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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: TobagoJack who wrote (40897)	10/8/2008 8:05:19 PM
From: Fiscally Conservative	1 Recommendation Respond to of 220222

"gold's correlation relationship with oil was just a temporary distraction" This much I do agree with. Gold,for practical purposes,is useless as a necessary commodity. The practical uses for Gold are limiting outside the fantastic conduit for electricity(electrical circuits). The intrinsic monetary value is whitewashed in varied opinion. There is no monetary gold standard in the United States or any other country that I know of that could quantifiably justify price. This is why we have so much fiat currency today and why valuations have run amock in both equities and debt instruments;a country's true monetary gauge is insufficient to quantify. The idea that Gold is a safe haven for currency is based soley on the Gold Standard the United States,as well the world, once had. That is not the case now. Oil is a valued and prised commodity on a Global scale. This is why the Middle East is such a hot spot today and has been in the past. The war in Iraq is for Oil not for the demise of Terrorism. I believe most Terrorism in the Middle East,as much as I condemn it,has been parented by; Oil & Greed. Such the commodity as Gold might be,an argument I will not give here and now,one should consider the greater valued commodity that Oil has become and its effect on a Global Geo-Political landscape. Peak Oil is not myth. Weather the effect or not that 'Peak Oil'has played into the price rise over the last three years,or the combination of the loss in value of the Dollar, one should not just ignore how important a commodity Oil truly is and how easily effected it can become. Some historical facts about our commodity: -From 1958 to 1970 prices were stable at about $3.00 per barrel. -In 1972 the price of crude oil was about $3.00 per barrel and by the end of 1974 the price of oil had quadrupled to over $12.00 -From 1974 to 1978 world crude oil prices were relatively flat ranging from $12.21 per barrel to $13.55 per barrel. -The combination of the Iranian revolution and the Iraq-Iran War cause crude oil prices to more than double increasing from from $14 in 1978 to $35 per barrel in 1981. In 1979 Gold was $500 an ounce. The link below represents: 3month-6 months and 1 year Oil price chart livecharts.co.uk