G0ldfinger

Fact is that basically all governments/central banks in the world discourage you from using gold currency by taxing you in case their own currency goes further down the toilet (which it unfortunately does most of the time).

It's called deflation (when measured in gold).

Commodities drive inflation. Please, someone ban commodities! Thank you. U.S. Congress could ban speculators from commodities http://www.iht.com/articles/2008/05/21/business/commod.php

Mind you, BV and GM do NOT issue IOUs but store your bullion for you - there is a legal difference in this and we had this discussion before. Regarding your historic part, cash (i.e. GOLD) was certainly always preferred over the IOUs. Only later cash got the meaning of fiat cash, but even this is usually preferred over cash IOUs.

Two things I have just catched on the news: (1) China will build 1,000,000 houses (of wood & steel) for the quake victims. (2) Italy will go nuclear again from 2013 on. All this adds up. More inflation in commodities.

Only because the central banks of the world force their paper upon you.

On a 100 year horizon, I would expect oil to play a much less important role than today. The world will be on nuclear, wind, water, hydrogen fuel. However, there will still be gold in central bank vaults. Or, if central banks don't exist anymore because of the Great Depression of 2007-2027 that was caused by too much paper money, gold will be the world currency of choice.

Good chart, thanks. Could be a temporary or permanent top there in 2000.

Biggest head and shoulders ever.

My calculations of implied gold prices from the gold-oil ratio always used the average (14.72), not any of the spikes (up to a factor of 32). I think this takes account of your considerations, and in a gold spike I would see no reason not to bring the ratio up to 14-15. Do I see a head and shoulder pattern here?

Agreed. However, oil as a fuel will be replaced at some stage, while gold and silver as money can not be replaced.

What's the deflationistas take on $135 oil? Will we have 'deflation' to $120 soon? Hmm, that would scare me, really. :lol: http://www.bloomberg.com/apps/news?pid=206...&refer=home OPEC losers. The US has a solution: print more money and then buy more oil! Easy really. :lol:

Yes, we have sort of peak everything. Gold and silver are good examples with gold production going down over the past years (I think more than oil). Has anyone the numbers?

Was there some physical dumping in London today? Spain selling more of its silver (or in this case: gold) again? Who of the Club Med will give in first?

That's my gut feeling too. A major drop in oil from somewhere could slow the processes as well.

Not quite sure about this. The 70s saw the oil (=energy) crisis. What did food stuff do back then? No inflation in food during the 70s?

I guess we're finally seeing the commodities boom going public. Another ten years to go then, I suppose.

Let's call it wealth preservation in this case.

Gold, silver, oil, the EUR, etc. -- all up in the green today. EXCEPT for GBP. Sterling = Turdling. It's so sad. But what can you expect from a currency that is mostly backed by itself, USD, and Northern Rock subprime?

Investment demand and safety buying? I think one of the main reasons why the price of gold is getting heavily managed every now and then is to make the USD look good. A weak USD means prices go up, hence inflation. Regarding gold suppression, much of it is mere stupidity. Take the "Brown Bottom". I don't think it was a manipulation attempt. I think it was stupidity and ignorance in its purest form.

Oil through $130. Congrats, everyone! Especially to the Fed and the BoE who took their printing presses to the absolute limit to achieve this fantastic goal. I am looking forward to $150 and then soon $200.

Nice one by cgnao: http://www.housepricecrash.co.uk/forum/ind...showtopic=77450

I would have bought several times below $900, but in the end I couldn't since I am fully invested already and can not save more at the moment due to higher outgo. It will be annoying if later this year the price will be way above $1,000 and I'll have less outgo and will be able to buy again. Oh well, that's life. Good thing is, that I did a lot of buying last year. So, I can't complain really. EDIT: With WTI crude oil at $129, gold could be at $1,900 without being more expensive than historical average since 1946.

Not sure what you mean by 'wrong' -- the link works for me.

So, he expects a price explosion starting Sunday night? Is this Puru Saxena buying back in then? No problem, my boat is loaded.