Based on an oil price of $124.00/barrel, a repeat of 1980 would see gold peak at $2604.00! For that to happen the GOLD/OIL ratio would have to reach its historical high of 21.

The GOLD/OIL charts for January1980 tell the story! That was the era when the failure of the US bond market was imminent . Jimmy Carter was told his "pay cheque" could bounce!

Today US bonds are "underwater" 7% to 8%! Inflation running at 11%+!

January 1980 saw a 40% rise in bullion prices!

Many commocities have already surpassed their historic inflation adjusted prices.

Will GOLD?

Just give it some time!

RUF