Here is a new graphic that is very interesting. What we see is that after this latest drop in the Dow we are still a bit more expensive, in Gold terms, that the last 3 low points. If we say the "normal" low point is 2oz of Gold to buy the Dow (meaning if Gold is $800/oz the Dow is 1600). To rectify this we'd need to see either the Dow drop to 1800-1900 (given Gold at $900-$950/oz) or Gold to rise to $4000 (given the Dow at 8000). A more likely scenario is that both prices move and meet in the middle. So a Dow of 4000 and Gold at $2000/oz is within the realm of possibility.

Do you have any Gold?