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Trade Oil & Gold Together

Depending on who you ask, gold and oil are the two most traded commodities in the markets. The debate isn’t over how important they are, but rather about whether gold is a currency or a commodity.

Either way, both are very popular trading vehicles. And both have unique characteristics that make them not only profitable on their own, but in combination.

Not for nothing, oil is sometimes colloquially known as “black gold”. And interestingly, that’s not all that bad of a metaphor to describe the unique relationship between these two special assets.


The Basics

Gold’s primary trait is its use as a store of value. It’s been used this way for thousands of years. There are several properties that make it such a good store of value, like the fact that it doesn’t require a lot of space and it doesn’t corrode over time.

Petroleum, on the other hand, needs to be used up. Depending on the type of petroleum, it degrades over time and costs quite a lot...

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