Nov 17 2007
When will Oil be priced in Gold?
You know everyone is thinking it – so there, we asked it!
In an era where the world’s most famous supermodel insists on being paid in Euros (not Dollars), and rap stars flash Euros vs. Greenbacks – it’s a logical question. Especially when you consider that Gold/Silver backs NO government currency on the planet, and that as the U.S. continues to export inflation by printing/degrading the Dollar – foreign nations will follow suit to protect their exports, etc. In other words – ALL paper money is becoming more worthless by the day.
As OPEC nations meet, they discuss among other things, skyrocketing production costs. We also learn sentiment exists that OPEC has lost the ability to lower prices by increasing output. How can this be? Sure, demand has increased dramatically over the decade. However, we think the primary reason is that prices have a long way to go to accurately reflect the massive (and continuing) increase in the global money supply. In other words “real inflation” – not the bogus, rigged figures central bankers use.
Hey, say what you will – rap stars and supermodels are up on the latest trends. As soon as they catch on – they just won’t be wearing their bling – they’ll be getting paid in it. Either that, or they’ll be converting whatever “paper” they are getting paid in as fast as they can into Gold and Silver. It doesn’t take a genius to figure out what widespread behavior like that will do to the price of the precious metals.
As always – opportunity knocks!
