If we used a gold vs oil ratio where should gold be?
The answer to the question in the title is over $2,000! The current gold:oil ratio is 11.2 which compared to back in 1961 through 2000 this ratio has fluctuated between 20:1 to 16:1. We all know that this ratio will not alter the average investor’s mentality but it is curious to note the chart below.
Martin,
While I respect the work of Charles Nenner, he is typical of the analysts who fail to see that EVERYTHING IS CONNECTED. How does Nenner believe gold will be extracted out of the earth once the world peaks in oil?
What happens to the valuations of the stock and bond market when the world has 10, 20, 40% less energy to run the system?
While Nenner is an excellent cycle chartist, I would imagine he has no clue how peak oil will destroy growth and a way of life in the future.
Lastly, the world can’t afford high-priced oil. Without the huge increase in debt and low interest rates, the GREAT SHALE ENERGY INDUSTRY would have died a few years ago.
steve
GLD lost 4.2 tonnes from its inventory today.
Amazingly, in what appeared to be a prop for the US dollar, international banks appeared to purchase $29 billion worth of US securities.
I am not sure what appears to be is what actually is. This smell of a “Belgium” style purchase to me.
That is interesting CFS. Thanks for bringing that to our attention.
I meant trillion not billion above see Zerohedge for story.
T. Boone Pickens on oil.
http://www.humanfinance.com/?&cid=MIXPREBRA7167041057058080
$150-200 potential
Obama…..mulling over sending troops to Iraqi.(aol today)……..WAR HERE WE COME…….just as planned………….
OIL AND WAR…….WAR AND OIL(say that three time real quick)
I find it interesting that Charles Nenner (former esteemed Goldman Techn) in his commentary suggests in his analysis that various markets and commodities are not directly correlated and are to be viewed more on an individual basis.