Peter Brimelow on the recent Gold moves

Interesting article from Marketwatch's Brimelow.
It deals with one of my favorite themes, that is the relationship between the Oil price and the Gold Price.
Actually, here's a graph of the Gold/Oil ratio above

And here's a quote :

Similarly, FreeMarket Gold & Money Report's James Turk noted: "Crude oil closed Friday at 4.429 [grams of gold] per barrel. Since the end of the second world war, crude oil has only been this expensive on 33 days, or about 0.002% of the time. So clearly, we are in the extreme tail-end of the bell-shaped curve, meaning that gold is extraordinarily cheap compared to crude.

"But here's the interesting point. All of these 33 previous days when crude oil cost more than 4.429 grams per barrel occurred in 2005. What's more, they occurred in a short period from the end of July to mid-September, which was another period of extreme price manipulation by the gold cartel ..."

Turk is emphatically in the camp of those who feel that the present credit crisis has brought on more official attempts to manipulate gold. See Website

Oil was 4.37 grams of gold per barrel on Friday. Quite possibly this extreme has caught the eye of important trading pools.