The DOW has already collapsed

John, what is your opinion on gold stocks but in particular the price of Lihir and Newcrest not rising to match golds very recent (record) highs? But in the latest drop in gold price, they seem to have fallen slightly. I know you are all about bullion but your opinions on this please? WD and keep the vids coming!

new way of doing things? I would bet on a cashless control grid based on credit. NWO style. The people with biggest guns will control resource dispersal. Probably by issuing credits for labor. All electronic. "Make sure you get your government issued credit card"(so they can track every purchase you make). Total Information Awareness. Fiat money creator's new system of control and slavery.

very interesting

quick question: why the log scale for the dow gold ratio?

its not a log scale.

its just ( DOW / GOLD ) - linear scale.

in the graph shown after 2 minutes, look at the y-axis. the values 20 and 21 are closer together than 7 and 8. That is characteristic of a log scale.

Most DOW/GOLD plots that I've seen use this scale. I've been trying to figure out why, other than the advantage that it allows you to see a linear trend, but on a log scale

your right... never picked that up!

so to answer your question - no reason!

gee it would look terribly bearish without it ;)

At 4:30, the graph also uses a log scale

I agree if the graph at 2:00 were on a linear scale, the decline from 12/06 to around the end of '08 would be a lot steeper (more bearish for the DOW).

There must be some logical reason for using the log scale. Perhaps you can research this and discuss it in your next video.

I appreciate what you are doing!

This guy Stella has many good vids - check his channel and you'll find a vid on hedging a PM position with a ForEx position.

Dont get me wrong - im keeping my gold - because its not yet certain that the GFC is over (maybe the liquidity crisis is over but the currency crisis isn't).

But from a trading point of view - it seems you may as well just be in ForEx.

(Anyway -

Gold production peaked in 2001 and production continues to decline by 1.3% per year. This is the catalyst for for gold and why is has decoupled from the dollar. When the price gets high enough the reserves will be mined...It will end in tears.

unless at the top - you sell out and buy the next appreciating asset.

no-one in their right mind can expect gold to go up forever - i dont think anyone can argue that it will. but right now, we're in a bull market. bull markets can last many years. I think gold has 3-5 years left in it.