It is seriously amazing how predictable things are when you take a step back and look at the big picture. Do you guys remember my post on January 2nd of this year speaking about Gold, Oil, and recession? If not, go ahead and read it (Oil hits $100 a Barrel, Gold hits $850, Dow Drops…). I believe we still have a ways to go.
Today:
OIL: Light, sweet crude oil. Oh how sweet it is! $111 and $110.70 were the highs I last saw. Passing $100 back in January was a benchmark. $110 two and a half months later? That’s 10% in that time frame! Can you beat that in an investment standpoint?
GOLD: That yellow-ish, shiny metal hit a benchmark today. $1001. Based on inflation, it is not at it’s all-time high. Actually, it is just about 50% less in value. If we go into a recession, we’ll be right up there again. Back in 1980 (taking into account inflation) the price of a gold ounce was just about $2,177.
DOLLAR: What’s up Benjamin? WTF. Since January I have been moving money to Euro’s through my ETrade account. And you know what? My buying power is increasing as the dollar continues dropping. I don’t think this will go on forever. But this year? My gut says it is… so far so good. The euro rose as high as $1.5625 and in Asia, 99.75 yen before hiking back to 100.27 yen. Seriously, this isn’t good for America.
Some recent blog posts on the topic:
k5dkz.com
blog.sharenet.co.za
crooksblog.sovereignsociety.com
thetraderblog.com
I also found an interesting post about the new $5 bill at chatterlounge.com. Check it out!
1 response so far ↓
1 messels // Mar 13, 2008 at 3:33 pm
i think the gold and oil increases are only a result of our depreciating dollar. bummer about that. hopefully the fed’s move to deal in CDO’s (and the likes) instead of lowering rates will help stimmi the fall. it’s getting pretty bad.
BUT on that front i’m really happy with two particular holdings: BPT and PCU. both deal with commodities priced in dollars and as the price of oil, for example, goes up, BPT goes up. 20% again since oct and 12% divs. not bad. PCU has heavy resistance at 115 or so now but i expect that earnings are going to be amazing and that they’ll be hiking the div next quarter.
(open orders on PCU at 105 to 106 will probably execute as that’s where support is. i have an open order for another 20 shares if it goes to 90 again but i doubt that will happen). oh! and because the stock is fairly volatile the options are going for pretty good money.
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