Brad Zigler

How Much Oil Can Gold Buy?

Not in retrospect. The call was made for the depth of the recession in an article BEFORE the meltdown reached its nadir.

The ratio, by the way, is NOT an example of technical analysis (TA); it's a fundamental indicator.

How Much Oil Can Gold Buy?

Actually, the ratio's bottoming at 6:1 was a pretty good predictor of the current deep recession

How Much Oil Can Gold Buy?

One clue would be the crossover of the 20-day and 50-day moving average for the ratio. If the 20-day crosses below the 50-day, get out of the trade.


On Apr 27 07:50 PM UbaTuba wrote:

> Interesting article, but how should one actually plan to exit these
> trades?

How Much Oil Can Gold Buy?

The house wins in the casino game. But it's because of a small incremental advantage over a time horizon. The reason people often lose in Vegas, Atlantic City or Monte Carlo is that they succumb to the green table's lure. They don't LEAVE with their winnings or accept their losses. They continue to subject themselves to the house's edge.

My question to you: who's fault is THAT?


On Apr 28 09:32 AM BrunoT wrote:

> This is pure speculation. When you go to vegas, who usually wins?

How Much Oil Can Gold Buy?

No? Please explain your thinking. Gainsay is easy; argument requires thought.


On Apr 28 08:55 AM DONE_SONZ wrote:

> The whole gold/oil ratio means nothing.

Which Is Headed Higher: Gold or Oil?

Much of the WTI-Brent arbitrage is related to the time value of money. WTI is a true spot market where oil is immediately deliverable; Dated Brent is actually a short-term forward contract in which oil is subject to a load-in schedule.Because of this, the current US glut and widening contango market exacerbates the Brent time differential.

There's also shipping rates to be taken into account. Delivery of WTI is by pipeline. Brent's FOB shipboard,