Random Idea

Stocks Will Fall 37% or Gold Will Rally 60%

bad analysis

If you are gonna run a comparison like this, you need to use total returns on the DJIA (S&P would actually be better) and total returns on Gold.

Actually, you are running actual returns on Gold (you receive no interest or dividend on gold) but you are ignoring roughly 1/3 of the return in stocks that comes from dividends.

Over time Gold should be consistent in its purchasing power (i.e. grow at the rate of inflation). Stocks, on the other hand have grown 5-6% faster than inflation (roughly 6% capital gains, 3% dividend). This ratio you talk about then will not be consistent over time but will be declining.