The Ratio between the Dow Jones Industrial Average and Gold Prices
Historically, this seems to be a good indicator for exiting out of the gold market. When the ratio gets dangerously close to 1, that’s when you can maximize your profit by selling your gold. We seem to be getting close to that time, now. As of May 2010, the ratio has been hovering around 9.3.
Historical Dow Jones Data
Download the CSV version.
Load it into the database using djia-load.pl.
Historical Gold Data
Download the daily gold price Excel spreadsheet
Load it into the database using gold-load.pl
For the lazy and impatient ones, I checked in the SQLite database so that you can have some fun with queries right away.
DJIA vs Gold Ratio
SELECT g.value as gold, d.value as djia, (d.value / g.value) as ratio, d.day FROM price g, price d WHERE d.day = g.day AND g.symbol = 'XAU' and d.symbol = 'DJIA' ORDER BY d.day;
Monthly from 2000 to Now
SELECT g.value as gold, d.value as djia, (d.value / g.value) as ratio, d.day FROM price g, price d WHERE d.day = g.day AND g.symbol = 'XAU' and d.symbol = 'DJIA' AND d.day in ( SELECT day FROM (SELECT min(day) as day, strftime('%Y', day) as y, strftime('%m', day) as m, min(strftime('%d', day)) as d FROM price WHERE day > '1999-12-31' group by y, m)) ORDER BY d.day;