Gold, silver or Dow Jones?

The chart of intelligent bear (http://home.earthlink.net/~intelligentbear/com-dow-au.htm) shows the Dow Jones divided by the gold price over a long period with its trend. In the long run the Dow Jones goes up more than the gold price and you also gets dividends. So on the very long run you can better invest in the Dow Jones than in gold. But you have decades that gold is better. Since 2000 the Dow Jones is in a free fall versus the gold price. That fll can maybe stop at a level of 5 (so at a Dow Jones of 12,000 that could be a gold price of 2,400).
When the inflationary forces become as big as around 1980 the gold price can even go higher. For the time being that is very unlikely because of the high unemployment rate, the high productivity growth and the emphasis on cost reductions.
Bernanke has to introduce a QE3 to get gold prices above $2000 per ounce, I think.

Because of the start of phase two of monetary easing, QE2, there is tremendous attention for commodity prices, especially gold and silver.
The gold price should have left phase two of the Minsky cycle, after which he explosive rise should occur. That could happen now when you compare it with other big bubbels (see chart). According to these theories the gold price can rise tremendously, but fundamentally we are already too high and when the Minsky moment will occur then the gold price will fall below current levels. Investing in gold is very risky and only a good advice when Bernanke goes on and on with quantitative easing and doesn't hike rates (as will happen when the unemployment rate declines enough).

The silver price is rising faster than the gold price. Especially last week was a record week, individuals bought for 523 ton silver with ETF's. Silver has all kind of industrial uses and very popular for coins. When Bernanke manages to accelerate the growth in the world causing higher inflation normally the silver price will rise more than the gold price.

The Bank Credit Analyst thinks the gold price has risen too much and you should switch from copper to oil.
That is very well possible but the coming months silver could bubble the most. So take care, gold is a dangerous investment and silver is even much more dangerous (and so could be rewarding).