Gold : Oil Ratio…Highest Ever!

The gold:oil ratio is currently 28.57. That's the highest the ratio has been in the last 20 years. That's as far back as my data goes. Take a look at this chart and you see that it only spikes to these¬†high¬†levels. Underneath I have provided both the gold chart and the oil chart. Inspection of these charts shows that the main reason for the ratio to decrease is due to an increase in … [Read more...]

Expect 100,000’s Of US Oil Industry Layoffs

"Demand for rigs is falling off a cliff." If oil prices stay low for a considerable time, expect massive layoffs within the US oil industry. From, Gabriel Black, January 15, 2015: The precipitous drop in the price of oil has prompted oil companies to prepare mass layoffs in 2015 as sections of the industry become unprofitable. According to a variety of sources, hundreds of … [Read more...]

Asia’s Standard Chartered Bank In Trouble

The first bank has been hit by the fall in the price of oil and other commodities: Asia's Standard Chartered Bank. From Reuters, Steve Slater, January 12, 2015: A jump in Standard Chartered's bad debts in the third quarter has prompted concern that it could face heavy losses from commodities loans after the fall in the price of oil and commodities. Credit Suisse's estimate was based … [Read more...]

50% North Dakota’s Shale Below Breakeven

ZeroHedge recently reported that half of North Dakota's shale regions are operating below breakeven. From ZeroHedge, January 10, 2015, Tyler Durden: While talking heads and TV personalities reassure the investing public that low oil prices are "unambiguously awesome" for everyone, it seems the cracks in this narrative are starting to show. From falling wages, surging job cuts, plunging rig … [Read more...]

US Dollar – Best Currency of 2014

Peter's Commentary: The US Dollar performs as the world's best currency during 2014. Not what I expected to happen at the beginning of 2014. From Bloomberg, Andrea Wong, December 27, 2014 Dollar stages historic 2014 rally as all top peers become losers. In contrast, the Fed ended its bond-buying under the quantitative-easing strategy in October and Chair Janet Yellen indicated after a … [Read more...]