webmaster Posted November 14, 2006 Report Share Posted November 14, 2006 I like these ratios, they can reveal favorable opportunities to switch from Oil to Gold or vice versa As this thread is started, Gold looks relatively expensive: source : Nones-on Resource Investor However, this is only a "Local extreme", and prior 2004, the ratio was higher LONG TERM GOLD/OIL RATIO : This chart (from Goldfinger) shows brief spikes to 30 and even one to 33. That was typically followed by a collapse in the Ratio back below current levels. Long Term Oil prices source: http://www.wtrg.com/prices.htm Back to pre-1868: http://www.priceofcrude.com/index.php/crude-oil-chart/ = = = = = CHARTS http://tinyurl.com/gei-gold-wtic http://tinyurl.com/gei-GDX-OIH http://tinyurl.com/gei-GDX-XLE Link to comment Share on other sites More sharing options...
drbubb Posted December 2, 2006 Report Share Posted December 2, 2006 Chart update: Barrels-per-Gold ounce Now back at 10.26 barrels Link to comment Share on other sites More sharing options...
drbubb Posted January 6, 2007 Report Share Posted January 6, 2007 TIME TO START SHIFTING...? Out of precious metals into energy? Maybe. See charts and comments: WTI-to-Oil Cross market intelligence Link to comment Share on other sites More sharing options...
drbubb Posted November 12, 2008 Report Share Posted November 12, 2008 TIME TO START SHIFTING...? Out of precious metals into energy? And so it was! with Gold-to-Oil near 12. It proved a good ride, with the ratio almost cut in half into August 2008 (Ratio then near 6.3) Now it is time to shift back into Oil - with Gold-to-Oil near 12.50/ But after a correction in the ratio, we could have begun a long period where Gold will tend to outperform Oil. The recent impulse move UP in the Ratio, suggests that. But there's a gap down there, near 10.00 - 10.50, that wants filling. Link to comment Share on other sites More sharing options...
drbubb Posted December 21, 2008 Report Share Posted December 21, 2008 Long range chart "The lower and upper horizontal bands in the chart above show an oz of gold has exchanged between 22 and 10 barrels of oil since 1989. The ratio dipped to as low as 7 and right now it trades at 20. One shouldn't buck against the trend and I expect the ratio to exceed 20 to reach perhaps 30 or more. You can play with two of the three variables (oil, gold, and ratio) and come up with the third. For example, at ratio of 30 and oil price of $50/barrel, the formula produces a gold price of $1,500/oz. I honestly have no idea what future lies, except • Oil is oversold and cheap • Gold is not expensive by historic means • The gold-to-oil ratio will keep rising until it comes down." /more: http://new.goldmau.com/article.php?id=1222 Update: about 20:1 : $40 x 20 = $800 Link to comment Share on other sites More sharing options...
drbubb Posted February 18, 2009 Report Share Posted February 18, 2009 GOLD/OIL RATIO : New Range (over 25!) - A Level not seen for many years =========== Gold - in Barrels of WTI Crude - with gaps up This chart (from Goldfinger) shows brief spikes to 30 and even one to 33. That was typically followed by a collapse in the Ratio back below current levels. Gold Stocks relative Oil Service Stocks : Ratio of GDX-to-OIH - w/ gap breakout Gold Stocks relative Major Oil Stocks : Ratio of GDX-to-XLE - w/ gap breakout I think that there are some relative bargains in the Oil sector, and I plan to continue a gradual shift of my portfolio in that direction, while simulatneously boosting cash levels for a possible early March low in stocks. Link to comment Share on other sites More sharing options...
littledavesab Posted April 7, 2009 Report Share Posted April 7, 2009 Interesting charts. Maybe this means GF should look at oil as well! Link to comment Share on other sites More sharing options...
romans holiday Posted April 7, 2009 Report Share Posted April 7, 2009 GOLD/OIL RATIO : New Range (over 25!) - A Level not seen for many years Lat year when oil was at 140 and the ratio was lower than the 14:1 ratio often quoted many where calling for an explosion of pog to restore the ratio. It happened the other way with the collapse of oil. The ratio was restored but in complete disregard the price of oil continued to tank. The ratio is now around 18:1 and looks like the 14:1 ratio could be restored for now as gold comes down a little. If oil remained at around 50, this would put gold at 700. Link to comment Share on other sites More sharing options...
drbubb Posted June 23, 2009 Report Share Posted June 23, 2009 But there's a gap down there, near 10.00 - 10.50, that wants filling. Updated : xxx Link to comment Share on other sites More sharing options...
ignorance Posted November 9, 2009 Report Share Posted November 9, 2009 That sure is something to look at, and the graphs make it easy to see exactly what is happening between the 2 so thanks for them!! Have you got any updated ones for now so that we can see what is happening at the moment?? Thanks Link to comment Share on other sites More sharing options...
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