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September 22, 2007
Oil as 'black gold' — Not just a euphemism
Some years ago I noticed an interesting relationship between the prices of gold and oil, namely that an ounce of gold always seemed to cost roughly 10 times the price of a barrel of oil.
It was true in 1950, 1960, 1970, 1980, 1990, 2000, and right up to the present.
You could look it up (above).
So when will gold cross the magic $1,000/ounce barrier?
Easy: When oil hits $100 a barrel, which will occur within 24 hours of Iran closing the Strait of Hormuz.
September 22, 2007 at 12:01 PM | Permalink
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Comments
Acute observation, hedge-fund-joe. $100/bbl will happen even if there's no conflict with Iran...will just take longer, say 6 more months. Which to buy? Gold is easier to store than oil ;-)
Posted by: Stephen Bove | Sep 23, 2007 10:03:39 AM
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