Gold's worth different amounts depending on HOW you pay for it

It doesn't take an Einstein to figure out that gold broke to new rally highs the past week ... Or does it?! Turns out, it really is all relative when you really look at the price, or value, of gold! Below I've posted 3 charts of gold. First is my standard daily chart of gold continuous contract ($GOLD) which of course prices in dollars. Then, two ratio charts, gold-dollar (interestingly different from the $GOLD chart but not dramatically so), and gold-euro. The latter shows that this precious metal isn't really setting off fireworks in stronger currencies.

I'm suggesting what you're seeing isn't gold rising, but the dollar falling.. Sure, buy gold as a way to "short the dollar", that can last during times the dollar is falling. Readers know I'm now focusing on 73.50-ish in $USD so we'll see if that can get gold to $1192, my long-term Fibonacci possibility. Still - be careful out there as always!

Also below is today's update by "Chart of the Day" of their Dow-gold chart. I didn't plan this happy coincidence, but it's another way to look at the relative values of equities, and gold.

Chart of the Day - When priced in gold, Dow is down 78% over the past decade.
For some perspective on the current rally that began back on March 9th, today's chart presents the Dow divided by the price of one ounce of gold. This results in what is referred to as the Dow / gold ratio or the cost of the Dow in ounces of gold. For example, it currently takes 9.7 ounces of gold to “buy the Dow.” This is considerably less (78% less) than the 44.8 ounces it took to buy the Dow back in 1999. Since 2007, the Dow / gold ratio has declined at an accelerated pace (see dashed lines). As a result of the recent rally, the Dow (priced in gold) has moved up significantly and is currently testing resistance of its accelerated downtrend.

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