Given the meteoric rise in gold prices over the last few months and the beating bonds have taken over the last 2 years, "the Dollar Debasement" trade has been in vogue of late. But in some sense, both the DJIA and Gold have been Dollar Debasement trades since 1971, when the US Government officially decided to debase the dollar in perpetuity.

Both the Dow Jones Industrial Average Index and Gold have delivered returns far superior to the Price inflation during the above period. Also, given that both the DJIA and gold are quoting at all-time highs, it is very puzzling to most investors. That the last 50+ years have been pretty much the same debasement trade that has caused the DJIA to vault higher is wholly lost.