posted on Apr, 28 2008 @ 04:44 PM
Maybe Mike, Maybe.
There is a big difference between Gold, Silver and other items like Oil or Rice and Wheat.
For starters, both can be dictated by the dollars strength, this is true, but also supply and demand.
The Price of Gold sky rockets.. the dollar falls considerably and others are just hedging their bets that the dollar will continue a fall while Gold
However, Gold is timed in such a way that, if you buy $3,000 gold, your stupid. Who will you sell it to? The demand would drop considerably. I
think the same is happening with Gold. People see better items to hide money in then Gold.
Oil is directly linked to the dollar and supply and demand. Not only can speculators be sure that they can buy oil and sell it later at pretty much
any price, but that it will automatically keep pace with inflation as well.
Now, sure I think Gold will probably follow oil on upwards, but I don't see Gold as being as good an indicator to the economy anymore then Oil.
Also Silver has exploded as well, far better then Gold. People have more money, and more people in general can invest in Silver.
Can YOU buy large quantities of Gold? For one Ounce you could get 9 barrels of oil.