Looking at the Dow to Gold ratio, it is easy to spot a very simple investment strategy.
Consistently invested in gold whenever gold is cheap relative to shares, and conversely invested in shares whenever shares are cheap relative to gold makes a lot more money than being always fully invested in either gold or shares.
The times to buy either gold or shares are easy to spot and require no special skill. Gold should be bought when the ratio is above 10 and shares should be bought when the ratio is below 10. The time to swap from shares to gold is when the ratio is above 15. The time to swap from gold to shares is when the ratio is below 5.
With the currently ratio being above 15, gold is the better long term investment at the moment.
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