Strictly: Drilling and oil-field services Message Board

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Gold/Mining/Energy : Strictly: Drilling and oil-field services

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To: Douglas V. Fant who wrote (37789)	2/18/1999 6:58:00 PM
From: JungleInvestor	Read Replies (2) of 95453

Doug, There is a good reason why oil and gold both go up or down at the same time - the money supply. When money supply is growing fast, there are more dollars to buy the same quantity of gold or oil. Gold, oil and the CRB are all good indicators of future inflation. My guess is that sometime in the second half of the year inflation will be signficantly higher (i.e., due to interest rate cuts last year, IMF bailouts, etc.). So the price of oil is dependent on two different factors supply/demand for oil and money supply growth.

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