Tuesday, January 27, 2009

Oil/Gold Ratio at 10-Year Extreme

Oil has not been this cheap relative to gold in 10 years, expert trader Jeff Clark writes in today's Growth Stock Wire. He believes it's time to go long oil.

The last time the ratio was this high, back in 1999, oil quadrupled from $10 per barrel to over $40 in just one year. A similar move this time will generate big gains for anyone willing to buck the trend and buy oil today.

So if you missed the shot at buying gold near $800 per ounce last week, then don't miss your shot at oil right now.

1 comment:

Kevin said...

or another way to play it, buy gold mining stocks. since oil, labor and other costs have come down significantly in last few months, and gold has risen some, the operating profits of these gold mining companies should shine and continue to in a deflationary environment


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