“There is no reason to think that the basic relationship between the Dow stocks and gold has been altered in any fundamental or everlasting way. For practically the entire 19th century… many years of the 20th century… and as recently as the 1980s, the ratio of the Dow to gold was 1 to 5 or less. Investors paid 5 ounces of gold to buy the Dow and its earnings. Will the Dow once again trade for 5 ounces of gold or less? Almost certainly. And it will probably happen before this historic drop in the Dow/gold ratio has reached its final bottom.”
