silverwood

What’s the Right Price for Oil?

As the author points out we better enjoy the cheap energy while it lasts. With the Saudis announcing cuts in production coupled with Oil companies in general going into servival mode, higher oil prices are just around the corner.

I read today an article that says the Dept. of Energy (DOE) has stopped filling the Strategic Oil Reserve as of June 08. He finds it baffling that the historic relationship of WTIC trading higher than Brent Crude has reversed. The explaination of this is market intervention by DOE. You can find the article here...news.goldseek.com/Gold...

Obama 'Shines' Natural Gas

If we were to persue a natural gas fuel policy for transportation,(read vehicles) I can envision a scenario of very positive innovative systems that could be developed. We already have in place some infrastructure that can be grown.
What I see being added are methane gas capture from landfills, which is alread being implemented, but it is only in it's early stages. Tengasco (TGC) is one company that is just beginning to market landfill gas.
I could envision biomass collection from logging industry waste and farm crop byproducts. Also farm crops grown specificly for methane gas production.
I could also envision a do-it-yourself methane gas collection scheme, with the help of some new technologies. Here the average landowner could harvest methane gas from yard trimming or even small gardens grown to use as biomass to feed into a device to capture methane gas.
Imagine that, just like a gardener can grow his own food, on a supplementary basis, that he could also power his transportation vehicle, now that is an idea that would change things.

Dennis Gartman on Gold, Oil, Government and the Economy

DG:" It’s more that I think gold has quietly moved up the ladder of reservable assets, a reservable asset being one that central banks are willing to keep on their balance sheets, all things being equal. Dollars are still the world’s dominant reservable asset. The Euro is next and gold is probably the third.

I think that’s all that will drive the gold prices quietly higher. I am not a gold bug; I don’t think the world’s coming to an end. I think the history of man is happen to be modestly bullish on the gold market, but not because of inflationary concerns."

So, according to DG a Gold Bug thinks the World is coming to an end? Now Wikipedia's definition which I believe to be correct...
"The term gold bug is a (sometimes pejorative) term used to describe investors who are very bullish on buying the commodity gold." According to that definition DG is a Gold Bug.

DG also believes the only driver of gold will be Central Banks. You mean to say private individuals seeking wealth protection from vast amounts of excess liquidity being supplied to bail out troubled entities and stimulate economies globally will have no influence on gold?

Basically, I would agree with many of DG arguements but the above statements makes me shake my head.