According to ChainCatcher, Christopher Aaron, chief analyst and founder of iGold Advisor, believes the fourth major turning point in the Dow Jones Gold Ratio has arrived. This signal suggests that gold will experience several years of sustained growth, while holders of industrial stocks such as the Dow Jones and S&P 500 may suffer losses for several years.
Note: The Dow Jones Fibonacci ratio refers to the number of ounces of gold required to buy one share of each of the 30 Dow Jones Industrial Average components. Based on the average of the key turning points in history (1930–1933, 1968–1980, and 2002–2011), the Dow Jones Industrial Average would have fallen 90.5% relative to gold over 9.3 years.
Aaron also pointed out that this fourth turning point in the Dow Jones Fibonacci ratio may become the most critical trend break in the historical trend of the two, and the decline of the Dow Jones relative to gold may exceed the average of the previous three cycles.
