Comments on: Barrels and ounces http://blogs.reuters.com/globalinvesting/2008/09/02/barrels-and-ounces/ Insights behind the investment headlines Sun, 19 May 2013 02:02:34 +0000 hourly 1 http://wordpress.org/?v=3.4.2 By: Stock Market http://blogs.reuters.com/globalinvesting/2008/09/02/barrels-and-ounces/comment-page-1/#comment-618 Stock Market Sun, 05 Oct 2008 19:49:15 +0000 http://blogs.reuters.com/globalinvesting/2008/09/02/barrels-and-ounces/#comment-618 Another factor in the price of oil verses gold, is the fact that the former happens to be a consumable product that makes the world go around. If there is stress to the processing and distribution capacity, or increased global automobile usage the price of oil will rise according to supply and demand. It is true that more middle class worldwide means a greater demand for gold, but in times of a credit crunch people will drive to work and sell their trinkets. Another factor in the price of oil verses gold, is the fact that the former happens to be a consumable product that makes the world go around. If there is stress to the processing and distribution capacity, or increased global automobile usage the price of oil will rise according to supply and demand.

It is true that more middle class worldwide means a greater demand for gold, but in times of a credit crunch people will drive to work and sell their trinkets.

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