Dow to equal the price of gold?

[SLSteven]

http://www.campaignforliberty.com/blog/?p=92

Peter Schiff: ‘The Dow will be worth one ounce of gold.’
June 28th, 2008 by Michael Nystrom

Peter Schiff, economic adviser to the Ron Paul for presidential campaign, was on Fox Business News on June 26th, the day the Dow dropped 358. Stuart Varney did him and all viewers a terrible disservice, repeatedly demanding that Peter Schiff make predictions about inherently unknowable things. How low will the Dow going to go? What is the real rate of inflation? What is the real rate of unemployment?, “Give me a number, give me a number!”, Varney foolishly demanded.

No one knows those numbers. All we know is that the figures the government is giving us on inflation and unemployment are inaccurate and low. We also know that the Dow is going down, to the point that it will one day be roughly equal to the value of one ounce of gold. Today the price of gold is around $900, and the Dow is around 11,350. Where will they meet? No one knows the exact level, but if history serves as any guide, meet (or at least come very close) they shall. If such a thing sounds impossible, realize that it has happened twice before. I don’t have the exact levels right now, but once was during the Great Depression with both gold and the Dow around 35, and once was more recent, in 1980, around the 850 level.


I found the following article which includes a graph of the ratio of the Dow versus the price of gold.

http://goldnews.bullionvault.com/dow_gold_ratio_price_ounce_inflation_041720082

 

[malkusm]

If this were to happen, it would be worse than the Great Depression, and that's not an exaggeration.

I'm not convinced that gold and the Dow will meet at, say, 4000 though.

 

[meemes]

Dow Value and Gold Price =?

When considering the value of economic indicators, you must take into consideration exactly what the Dow Jones Industrial average is. It is an index that measures or reflects the prices of only 30 "blue-chip" stocks that are traded on the New York Stock Exchange. Even more important is the fact that the NYSE uses a trading system that employs specialists and is a far cry from a free market auction. In other words, the stock prices are very much manipulated or fixed by the specialists. There is a story that the famous gangster Lucky Luciano toured the NYSE before being deported to Italy. After learning about the specialist system, he said that he "joined the wrong mob".
So I'm not sure that the value of the DJIA ever happens to be any specific number by chance?

More info on these links:
http://www.hermes-press.com/neyint.htm

http://w3.tribcsp.com/~fredj/ney.html
ADVANTAGES OF BEING A SPECIALIST
The specialist has many advantages, many tools to use to pry dollars from unsuspecting investors and mutual funds. Chief among these advantages is his book. In his book he can see at a glance all the buy and sell orders from the public and the funds. His book tells him of potentially massive sales above and below his current price. This gives him a great advantage when he is trading on his own investment and omnibus accounts.

 

[bander87]

Video here: http://www.europac.net/Schiff-FBN-6-26-08_lg.asp

More vids as http://www.europac.net/video.asp