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Strategies & Market Trends : Galapagos Islands -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (10151)	10/29/2002 1:19:41 AM
From: Jorj X Mckie	Respond to of 57110

Very interesting. The ME oil producing countries have made noises about detaching from the USD, but I always heard a leaning toward the Euro. That may have its own set of problems. In reality though, gold may have its own drawbacks for them too. It isn't like trade has been in one direction with the ME countries. I would venture to guess that you could find everything from intel chips, to IBM computers to Cisco routers over there. US companies may resist taking payment in their currency. And as much as we need oil, I think that they need our goods and services too. Further, would going to their gold currency cause the price of oil to increase on a relative basis to the dollar? If so, it may make things like the Canadian shale oil or deep sea drilling more attractive. I am only guessing off the top of my head though, I don't understand currencies enough to really understand all of the ramifications. Chartwise, I can make a very good argument for a strong rally in gold some time in the future. (big triangle...who knows how long it takes to coil)