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  • Gaza War: Expect a Spike in Oil, Gold [View article]
    These Israeli/Palestinian bush wars have been going on for DECADES, so I would advise against using the nightly news as a source for investment ideas. This could cool down just as easy as it could heat up, and do you really think Israel is looking to escalate the war after losing the Lebanon war just a year and a half ago?

    On an ironic note, arch enemies Iran and Saudi Arabia are profiting from Israel attacking Gaza as the price of oil has risen to $48!
    Jan 05 14:49 pm |Rating: 0 -2 |Link to Comment
  • Gold: The Next Reserve Currency Player [View article]
    Why wouldn't oil itself be the next reserve currency? If I'm Saudi Arabia and I need to buy a yacht in a world where all currency is worthless, why not just barter a few hundred barrels of oil for the thing? Why go through the trouble of swapping my oil for gold then the gold for the boat? Why deal with a fluctuating exchange rate for oil and gold when you could just deal with oil?

    Perhaps I could just write a check transferring my rights to an amount of oil held in reserve out of my bank account and into the seller's account? That's how a commodity-backed currency works anyway.

    Of course, this example also illustrates the problem with commodity-based currencies. As oil production rose and fell, the value of that oil in terms of goods, labor, and services would vary too. Gold has the same problem, as the US realized in the late 1800's.
    Dec 01 13:58 pm |Rating: 0 0 |Link to Comment
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