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Politics : Gold and Silver Stocks and Related Commentary -- Ignore unavailable to you. Want to Upgrade?

To: Claude Cormier who wrote (10416)	4/6/2005 11:19:31 PM
From: seventh_son	Read Replies (1) \| Respond to of 18308

Well, one reason I moved to Alberta is the future of the tar sands; this is the place to be if we have $200-$400 oil, although we may have to erect a massive barrier to keep out the people from the rest of the country if oil goes that high.

To: Claude Cormier who wrote (10416)	4/7/2005 1:26:18 AM
From: TrueScouse	Read Replies (2) \| Respond to of 18308

Claude: <A spike in the $200-$400 oil in the next commodity boom will not surprise me at all.> Now you're talking mon ami! I see the oil spike coinciding with a corresponding spike in the Gold/Crude ratio of at least 30. i.e. At the peak, one ounce of gold will buy 30 barrels of oil, as it did in 1973, 1986 and 1988 -- implying that, based on your oil estimates above, the POG will be somewhere between $6,000 and $12,000 an ounce. :^) In fact I like the $6,000 per ounce figure, because that would coincide with a 1:1 POG/DJIA ratio, with the DOW at 6,000. This has happened before and IMO will happen again. I don't think the DOW is going down to $1,000, but I do think the ratio is going to par. So that would mean a massive rise in the POG. Nice to dream, but history tells us that something like this is probably going to happen. Best regards, Howy