Article: $200 Oil, $2,000 Gold
April 29, 2008The numbers in the title of this article look absolutely shocking side-by-side, eventhough there is plenty of evidence to suggest that even those numbersare merely rest stops on a chart with a perpetual sky-reaching tilt. Thesetwo figures conjure disbelief in the mind at first look, but then,depending on your where you stand in relation to these industries, theyappear inevitable. It is utterlyastounding to think that gold and oil could still yet double, more orless, from today's levels. With gasoline prices stretching the budgetsof most North American families, the price of auto fuels in a $200barrel of oil world would easily be well over $6 a gallon. Theonly real questions to consider are 1) when will we see these prices,and 2) how can I hedge against these price risks. In terms of question1, unless you are planning on checking out in the most profound senseof the term, the question is more or less irrelevant. In that it is agiven that your income will not put on the same kind of height as theseprices are, positioning now for this future is of prime importance.