Having looked at the case for currencies supporting the continued run in Gold, what about the case for oil?
Certainly there are some concerns within Saudi Arabian production. The swing, or marginal producer is vital to keeping prices stable. Of course some of the price rise can simply be attributed to inflation and not fundamental changes in supply/demand.
So far the professional analysts have been badly wrong.
This tends to be a valid bearish argument. At some point high oil prices crash the economy, thus lowering the fundamental demand.
This then is the major problem with oil; we have an inflationary component, a supply/demand component and a speculative [fear] factor that all contribute to the final price of oil.
