US$ vs Gold vs Oil

[TOM4CWB]

Charlie;

I was reading "Price Perceptions" by Bill Gary, and he brought forward this interesting comparison:

The loss in value of the US dollar
vs Gold: In 2001, we needed $28.00 to
buy a barrel of oil. Today, we need $81USD. This is an increase
of 189%. In 2001, we needed 9.3 barrels to buy an ounce of gold. An ounce of gold could buy 9.2 barrels of oil today.

In conclusion: the USD has lost almost the same 189% in terms of oil, but
buys the same amount of gold.

Ramifications; will foreign governments holding large
USD reserves be better off holding gold, US stocks, Euros, CDN$, GRAINS?

Is this bull grain market only the "tip of the iceberg" when China holds a over trillion USD... THAT we KNOW of?

CP's case for increased grain prices could well be understated.

Will the CDN$ be 1.15 USD by year end with the recent .5% cut in US interest rates and the increase in Oil?

I will be surprised if it is not!

[TOM4CWB]

Parsley,

Did you see our favorite market guy on BNN?

I think he agrees with me!

http://broadband.bnn.ca/bnn/?sid=205&vid=17641

[parsley]

4:10 in the morning, and you are working. I am suitably impressed Tom4CWB!

Parsley

[cottonpicken]

It is exactly because of gold that i could successfully call the grain markets.

The gold/oil ratio is well knowen in some circles.If my memory is correct the historic ratio is 15 to 1.

This is exactly why all commodities have to move together.

Why own expensive gold when wheat is cheap?

Why own expensive oil when uranium is cheap?

Why own cheap dollars when commodities are cheap?

Etc,etc,etc.................

buy low sell high