The Pressure Is On

As predicted the fast money would chase the continuing trend as the end of the year is forcing so many money managers (including hedge funds) to press the bet.

Probably the most interesting ratio that tells the tale right now is the gold/ oil ratio i.e. spot gold divided by spot oil (WTI) is 10;1. This is more typically 15 to 20;1. So gold is really cheap right now or oil is very expensive.

There is a growing crowd theory oil has peaked in price and going a lot lower. Then you have the deflationary crowd that says there is no inflation and gold will go a lot lower.

Barkly believes in the demand based theory that the economy remains much stronger than is currently measured. Gold is a great buy right now and related commodities as is oil....

Barkly seen here with his good friend and club champion at the paddle tennis courts. Paddle tennis is fun for all the dogs who like play while their masters put lots of pressure on one another.