2 ms·

I know you're heavily invested in gold, but what you say is simply not true. The Gold-Oil ratio has fluctuated from upwards of 36:1 to 1:8 over the past 40 year

I know you're heavily invested in gold, but what you say is simply not true. The Gold-Oil ratio has fluctuated from upwards of 36:1 to 1:8 over the past 40 years. Further, if it were true then in 2009 when oil plunged from $140 to $50 a barrel, the value of the dollar should have shot up significantly. When gold dropped 20% last year, there wasn't a corresponding increase in the purchasing power of my dollar. You only have to look as far as the sleazy companies selling gold to old people on tv and charging 20-30% markups to know that speculation is driving this market.

shingen 15y ago
I own zero gold. I'm being objective about what it does, and does not do. It's a store of value, that's it. I'm heavily invested in my self. I own a business. Which is also why in one of my posts, I said the best investment you can ever make is: you. Tracking lines on oil and gold requires that you do so over an actual duration, not on select spot prices. Over time, oil and gold have tracked each other extraordinarily well. Ultimately the point is really simple: check out a graph on oil and gold prices since 1970. To the moon. Why? They're priced in junk dollars.
- andylei 15y ago
  >> Over time, oil and gold have tracked each other extraordinarily well. you're just wrong. here's prices over the last 6 years: http://imgur.com/a2mMZ http://imgur.com/a2mMZ (CLH is crude oil) >> They're priced in junk dollars. you're confusing real and nominal prices. if your point is that inflation exists, i don't think you will find anyone that disagrees with you. if your point is that real prices of oil and gold are driven primarily by inflation, you're absolutely wrong.
- Aloisius 15y ago
  If you open up a graph of the ratio between gold oz and barrels of oil over the last 40 years, you will not see anything resembling a straight line. They don't track each other. At all. Not even a little bit. There are literally thousands of charts and graphs that you could find a reasonable correlation with gold, but oil is not one of them. I don't know where you got the idea that they tracked each other, but it is simply wrong. Gold does not track oil, CPI-U does include food and energy and inflation is not anywhere near where you think it is.
- onemoreact 15y ago
  If you bought 1 lb of gold in 1970 and sold it today after taxes you would not have kept up with inflation. Also, the S&P 500 does not include dividends. If you actually buy it's stocks or a fund that tracks the S&P 500 you do much better than the graphs suggest.

shingen 15y ago

I own zero gold. I'm being objective about what it does, and does not do. It's a store of value, that's it. I'm heavily invested in my self. I own a business. Which is also why in one of my posts, I said the best investment you can ever make is: you. Tracking lines on oil and gold requires that you do so over an actual duration, not on select spot prices. Over time, oil and gold have tracked each other extraordinarily well. Ultimately the point is really simple: check out a graph on oil and gold prices since 1970. To the moon. Why? They're priced in junk dollars.

andylei 15y ago
>> Over time, oil and gold have tracked each other extraordinarily well. you're just wrong. here's prices over the last 6 years: http://imgur.com/a2mMZ http://imgur.com/a2mMZ (CLH is crude oil) >> They're priced in junk dollars. you're confusing real and nominal prices. if your point is that inflation exists, i don't think you will find anyone that disagrees with you. if your point is that real prices of oil and gold are driven primarily by inflation, you're absolutely wrong.
Aloisius 15y ago
If you open up a graph of the ratio between gold oz and barrels of oil over the last 40 years, you will not see anything resembling a straight line. They don't track each other. At all. Not even a little bit. There are literally thousands of charts and graphs that you could find a reasonable correlation with gold, but oil is not one of them. I don't know where you got the idea that they tracked each other, but it is simply wrong. Gold does not track oil, CPI-U does include food and energy and inflation is not anywhere near where you think it is.
onemoreact 15y ago
If you bought 1 lb of gold in 1970 and sold it today after taxes you would not have kept up with inflation. Also, the S&P 500 does not include dividends. If you actually buy it's stocks or a fund that tracks the S&P 500 you do much better than the graphs suggest.