Weekly Chart: Crude Oil Prices Keep FALLING
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Crude oil prices are lower than they were two years ago, three years ago and five years ago.
How is this possible? It all depends on how the crude oil is valued.
On the one hand, there are paper currencies that are not tied to any real assets such as gold. These are nothing but depreciating assets that are subject to the whims of government and their printing presses which are working overtime. All paper currencies in the history of the world have eventually failed.
On the other hand, there is gold. Studies show that an ounce of gold buys the same basket of goods that it bought 100 years ago or 2000 years ago. It meets the basic requirements for money: medium of exchange, store of value, durability, divisibility, transportability and noncounterfeitability.
No wonder countries are abandoning the dollar.
Follow-up To 02/29/08 Posting On Gold Recommendation
Several people have asked me how to invest in gold. Check out the 11/04/07 posting which provides 10 different methodologies for investing in gold, ranked by risk. For any of the categories, let me know if you want any specific recommendations.
1 comments:
This is good advice and I recently started reallocating my portfolio. During last week's down turn my precious metals fund actually made money. This week with the boost from the Fed it went down some as the stock market rebounded. I'm watching gold and silver now. Palladium is following suit with gold, platimum and silver and I bought in there as well. Thanks for the advice Tim.
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