What Crisis Is The Gold/Oil Ratio Predicting This Time?
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?
(47 votes)
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that is so scary
By the pricking of my thumbs, something wicked this way comes…
"So what happens next?"
Let me guess: Something systemically serious occurs globally?
You ALL missed it. What does it mean... ITS THE END OF THE PETRODOLLAR.
Derivatives unwind partially responsible for pressure on oil.
My chart $GOLD:$WTIC is up with full afterburners.
Q: What does it mean... ITS THE END OF THE PETRODOLLAR.
A: It means oil is so cheap saudies can no longer buy US bonds
????=Yellen moment
$10, told you so.
http://www.newsmax.com/Finance/Markets/oil-crude-price-ten-dollars/2016/...
I suggest reading this article from 1999.
http://www.gold-eagle.com/article/dowgold-ratio-1-3000-dont-laugh
Finaly the bound between gold/oil/dollar is breaking.
If all of a sudden the world just found hundreds of tons of gold, or every one thought their gold was just a relic the price of gold would drop accordingly, but somehow I dont think that is going to happen.
Do you realize that "hundreds" of tonnes of gold is nothing? A month or two of worldwide production.
Over the next 10 years, there will be 24,000 tonnes of new gold mined, to add to the existing 150,000 tonnes of gold in existance.
In 1859, the first barrels out of Drake's well sold for about one ounce of gold. Before then, oil was much more expensive because it had to be skimmed off of surface springs.
In 1892, with Pennsylvania oil fields at their peak, the economy in a severe depression, and no automobiles yet on the road, oil bottomed out at $0.56/barrel, or 36.9 barrels per ounce of gold.
In July 1931, oil fell to $0.13 per barrel, or 159 barrels per ounce of gold. We have a way to go to break *that* record.
You got the ratio backwards. You don't quote oil in barrels/dollar, do you? Then why would you quote it in barrels/oz? When quoting the price of anything, it is customary to place the monetary unit in the numerator.
And that is, by the way, one of the reasons why you should start quoting in gms of gold rather than troy ounces. The units work out better and there is less chance for confusing the two kinds of ounces.
The correct value at the moment is 0.822 gms/bbl. Or, if you would prefer, 822 mgm/bbl
Easy does it, Sherlock. Some people like whole units instead of fractions.
Then least call it what it is. The graph is oil to gold ratio or number of oil barrels PER ounce of gold. I have no problem with this approach, just use the proper labels.
Gold was chosen for one of the graph axies because of its use as money. Acknowledge it by skipping the word 'ratio'. You don't say 'Dollar-to-oil ratio', do you?
So, as I said in my post, use milligrams. We could even use the symbol 'mgg' for Milligrams Of Gold. That's what we do with every other money now, isn't it? Centidollars, known as cents, is the solution for dollars.
There aren't many practical kinds of money that can't be inflated by some central authority. Bitcoin, gold, and sliver stand out at the moment.
math is hard...... for liberals!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
LOLOLOLOLOL
It means that oil will soon be priced in gold and not in dollars since dollar pricing will soon be irrelevant.
it tells someone big is going to default unless the fed bails it out with more printed dollars
Or is this Justification for making Gold 200 Buckeroonies an Oz
If commodities are being devalued, then it makes CENTS that the Currency will be Devalued to match.
Which is great if you don't own a house, you'll be able to pick up 4 bedder for 1940's price tag, bad news if you have a mortgage though. It's not a Depression, it's just RESET world wide.
So can you guess who the Grinners are ?
John Stockman talks about a (forget what he calls it), but a breakdown (deflation) and then a boom (massive inflation). If you buy this theory, as I do....
1.) Short the market now (particularly financials) via out-of-the-money puts and keep rolling down with every +/- 10% correction. I realize the trade isn't nearly as cheap as when I was putting it on early in 2015, but still very do-able trade. Recommend XLF as underlying... the puts are still reasonable.
2.) Also, buy gold/silver now for the inflationary boom phase after. Can only dedicate assets to the pm's with a longer time horizon, because you can bet your ass TPTB will print until the machine blows AND they control the media (propaganda) and government data/statistics on inflation (lies). In real terms, we are already having our assets strip-mined right beneath our noses. It will only get worse.
*Bonus: If you buy into this theory, you should actually take equity OUT of your house to put into PM's and extend mortgage back out to longest horizon possible. Let them inflate away your debt for you in the future... which they will.
Tick tock, tick tock....
a dollar de-peg changes everything and the charts will mean nothing
What happens next is seeing the Turkish PM on Bloomberg coming out with a number of statements which seem to be a complete turn around to his past attitudes.I see him repeating a speech that he was ordered to give from European and American leaders.I think he was ordered to come on side when everything was revealed to the general public that Turkey was actually part of the CIA financed ISIS scheme in the MiddleEast.The corruption schemes there have been reported and are too widespread for NATO to ignore now that they've been seen as part of the CIA plot in supporting Wahhabi extremists funded by Saudi Arabia.Obama saw the game was up with their losing strategy.He's seen what happens when NeoCons like Victoria Nuland and John McCain do to his reputation when they fuck everything up bigtime.He seems worried about his Presidential image for history now.Maybe it'll screw up his chances of making money when he gets out.No way now under the Wolfowitz Doctrine to bomb Iran into ruins like NATO did to Libya,Iraq.Syria and Afghanistan.The crooks in the WhiteHouse got caught,the useless tool in Turkey helped blow the whistle and Putin put a stop to the nonsense.Iran's alliances with Russia and China saw the NeoCons back down as chicken shits.
