Gold and Oil, the Standards for Economy

Posted under Finance, Investing by Roman

One of my friends asked me if the price of both is related to inflation. What I told him can be summed up as the following the reason why that the price of gold and oil is going but is simple. It isn’t because of the supply or the demand. It is because the Value of the dollar is falling. As the dollar is devalued resources form other countries become more expensive and items in the US seem cheaper for consumers in other countries raising the price here. Sucks don’t it?

Useful information:

GOLD PRICE

Displayed: Dollar amount per ounce on the spot market

Price Updated: Continuously

Factors- interaction between supply and demand on the global market

Supply normally is larger then demand

BENEFIT: More secure then paper money

OIL PRICE

Displayed: Dollar amount per barrel of crude petroleum

Price Updated: Around the clock

Factors- Seasonal demand and production limits of the industry

Benefit: Rapidly consumed