Today the Dow Jones Industrial Average hit 7,990.67.
That's a drop of 8.95%!
On December 31, 2008 the gold price was 869.75.
On January 23, 2009 the gold price is 895.80.
That's an increase of 3%!
People aren't dumb and are buying into gold now as a safe haven. Our whole financial system and economy is collapsing. Banks are giving zero percent interest on savings accounts. That's why it is making sense to people to buy gold.
The DJIA started the year at 10.09 ounces of gold and now it is worth only 8.92 ounces of gold. In 1932, three years after the infamous Wall Street Crash and the start of the Great Depression, it only took two ounces of gold to buy the DJIA. We're getting close to repeating history and maybe the 2:1 Gold:Dow ratio will be revisited again.
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