The gold-oil price ratio is reaching a historical limit
John Robertson
PortfolioDirect
The gold-oil price ratio is reaching a historical limit. Historical market ratios provide guidance about future movements .... at least until they don't. The more closely followed relationships hold because they are reinforced by expectations that they will persist leading to self fulfilling trading strategies. But relative prices can always change if new economic forces intervene. The chart shows the purchasing power of gold measured in terms of barrels of oil. The dramatic movement during the second half of 2014 has been within the full span of a well-defined 30 year range which now suggests another change in the direction of relative prices is near.
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John Robertson is Chief Investment Strategist for PortfolioDirect a provider of resource sector investment stock ratings and portfolio strategies for mining and oil and gas investors. He has worked as a policy economist, corporate business strategist and investment market professional for over 30 years after starting his career as a Commonwealth Treasury economist in Canberra. Since being Australia's top-rated commodities analyst and chief economist at one of Australia' leading stockbroking firms, he has advised companies across the mining, consumer products, IT and biotech sectors on their equity market relations. He leads the firm's investment evaluation and security structuring activities on behalf of the Australian Small Scale Offerings Board (ASSOB), the world's first equity 'crowdfunding' investment platform. John Robertson discusses the interaction of mining and investment markets in his weekly 'From the Capital' column in Mining Journal.
John Robertson
PortfolioDirect
John Robertson is Chief Investment Strategist for PortfolioDirect a provider of resource sector investment stock ratings and portfolio strategies for mining and oil and gas investors. He has worked as a policy economist, corporate business...
Expertise
No areas of expertise
John Robertson
PortfolioDirect
John Robertson is Chief Investment Strategist for PortfolioDirect a provider of resource sector investment stock ratings and portfolio strategies for mining and oil and gas investors. He has worked as a policy economist, corporate business...
Expertise
No areas of expertise
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