How would you react if I told you that I could give you an analysis for oil or gold? You’d probably raise your eyebrows and say, “You can’t be serious.” You’d be right. I can’t be serious.
Who does this guy think he is? He’s trying to get rich by selling worthless information. But there is some value in his analytical for gold and oil, which you can learn from.
Understanding the price of commodities is a very useful skill that I use regularly. It helps me understand why oil is going up in price. As a commodity, oil is subject to supply and demand. When oil has been used up on one end of the supply curve it goes down the other. Supply and demand are the most basic economic law.
The opposite of supply and demand is “excess demand.” That means that people are wanting to get rid of gold that they no longer need. They feel compelled to do so. The reason is simple. They don’t have any good reason to hold on to their gold.
And in the same way, oil will only be going up in price as the demand for it decreases. Once the supply of oil becomes scarce, the price will go down because there is more demand than supply. If oil were the only commodity that you owned, then you would obviously want to take advantage of this situation.
In the same way, analysis for gold will tell you that it’s a good investment. As long as the supply of gold is limited and the demand is high, you’ll make money. The time to take advantage of this is during a shortage.
You’ll be able to find an analysis for gold by doing a little research. I always find that the best places to buy are online. You can search for the stock price and the volume of gold. Then you can find out whether you should buy more gold to hedge against inflation or if you should sell.
Some people feel that when you buy gold you’ll become too secure. I’m not convinced that’s true. After all, the price of oil is the same. If the price of oil goes up, so will the price of gold.
My analysis for gold suggests that you get in now while the price is low. You may think you can sell at a profit later. In fact, you can’t do that because the supply of gold is unlimited.
My advice is to buy now. If you wait, the price will go back up to where it was before.
The only reason why you would want to buy oil instead of gold is if you know that there’s a very large demand for gold. If you buy the oil now, you can hedge against a period of deflation.
Try it. I hope you get rich!