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Which is Now A Better Investment - Gold Or Oil?

By SoYouThinkYouCanRant      Printer Friendly Version Bookmark and Share
May 25 2009 11:57AM

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These are quotes from Week 6 entries in the So You Think You Can Rant contest. The 6 Finalists were given the topic “Which is Now A Better Investment - Gold Or Oil??

Here is some of what they had to say. To read more, go to http://www.soyouthinkyoucanrant.com and VOTE for your favorite.

I’ll let you in on a little secret!

Sanford Backos

Think about it, we’re borrowing the money we need to function from ourselves. But when you borrow money, there is always interest to pay. So, are we paying ourselves interest?  No, we’re paying interest to the Federal Reserve.  In exchange, the Fed gives us the paper IOU’s that look like dollar bills; as many as we want.  Besides, we’ve given them all our gold as collateral, why wouldn’t they be happy to run the printing press for us?  I got to hand it to the guy that thought all this up, he’s either a genius, or we were completely insane to go along with it. . . . . .Read More

A Pound of Gold with some Oil on the Side

John Cassimatis

While private investors have recently buttressed bank balance sheets, the end of the banking crisis still presupposes that things are going to get better in the wider economy. The biggest issues facing this nation are the size of our debts, our inability to control spending, impending higher taxes, the growing hesitance investors have towards financing our deficits at 3%, a lurking entitlement catastrophe, and changing consumer attitudes that have not been factored into budget forecasts. In my opinion, these persistent headwinds to growth should make it difficult for industrial commodities to outperform the ‘preciousness’ of gold once this ‘green shoots’ trade runs its course, maybe at S&P 1100 early next year. . . . . .Read More

Oil for the Summer, Gold for the Fall

Joseph Deprisco

There remains one important factor that differentiates the two commodities that cannot be ignored: gold is money while crude oil is not.

Crude oil prices tend to auto-correct as alternative energy supplies become more economical at higher crude prices, as well as marginal wells coming back into production. Gold bull markets, in contrast, tend to feed on themselves as more people want to buy gold the higher it goes. . . . . .Read More

Andy Grove, D-ram Technology, '57 Chevys, the Horta and Why Gold's a Buy Over Oil

Alan Lemerande

So the better investment, gold or oil today?
Either for growth or a defensive play?
There are two simple questions one might ask for assurance:
Is there risk of disruption? Is there hope for endurance?
What disruptive technology might bring oil to its knees?
Uranium, solar, fusion at minus 30 degrees?
Not likely, but still possible. No fuel has reserves that aren't falling.
Best not to be in steam when John D. Rockefeller comes calling.
But what disrupts gold? Is it the dollar? The pound?
The ruble? The zloty? Is there even a disruptor around?
When we've seen the steam engine, by the diesel, in a few years destroyed,
Why after thousands of years is gold to store wealth still employed? . . . . .Read More

Fiat Price Distortion of Gold and Oil

Paul Saur

There have only been about 5 billion ounces of gold mined in recorded history. Yet, the total value of all fiat monetary instruments currently represents 100’s of trillions of dollars in wealth. When these fiat monetary instruments start to fail due to reckless fiat money creation, the paper gold traded on world metal exchanges will suffer the same fate, and physical gold and silver will resume their actual role as money. I wonder how much perceived value will flow into physical metals when that happens?  I’m not sure, but I know that I can safety carry, store, or hide an ounce of gold much more easily than 10-20 barrels of oil. . . . . Read More

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To read more, go to www.soyouthinkyoucanrant.com