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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory
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To: Claude Cormier who wrote (50574)1/21/2006 10:14:07 AM
From: Tommaso  Read Replies (1) of 110194
 
>>>But prefer gold because it is not a consumable.<<<

That's exactly why I prefer oil. It is constantly being used up.

The price of gold, obviously, will depend on the demand for it and the willingness of people (or banks) to go on holding it. But at some level, I forget what, it could even become ecnomical to extract gold from sea level. Long before that, it will be economical (for gold producers) to exploit lower and lower grades of gold ore, using enormous heap-leaching operations. Look at the machines that have been built to mine the tar sands in Alberta! If gold hits $1,000 an ounce there will be enormousd amounts of capital available to produce more of it, and once produced it never goes away.

So as I see it, oil will be in ever-decreasing supply, while gold will be in ever-increasing supply.

I do hold gold--just no more than will cover my family's basic living expenses for a year.
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