Where are gold & oil prices are headed for ? Any idea when the commodity bubble is going to burst ?

Gold at $1000 & Oil at $110.. Is the bubble building up, just as it was in the stock markets 2 months back

Where are gold & oil prices are headed for ? Any idea when the commodity bubble is going to burst ?
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10 Replies to “Where are gold & oil prices are headed for ? Any idea when the commodity bubble is going to burst ?”

  1. Gold is used in so many electronics now days. For example the connectors for the airbags in all new autos have to be gold plated so they do not corrode. I think the price is going to go up and stay up. We will just have to where plastic wedding bands. I have read on Fox news that the price of gas is going to stay above $2.70 a gal. Until 2010. Until the mortgage crisis is over and that is how long the recession might last.

  2. May be gold touch 15000 Rs. & oil $115 bubble will not burst in near future it will tack some time. When share market bounce back this bubble burst. Right now all money goes in commodities.

  3. Gold is about 3 months past the point where it should have corrected to about $800.

    I believe we are in a once in history moment. Liquidy problems and overextended credit markets are spread to every corner of the banking industry.

    There’s no way out, no one left to come to the rescue. Everyone’s dry.

    End result: financial collapse and hyperinflation as Nation banks print money in a futile attempt to ‘solve’ the problem.

    Will be interesting and probably painful to see how this plays out.

  4. Gold and oil are trending upwards as the dollar continues to lose value versus other currencies. The bubble will burst when our economy stabilizes and the Fed can stop cutting rates. As cutting rates increases inflation, one can expect the Fed to start raising rates as soon as the economy and credit markets recover, as not doing so will continue to pressure the consumer through higher food and gasoline prices. Therefore, one can expect the “bubble” to burst when there are signals of stabilization in the economy, as from there, investors will expect the Fed to cut rates, and speculative money will be removed from commodities, namely gold and oil. As far as how high gold and oil go, it all depends on how long our economy continues to falter, as the longer the problems persist, the higher the prices of oil and gold will go. However, I am currently in the process of exiting my weakest oil-related positions, and have taken some off of my gold and copper mining holdings, as the risk/reward profile is becoming less and less attractive. I may consider adding a position in the airline industry within the next few months, to hedge any losses I may incur on the remainder of my oil holdings should oil prices decline. Just some thoughts, I hope they help.

    Best of luck!

    Brendan Prewitt

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