Finance

As Oil Moves Higher, Gold and Gold Stocks Look Better and Better

As Oil Moves Higher, Gold and Gold Stocks Look Better and Better

Not sure how much more “radically undervalued” gold could be than it is today. The bullion banks and “market makers” are doing their level best to ensure the undervaluation remains in place – and possibly moving lower.

Gold ‘radically undervalued’ with price about to take off – expert

Against growing crude prices gold is significantly cheap and presents a good buying opportunity, according to Leigh Goehring, managing partner at New York-based firm Goehring & Rozencwajg Associates.

The analyst compared the current situation to the one gold and oil markets experienced 20 years ago. “Back in the first quarter of 1999 oil was $11 a barrel, gold was almost $300. So an ounce of gold bought 30 barrels of oil, which at our long-term modeling of golden oil that made gold very-very expensive,” Goehring said in an interview with Kitco News.

The expert highlighted that back then prices for crude went all the way up to $35 within 18 months, whereas the precious metal went from $300 down to $250.

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