Timber, I've been doing quite a bit of reading about oil and especially about oil/gold ratio.
The graphs I've seen tend to put the ratio at ~15 as an almost constant.
Therefore oil at
80/b x 15 = $1,200g/oz
70/b x 15 = $1,050
60/b x 15 = $900
50/b x 15 = $750
It would seem that Saudi Arabia has declared a war on high cost US shale oil producers (and Iran gets caught in the blender tut tut) and will keep the market for oil over supplied for quite a while.
The above prices are predictions by commentators so should that ratio stand gold is in for one hell of a ride.
