bowman711

Oil Bubble Continues Its Burst

A barrel of oil produces the same number of miles traveled no matter what its price is at the moment. It powers the same number of machines. As the economy goes down, and fewer miles are traveled or fewer machines are producing products, the price of oil will go down as well. But, when the economy turns around, and more people are driving to work, to work on more machines producing products, oil should be one of the first commodities to go up.

Many people will come out of this economic mine field holding stock in companies that no longer exist, or holding dollars that will then be worth much less than when they were received as governments try to inflate their way out of the situation. But, the person holding any interest in oil still in the ground, will still own the same number of miles travel or power for the same number machines.

Which would you say is the safer preserver of wealth for the average person not extremely skilled in trading - stocks, dollars or commodities such as oil?