It appears that billionaire investor George Soros believes the price of crude oil will be heading south, while gold goes up. From “The Croesus Chronicles” on the Forbes website yesterday:

Soros finally shorted oil at $137 a barrel and put on a long position in gold; he expects to see gold hold its ground even if oil continues to decline. In fact, the gold bug clique believes in a consistent 10-to-1 ratio for gold and oil. It holds that either gold will rise to 10 times a barrel of oil ($1,350 an ounce) or oil will fall to $96 a barrel–one-tenth the present market price of gold. Croesus was told Tuesday that statistics spanning many decades support, on average, this 10-to-1 ratio.

Source:

“Gold And Oil For Soros; Illiquidity At Merrill”
Forbes, July 17, 2008

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