wow- oil gold ratio
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Started by bear - March 24, 2020, 1:15 a.m.

the oil - gold ratio has recently gone over 60 to 1 ... that's 60 barrels of oil to buy an ounce of gold.  

the last time it was this extreme was in the depression.  the average is normally close to 15, with the ratio going from below 10 , or above 20 (up to 25 as a high).  a few years ago, no one would have guessed it would get to 60-1...

at the bottom of the depression it was close to 100-1 (briefly). 

oil is far too cheap at this level. 

Comments
By cutworm - March 24, 2020, 5:59 a.m.
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By metmike - March 24, 2020, 1:48 p.m.
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Thanks for the great link/chart cutworm!

By metmike - March 24, 2020, 2:21 p.m.
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By metmike - March 24, 2020, 3:50 p.m.
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By wglassfo - March 24, 2020, 5:50 p.m.
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Hi Bear

You may know this but there is a separation between physical gold and gold futures prices with physical gold having a larger price and premium than normal

There is a shortage of physical gold coins and bars

Physical and futures are not the same price with physical gold much more valuable

Physical gold will continue to increase in value over time although it may take some time

If you have physical gold you want to hang on for the long haul