Page added on July 25, 2006
Yahoo! Finance – To compound the problem, we’re running out of easy-to-produce light, sweet crude. While there’s still a lot of oil to be extracted, it’ll be more expensive to produce, which makes $100-a-barrel oil very possible in the future. This, in turn, makes inflation more possible.
Historically, one barrel of oil has been worth about 2.2 grams of gold. Even when the dollar dropped in value, the ratio between gold and a barrel of oil remained pretty fixed. But recently, it has taken 3.4 grams of gold to buy a barrel of oil, which means either oil is expensive or gold is cheap.
Yahoo! Finance
Leave a Reply