About the price of oil. . . . The green squiggly line on the chart at left shows the price of crude oil, per barrel, in dollars. The red squiggle is the price in euros. The nearly flat line at the bottom is the price in gold.
We've maintained for years on these pages that prices of things in terms of gold tend to remain quite steady over long periods of time. Why? Because it's a store of value. Irredeemable paper currency isn't.
If you had bought some gold one year ago today the dollar value of your purchase would be up 33.43 percent today. The "poor man's gold"...silver...did much better. It's up 66.07 percent for the year. But we don't recommend gold and silver as "investments." The objective for owning a few Krugerrands (or Eagles, Maple Leafs, etc.) is to preserve purchasing power. If oil soars to $200.00 a barrel you can be quite confident that one ounce of gold will buy the same amount of it as it does today, did yesterday, and ten years ago.
John Wrisley thinks you should own some gold and offers a chart to explain why.
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