Why can't P.M.'s follow the trend of...

mach19

OIL

57loaded

it is, or they are, or whatever, what do you want a one to one?

it more follows the dollar index, mixed in with some corruption, here and there

cinman14

because I have to sell my Silver to buy gas...

roadrunner

Over the long term it does. During the short term gold is subject to far more manipulations than that of oil.
Oil has gotten ahead of gold and a rebalancing of the two should occur over the rest of 2008.

roadrunner

doh

What a shortsighted comment. Up up up, that's all that matters right??

Bochiman

Why? A fan of faster inflation?
Everything should go up in cost?

I'd be happy if oil and P.M.s all tanked to 100 year lows............

dlimb2

I agree to see it hit 100 year lows would be a wonderful sight! I own silver and gold and I would rather look at it on a numismatic bases only! I do not like the situation in front of us...one catastrafy and I don't know what kinda Chaos will transpire.

mach19

<< <i>Why? A fan of faster inflation?
Everything should go up in cost?

I'd be happy if oil and P.M.s all tanked to 100 year lows............ >>





I will go along with this. Home heaating oil in the great state of Maine is @ 4.18 A gallon with old man winter a long ways away. The last time I purchased heating oil was September 07 & I was paying 2.42 a gallon. It's going to be a long time until winter, however I need to start purchasing oil as of now.



P.S. a lot of people will be purchasing home heating oil with the stimulus checks. Go figure, Hand it back to the oil company. Shortsighted, I think not. Everything you purchase revolves around oil. Pick up a newspaper sometime / watch the news and see oil has doubled in one year. Shortsighted, Take your rose colored glasses off. And when when you hop on a plane & they start charging you to bring a bag on with you, check your contacts. Shortsighted my A$$

cinman14

when natural gas hit an all time high a few years ago. We purchased individual space heaters for each room. Spent a little more
for the safe oil filled ones for fire safety reasons. We have never switched back. Our NG bill was cut over half. And our rooms were
more comfortable...

doh

Shortsighted that you only want your PMs to go up up up. You don't really see the big picture if you think that. But hey, I have rose colored glasses on, right?

mach19

<< <i>Shortsighted that you only want your PMs to go up up up. You don't really see the big picture if you think that. But hey, I have rose colored glasses on, right? >>






Have a good one !!!!

RedneckHB

Gold and oil have only had a similiar divergence in return 3x since 1986. Each time, oil tanked.

ziggy29

It's easier for central bankers and others to hold gold down than it is for oil. As a result, there's almost no resistance to the speculation in oil.

roadrunner

Why? A fan of faster inflation?
Everything should go up in cost?

I'd be happy if oil and P.M.s all tanked to 100 year lows

The FED and bankers are the drivers of faster inflation....not the oil companies or anyone else. Hedge funds and investors have also hopped aboard the FED-powered inflation train. Blame congress as well since they are complicit with the FED's actions. Considering that many base and industrial metals as well as raw materials are up 500% over the past 5 years, it's no real surprise that oil is up almost a similar amount. Ironically gold has lagged most of them because it also serves in a monetary role as the inverse of the US dollar and has been held back. Eventually it will cover that lost ground.

But yes, basically every commodity in demand for the growing western nations will continue to go up in cost for years to come.

roadrunner

dlimb2

It is pay back time now! We have cards to deal, can the Saudi's feed themselves enough to sustain life in their part of the world...Lets Put BIG OIL on it's knees...We don't need no stinking Middle Eastern Oil or Venezuelan oil or any ones oil...We got all we need right here, this is God's Country and lets take it back...this is going to be the defining factor as to who will win the Presidency of the United States! We need EXPERIENCE in the WHITE HOUSE and we need it NOW! Unfortunately it won't happen until November and changes won't start until Jan. 2009..we are in for some hard times but hopefully we will have a light at the end of the tunnel that will lead us out!

cinman14

<< <i>It is pay back time now! We have cards to deal, can the Saudi's feed themselves enough to sustain life in their part of the world...Lets Put BIG OIL on it's knees...We don't need no stinking Middle Eastern Oil or Venezuelan oil or any ones oil...We got all we need right here, this is God's Country and lets take it back...this is going to be the defining factor as to who will win the Presidency of the United States! We need EXPERIENCE in the WHITE HOUSE and we need it NOW! Unfortunately it won't happen until November and changes won't start until Jan. 2009..we are in for some hard times but hopefully we will have a light at the end of the tunnel that will lead us out! >>



Actually this is God's country...Does the landscape look familiar

dlimb2

America, The Beautiful
Words written by Katherine Lee Bates in 1893
Music written by Samuel A. Ward*


--------------------------------------------------------------------------------




Oh, beautiful for spacious skies
For amber waves of grain,
For purple mountains' majesty
Above the fruited plains.
America, America,
God shed His grace on thee;
And crowned thy good with brotherhood
From sea to shining sea.

