I just learned something new. According to this article in the WSJ, in order to determine whether to buy or sell gold you can consult your local clothier!
A long-standing rule of thumb among gold enthusiasts is that an ounce of gold should equal the cost of one high-quality man’s suit.
If that method of valuation doesn’t suit your fancy, the article discusses valuing gold based on pricing it in various currencies.
And although gold looks bullish in dollars, that specifically reflects the greenback’s weakness gold remains well below last winter’s peaks when priced in pounds, euros, yen, or Swiss francs.
It should come as no surprise that there are countless ways to value gold. After all, there are countless ways to value stocks, bonds, and every other asset class as well. That is what makes a market! For every buyer there is a seller.
For those of us who adhere to technical analysis, our decision to buy or sell gold…or Oracle, intermediate treasuries, real estate, Joe’s Donut Shop, or any other security is based on the same thing: price. Our relative strength methodology allows us to treat all securities in a given investment universe the same. It is the ultimate meritocracy. If a security’s relative strength merits inclusion in the portfolio, then it is added. If not, it’s not. This method, perhaps, lacks some of the story-telling sizzle of say the “suit rule,” but it is extremely effective over time.
Posted by Andy Hyer 
