bowman711

Considering a Position in Oil Again

My suspicion is that Governments/Central Banks are driving the price lower in an effort to stave off recession/depression just as they are manipulating the money supply and gold. In the end, however, economics always wins over governments and their handiwork.

Considering a Position in Oil Again

The more oil drops in price, the more I am beginning to think it is being artificially manipulated. Oil isn't buggy whips; it is still needed in every area of society and industry. People still have to heat their homes, drive to work, and, yes, to make and ship whatever industrial production goes on even during a recession - or depression., At $147/barrel it may have been in a 'bubble' caused by speculation. At $43/barrel it has be in a just as artificial 'unbubble.'

Buying Gold for Oil Like George Soros

I would say that $145+ oil more accurately reflects the 'new economy' demand for oil and the debasing of the dollar (inflation) than does gold under $1,000/oz. It is well documented that gold is being artificially kept low. In the last reporting period, for example, every single open interest long position was matched by a naked short position by someone (or a group of the bullion banks).

When dollars are created by fiat, each dollar is reduced in value. Likewise, when gold is 'created' by naked shorts, each real ounce of gold is devalued.

If you have an economy made up of just 1,000 oz of gold, and another 1,000 oz is 'created' by naked shorting gold (creating a contract for gold that does not exist), you now have on paper 2,000 oz of gold, but still only 1,000 oz of real gold. So, the 'price' of gold is effectively cut in half.