The Really Useful Gold Thread

With the price of gold closing in New York on Friday at $348.90 and with the Dow closing at 8303.78, the ratio has now fallen to 23.80 times. That's quite a ways below its highest ever ratio of over 40 times, but it is a long, long way from a 1:1 relationship. O'Higgins suggests that gold will rise to $6,000 and the Dow will decline to 6000 at the bottom of the bear market. The point is, whether the ratio is 6,000 to 6000 as O'Higgins suggests or whether it is at 3,000 to 3000 as Richard Russell suggests or to a Dow of under 1,000 and a gold price over 2000 as Ian Gordon suggests, the point is that by opting out of the fiat money system at this juncture, investors might expect to enjoy a transfer of wealth in their direction at the expense of all those who are duped by our policy makers to stay in a paper money system - to stay in stocks and bonds - while the seeds have been sewn for its paper money's destruction.