Posted on 06/01/2012 7:38:25 AM PDT by OrangeHoof
As of 10 a.m. EDT Friday
WTI Crude Oil: $83.90/bl - down $2.83 - down 3.04% Brent Crude Oil: $98.96/bl - down $2.87 - down 2.82% Gold: $1614.02 - up 3.48%
Brent Crude (European) oil was over $110/bl just a month or so ago while WTI Crude (West Texas) was above $105/bl not that long ago.
Now, I'm not one of these "gold bugs" and the price of gold had been up over $1700 last winter and is only now climbing back to $1600 so it is not foolproof but it seems a better hedge against market collapse than almost anything else out there.
Certainly, the price of oil was in for a major correction. Middle East fears did not pan out and the speculative price was way too high. But, combined with bad unemployment news, stocks tanking and what appears to be a stall in the global economy (or worse), it is noteworthy to see Gold's spike today in tandem with losses in almost every other sector.
What's newsworthy today is that European crude has fallen below $100/bl, following the lead of American oil which had crossed that threshhold a few weeks ago.
I seen this oil crash acomin wen Grease collapsed.
Aint oil made frum Grease?
Or is it the other way around?
This high finance is so complicated!
The reduction in crude prices will have a tremendous positive effect on the economy, and should counter some of the negatives we’re now seeing.
The price of crude is now 77% of its peak price of $110 per barrel. This will act similar to what a 23% tax cut would do for the economy. Should affect everything we buy, including food.
We’ll see below $3 regular soon. I’m not saying things will boom, just that there’s enough good here to counter some of the bad. The bad news for Obama is that the drop is not supply driven, no way he can take credit, unless you consider the fact that demand is in the tank because of his horrible economic policies. I think the slide in crude continues, may get below $70.
Don’t worry, we are lineing up to play whack a mole with Syria.
That should drive oil up.
Gas for regular is still over $4.00 here in so cal...
I agree 100%, but he will take credit anyway.
I paid $3.56 in Waterford, MI yesterday.
I agree with you that falling oil prices is a good thing (and I expect Obama to take credit for it at some point) but it may not turn around the economy. We saw gas prices fall last late summer/autumn and it didn’t help the economy all that much although it probably did help consumers.
Trucking companies, in particular, are helped by lower fuel prices and when those go down, the market also corrects.
But oil was artificially way too high and this is a good correction.
$3.18 here in Baton Rouge, La.
Here in the lib state of CT, I paid $3.86, and that was the lowest out of four stations! The sheep just put the gas in the tank and don’t even ask why? Guess we all know why, lower prices, lower taxes. Gov. Malloy won’t stop that but will pay $27 million on tourist commercials. Hey Gov, how about lowing our gas prices and maybe someone will come to visit!
I am seeing the flight to gold as a positive feedback abetting the likelihood of market collapse. Parking wealth in gold retracts investment in productive assets, wherein their market price collapses and ROI with it. Hoarding reduces money velocity. Stored gold produces nothing. This flight from real investment is a curious byproduct of a usurious economy that necessarily inflates the money stock, where the eventual fear of dilution induces an inevitable collapse. Wars and revolutions follow. People steal gold in wars.
Maybe our money is better stored in lead.
JPM have steadily reduced their once-massive short position in silver to a low level, and now I think they're buying in quantity. Ditto for HSBC and gold.
Found this site. Only 1 minutet delay in posting. http://www.livecharts.co.uk/
Very astute post. You have a keen grasp of the financial/social dynamic now unfolding. But storing gold does produce one thing: a sense of security. There is no better way to preserve your wealth than in precious metals -- especially in the age of eroding fiat. It is more an insurance policy than an investment.
I got it while writing this book.
But storing gold does produce one thing: a sense of security.
I'll repeat the last two sentences in the prior post:
Wars and revolutions follow. People steal gold in wars.
IOW, it's a false sense of security. True security arises out of relationships, with the land and its people. That or its lack is what produce G_d's promised consequences in Leviticus 26. I can explain them line by line. There's no mystery in it at all. It is His way or ours, social, economic, environmental, and military stability, or not.
Too bad gas prices are pretty much disconnected from BBL price these days. You can always bet on dropping oil prices in the run up to a presidential election.
I need to come see my folks in BR. I paid $4.43 yesterday in Anchorage.
People and governments steal in time of war. Gold is easy to hide, move, and trade. Investment in high tech lead is also a wise investment. Careful lead investments, especially delivery system investment makes retention of ones assets more probable.
Given the likelihood of collapse due to generations of commies in entrenched in agencies beyond number, and unions communized and rapacious beyond description, and an electorate so debased by generations of brainwashing in the Pooblik Skool Collective, I have grave doubts that there is enough of the Republic to save itself.
In any case, having relatives who were not able or willing to defend themselves against a government gone seriously bad (it made soap of them), I suggest that as the Founders and generations of Americans after them, we must accept that we may be forced to defend our families and our property.
The spirit of King George is stalking our land again.
Consider the amount of gold that was stolen during WWII.
The spirit of King George is stalking our land again.
King George was a sweetheart compared to the people we are facing.
“Don’t worry, we are lineing up to play whack a mole with Syria.
That should drive oil up.”
Possibility that the Saudi’s will destroy the Iranians (their hereditary enemies) by lowering the price of oil until Iran collapses.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.