Tag Archives: gold:oil ratio

As can be seen from the above analysis the DJIA moves opposite to the direction of the GOR so it is imperative to watch the GOR as it provides a very reliable indicator of the direction the DJIA is about to embark on.

The oil price bear market will have made it's final bottom BY early February at $25 and then embark on a bull market that will target a trend towards a late year high of $60...This oil price trend and the stock market's oversold state are also converging towards a stock market bottom for 2016 in a time window that probably runs for another 2-3 weeks. Here are the specifics.

There's a relationship between gold and oil that's worth understanding because each, being valued in U.S. dollars, putatively serves as a measure of inflation and, since both commodities have a common denominator, it's easy to price one against the other. Ergo, the gold/oil ratio i.e. the price of gold expressed in barrels of crude, and the current gold/oil ratio begs the question: "Is gold getting pricey or is oil too cheap?

We are monitoring three developing situations that we believe could have a profound impact on gold demand during the remainder of the year -- driving forces that could provide impetus for a classic gold run that could begin with a summer surprise.

Analysing the long-term relationships of gold with other assets suggests that, in most instances, physical gold and silver and the shares of the companies that mine those precious metals have major upside potential - to somewhere between $3,000 and $10,400 per ounce for gold, between $75 and $650 per ounce for silver and in excess of $250 per barrel for crude oil - in the years to come. Words: 1132