OrionWorks
Fri, 27 Jun 2008 07:51:46 -0700
Howdy Richard, > Howdy Steven, > Actually, what the articles states is the dollar > devaluation is the driving force behind the rush > of investment professionals toward a safe haven in > crude oil futures. This haven is much better than > gold. The price of crude is now the best gauge of > the true value of the US Dollar. Is it possible to > read something into these events? YES ! The truth. > Money talks.. what is it saying .. powers that govern > are scared.. and .. one does not play poker with > scared money ! When people get scared.. they do crazy > things. When people do crazy things.. bystanders get > hurt.. moral.. do get caught standing by. Duck for > cover. Cover your ears and keep your cool. > Richard >Steven wrote, >>I found the following article amusing in a macabre sort of way. >>http://money.cnn.com/2008/06/27/markets/oil.ap/index.htm >>Especially the statement: >>> Meanwhile, the head of Libya's national oil company >>> said the country may cut crude production because >>> the oil market is well supplied, according to news >>> reports. >>I'm surprised Iranian's Oil Minister didn't beat him to the punch line. I believe one or two shrewd financial analysts have commented on the fact that crude's current price increases strongly resemble similar commodity cycles that spiked then tanked - particularly the gold rush of the 1980s during the initial Iran scare. Gold ballooned up to over $800 an ounce, (in 1980 dollars) but then suddenly retreated leaving a lot of greedy gullible speculators high and dry. I remember seeing lines of Americans lining up on the sidewalks simply to buy gold - as the prices shot past $700 an ounce. I doubt many of them made any profit at all on their greed to cash in on the price of gold. Does this mean oil will eventually "tank" as well? From what some experts have been saying, there's a good chance that it will, though not anywhere near as dramatic a drop as seen in gold. We'll be lucky to see prices "tank" to below $80 - $100. At least that's what certain experts are saying. Incidentally, my spouse is a well known jeweler who sells her creations within the science fiction community. She has sold her works to noted S.F. authors, including the Heinlein's. Among her many jeweler's talents she specializes in lost wax cast jewelry. This means she creates jewelry out of precious metals like silver and gold. Ever since gold shot past $700 - $800 an ounce I started receiving on a regular basis emails purported to be from foreign jewelry stores who want to purchase my spouse's jewelry. ALL the emails are broiler plate in their wording. They all want to know if I can ship to either Australia, South Africa, the Far East, or Nigeria. And will I accept credit cards as a form of payment. (Interesting that PayPal has never ever been mentioned as a form of payment.) It's not the fact that there is a high likelihood that the credit cards are stolen which angers me the most. I think what angers me the most is the fact that they aren't interested in the jewelry. They are only interested in the gold in whatever jewelry they can grab their greedy little hands on. It is more likely that they hope to purchase gold jewelry from gullible on-line store owners at below current gold prices so that they can melt the metal down and resell it for bulk at current commodity prices. Regards Steven Vincent Johnson www.OrionWorks.com www.zazzle.com/orionworks