Oil is still "on sale", but the discount relative to gold has declined a little bit.
The gold to oil ratio stands at 16.8, which represents a mark-down of roughly only 12 percent for oil. Gold has firmed up in the neighborhood of 1615 of late, presumably on central bank acquisitions replacing coin demand. And saber rattling and unrest in the Middle East continue to put pressure on oil prices, moving the ratio closer to the theoretical norm of 15.
We've had gold to oil ratios much higher than 15 in recent months, including hits of 19.5 and the like. But I don't like oil and gold at any of these prices. I'm not acquiring these and I'm holding what I've got because I bought them low.
Assets remain inflated overall.
