SLVO - The Dow-To-Gold Ratio: Is The Bubble About To Pop?
2025-04-08 08:08:00 ET
Summary
- The Dow-to-Gold ratio prices the Dow Jones Index in ounces of gold. Currently, the ratio stands at just over 12.5-1. In other words, it would take around 12.5 ounces of gold to "buy" the Dow.
- What we find is that historically, a falling Dow-to-Gold ratio precedes or coincides with financial crises or long-term bear markets.
- The recent breakdown in the Dow-to-gold ratio may signal that it's time to consider getting out of stocks and into gold.
By Mike Maharrey
Stocks have taken a beating over the last several days. The conventional wisdom is that the sell-off is due to worries about the impact of the Trump tariffs....
The Dow-To-Gold Ratio: Is The Bubble About To Pop?