While we here at the Stalwart haven't been sold by those who solely compare the Dow-to-gold ratio because of various flaws in A) the Dow calculation and B) the fact that it only represents 30 stocks in the US, (should instead perhaps compare something along the lines of MSCI World-to-gold), we must admit we admire the following author's style, comparing various stock market returns not in local currency, or in dollars, but just strictly in gold.
While the Nikkei-225 lost 4% to the gold market, and the EuroStoxx-600 lost 15% last year, the Dow Jones Industrials surrendered 23% of its value, falling below 20 ounces of gold per one Dow share, to its lowest level in nine years. ...
Thus, the Santa Claus rally that has lifted Dow blue-chips 8% higher to the 11,000 area was just another optical illusion. Gold rallied 19% or $90 per ounce since the Bush appointment of Ben Bernanke to the Fed on October 24, 2005.
At least, an interesting way to see things. We're still not sold on the Dow, until they change the weighting system they use. But if you were to look across global, market-cap weighted markets and compare their performance to gold, then we understand the logic.
P.S. From another article, more thought along these lines:
Stop whining about high oil prices immediately! You are only using the wrong currency, be it now dollars, Euros, Yen or whatever else pieces of fiat money you carry in your wallet.
Would you pay your crude oil bill in the universally accepted currency of the last 6000 years - that is gold - your barrel would have become 28.4% percent cheaper since the nominal record high reached last August
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