ld,
Blurb came across the newswire that crude at 41 today is like crude at 32 in 90 and that crude prices in 79-81 would equal around 76 bucks in todays money adjusted for inflation.
Folks in Europe have been paying $3 or more a gallon (equivalent liters) for years.
BTW, same token, silver now at 5.50, checked with Fed's own CPI calculator, pretty close to one buck in 1964, the price a silver dollar was then by gov't standards. BTW, yes, I know an old silver dollar isn't quite a troy ounce, it is actually .7734 troy oz of silver w/o any wear (412.5 grains at 90% silver), but coins always have some premium to spot.
The point is silver doesn't have much premium built in at 5.50's. Energy does have some "terror", supply and demand premium, but of course, it could have more in the future.
While the charts are not real favorable right now, I believe some physical pm's belong in every investors portfolio, at least 5%, and that some gas or oil stock should also be carried both as a hedge to personal energy expense and as insurance, like the physical PM.
Naturally, everyone should get the best prices they can on either one, which means buying on dips. I think recent price behavior in both sectors at least begins to qualify as a dip!
JMVHO, not investment advice.
PS, heavy work schedule coming up, so I'll be scarce for about a week.
Best Regards,
Roebear |