Dude this is a progressive owned shit show. Obirdbrain and the neo-stalinist progressives doubled down on the progressive "useful idiot" neocon shit from the Bush regime. We are at "peak progressive" now, over a hundred years of progressive control in .gov and finance has brought the house down.
The progressive stupid, it burns.
Grimaldus
The progressive stupid...it does burn.
The majority of NATO countries are being run by "socialist-democrats", Obama, the CIA, ansar al Sharia & their merry band of Joey Jihadists along with Hillary! take out Mooomar, send weapons into Syria through Turkey, creating body lined streets, bombed out buildings and a tidal wave of humanity into the loving arms of Frau Merkel and...somehow Obama has now learned his lesson.
Well, this is wonderful nuuuz!!!
Just in time for him to leave the smoldering train wreck for someone else to clean up.
Well put Grim. A collapse is the ultimate consequence because the neo- Stalinist Progressives as you call them pay no attention to economics. It's like someone said of Bernie Sanders, that socialism ignores basic economics on every level. No wonder he knows nothing about economics. He doesn't have to. So these people running the world are all the same. For them, there is magically a bottomless pit of money out there to confiscate and use. I have never met a Lib Progressive who didn't think there is more than enough money out there to grab and pay for anything they want to implement. They just believe that like a religion.
WWIII
Wow russian economy really sucks RUB has new low record. 2 years ago it was 34 RUB for 1 USD now its 79 RUB for 1 USD
Where did you learn your economics?
Russia last year sold, 30% more gas to Europe at double the price, in Rubles.
Yes, but I bet they have moar Gold.
(Meanwhile, at Ft Knox)
"Reggie, this will make a great B-Ball court!"
"What used to be in here, Munchkins?"
"The US Gold stash."
"Look at that graffiti! We're not the first Down Low guys here!"
"What does it say?"
"Tricky Dick wuz here."
No. It's saying sell dollars and buy gold.
Owning physical gold will be the equivalent of putting on the Biggest Short of All which is shorting central banks and their fiat currencies.
https://youtu.be/SHIsvlJavy8
You are mistaken in three significant ways.
First, a short is selling something you don't have and, as such, is a form of debt creation. The purchase of physical gold is the accusition of an equity, and so has nothing to do with not debt.
Second, a 'short' creates something that destabalizes the enconomy, while the purchase of physicsl gold merely transfers title to an existing entity.
Finally, a short is a form of participation in market. Buying physiclal gold is an act of leaving the market. In one instance, you are still enmeshed in the counterparty web. In the other, you are not.
I know what a "short" is and that is why I said the "equivalent" as I do not know of any way of shorting Federal Reserve Bank stock.
Duplicate, sorry.
Obviously, for the reasons I stated, holding physical gold is not the 'equivalent' of a short. You may be betting against the Fed, but you aren't 'shorting' anything in any sense of the word. To use that language is, at best, to mislead your readers.
You have no imagination.
When imagination misleads it is, at best, disingenuous, and, at worst, evil.
Definitions matter. They are the foundations for all our reasoning. Failure to follow them is one of the major causes for logical fallacies.
Editing the substance of your post after the original is criticized without noting the edit is dirty pool. You should be ashamed. Defend your original or post an adendum if you wish, but you have committed intellectual fraud.
I have not edited my post. What is your problem?
It is not what I originally responded to. If I am mistaken, then I apologize.
29.24 CAN BECOME 200 with one jdam
The World moves from WS-NWO's flagship "Bubbleonomics" to "Deflationonomics", like an ominous Moby Dick coming back to nail Captain Ahab.
Never has so much been scammed by so few at the expense of so many in such short a time !
62 people are worth moar wealth than half the world's population !
"Mission Accomplished" on the top deck of the Titanic!
http://www.marketwatch.com/story/just-62-people-own-as-much-wealth-as-ha...
As long as the Rothchilds want king dollar in order to crush Putin, and that could be forever, the dollar will continue to appreciate, everything will continue to be dandy.
Yes the dollar will crash, but not until Putin is gone.
DEBT SATURATION
-----
And the central bankster cure is... debt super-saturation.
In the form of QE4ever... plus other hidden measures.
It's saying buy the distressed asset; same as any extreme in a ratio chart.
Well, this seems to be an index of hoarding vs producing. In a hindsight, every such a high becomes a turning point meaning the worst is over. The question is when the spike will turn. If tomorrow, then it just shows what already has happened and not what has to come.
Negative interest maybe but negative oil price seems to be a reality:
http://www.bloomberg.com/news/articles/2016-01-18/the-north-dakota-crude...
It's predicting a dollar collapse, and a transition to Freegold. Convert your dollars to physical gold while this low price remains.
IMHO