Battle of the commodities - Crude Oil up 30% in comparison to Gold this year

[acroso]

http://stockcharts.com/h-sc/ui?s=$WTIC:$GOLD&p=D&b=5&g=0&id=p63834521449


I was under the impression that Gold and Crude Oil had been relatively flat.

Is it possible that 30% of the increase in oil prices is do to speculation\supply\demand?

While the other 70% or so is due to currency debasement?



Here is a long-term graph without the short term fluctuations.

http://i294.photobucket.com/albums/mm91/spathic101/feb252008_1.png

[Kludge]

Speculation. The U.S. foreign policy is worrying to investors, especially now that we're "playing hardball" with Iran.

[acroso]

http://stockcharts.com/h-sc/ui (edit you have to click "weekly" and update it yourself.)

Here I put the graph in weeks and put it on my photobucket.

http://i294.photobucket.com/albums/mm91/spathic101/sc.png

(It’s a candlestick chart. The bars are the price of oil in oz Au. The blue and red lines are 50 and 200 day moving averages. Change periods to weekly for a longer term view.)





The longer term view of that graph shows Gold and Crude Oil being at even pariety. Same prices in middle 06’ as 08.'


Don’t you think that underscores the idea that it’s the dollar that is being debased, while the short term changes in the commodities trade is just speculation (war with Iran) and a few small changes in supply\demand?

I'm hoping to find some posters who actually know what they're talking about and are familiar with commodities trade not spam please.

[Fox McCloud]

what that graph is show is that when oil is priced in gold, it's barely increased over that past 50+ years, yet when priced in USD, it's been ever increasing...it's a shame that that graph didn't extend up to June.

[acroso]

The graph I just posted in #3 does extend to June.


Poster #4.....yes was it not obvious?

[muh_roads]

Isn't it funny how dollars go nuts after '71 while gold still remains flat?

Oil would probably be priced at $3.50 / barrel if Nixon didn't take us off the gold standard. Granted we'd be making less money / year but our purchasing power would remain.

Government sucks.

I wonder how silver would compare.

[electronicmaji]

I wouldn't call that barely increasing; from 1999 to 2002 it quadrupeled. Althought it doesn't look like much, and in all truth the increase isn't much; (something like going from .034 grams of gold per gallon to .084) but its still a increase. Oil is going up; not at the rate that we see vs. the US Dollar; but it is going up somewhat.

But then again Gold is not a full proof solution either, it a bit like oil in that respect; price goes up and down according to demand and that can be equally as much of a problem as oil prices.

[acroso]

Isn't it funny how dollars go nuts after '71 while gold still remains flat?

Oil would probably be priced at $3.50 / barrel if Nixon didn't take us off the gold standard. Granted we'd be making less money / year but our purchasing power would remain.

Government sucks.

I wonder how silver would compare.

Has Oil increased that much relative to Gold in that period?

I have a hard time believing we'd have $3.50 gasoline if we were on the gold standard still.


I just read B.J. Lawson's latest blog. That new bailout for Freddie and Fannie will cost over 5 trillion dollars. That is like increasing the Federal Government's debt by 50%.

The U.S. economy is unsustainable. These bailouts make Iraq and Afghanistan look like like a a few bucks for a soda or something meanwhile we're bingeing on a shopping spree we have no chance of ever paying back.