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...