Tuesday, January 18, 2011

Gold to Aluminum Price Ratio

A 747-400 consists of 147,000 pounds (66,150 kg) of high-strength aluminum. Selling just 7.75 pounds of gold will now allow you to buy all the aluminum needed to make a 747-400.


Eric said...

Interesting statistic. Not sure it points to a 'bubble' in gold, though, if that's what you're trying to say.

If a market correction happens -- per your later post -- then Au is likely to rise in the short term.

CP said...

I disagree, I think gold tanks in a correction.

Eric said...

Because of the sovereign debt/currency concerns/crisis, which as I said in another comment is part of the crappy backdrop, and includes the dollar of course, I think Au will find buyers in a market correction.

We'll see.