Oil, The Dollar & Gold

Discussion in 'Energy Futures' started by Martin Gale, Jan 9, 2006.

  1. The dollar was up 15% in 2005 because oil is priced in dollars and oil was up big.
    Iran plans to price its oil in Euros in March 2006.
    Iran’s move would devalue the dollar.
    A devalued dollar could destabilize the financial system: stock markets, banking, etc.
    The Fed announced it will no longer report the money supply, M-3, in March 2006.
    The Fed's decision to hide M-3 means it is about to be increased dramatically.
    The Fed can “monetize” assets by “printing” more dollars to keep markets stable.
    There is a strong historical correlation between M-3 and the stock market.
    Historically, the stock market and gold behaved inversely – but this has changed:
    The stock market is up because the money supply is supporting the market.
    Gold is up because too many Dollars is inflationary and M-3 is going through the roof:
    Over six weeks, M-3 is up $178 billion or 28% annualized.

    My gold buys:

    $428
    $535