{"id":61160,"date":"2021-12-29T07:48:56","date_gmt":"2021-12-29T12:48:56","guid":{"rendered":"https:\/\/olduvai.ca\/?p=61160"},"modified":"2021-12-29T07:48:56","modified_gmt":"2021-12-29T12:48:56","slug":"analyst-reveals-his-gold-prediction-secret-its-all-about-oil","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=61160","title":{"rendered":"Analyst Reveals His Gold Prediction Secret: It\u2019s All About Oil"},"content":{"rendered":"
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Analyst Reveals His Gold Prediction Secret: It\u2019s All About Oil<\/a><\/h3>\n<\/div>\n
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\"Analyst<\/p>\n
\u00a9 Public domain, via National Institute for Occupational Safety and Health<\/span><\/div>\n<\/div>\n

This week, Your News to Know rounds up the latest top stories involving gold and the overall economy. Stories include: Gold to rise alongside oil, buying the platinum\u2019s dip, and the tale of a unique 54-pound gold brick.<\/p>\n

Gold should follow oil as the latter skyrockets in price<\/strong><\/p>\n

It\u2019s well-known that when gold soars, silver invariably follows. This kind of close correlation could soon be established between gold and another commodity that has been soaring recently: oil. Many might not be familiar with the\u00a0gold-to-oil ratio<\/a>, which tracks how many barrels of oil are necessary to buy an ounce of gold.<\/p>\n

Here\u2019s the summary of this argument:<\/p>\n

The gold to oil ratio is an important indicator of the global economy\u2019s health. Because gold and crude oil are both denominated in US dollars, they are strongly linked. That is because as the US dollar rises, commodities priced in USD fall, and vice versa. As the dollar drops, commodities generally go up.<\/p><\/blockquote>\n

Since fuel prices play a huge rule in inflation calculations (the Consumer Price Index is about 1\/3 energy prices), higher oil prices means more inflation. Inflation drives gold-buying, and additional demand drives gold prices higher. Further, Kitco contributor Rick Mills argues, spikes in oil prices stunt economic growth. And economic pessimism is usually very good for gold.<\/p>\n

A little bit more about the gold to oil ratio\u2026 Its historical average is 16, but it has been on quite a ride as of late. It hit a high of 91 last April due to the shutdowns, and has since returned to a more reasonable 25. It\u2019s still way off its average, and a proper return would have to come from either falling oil prices or rising gold prices.<\/p>\n

\u2026click on the above link to read the rest of the article\u2026<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Analyst Reveals His Gold Prediction Secret: It\u2019s All About Oil \u00a9 Public domain, via National Institute for Occupational Safety and Health This week, Your News to Know rounds up the latest top stories involving gold and the overall economy. Stories include: Gold to rise alongside oil, buying the platinum\u2019s dip, and the tale of a […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2,3],"tags":[18769,265,374,3622,592,647],"class_list":["post-61160","post","type-post","status-publish","format-standard","hentry","category-economics","category-energy-2","tag-birch-gold-group","tag-energy-crisis","tag-gold","tag-gold-price","tag-oil-price","tag-precious-metals"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/61160","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=61160"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/61160\/revisions"}],"predecessor-version":[{"id":61161,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/61160\/revisions\/61161"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=61160"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=61160"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=61160"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}