Gold v Oil

wombat42_2

gozomark wrote: »

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. "

They all say a spike its just that some think it could be a couple of years away. The oil analyst I mentioned thought oil will stay low until the end of 2010 but spike up to $200 in 3 years time. On the other hand Matthew Simmons reckons $100 oil by the end of this year.

jon3001

simpywimpy wrote: »

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

Interesting. Did they say why?

I currently hold some silver (and no gold). If you look at the Gold:Silver ratio it's over 70 at the moment which might indicate that silver is cheap relative to gold.

wombat42_2

jon3001 wrote: »

Interesting. Did they say why?

I currently hold some silver (and no gold). If you look at the Gold:Silver ratio it's over 70 at the moment which might indicate that silver is cheap relative to gold.

I thiknk it is just that Silver has higher volatility and it has industrial uses so will rocket more than gold in any economic recovery.

timarr

Gold has held its value over the best part of a thousand years as the price of a suit to meet the King. However, it goes through long periods in which it's out of favour and as it doesn't pay any income it's a pretty lousy investment during those periods. Normally it comes into its own when fiat currencies are destablised for one reason or another and investment drops. Gold used to underpin currency but the problem with that is that the total amount of money in the system is dependent on the amount of gold available.

Heck I wrote about this here: http://www.psyfitec.com/2009/03/gold.html

Oil, on the other hand, has real economic use and its price will vary dependent on a number of factors including (but not exclusively) demand. Oil is relatively inelastic as a commodity - it takes years to develop an oil field so if demand increases rapidly then oil prices can go off on a rip. However, if demand drops then supply may rapidly exceed demand and the price can fall off a cliff: as we've all seen recently, albeit the price may have overcorrected.

Gold is insurance and anyone who can afford it should have a bit (but not too much), physically rather than through stocks. Oil is a play on the global economy- investing in cheap large cap oil stocks at a cyclical low is sensible but gambling on peak oil is just that - a gamble. Maybe next week, maybe 2071, may never happen if renewables start to work.

Remember, Maltus predicted global starvation in 1798 and he hasn't been right yet. Oil shortages may be a long time coming.

timarr

Aegis

Remember, Maltus predicted global starvation in 1798 and he hasn't been right yet. Oil shortages may be a long time coming.

About a billion people ARE starving, aren't they?

timarr

About a billion people ARE starving, aren't they?

Fair point. Water may turn out to be more valuable than oil going forward.

timarr

purch

Heck I wrote about this here

Pathetic !!!!!!! :rotfl::rotfl:

We have a 'blogger' amongst us, who considers his/her opinions so 'precious' and important that he/she needs to post a link to their 'blog'

I'm sure Carly Simon sang a song about this once !!!!

timarr

Hi purch

We have a 'blogger' amongst us, who considers his/her opinions so 'precious' and important that he/she needs to post a link to their 'blog'

Why is an opinion on a blog any different from an opinion on a board? Anyway, simply avoids repetition. Some things never change :rotfl:

timarr

purch

Why is an opinion on a blog any different from an opinion on a board?

It is no different.

Quite why you feel compelled to post a link to your blog, is what is being ridiculed, not your perfectly valid opinions.

wombat42_2

timarr wrote: »

Hi purch

Why is an opinion on a blog any different from an opinion on a board? Anyway, simply avoids repetition. Some things never change :rotfl:

timarr

Timarr - dont let old Purchy get you down - he often gets "off on one". Yes linking to ones own blog or website means you dont have to keep repeating yourself.

Now where is Purchy's blog