Lassonde preaches $15-20,000 gold price

Sharps Pixley/Lawrie Williams

“While we do not feel that gold will reach these exalted levels in the short to medium term, we do admit that in the ultra long term such peaks may be achievable. Lassonde has, for many years, predicted that the gold price will eventually achieve parity with the Dow Jones Industrial Average (currently at around 28,000), suggesting a huge increase in the gold price coupled with a sharp reduction in the DJIA index.  This is a pattern we would concur with, although something that could take several years to come about.”

USAGOLD note:  A more likely scenario would be for the Dow to retreat while gold advances and they meet somewhere in the middle.  In this era of extravagant money printing, however, a phenomenon which raises all boats, it could unfold the way Lassonde predicts. At the moment, the Dow/gold ratio is at roughly 13.5, i.e. 13.5 ounces of gold buys the Dow.  The last crossover came in late 1979.

Dow to Gold Ratio
(1970 to present)

line chart showing the Dow-gold ratio 1970 to present

Chart courtesy of • • • Click to enlarge

Repost from 9-16-2020

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