Do you think stocks are cheaper than Gold now?
I think so. Do you agree? Thanks.
Answers
546 points
warren answered 9 months ago …
Not even close. The bottom is not in with stocks although we may rally . May is when alt A mortgages start to reset and the problems are huge. Gold is less than half way to it's inflation adjusted all time high. Speculate all you want AFTER you have protected yourself with PHYSICAL gold and silver in your hand, garden or bank.
Warren
www.preciousmetalstockreview.com
116 points
JakeTollman answered 9 months ago …
That's sort of like asking if apples are cheaper than oranges. I saw a chart the other day with gold in terms relative to the Dow Jones Industrials. Right now the ratio is about 7 to 1. At the peak high of the internet bubble, it was about 50 to 1, that is the Dow was 50 times the price of gold. All time lows, 1 to 1, I forget when that happened. But, I digress. The point is, yes, stocks are cheaper relative to gold than they have been for some time.
As far as the answers that say gold is no where near its' inflation adjusted highs, isn't gold supposed to be an inflation hedge? Therefore, it should never need to be "adjusted" for inflation, right? So, the question to ask is which is more undervalued according to its' true worth? When you figure that out, let the rest of us know, because right now, I don't know how to figure the true value of anything.
