What Crisis Is The Gold/Oil Ratio Predicting This Time?

Tyler Durden's picture

The number of barrels of oil that a single ounce of gold can buy has never, ever been higher.



For the last 30 years, when the ratio of gold-to-oil spikes, something systemically serious occurs globally (as opposed to the usual bullshit "this is transitory" statements).


So what happens next?

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Davilis's picture

It's saying sell gold and buy oil.

Newsboy's picture

"What happens next?"

Uh, gold-standard?

order66's picture

Simple math:

Non Performing Shale Loan Explosion + Subprime Car Loan Meltdown + Student Loan Default Wave + China Wheels Up Landing = Next.

OrangeJews's picture
OrangeJews (not verified) order66 Jan 17, 2016 9:36 PM

Soon you'll need to take that chart and stack it on itself about 30 times.

Stack that phyz!

0b1knob's picture

How is the ratio of liquified dinosaur poop to shiny lead any more relevant than the ratio of Peking duck to duck butter?

Automatic Choke's picture

ob1 - try driving back and forth to work without your liquified dinosaurs.  you may not think it important, but it is a commodity with a very inelastic demand curve....it is in glut because we have a fairly thin margin of excess production, but it is not a stockpiled commodity, and if anything interrupts flow, price will skyrocket.   stack a few 55 gallons in your backyard (or use DBO to do equiv.)


KesselRunin12Parsecs's picture
KesselRunin12Parsecs (not verified) Automatic Choke Jan 17, 2016 10:12 PM

"So what happens next?"


The next person draws some squiggly lines on a chart, publishes it, & gets paid for it while clowns like us think up sarc-y replies on our way home from boating trips

nope-1004's picture

Last 30 years have been an economic experiment backed by a MIC and manipulated by a Fed, meanwhile .gov cooperated with a terrorist cartel.  By no means is that a normal economic condition, nor one that can last.

Call me crazy, but the chart only shows me how we are close to the end of a grossly mispriced petrodollar, and nothing else of substance (other than the wookie comment below :-o ).


Jam Akin's picture

What happens next is we learn that gold is actually much more useful in new energy and propulsion systems than fossil fuels are.

Bokkenrijder's picture

So which one is it? Is gold expensive, or is oil cheap?

TheFutureReset's picture

At this exact moment? Those metrics will change violently throughout the year. Gold will win eventually, but immediately? Oil is oversold. We are due a dead cat bounce to 35 or so, just to get all the Muppets good and lined up for the skinning machines. Only then is gold bid up 100%, while oil crashes to 20.

saveandsound's picture

When the oilprice stays low, the goldprice will follow.

Therefore the question of the day is "Will the oilprice stay low?". The other question is "When is the goldprice going to follow?".


Save_America1st's picture

3 G's, bitchez:




and a Getaway Plan!!!

And just keep stacking the deal of the century:  phyzz silver

SoilMyselfRotten's picture

Looking at the graph, doesn't it look like a sure bet on the other side of that peak? At this point it could be a war on the other side.

CheapBastard's picture

With crude oil prices falling to 12-year lows, new drilling activity is slowing down in the Eagle Ford and other shale basins across the United States.

West Texas Intermediate crude oil plunged below $30 per barrel on the morning of Jan. 15, while new figures from the Baker Hughes Rig Count show that new drilling fell to 68 rigs in the Eagle Ford.




"Change you can beleeve in!"

Nutsack's picture

How many pounds of Silver is too much?

tmosley's picture

Need to keep less than the amount it would take to collapse into a black hole under its own gravity.

F22's picture

One pound of silver is too much....should trade it for fractional ounces of physical gold....

tmosley's picture

Here's someone who doesn't understand stock and flow.

The GSR is so out of balance even if all the vaulted gold in the world were to disappear tomorrow it woudln't justify it.

Mr. Cynic's picture

Buy 90% junk silver and plenty of it if you can.

14 x face is the going rate (jmbullion.com) for 90% junk silver (= to $19.35 per oz.).  If you can get it at 12 x face, it is equal to $16.59 per oz.

I'm buying in at 12 x face from dealers locally.  I think that's a good deal for the long term.

Hold it till you need it.....which may be soon.  =)


AE911Truth's picture

Criminals in charge can take AE gold and silver coins down to face value. 

The only person I know who predicted negative oil price is M. T. Keshe, of the Keshe Foundation.

He said this would happen when new energy systems are announced. If NE is suppressed (not likely), oil can go to $200/bbl.

It's a rigged casino. You play, you lose.

Theosebes Goodfellow's picture

~"Buy 90% junk silver and plenty of it if you can."~

Why the hell would you pay the premium on juck silver when uncirculated private mint bullion has barely a 6% bump? Junk was fine when it was going for spot, (or less), but these days you get taller stacks for the FRN with bullion.

tmosley's picture

Oil will only stay low until all these frackers and such have gone bankrupt and stopped producing altogether.

Getting closer now. I'd say we will hit the low twenties before the supply falls enough to turn this thing around. Demand is simply too low now--production has to fall below what it was before the fracking and tar sand revolutions for it to really start rising again, I think. Harder with Iran quadrupling output.

BullyBearish's picture

Just a heads up, December 1998 WTI was $10.49 a barrel...that's a FURTHER 63% drop!!! 

