This week, we will revisit two key gold ratios: Dow/Gold and NASDAQ/Gold. In a bonafide bull market, Gold will substantially outerform these stock indices, which the yellow metal has done overall since the year 2000. It has been a bumpy road for these ratios over the past quarter-century, but Gold’s largest gains have come when we’ve seen waterfall declines in the ratio. Those next waterfall declines may soon be upon us.
We’ll start with Dow/Gold and note the familiar wedge I’ve shown before that began taking shape in 1980. The support line that connects the 1980 and 2011 lows have been the ultimate line in the sand for the Gold bull market, which is astounding to think about given the big gains we’ve seen already in Gold inside the giant wedge. A waterfall decline below key support is where I’ve always suspected we would see the Gold bull market ultimately make its final blowoff move, and that might be starting to take shape now. Earlier i…
