{"id":1201328,"date":"2020-08-12T18:37:59","date_gmt":"2020-08-12T23:37:59","guid":{"rendered":"https:\/\/www.mining.com\/?p=1032541"},"modified":"2020-08-12T18:37:59","modified_gmt":"2020-08-12T23:37:59","slug":"105-year-chart-gold-price-vs-stocks-shows-metal-still-cheap","status":"publish","type":"post","link":"https:\/\/juniorminingnews.com\/?p=1201328","title":{"rendered":"105-YEAR CHART: Gold price vs stocks shows metal still cheap"},"content":{"rendered":"
\n
\"105-YEAR
Image: Adapted from Goldcorp video. <\/figcaption><\/figure>\n<\/div>\n

On Wednesday the gold price regained some of its footing after the unceremonious $100 plunge to below $2,000 an ounce yesterday. Gold for December delivery closed at $1,926 an ounce in New York after falling as low as $1,874 earlier in the day.<\/p>\n

Action on financial markets shifted to US stocks with the S&P500 briefly trading above its all-time closing high of 3,386 set in February. The Dow Jones ended at 27,976, back to within shouting distance of its peak, also reached in February.\u00a0\u00a0<\/p>\n

This 105-year chart of the blue chip index from Macrotrends<\/a> tracks how many ounces of gold it would take to buy the Dow over any given month. <\/p>\n

\n
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Previous cycle lows have been 1.9 ounces in February of 1933 and 1.3 ounces in January of 1980 when gold in inflation-adjusted terms hit an all-time high of roughly $2,500 an ounce<\/p>\n<\/blockquote>\n<\/figure>\n

In the late nineties and early 2000s when gold was languishing in the $200s and $300s it took around 40 troy ounces to buy the Dow index.<\/p>\n

Previous cycle lows have been 1.9 ounces in February of 1933 and 1.3 ounces in January of 1980 when gold in inflation-adjusted terms hit an all-time high of roughly $2,500 an ounce.<\/p>\n

When the nominal price of gold climbed $1,900 for the first time in August 2011, the ratio was a relatively dear 6.4.<\/p>\n

On Wednesday the Dow-Gold ratio based on closing levels was at 14.5, last hit in October 2016 when gold averaged $1,265 an ounce.\u00a0At its brief but glorious intraday summit<\/a> of $2,089.20 hit last Friday, it still takes 13.4 ounces. <\/p>\n

Is gold overvalued at these levels? Has the rise been too far, too fast? Are gold bugs (once again) guilty of irrational exuberance?\u00a0<\/p>\n

In comparison to stock markets, the answer is a resounding no.\u00a0<\/p>\n

\"\"
Source: Macrotrends<\/a> Log scale, shaded areas denote recessions<\/figcaption><\/figure>\n","protected":false},"excerpt":{"rendered":"

Has the rise in the gold price been too far, too fast? This chart going back to 1915 says not even close.<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"footnotes":""},"categories":[949,369],"tags":[],"_links":{"self":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1201328"}],"collection":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1201328"}],"version-history":[{"count":3,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1201328\/revisions"}],"predecessor-version":[{"id":1201540,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1201328\/revisions\/1201540"}],"wp:attachment":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1201328"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1201328"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1201328"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}