Theosebes Goodfellow's picture

~"What happens next is we learn that gold is actually much more useful in new energy and propulsion systems than fossil."~

Ah..., close, but no cigar. Here, let me fix that for ya'.

"What happens next is we learn that gold is actually much more useful in new energy and propulsion systems than US Dollars, Euros, yuan, Loonies or just about any other currency save maybe the CHF. And phyzz silver is better yet."

There, sorted, proper like.

lincolnsteffens's picture

Doan yuh jus love dat dinosaur teery? 

Q; How many dinosaurs does it take to to make a supply of the trillions of barrels of oil pumped up from the earth?

A; More than ever could have existed.

new game's picture

fib retrace of 38 percent-sounds right on...

SirBarksAlot's picture

Allow me to commend you on your most excellent links.

Your relevance is most appreciated.

El Dorado's picture

This must of been the inconvient truth that Al Gore spoke of in his movie. 

F22's picture

I agree, the ratio is headed to 1000:1

Buy your physical gold while it's still on sale....

CPL's picture

Silver was under $9 and gold was under $800 last time.  Which when it happens again a pound of ground beef will be more valuable than silver and an ounce of gold will get you a shitty TV.  When this shits the bed again, by the way it's been designed, it will be the excellent opportunity to highlight the failure of PM's as a currency technology once the actual tally ends up being revealed by accident because of the massive amount of failures to deliver under central bank charters (they gunna go tits up).  PLUS inflation worked in, anyone holding it isn't getting their money out of it let alone understand the transaction value if that's the only money around.

Everyman's picture

And CASH in your scanario is better than PMs?  HOW?

rbg81's picture

I've been thinking for years that CASH is going to CRASH.  With Governments all over the world printing it like Monopoly money, how could it be otherwise?  But logic seems to be going out the window.  Which tells me we are in the Mother-Of-All-Bubbles.  So far I've paid a big price for my convictions, but it's always darkest before the dawn.  At least, that's what I tell my wife.

Everyman's picture

me 2.  I am in that club with ya.

SuperRay's picture

Keep the faith fellas. Reality has been so taboo for so long, and so many kool-aided zombies are walking among us, that our belief in the truth of reality is being tested. You've been right all along, and it's about to be proven.

Jethro's picture

Can you imagine a scenario where Sanders gets elected, and the currency goes tots up?  Instant Venezuela.. 

BarkingCat's picture

If Sanders gets elected, the currency might go tits up but the general population is going tits down....meaning getting anally raped and hard.

10mm's picture

Im starting to see Bernie signs in peoples windows. And the FSA isn't delegated to the hood.

Save_America1st's picture

just keep stacking supplies:  guns, ammo, food, water, gold, silver, medical supplies, fishing/hunting/camping supplies, etc.

Like the saying goes about when the shit hits the fan:  It's better to be a year too early than to be 10 minutes too late

Keep stackin', bitchez

rpboxster's picture

"Im starting to see Bernie signs in peoples windows. And the FSA isn't delegated to the hood."


That's the college kids being home on break.

KesselRunin12Parsecs's picture
KesselRunin12Parsecs (not verified) rpboxster Jan 18, 2016 9:38 AM

The college kids who think Trotsky was cool.

new game's picture

spot on, educated people for bernie. liberal anti facism! ha.

ok so bernies is going to dismantle the fascism present in the system?

ha, he is toast, hillary will win out in that dog fight-yea dog fight. ha again.

bernies is socialist utopia dream.

it is looking like hillary vs trump imfo.

clear choice

or hitlary vs cruz en...

lincolnsteffens's picture

Nah, I know many upper middle class adults over 40 years of age who think Bernie and the Dems. can get er done. In fact, much of my whole state thinks that way.

A couple came in my store yesterday and on the way out the woman said to me "It is so nice to see someone giving away copies of the the Constitution." She said I must be a supporter of the 2nd Amendment to which I replied, "I am a supporter of retaining all my unalienable rights guaranteed in the Constitution".

Now this woman was about the most aware because she teaches courses on the Constitution. Then I hit her between the eyes about how government officials defraud us by using words with legal definitions we aren't aware of and contracts we didn't know we were signing. "Wow!" she said. I gave her my 20 page handout on the current fraudulent use of the Uniform Commercial Codes against people who are not conducting commerce.

She asked me how I could live in my area of the country with my views. I shrugged and said that lack of knowledge is not unique to Massachusetts.

"He who is ignorant and expects to remain free shall have what never was and never could be."

"He who sleeps on his rights shall awaken to find he has none."

Revoke your voter registration as you are declaring you are a "legal person". Now, go to a legal dictionary and look under the word "person". A "legal person" is totally different than a "natural person". One is a fiction and the other is flesh and blood.

PaperTaperFakerCaper's picture

Leeward of that mighty peak, the Crude Sea shall rise visibly.  But the Peak, only grow higher and faster.  

When that FSA gathers and musters and ventures down your way, they'll enter your house in turn, but not on a social visit.  NO.  Your notions and sensibilities shall not have weight.  They'll seem so quaint.  Treaties, obeisances, dissuasions.  First, they gonna kill ya.  Then they gonna eatcha.