It’s possible for gold to go to $8,500/oz! Oil’s risen from $40 to $140 in about the last two years. The same rise in the next x years in % terms gets us to $490. That’s assuming that demand destruction doesn’t happen on a large scale – but there’s still no substitute for oil – and as long as China & India keep on a reasonable growth path….
Also – the ‘easy’ oil & gas is gone – all new developments are high cost & high risk – they won’t be economic at $50 oil – so there’s a much higher floor to oil price.
Sure they’ll be ups & downs – but the trend will be up.
I’ve also heard of the old chestnut that its all ‘speculators’ fault – this is B.S. – the figures actually show there is less speculator money in the market now than there was a year or so ago.
GOLD:In times of high inflation like the 70s it was the natural ‘safe haven’ – and its production costs aren’t getting any cheaper!
