How many barrels of oil in one ounce of gold?

Currently, a barrel of oil is around $32. An ounce of gold is around $1,232. That means if you were trading barter-style, it would take around 38.5 barrels of gold in exchange for 1 ounce of gold. Or in other words, about 6,121 litres (or 1,617 gallons) of oil in exchange for 1 measly ounce of gold.

Do you know how big an ounce of gold looks like? It’s about the size of a quarter.

Looking at it another way, you could boil 77,333 cups of water… or you could get an adult to pedal on a bike for 40 hours per week for around 8 years!! All in exchange for a teaspoon of gold.

I personally don’t believe that’s a good trade. There is TONS more energy and applications you can use 38 barrels of oil for while there is not much that can be done with a teaspoon of gold.

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Therefore, on the simplistic basis of energy and usage, I personally think that gold is insanely overpriced.

If you have 38 barrels of oil you want to get rid of, ping me and lets trade. I think my oil will produce a heck of a better return while gold will only produce a decent return on investment if it’s resold in a strong upwardly moving market.

And yet… gold has continued to rise this year, although overall, over the last 4 years since hitting a high in September 2012 of 1,795.80 the precious medal has seen a slide down to 1,046.27 before experiencing a rally to its current price of around 1,232

Will gold continue to rise amongst the insanity of global issues as investors seek “safe havens” similar to the rush on Tulips & Bulbs of in 1634 or will it all end in tears as it did for the Tulip rush did in 1637? The sudden rise of gold also seems alarming considering it was only around $256 per ounce in good old 2001 (right before 911) and had been fairly flat with little increase for many, many years.

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