Dow 10,000 (in Federal Reserve Notes)

[sokal]

As you can see here, the DOW has gone down in the price of real money(Gold)

Another great representation of the amazing loss of purchasing power by the US public are today's oblivious statements about the Dow at 10,000. While in absolute terms the Dow may cross whatever the Fed thinks is a necessary and sufficient mark before QE begins to taper off (Dow crosses 10k just as Treasury purchases expire), the truth is that over the past 10 years (the first time the DJIA was at 10,000) the dollar has lost 25% of its value. Therefore, we present the Dow over the last decade indexed for the DXY, which has dropped from 100 to about 75. On a real basis (not nominal) the Dow at 10,000 ten years ago is equivalent to 7,537 today! In other words, not only have we had a lost decade for all those who focus on the absolute flatness of the DJIA, but it is also a decade where the US Consumer has lost 25% of purchasing power from the perspective of stocks! You won't hear this fact on the MSM.

[luangtom]

And, your point is....???? Let's look at the overall world markets and see what has taken place over the past two decades and then tell us what you see. Japan has had its ups and down, Thailand has had its, EU has had its and now the USA is having its. Did the markets survive? Are these countries still in the scheme of things internationally? Life is a roller-coaster and so is ithe market economy.

[sokal]

And, your point is....???? Let's look at the overall world markets and see what has taken place over the past two decades and then tell us what you see. Japan has had its ups and down, Thailand has had its, EU has had its and now the USA is having its. Did the markets survive? Are these countries still in the scheme of things internationally? Life is a roller-coaster and so is ithe market economy.

My point is that the DOW is at 10,000 only as result of a devaluation of the dollar.

[hustlehouse]

guys truth be told, we had been warned about it for years already. I still believe the best bet we may have to get out clean is gold (talking as an investor).

I'm not a seer but I see gold reaching over 1,500 USD in the next 5-6 months. Single stable commodity so far.

[hhgz]

"As you can see here, the DOW has gone down in the price of real money(Gold) "

Your post is based on ignorance, rather than knowledge. You've assumed that the value of gold has only increased in relation to the dollar, and everyone (except you) knows that is false. Adjusted for inflation, the price of gold has not maintained its value. It is incredible that you've missed the mark substantially. You're selling nonsense, and most of us are not buying it. Your post obviously appeals to a certain audience.

[britmaveric]

^exactly - gold is creating a massive bubble. It's going to be painful for the gold bugs when it bursts.

Upward/Onward to 11000!!! :D

[Naam]

"As you can see here, the DOW has gone down in the price of real money(Gold) "

Your post is based on ignorance, rather than knowledge. You've assumed that the value of gold has only increased in relation to the dollar, and everyone (except you) knows that is false.

1.Adjusted for inflation, the price of gold has not maintained its value. It is incredible that you've missed the mark substantially.

2. You're selling nonsense, and most of us are not buying it. Your post obviously appeals to a certain audience.

1. that goldbugs seem to lack basic maths and never take inflation into consideration always puzzled me. when pointing to inflation they either dodge or come up with statements that during the time of the Roman Empire a good suit made of top quality cashmere wool cost in Rome and Constantinopolis the same what it costs now in Savile Row, hence gold preserves value and wealth

2. why do you limit it to "most of us"?

[teletiger]

Sokal, It's the polite thing to provide a link when using somebody else's work.

http://www.zerohedge.com/article/dow-10000-oh-wait-make-7537

Especially when you twist it, as you did. The essay was dollar related, with gold as an aside.

Regards.

[flying]

Adjusted for inflation, the price of gold has not maintained its value.

Have you seen the DOW adjusted for inflation?

Dont even go back to the 80's go back to just 2000 & see what the answer is.

[Naam]

Adjusted for inflation, the price of gold has not maintained its value.

Have you seen the DOW adjusted for inflation? Dont even go back to the 80's go back to just 2000 & see what the answer is.

adjusting the DOW for inflation only does not present a correct picture. over decades the index has been manipulated (as were other indices too) by dumping losers and replacing them by winners. the only company that was not exchanged is General Electric!

[sokal]

^exactly - gold is creating a massive bubble. It's going to be painful for the gold bugs when it bursts.

Upward/Onward to 11000!!! :D

I cant wait till they jack interest rates up to 25%. That is the only event that will give the dollar value.

[sokal]

Adjusted for inflation, the price of gold has not maintained its value.

Have you seen the DOW adjusted for inflation? Dont even go back to the 80's go back to just 2000 & see what the answer is.

adjusting the DOW for inflation only does not present a correct picture. over decades the index has been manipulated (as were other indices too) by dumping losers and replacing them by winners. the only company that was not exchanged is General Electric!

Ok, lets see what the DOW is in inflation adjusted Gold. Gold at $2500 would make the DOW worth ??????????????

You see, when the paper gold market defaults (COMEX and the GLD ETF) then the price of Gold will adjust for inflation.

I asked Captain-wave-bug-ARK this question, he is having a hard time answering it.

Do you think the GLD ETF can deliver the pysical metal in a days notice ? Yes or No ?