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Albert Sung is the author of the Katchum Macro-Economic Blog, monitoring breaking economic news from a day to day basis. He started investing in 2008 because of the economic crisis and holds a masters degree in chemical engineering. Previously, he worked several years as a process engineer at... More
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  • Dow Gold Ratio Closing Down 5 comments
    Nov 27, 2012 2:05 PM | about stocks: SDOW, GLD, PPLT, SLV

    A little reminder on the Dow-gold ratio (Chart 1). We see that the Dow has underperformed gold recently. And it looks like the trend could keep going down, which is consistent with my bullish view on precious metals.

    (click to enlarge)
    Chart 1: Dow Gold Ratio

    Also very consistent with my bullish view on silver, we see the gold silver ratio (Chart 2) go down as well. It's strikingly similar with the Dow-gold ratio.

    (click to enlarge)
    Chart 2: Gold Silver Ratio

    And finally, we see that platinum hasn't had its rise yet against gold. So buying platinum is still a very good deal (Chart 3).

    (click to enlarge)
    Chart 3: Platinum Gold Ratio

    Disclosure: I am long AGQ.

    Stocks: SDOW, GLD, PPLT, SLV
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Comments (5)
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  • dieuwer
    , contributor
    Comments (2978) | Send Message
    Did you see the news today about the COMEX declaring force majeur? Seems they cannot deliver physical anymore.
    27 Nov 2012, 03:57 PM Reply Like
  • Debutant
    , contributor
    Comments (2988) | Send Message
    They discovered TODAY that a warehouse in Manhattan got flooded in late October!!


    Even funnier is that they said "Business as usual" and declared "force majeure" both on the same day....one month after the flood!!!


    Me thinks maybe they found the warehouse empty with a wet note on the floor that read "I owe you xxxx oz gold. Hope to pay back one day".
    27 Nov 2012, 04:57 PM Reply Like
  • Katchum
    , contributor
    Comments (615) | Send Message
    Author’s reply » I'm sure it's nothing significant...
    27 Nov 2012, 05:07 PM Reply Like
  • dieuwer
    , contributor
    Comments (2978) | Send Message
    I'm sure Enron was not significant...until it was.
    I'm sure Madoff was not significant...until he was.
    I'm sure MF Global was not significant..until it was.
    28 Nov 2012, 08:28 AM Reply Like
  • Debutant
    , contributor
    Comments (2988) | Send Message
    Nothing is significant in these markets unless it may have significant consequences for a few crooks in financial markets. When that happens governments get involved to bail them out, et voila, the markets continue their game without anything significant to worry about.
    28 Nov 2012, 05:57 PM Reply Like
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