Meanwhile, back at the oil well… less than 1 gram of gold per barrel. Hey, silver:oil ratio just broke above 33 yr high!
The gold:oil ratio is now 43. It already broke out above a thirty year high at 33.30 weeks ago, went to 39, backed off to re-test 33 and now voom! It’s 43.
As far as I can tell the only time gold:oil was around 40 was in about 1933 and that was not a very good year for the financial system.
This is the region where a barrel of oil is worth less than a gram of gold by the way.
http://1000gold.blogspot.co.uk/2016/02/goldoil-ratio-hits-43-as-markets-start.html
JUST OUT OF CURIOSITY, I thought one minute ago … how about silver? It must be back to around a silver: oil ratio of 0.5:1 … and it is. In fact, silver has just broken above its 33-year high relative to oil.