25.10.2012 - Dow:Gold makes $12,400/oz gold a realistic target
It was fascinating to read the comments of “Mr. Gold” Jim Sinclair this week about gold heading for $3,500 to $12,400-an-ounce as a result of a shift in spread management by the bullion banks. He used to run one so knows exactly when and why these banks are likely to slash their short positions and go fully long in the precious metal. However, a consideration of the famous Dow:Gold ratio is also relevant here as a confirmation of where this price swing will go. Historically the ratio of the Dow Jones Index to the price of gold has in extremis swung to parity with one ounce of gold equal in value to the dollar-value of this index..............................................Full Article: Source
Print