Everyone is Talking About Gold and Oil

…so I’m going to throw in my two cents… Actually, it’s not two cents, but two words, and they apply to both oil and gold. BUY Gold and BUY Oil.

Today the buzz has been all about gold, the fact that it has dropped about $75.00 in the past two days. Well, I wouldn’t worry too much about that either. It was bound to happen sooner than later. It had run too far, too fast. In the big scheme of things, still a great time to get in. The USD$ has been dropping like a ton of bricks, and for good reason I might add.

The fact that the U.S. is going to devalue their currency by about $10 TRILLION over the next few years should give you a clue as to the direction of gold too. That’s a lot of dilution in the value of their currency. I know, I know, but it’s the world’s reserve currency you say, everyone will flock to it when they get uncomfortable with the state of the world’s economic recovery, another Dubai perhaps. Nice try. That’s another whole conversation to have at another time.

Here’s another example, India just bought 200 tonnes of gold from the IMF, in cash, at full pop retail prices. Now that’s not necessarily a huge amount of money, only about $6 Billion right now, but the fact that they are so concerned about the USD$ that they would go out and buy that much gold, in plain view too, should give you another clue on where I think gold is going.

That’s it for today, I have to head into the city to go to my favorite gold shop, and buy some gold for my nieces and nephews. Next week I’ll tell you why I think oil is headed up too.