Oil prices are just a mirror image of more $USs (paper) in circulation, while gold, a trailer today, will become what it has always become in similar circumstances, the monetary defence against the "explosion" of paper currency, supply of which is managed by a "bunch of thieves" to quote Jimmy Willy! (inflation, after all is just more paper chasing "real" assets, with oil at the top of the charts!)

The current gold/oil ratio of approx seven misses the historic norm by ten which, by all historic measure, will rise at least to the mean of 17. Even with oil dropping to $80.00/barrel, at the "mean" gold rises to $1360/oz, at the historic high of 21 (Jan, 1980) gold would have to rise to $1680/oz to measure up!

If oil moves up, you do the math.

These "experts" saying things are different this time round, IMHO, are full of crap!

RUF