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In 1929 Dow-Johns's index has reached $380, is close to frequency rate of an estimation of gold of 1933. (As gold cost has been fixed by the law of 1929, we do not know, what was real cost at this time.)
Relations of quotations of Dow to frequency rates or gold, or silver are reflected by that fact, whether the market is speculative or investment. When Dow is regarded in the silver range, previous level from 500 to 1,200, actions are consumed, i.e. people buy and remain the present investors.
When the market is in a speculative phase, a gold range, people buy to resell under higher prices. When Dow-Johns's index has surpassed 1200 in 1982 (a maximum of frequency rate of silver), it has passed in a speculative phase. Dow again to be stabilised as investment, instead of trading means, should come back to 1200 or rise to 5000.
The Markets of gold frequency rate are trading and speculative means: gold, art, jeweller ornaments, actions. The speculative markets are always dangerous at the big duration. For actions danger of crash arises, when the speculative fever pulls Dow to frequency rate of gold: something from 2500 and above.
Anyway Dow-Johns is the true indicator of the share market, its price level accurately reflected original cost of our trade when it was measured concerning gold cost. At gold from $350 to $400 for ounce and Dow's fluctuation between 3,000 and 3,400 we are in a critical point. When Dow has risen on a mark 3,000 and gold has slid off to $350 for ounce, we have approached very close to the main correction.
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