Oh, beautiful for pilgrim's feet
Whose stern impassion'd stressed
A thoroughfare for freedom beat
Across the wilderness.
America, America,
God mend thy every flaw
Confirm thy soul with self control
Thy liberty in law.

Oh, beautiful, for hero's feet
Proved in liberating strife;
Who more than self their country loved
And mercy more than life.
America, America,
May God thy gold refine
Till all success be nobleness
And every gain divine.

Oh, beautiful for patriot's dream
That sees beyond the years;
Whose alabaster cities gleam
Undimmed by human tears.
America, America,
God shed His grace on thee
And crown thy good with brotherhood
From sea to shining sea....

percyb

Why can't P.M.'s follow the trend of

Victoria Secret?

BECOKA

If you want PM's to go up I'll sell you some stuff at double market rate.

Coxe

In our epoch, it makes sense for them to pace oil simply because inflation is probably roughly linear with the price of oil. Manufacturing, transport, energy (heating/cooling), ... all depend today on it with astonishing exclusivity. I said probably without qualification of proof. It would actually not surprise me one bit if there is a logarithmic differential built into it through the taxation filters to pay infrastructure costs and government loading. Nonetheless, as long as inflation is overwhelmingly driven by the price of oil, the PMs should also follow in the same direction. Of course, PM supplies and physical needs also figure in potentially. I think rr is right too. They'll rebalance over time. Pricing is subject to all sorts of convoluted influences. (Those damned options and futures dates creep up too and manipulate things.)

thestig

People are to afraid to take action..

Jcarney

<< <i>OIL >>



Why should it? Oil is a consumable commodity, gold isn't. Oil is essential to living our daily lives, gold isn't. Oil is running out (so say the Peak Oil proponents, who knows), gold isn't running out any time soon.

Coxe

<< <i>

<< <i>OIL >>



Why should it? Oil is a consumable commodity, gold isn't. Oil is essential to living our daily lives, gold isn't. Oil is running out (so say the Peak Oil proponents, who knows), gold isn't running out any time soon. >>



As long as gold is an inflation hedge and not the barbaric relic some claim, it should pace inflation and maintain its buying power contrary to the dollar. Since the price of oil essentially dictates inflation, has to in our world as constructed, the price shoudl follow oil. The linearity of the relationship and the deviations from the FMV trend is where I see questions.

TwoSides2aCoin

It is not a precious metal until it's a 2008 ASE with a 2007 reverse.
Then, it's just a bunch of bullion.

~shakin' the bush, boss, shakin' the bush~

TwoSides2aCoin

<< <i>America, The Beautiful
Words written by Katherine Lee Bates in 1893
Music written by Samuel A. Ward*


--------------------------------------------------------------------------------




Oh, beautiful for spacious skies
For amber waves of grain,
For purple mountains' majesty
Above the fruited plains.
America, America,
God shed His grace on thee;
And crowned thy good with brotherhood
From sea to shining sea.

Oh, beautiful for pilgrim's feet
Whose stern impassion'd stressed
A thoroughfare for freedom beat
Across the wilderness.
America, America,
God mend thy every flaw
Confirm thy soul with self control
Thy liberty in law.

Oh, beautiful, for hero's feet
Proved in liberating strife;
Who more than self their country loved
And mercy more than life.
America, America,
May God thy gold refine
Till all success be nobleness
And every gain divine.

Oh, beautiful for patriot's dream
That sees beyond the years;
Whose alabaster cities gleam
Undimmed by human tears.
America, America,
God shed His grace on thee
And crown thy good with brotherhood
From sea to shining sea.... >>



Oh and by the way

To the TOP !!!