Written by Gregory Monte from DidTheSystemCollapse.Org.
Peak gold price historically is when the Dow Jones to gold ratio is close to one to one.
So the Dow will go to 10,000 and gold to $10,000?
Sounds crazy, but it has happened before (or close to it).
On July 8, 1932 the Dow hit an intraday low of 40.56 while gold was officially priced at $20.67. That is a ratio of about 2/1. When gold was revalued to $35.00 an ounce in January 1934, the Dow was about 100 – still not a 1/1 ratio but under 3 for sure.
In January of 1980 gold hit $850 when the Dow was around 875. This was probably as close as we ever got to that 1/1 ratio.
Every 50 years it appears that this could happen. So, by 2030 we might possibly reach this 1/1 ratio again or close to it if history is any sort of guide.
Not a prediction so much as an observation.
Did The System Collapse? 