Roubini says oil, gold look overpriced

(Reuters) - Oil and gold are overvalued at current prices, which do not reflecting their market fundamentals, economist Nouriel Roubini said at the Reuters Investment Outlook Summit on Tuesday.

Roubini, who is known for having predicted the financial crisis that rocked the global economy in the past two years, painted an economic backdrop of deflationary risks and warned that if oil keeps climbing toward the $100 level it would deal an "economic shock" similar to the one last seen in 2008.

The recent rally in oil, which sent prices to an eight-month high above $73 per barrel, was "too high too soon," Roubini told the Reuters Investment Outlook Summit in New York.

Keep reading... http://www.reuters.com/article/InvestmentOutlook09/idUSTRE55F4YM20090616

Gold prices in last 600 yrs

Gold Hits 7 Month High

Gold continues to rally as investors prefer safety haven investment after the economic plans revealed by US Treasury lacked any clarity on revival of economy. In India Gold crosses Rs 14,700 level per 10 ounces.


The DOW/ Gold ratio hits a new low. Dow/Gold Ratio is nothing but simply dividing the one by the other, pricing the Dow Jones Industrial Average in ounces of gold.


In 1999, it took 45 ounces of gold to buy the DOW.
Now it takes just 8.5 ounces to buy the DOW.