Gold v Oil

wombat42_2

OK OK gold is likely to do well thanks to inflation. But surely there is much greater potential in oil, thanks to peak oil and supply destruction. There is almost unanimous talk of a spike to $200 or more in a few years time which means a 400% plus increase. So how can gold beat that ?

Reaper

Is that really you, Wombat?

I find myself agreeing with you. I would be much happier having a long term punt on oil than gold. In fact I have been hoping oil would drop slightly in price at which point I was going to.

wombat42_2

Reaper wrote: »

Is that really you, Wombat?

I find myself agreeing with you. I would be much happier having a long term punt on oil than gold. In fact I have been hoping oil would drop slightly in price at which point I was going to.

I am wondering how much gold will spike in sympathy with any oil spike as there is usually some sort of relationship between the two. Also an oil spike should make Ag commodities spike as well.

RichardJW1

OK, so how do we go about investing in oil?
Do we buy a well?

purch

I would consider Gold as a store of value rather than a commodity that reacts to normal supply and demand economics. I think a lot of it's upside potential is due to it having 'lagged' in real terms, and any rise to $1500/$2000 would be an adjustment, rather than anything else.

Whether or not we have actually reached 'Peak Oil', there is an ongoing demand for a commodity without infinite supply. Even if we had a Global Depression lasting a decade, it would only delay the move in the Oil price, it will happen one day, and the sooner the World returns to economic growth, the sooner it will happen.

wriggly

As a counterpoint:
http://www.hardassetsinvestor.com/features-and-interviews/1/1503-gold-as-a-hedge-better-than-oil.html

gozomark

wombat42 wrote: »

There is almost unanimous talk of a spike to $200 or more in a few years time

really ? I'd say its an extreme view, hardly almost unanimous.

wombat42_2

gozomark wrote: »

really ? I'd say its an extreme view, hardly almost unanimous.

I kid you not. Everybody is expecting a spike including the arabs it is just that opinions differ about how high it will go. Matthew Simmons (famous industry oil bug) is actually calling $600 oil and even a mainstream oil analyst i was reading yesterday called $200 oil for 3 years time.

jfpeeps

I got into an oil shipping company (can you mention actual stocks here?) as a way into oil without actually buying the black stuff. Not sure about buying actual commodities but would think any decent oil related firm would rise with oil if you wanted into that market. This one certainly rose (and fell!) with oil.

simpywimpy

According to Time magazine last week Silver is the better investment than gold.

gozomark

wombat42 wrote: »

I kid you not. Everybody is expecting a spike .

not everybody

http://www.ft.com/cms/s/2/7f69ba68-120c-11de-b816-0000779fd2ac,dwp_uuid=f2b40164-cfea-11dc-9309-0000779fd2ac.html

"Oil prices could remain lower for longer than many seem to think. "