In addition to all the negative fundamental factors, there are certain indicators that are telling us that we are now getting nearer to the next phase of the downturn that started in 2006, from which has had a temporary reprieve. One is the Dow/Gold ratio. This ratio peaked in 1999 when the Dow was at a high and Gold at the $250 low. The ratio then declined by 87% until September 2011. This means that the average investor in the U.S. stock market was a massive 87% worse off compared to owning gold instead.

Between 2011 and the end of 2015, the ratio recovered 25% of the fall since 1999. Technically it is very clear that the dead cat bounce in this ratio is now finished and that it is on the way to new lows. Since December last year the Dow has fallen about 20% against gold.

Eventually, I see the ratio going well below the 1 to 1 ratio in 1999 (Dow 800 and Gold $800). But even if the ratio only went to 1 that would mean a fall of the Dow versus gold of 92% from here. So gold in the next few years will not only preserve investors wealth but also enhance it.