Mission: Gold vs the Stock Market

ExplorerHop.com  Gold verus Stocks. Dow Jones Industrial AverageThe Dow Jones Industrial Average (also called DJIA or "Dow")  is a stock market index (that's just a fancy word for something that measures the stock market) that has been around since 1896!  

In the DJIA, a selection of about 30 large companies are chosen because they represent the whole economy.  This means that most people use service or goods from these 30 companies.  The stock prices of each of these companies is followed after applying a mathematical equation.  

It's kind of like a pick-and -mix candy store.  There is only 1 price no matter which candies you pick, but the price is set by what the owner pays for a selected number of candies which kids choose the most. In the same way the DJIA picks those stocks which most people use, adds a little bit of math and creates this number that gives us some idea how the economy is going.

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