An ounce of gold will now buy only seven barrels of oil. Ten years ago, it could have bought as much as 26 barrels. Does this mean gold is too cheap?
Both are dollar-denominated inflation hedges and tend to move in the same direction over time.
By John Authers
Published: May 16 2008 03:00 | Last updated: May 16 2008 03:00
An ounce of gold will now buy only seven barrels of oil. Ten years ago, it could have bought as much as 26 barrels. Does this mean gold is too cheap?
Both are dollar-denominated inflation hedges and tend to move in the same direction over time.