the_Bird

Gold Has More To Run, Whatever The Benchmark

I don't see the validity of comparing the DJIA to gold prices, at all. Gold is gold; it's an asset without intrinsic earnings ability. DJIA represents companies that have and will continue to grow profits out into the future. GE, as a proxy for the DJIA, earned $0.15 per share in 1981 and is expected to earn $2.20 this year; of course it's stock price (and the DJIA) has gone up over time to reflect this. How does that bear ANY relationship to what value gold might have?

The gold that someone bought and put in a vault thirty years ago is the exact same gold that's sitting in that vault today; General Electic obviously is not. There's just no logical relationship between those two values.