Replies to post #39730 on Banro Corp. fka BAA

[mdimport]

Gold to Oil ratio is signalling massive deflation:

Gold: $1,124
Oil: $39

Ratio: 28.8

In a normalized market the ratio should be around 15/16. So the change in gold prices to bring the ratio back into balance:

16 / 28.8 x $1,124 ~ $624 / oz gold

Of course the ratio could be normalized by a rise in oil prices or some combination of a fall in gold and rise in oil.