The gold-oil ratio just hit a 124 year high. The historical average is around an ounce of gold for 15-20 barrels. Today it's double.
Is gold too expensive or oil too cheap?
I think the gold miners are set to make some $$$.
What do you think?
![[Linked Image]](http://www.iii.co.uk/sites/default/files/Gold%20oil%20g1(s).jpg)
Oil is way, way too cheap.
RS
Gold isn't high enough and oil isn't cheap enough. We'll keep printing money.
I have never played with gold and have never regretted it.
How's the oil/pork belly ratio doing?
Its a point of interest and has no relevance other to indicate one commodity is out of whack.
Oil is low - bad.
Oil is high - bad.
All of the commodities have come down in price, except gold...so it's gold that is too high.
All of the commodities have come down in price, except gold...so it's gold that is too high.
Except that gold has always been a "safe haven" for investors and banks. When Wall Street is shaky or in a tailspin gold is where many park their money. Basically gold works inversely to the "market" but there are exceptions.
All of the commodities have come down in price, except gold...so it's gold that is too high.
Except that gold has always been a "safe haven" for investors and banks. When Wall Street is shaky or in a tailspin gold is where many park their money. Basically gold works inversely to the "market" but there are exceptions.
Not exactly. It's more of a hedge against unstable currencies then stock markets.
The guys on "Gold Rush" are going to doubly profit. Not only will they get more for their gold, but fuel has always been the major expense of their operations.
I used to think that oil would come screaming back. Now I'm not so sure...
The ratio is indeed out of the "normal" range. Today I think that oil is low relative to gold.
However, I fear war is coming in a greater way to the Middle East and I also fear the dollar will lose value.
Who knows how and when this would play out but $150 oil and $3000 gold would not surprise me. Might see $300 oil and $6000 gold.
Oil and gold are both "real" commodities with true intrinsic value and use. The dollar is just a fiat currency. The "dollar" or any of the current day fiat currencies are inefficient measures due to the "temporary" great supply of oil and the idiocy of the gov't's criminal monetary policies: The current oversupply in oil and the current fiat currency era will somehow end and I expect that oil and gold will work their way back to historical ratios. Problem is, what will the "measuring stick" be?
But, I could be wrong, that's what makes a market.
TF
The ratio is indeed out of the "normal" range. Today I think that oil is low relative to gold.
However, I fear war is coming in a greater way to the Middle East and I also fear the dollar will lose value.
Who knows how and when this would play out but $150 oil and $3000 gold would not surprise me. Might see $300 oil and $6000 gold.
Oil and gold are both "real" commodities and the "dollar" or any of the current day fiat currencies are inefficient measures due to the "temporary" great supply of oil and the idiocy of the gov't's criminal monetary policies: The current oversupply in oil and the current fiat currency era will somehow end and I expect that oil and gold will work their way back to historical ratios. Problem is, what will the "measuring stick" be?
But, I could be wrong, that's what makes a market.
TF
So you are predicting a Bernie Sanders victory?
Sadly, I fear that it does not matter who wins. The problems of the day are greater than the statesmen of the day.
TF
All of the commodities have come down in price, except gold...so it's gold that is too high.
That makes sense. Now all I need to know is when.
All of the commodities have come down in price, except gold...so it's gold that is too high.
Except that gold has always been a "safe haven" for investors and banks. When Wall Street is shaky or in a tailspin gold is where many park their money. Basically gold works inversely to the "market" but there are exceptions.
You've been watching too many Fox News commercials.
All of the commodities have come down in price, except gold...so it's gold that is too high.
That makes sense. Now all I need to know is when.
Something to consider; gold can trade as a commodity but at times it trades as "money." Gold traded as a commodity when it was seen as a useless relic. It went as low as $255/ounce. Then fear and the spectre of currency value losses set in and the rose to $1900. It was trading as "money" then. When we have calm economic times, gold will trade as a commodity but when monetary woes set in, it truly trades as a "currency" as it does today.
TF
Something to consider; gold can trade as a commodity but at times it trades as "money." Gold traded as a commodity when it was seen as a useless relic. It went as low as $255/ounce. Then fear and the spectre of currency value losses set in and the rose to $1900. It was trading as "money" then. When we have calm economic times, gold will trade as a commodity but when monetary woes set in, it truly trades as a "currency" as it does today.
TF
Thanks, that's a good analysis.
I remember back in 1965 a $20 gold piece could be had for $50.