Dow Jones/Gold Ratio

Compare the relative value of assets over time

DJI

Dow Jones

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XAU

Gold

Current Ratio

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Period Change

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Compare the ratio of

Numerator

Denominator

Period High

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Period Low

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Period Average

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Period Range

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(High − Low)

Dow Jones/Gold Ratio

Historical ratio over selected time period

About the Dow to Gold Ratio

What is the Dow Jones/Gold ratio?

The Dow-to-gold ratio measures how many ounces of gold it takes to buy the Dow Jones Industrial Average, calculated by dividing the Dow's price level by the gold price per ounce. It is one of the oldest gauges of stocks versus hard money and dates back over a century.

Why is this ratio important?

The ratio has bottomed near 1 to 2 ounces at major turning points (1932, 1980, and 2011) and peaked above 40 at the 1999 dot-com top. A high ratio means equities are expensive relative to gold, while a low ratio means gold is expensive relative to equities. Long-term investors watch it for generational rotations between paper assets and hard assets. This is educational information, not financial advice.

Frequently Asked Questions

What is the Dow to gold ratio?

The Dow to gold ratio is the price level of the Dow Jones Industrial Average divided by the price of one ounce of gold. It tells you how many ounces of gold it would take to buy the Dow. A ratio of 15 means the Dow is worth 15 ounces of gold.

What is the historical range of the Dow to gold ratio?

Since 1970 the ratio has ranged from roughly 1 ounce at the 1980 gold peak to above 40 ounces at the 1999 stock market top. It fell back toward 6 to 7 after the 2008 crisis before rising again through the 2010s.

Why do investors watch the Dow to gold ratio?

It compares paper financial assets (stocks) to hard money (gold) over long cycles. A high ratio suggests equities are historically expensive versus gold, and a low ratio suggests the opposite. It is used to think about generational asset allocation, not short-term timing.