Hi Jack,
Not sure why you would say that Gold is cheap?
The chart is very interesting especially from March '08 till March '09. First is goes down till July '08 and then up, 400%, till March '09 and then it went to the next constant level around $14.
The first drop is the oil spike, was that GS or Lehman pushing that oil price so high? I hear rumors that oil tankers are waiting on sea for more than a year, and dependent on the oil price they will unload their cargo here in Rotterdam.
Interesting to see that the instability in the GOLD/OIL ratio predated the crash. Maybe understandable, when money flows into Energy, the economy will slow down somewhat, and then afterwards money flows into gold and Treasuries for safety.
Do you have a machine fully targeted on oil or energy?
In the past I had IXC.
Kind Regards,K
