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Re: de, what do you thinkof another?

By: meme in ROUND | Recommend this post (0)
Wed, 25 Jul 12 11:11 PM | 47 view(s)
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Msg. 42850 of 45651
(This msg. is a reply to 42831 by Decomposed)

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in terms of dolars, oil has exploded. but gold also. it is the oil:gold ratio which would be the line in sand and by tghat, gold is still a good trade for oil. teh moment of major divergence hasnt come yet.


when oil was $15 barrel, gold was 250 ... 250/15=16.6
now oil is 100 and gold 1600...1600/100=16.
see?

what would be too much for cheap oil to continue? Maybe wehn it gets to 20? 25? who knows.


"Our struggle is not against flesh and blood, but against the rulers, against the authorities, against the powers of this dark world and against the spiritual forces of evil" -Ephesians (Paul)




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The above is a reply to the following message:
Re: de, what do you thinkof another?
By: Decomposed
in ROUND
Wed, 25 Jul 12 6:14 PM
Msg. 42831 of 45651

"Fact: If the world bids up the price of gold, all deals will be off! It would be every nation for themselves.Oil would explode in price!"

- ANOTHER, 10-19-1997 

Seems incorrect to me. Gold is up about five-fold since ANOTHER wrote this. And Oil is up about four-fold. Sure, that's a big increase in the price of oil, but not what anyone would call an explosion. I think ANOTHER implied that a fairly small increase in the gold price would cause oil's price to explode. Clearly wrong...

In fact, many other commodities have outperformed oil these last 15 years. Silver, sugar, probably corn...


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