I was reading some article (somewhere ... can't remember where) that asked whether Gold
is currently cheap or expensive or ...
>How do you measure "cheap" or ...
That was the point I was TRYING to make!
The article calculated the number of ounces of gold necessary to buy the DOW.
If the DOW is at 10,000 and gold is $400 per oz., then it takes 10000/400 = 25 ounces to buy the DOW.
So if it takes lots of ounces to buy the DOW, then gold is underpriced.
>Lots? Compared to what?
Compared to some historical value ... as shown here
>It looks like gold is underpriced. Is that what you'd conclude?
Oh, I never conclude anything. I just play with the numbers and plot charts and ...