If you take an assumption that US is the only country on the planet, the risk for GOLD is the increase in interest rates. And if GOLD/DOW ratio is used to measure gold performance I think DOW may be some kind of substitution for gold as investment. But given global gold trading and coming deflation in the US this does not apply i believe. This is very simple, with no earnings , how much would stock market worth ?? Even not as a toilet paper when electronically traded.
History confirms it. Take a look at this beautiful hyperinflation in Germany and their relation to the US.
http://www.nowandfutures.com/us_weimar.html
November 14, 1923: "The value of the Daimler company was about $980 million and a car cost $3 million - the whole company was only worth 327 of its cars."
check this too:
"Suicides went up 30%"
"A bite to eat"
What if this happens again?
I was reading and kinda liked his stuff, but when I found this:
"There are also a number of people who believe, despite all the evidence above, that the government (or "The Fed") will "hyperinflate" to "save the economy" (or at least try.)"
What evidence ??? Dollar lost 40% of its value. The M3 is not longer reported. GDP is going to 0 . Bubble in tech, the bubble in housing, then bubbles in China, bubbles in India, bubbles in England, "bubble" in commodities.... this is US dollar bubble echoed all over the world. How can he not see this??? Also, what is tax on appreciation? I don't know what is this and don't want to. I think main error of this guy is that it focuses only on US as it would be the only country in the world, actually thousands of analysts make this mistake.