Cyberspec wrote:kvs wrote:Austin wrote:Got this in an email from a friend who is an expert on Economics and follow the trends on Oil Price fall, Gold etc
Oil fall IMO is due to demand destruction. Prices will rise but not now. Think- would you sell precious depleting resource for IOUs ie dollars? At some stage -and after having some buffer of dollars- sovereign nations will let oil price fall. And as demand is drying up in the west, brent and wti prices are down. The oil producers have given up on dollar. They dont trust it anymore. How soon until the people feel the same. The high yield bond market is going to go kaboom perhaps after rate hike - too many carry trades to unwind.
Gold- what difference will it make if u buy today for 1000$ or tomorrow for 1100$ or in 12 months later for 10,000$? , Buy when there is spare cash buy it
Your friend understands the oil situation. Many people including highly placed government officials in Russia simply do not.
Considering that Russia is one of the largest gold buyers lately, suggests that they know what's going on...
But not everyone agrees with that. As well, there are individuals *cough*Kudrin*Cough* and ilk (people whom went to the same Higher school of economics in Moscow) keep stating otherwise. CBR and various banks are the ones investing heavily into the gold.
In other news:
Putin instructed to set standards for quality and marginal cost of public procurement