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.

Warren Buffett Interview on CNBC

Video Link

My notes:

• He is VERY concerned with the current levels of inflation. This is striking, as you rarely hear Warren Buffett mention inflation.
• If he were in Bernanke's shoes, he would "offer his own resignation".
• Still believes the dollar will weaken further over time - mentioned lack of Congressional discipline.
• Oil price is being driven by supply/demand, not speculators. For the first time in his lifetime, there is no excess capacity. Speculators are not driving the price because they are not storing it - for each speculative long, there is a corresponding speculative short.
• And then he rambled on about his socialistic views - I should pay more taxes, blah, blah, blah.