Monday, August 1, 2011
Go long on shotguns, divining rods and beans.
First of all, oil prices are hovering at unsustainable levels close to $120 per barrel. Then there's the potential debt crises brewing, not in the private banks this time, but the central banks. US officials have been preparing for a possible, though unlikely, default, the dollar is near a record low. Inflation is climbing, while analysts are warning that slowing growth could hit commodity demand. With such a cocktail of uncertainty, is there any such thing as a safe haven anymore? The natural solution for many investors would seem to be to buy gold, which is hitting record highs day after day. We've covered gold quite a bit in this column recently, but its continuing march is the most striking news in the world of commodities today.