The coming US dollar crisis Message Board

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Strategies & Market Trends : The coming US dollar crisis

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To: John Vosilla who wrote (5525)	3/26/2008 12:36:36 PM
From: Real Man	Read Replies (1) of 71402

Gold/oil ratio has been extremely low due to investing public shunning the early gold bull market, CB gold price suppression, etc. This explains underperformance of gold miners - they can't make a profit as their costs rise quicker than gold. The ratio went up quite a bit from 2005 nadir, but that was essentially what caused the underperformance of miners relative to gold (and the gold rally, as some miners had to shut down production). It is still very low historically, as you can see on this chart below. Gold will need to go to 4K to match 1974 Gold/oil ratio peak (if oil price does not decline)

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