Overblown Fears Make Gold Expensive Versus Oil: Chart of the Day
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Investors should “lighten up” on gold and buy more crude oil because the risk of a global economic slowdown is overstated, said James Paulsen, the chief investment strategist at Wells Capital Management.
The CHART OF THE DAY shows that an ounce of gold buys about 23 barrels of oil, the most since March 2009. The metal reached a record $1,881.40 an ounce on Aug. 19 amid mounting concern that the economy is faltering. On Aug. 9, crude dropped below $80 a barrel to the lowest price since September 2010.