Summary: This piece explores the correlation between the Dow and gold/silver, and compares charts from the 1970s and today. With the Dow hitting all-time highs, many expect a crash to occur within the next few months. If it does, many investors will rush to gold/silver. The author explains how the stock markets are currently in a period of risk aversion. The last time this occurred in the summer of 2011, gold rallied from $1480 to $1920, while the Dow fell more than 13% at the same time. Silver’s recent strong performance also indicates that the current rally could be “the real thing.” Some analysts also expect silver to outperform gold in the months ahead, with the author of this piece declaring that the gold:silver ratio could fall to as low as 30. The silver chart featured in the story (below) also shows that roughly the same amount of time has elapsed since the last peak/collapse cycle that occurred in 2008. Read more…
