Monday, May 26, 2008
The rise in gold is due to the weakening dollar. The pull-back was probably a natural correction. Gold will continue to rise against the dollar because we continue to print money.
The rise in oil is due to the weakening dollar and a growing awareness of peak oil. Oil will rise faster than gold. Oil will change the world as we have come to know it. There will be wars over oil. Half of the world’s population may very well die.
Wheat has an intermediate chart because while there is a consistent supply of land along with land in reserve (one price input), wheat production and transportation is dependent on liquid fuel (another price input), and the value of the dollar (third price input).
Posted by Bill at 10:21 PM