“There is no reason to think that the basic relationship between the Dow stocks and gold has been altered in any fundamental or everlasting way. For practically the entire 19th century… many years of the 20th century… and as recently as the 1980s, the ratio of the Dow to gold was 1 to 5 or less. Investors paid 5 ounces of gold to buy the Dow and its earnings. Will the Dow once again trade for 5 ounces of gold or less? Almost certainly. And it will probably happen before this historic drop in the Dow/gold ratio has reached its final bottom.”
http://lewrockwell.com/bonner/bonner583.html
Related posts:
Grand Illusion: Social Security Is a Government Insurance Program
Hacking Law and Governance with Startup Cities
Oil and Water: An Armed Citizenry and a Police State
Understand the Emergence of the Marijuana Meme - Even In China
Detlev Schlichter: Could Bitcoin be the money of the future?
David Galland: Welcome to the Company Store
Jacob Hornberger: The Pipe Dream of NSA Reformers
Jacob Hornberger: Dismantle the International Checkpoints
Strategies Overseas Retirees Need to Handle a Multi Currency Lifestyle
Detlev Schlichter: “Watching your money disappear” – Speech to senior representatives of the UK pens...
Last Hurrah of the Interventionists?
Is the National Security Agency behind Bitcoin?
The Government’s Us? Not Last Time I Checked
How to Survive a Plane Crash: 10 Tips That Could Save Your Life
The Economic Philosopher's Outcast: Mises