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Crystallex International Corporation is a Canadian-based gold company with a successful record of developing and operating gold mines in Venezuela and elsewhere in South America

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Message: Dow-Gold Ratio

Dow-Gold Ratio

posted on May 04, 2009 10:27AM

"We don't take note of the Dow-Gold ratio on a daily basis, but for the record, it stands today at roughly 9:1," writes Addison in today's issue of The 5 Min. Forecast.

"We mention this because Byron King sent along this chart going all the way back to the year Charles Dow created his famous index of blue chips.


"For the uninitiated, let's back up. The chart measures the number of ounces of gold it would take to buy all 30 Dow stocks. So in 1980 for example, when the Dow sat around 800 and gold was $800 an ounce, the ratio was 1:1. At the height of the tech bubble in 1999, it was 44:1.

"Notice where we are now... and where in all likelihood we're going based on what's happened before. 'That last drop of gold, from 9 ounces to the 1-2 ounce range,' says Byron, 'can bring a lot of hurt to the stock market along the way.'

"'One way or another, we'll see, say, $5,000... either $5,000 gold or $5,000 DOW. Even if the DOW stays at the current 8,000, that implies, say, $4,000 gold at a 2-to-1 ratio.'"

Byron believes gold still has a ways to go in its epic run...and knows of the easiest, and most effective way to pad your portfolio with this precious metal. Read his full report here.

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