Normally you see the Dow Jones Industrial Average (aka DJIA; a meaure of the overall prices on the stock market) as it is computed in dollars.The chart at right shows a rather different view: the DJIA computed in gold. The shape of this line is very different than that of the DJIA in dollars.
So what can we glean from this? I can think of two things. First, it looks as though historically a leap in the gold-denominated price of the DJIA serves as a “bubble” warning. Second, there's clearly an arbitrage opportunity between gold, stocks, and dollars if you can get the timing right (and gold bugs have been saying this forever).
But it's a darned weird (and to me unexpected) result...
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