Exactly three weeks ago, on July 17th, NIA sent out its ‘Special NIA Dow/Gold Ratio Analysis’. At the time of NIA’s alert, we had a Dow/Gold ratio of 13.19.
NIA said in its analysis, “NIA believes the 2013 year-end Dow/Gold ratio of 13.80 is likely to hold as its medium-term peak. NIA predicts that the next move for the Dow/Gold ratio in the immediate near-term future is back down to 12.63, and if NIA is right – it will serve as confirmation that the secular bear market for stocks and secular bull market for gold has resumed.”
On Thursday, the Dow/Gold ratio fell below its key support level of 12.63, exactly like NIA predicted. The Dow/Gold ratio finished Thursday at 12.49, its lowest level since mid-April. Today’s move was the strongest indicator yet that the Dow/Gold ratio topped out on December 31st at 13.80.
The 2013 bounce for the Dow Jones and decline in the price of gold was an anomaly – a head fake to get investors doubting the fundamentals of gold and positioned in dangerous dollar-denominated assets, right before the U.S. dollar collapses and gold makes its largest 3-4 year rally in history!
The Dow/Gold ratio declined from an August 1999 secular peak of 44.73 to an August 2011 medium-term bottom of 5.78, before bouncing to a medium-term peak on December 31, 2013 of 13.80. This is extremely similar to how the Dow/Gold ratio declined from a January 1966 secular peak of 28.32 to a December 1974 medium-term bottom of 3.05, before bouncing to a medium-term peak in September 1976 of 9.48. Afterwards, the Dow/Gold ratio collapsed downward for the following 40 consecutive months to its January 1980 secular bottom of 1!
When the Dow/Gold ratio bounced in 1974-1976, most investors were suckered into mistakenly believing that the U.S. economy was recovering. It turned out that the recovery was just an illusion fueled entirely by inflation – and it’s happening again in the U.S. today! It won’t take long for the Dow/Gold ratio to fall below its August 2011 low of 5.78.
Over the next 3-4 years, investors who own gold will preserve the purchasing power of their savings and income – while Americans with Dow Jones stocks and dollar-denominated assets go broke. Americans who invest into the right gold/silver mining stocks will become extremely wealthy.
NIA not only has the world’s strongest gold/silver stock suggestion track record, but NIA is always hunting for short-term inflation protection plays in other commodities that are set to boom, and NIA believes graphite will be the next commodity to explode that nobody is talking about today. Tesla‘s Gigafactory will cause worldwide graphite demand to immediately double. The graphite market is already extremely tight due to the Chinese government shutting down many graphite mines in their battle against pollution.
Tesla is expected to source all of its graphite from North American mines, and NIA believes there is currently a once-in-a-lifetime opportunity for investors to become extremely wealthy by investing into the stocks of near-term North American graphite producers that are currently at the ground-floor, with the potential to soon rise by 1,000% or more.
NIA’s #1 graphite stock suggestion is coming very soon.