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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Tommaso who wrote (50602)	1/21/2006 1:03:24 PM
From: Claude Cormier	Read Replies (3) \| Respond to of 110194

Well you are wrong about the supply of gold. It is not increasing but slowing and it will continue to do that at current prices and even higher prices. The Capex+operating costs equation is still not extremely favorable. Remember that the lead time to production is much higher than for oil. As for oil, yes its the equation is favorable and will continue to be more and more favorable despite the occasioonal bumps due to possible recessions. The long term is clear, we are heading for $200-$300/bbl in the next decade. However people do not store oil as long term savings and store of value. They do store gold. Can you transfer me $10K of oil value within 5 minutes? No you can't and you will never be. Not so with gold. I also like oil and oil stocks as an speculation, investments or trading vehicle. When I talk about gold I talk it as money that can be saved.