009

Mixed signals for Gold - 2009

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Categories: Index In Real Money/Gold, Gold-$, Press, Rupee Gold, Yuan Gold, Swiss Franc & Gold, Euro and €-Gold, Candollar & Gold, British Pound & Gold, Swedish Krona & Gold, Aussie & Gold, Yen & Gold, SA Rand & Gold

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