Touched 720 today. Platinum is at 843. Most of it is strengthening dollar.
This dollar rally is amazing and inexplicable to me.
I was thinking about getting into gold at this point, but now it’s starting to look like a sustained bear market rather than a blip. And there’s no end in sight for this bear market. Oil companies, maybe. Gold … too afraid.
[quote]$60 dollar oil means civl unrest in many of the petrostates. They will respond. Say hello to economic warfare.[/quote]
No. Persian gulf countries will be fine. Canada will be fine (guess where we import most of our oil!) Nigeria and Russia will be shaken up, but they can’t really do anything.
“Every decade or 15 years or so, the Saudis drop the price of oil to where the economic impact wipes out most of the projects in the world that could lead to an alternative for oil. Then, after the projects get canceled, the Saudis let the oil price drift back up.”
On one hand, $60 oil certainly does cut into Saudi profits. On the other hand, they were quite happy with $20 and $30 oil during the 90’s. They save more in the long run by making sure that Volt and plug-in Prius and the likes are dead.
By that logic, oil prices should stay low for 2-3 years. In the mean time, Toyota will bring its plug-in Prius to the market and fail to attract buyers, Volt will fail too (unless GM goes bankrupt first).
