Thursday, April 10, 2008
Tapis breaks $115
Slightly old article, but worth a mention, re: inflation, gold prices, interest rates, etc. Most watch Brent (UK) and light sweet crude (USA), prices, but TAPIS is a good weathervane. Its the price of oil in Singapore, and a benchmark for Australia, NZ. It was the first to breach $100, quite some time before UK and USA prices did. Remember that gold soared when that happened, as it will when other thresholds are met. Oil is headed above $115 within the next month. And Gold will breach its previous high in that wake, and the UK's decision to cut rates will look increasingly STUPID!! Much worse than the single 0.25 cut in 2005.