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Gold vs. The Dow Over the Past Forty-Seven Years
In 1933 President Roosevelt signed executive order 6102 that outlawed private ownership of gold by U.S. citizens. That order remained in effect until December 31, 1974. Since then gold has risen from $35 an ounce all the way to $1900 an ounce in 2011 ounce and back down to its current price of about $1260 an ounce. The Dow Jones Industrial Average (DJIA) has gone from 600 in 1974 to its current peak of around 22,000 today.
Gold is an asset that does nothing, yet over the past 45 years it has out performed the DJIA which represents much of the collective commercial efforts and innovations of man for the past few decades.
Here are some charts showing which years from 1970-2016 gold performed better than the DJIA and which years the DJIA out performed gold. The charts also shows the Gold to Dow Ratio from 1970-2016 e.g. how many ounces of gold it took to buy the Dow. (bottom)
The charts will be updated from time to time and archived (see below).
Gold’s Average Annual Yearly Percentage Price Changes 1970-2012.
Percentage of up years: 61.7%. Since 1970 gold has gone up 29 years over the past 47 years or 62% of the years.
Longest Gold Winning Streak: 12 years. Gold went up 12 years in a row from 2001-2014.
Longest Gold Losing Streak: Five years. Gold went down five years in a row from 1988-1992.
Largest Annual Gold Gain: 139% (1979)
Largest Annual Gold Loss: 33% (1981)
Forty-Seven Gold Performance: 3,500% Gold was about $35 an ounce in 1970 and is currently around $1260.
Gold has the longest winning streak among the DJIA and silver. (see also Silver vs. the Dow)
Long Term DJIA Performance 1970-2016
Click Chart to Enlarge
The Dow Jones Industrial Averages from 1970 to 2016
Percentage of up years: 72.3%. Since 1970 the Dow Jones Industrial Average has gone up 34 of the last 47 years or 72% of the years.
Longest DJIA Winning Streak: Nine years. The DJIA went up nine years in a row from 1991-1999.
Longest DJIA Losing Streak: Three years. The DJIA went down three years in a row from 2000-2002.
Largest Annual DJIA Gain: 38% (1975)
Largest Annual DJIA Loss: 34% (2008)
Forty-four year performance: 3,566%* The DJIA was about 600 in 1970 and is currently around 22,000.
The DJIA has been the most consistent performer among gold and silver. (see also Silver vs. The Dow). It’s longest streak of negative returns is just three years in a row. The Dow, however, also has the lowest single year largest annual gain compared to gold and silver.
S&P vs the Dow Since 1970
*does not include any reinvested dividends.
Other Snap Shots of the Dow Gold Ratio:
Updated January 4, 2017
Updated May 6, 2016
May 2015 – May 2016 Gold vs the Dow Performance
The Dow Gold Ratio was at 13.778 to 1 on May 6, 2016.
Gold and the Dow have exchanged places a few times from May 2015 – May 2016, with gold pulling away from the Dow in February 2016
Gold vs The Dow 1970 – April 2014
Chart shows how many ounces of gold it takes to buy the DJIA from 1970-2012.
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