The statement “Gold is a better buy than oil” makes sense. During the past 18 years the gold/crude oil averaged 14 times. The current ratio is 9.71 and recovering. Gold is cheap relative to crude oil. High for the ratio was 28 times set in 1999. Low for the ratio was just above 6 times set in 2006. At least some funds from crude oil producers (particularly in the Middle East) are likely to be invested in gold, thereby helping the ratio to continue its upward trend.
Pair trade idea
Started by
Tor
, Mar 06 2008 06:00 PM
1 reply to this topic
#1
Tor
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- Traders-Talk User
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Posted 06 March 2008 - 06:00 PM
Observer
The future is 90% present and 10% vision.
The future is 90% present and 10% vision.
#2
Islander
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- Traders-Talk User
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Posted 07 March 2008 - 12:21 PM
I like them both, but it is time for a little pull back because the farmers feel the recession will affect demand for both. I will hold some PM and put a stop loss on my oils. Euphoria over the Fed on the 18th may affect us all. I know I am getting giddy just talking about the FOMC cutting rates again. ISlander
