Some of the world's leading experts expect to see gold hold its ground even if oil continues to decline. In fact, the gold bug clique believes in a consistent 10-to-1 ratio for gold and oil. It holds that either gold will rise to 10 times a barrel of oil ($1,350 an ounce) or oil will fall to $96 a barrel–one-tenth the present market price of gold. According to them statistics spanning many decades support, on average, this 10-to-1 ratio.
Contributed by:
Prof. Bikramjit Sen
(Globsyn Business School)
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