Expensive Oil? Not When You Can Pay With Gold

Wednesday, January 18, 2006

Stop whining about high oil prices immediately! You are only using the wrong currency, be it now dollars, Euros, Yen or whatever else pieces of fiat money you carry in your wallet.
Would you pay your crude oil bill in the universally accepted currency of the last 6000 years - that is gold - your barrel would have become 28.4% percent cheaper since the nominal record high reached last August.

Oil Priced In Gold Became A Lot Cheaper Since Summer 2005

GRAPH: Dividing the price of crude oil with the gold price is yet another clear sign that the yellow metal has not lost any of its inflation defensive qualities. While a barrel of Western Texas Intermediate crude cost 0.162 ounces of gold last August it now takes only 0.116 ounces of gold to get exactly the same barrel of the black gold. Chart courtesy of Stockcharts.com.
Please note that the data ends with January 13. Gold has risen 1 percent since then while crude rose only today 3.3%.
And now, ahead of Wednesday's new inflation data let's all chant, "There is no inflation, there is no inflation, there is no inflation..."

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