Crude Oil and Gold

Oil Priced in Gold

Because inflation decreases the value of of money, in order to have a "yard stick" of constant value it is necessary to use the inflation adjusted price when we consider the price of a commodity like Oil. Here at InflationData we have provided a variety of charts of the inflation adjusted price of commodities like Oil, Gasoline, Electricity, Natural Gas, Stock Market, Housing Prices, Education Costs and much more. But each of these requires you to rely on potentially flawed inflation statistics generated by some outside agency or government. If that agency has an agenda other than accuracy your cost estimates could be flawed. But there is an alternative and that is to compare your … [Read more...]

Oil, Petrodollars and Gold

Petrodollar

For thousands of years gold has been synonymous with money, albeit with periods where governments mandated other mediums of exchange. Therefore, throughout history prices were measured in gold rather than in dollars, Rubles or Yen. By looking at the chart to the right you can see the current price of gold over the last 24 hours in terms of dollars. As of this writing it is $1256.70 per troy ounce but gold has fallen from its monetary pedestal and now fluctuates just as other commodities. The Fall of Gold and Rise of the Dollar Shortly after assuming office in 1933, President Franklin Roosevelt perpetrated one of the greatest frauds ever on the American public. He knew that the … [Read more...]

Gasoline 20 Cents a Gallon?

Gas 20 cents

Many of us aren't old enough to remember Gasoline at 20 cents a gallon. I can remember gas during the 1960's at 29.9 cents a gallon. The last time that gasoline averaged 20 cents a gallon was in 1942. That was during WWII ! But if you know us here at InflationData.com you probably know that we usually talk in inflation adjusted prices. So adjusting for inflation, the price of gas in 1942 would have been $2.78 if you are paying in January 2012 dollars. But that is still a long way away from the average price of Gas in 2011 of $3.48. We track the inflation adjusted price of gasoline based on the annual average price using the Consumer Price Index (CPI) generated by the U.S. Bureau of Labor … [Read more...]

Falling Oil Prices: Worrying Trend or Saving Grace?

By Marin Katusa, Casey Energy Team When oil prices start to decline, investors and economists get worried. Oil prices in large part reflect global sentiment towards our economic future – prosperous, growing economies need more oil while slumping, shrinking economies need less, and so the price of crude indicates whether the majority believes we are headed for good times or bad. That explains the worry – those worried investors and economists are using oil prices as an indicator, and falling prices indicate bad times ahead. But oil prices have to correct when economies slow down, or else high energy costs drag things down even further. And the current relationship between oil prices and … [Read more...]

Casey Research Identifies Next Generation of Resource Leaders with Casey’s NexTen

Stowe, VT, October 12, 2010 – Casey Research, a leader in providing in-depth, independent analysis of high-growth investment opportunities, announced today Casey’s NextTen, the next generation of leaders in the natural resource industry. Successful investors, like Casey Research founder Doug Casey, have long recognized that there are no more important considerations when investing than the people. For years, Casey Research has helped its subscribers succeed by closely following the careers of the most successful explorers in the industry, those top few percent who consistently generate the majority of returns for shareholders. And now, it is proud to present the next generation of … [Read more...]

Is Natural Gas Cheap?

Estimated Recoverable NG for Select Shale Basins

By David Galland, Casey Research At the height of its late 2005 rally, natural gas in the U.S. was selling for just over $16/MMBtu, 350% higher than today’s price of $3.56. The oil/gas ratio, now over 18, is an all-time high… suggesting that natural gas is dirt cheap. So, it’s a buy, right? In a phrase, not exactly. According to a recent report by Natural Gas Intelligence, U.S. natural gas available for production “has jumped 58% in the past four years, driven by improved drilling techniques and the discovery of huge shale fields in Texas, Louisiana, Arkansas and Pennsylvania, according to a report issued Thursday by the nonprofit Potential Gas Committee (PGC).” According to the … [Read more...]

Oil and Price Inflation

I recently received the following question from a student in Malaysia.  I thought it was a good question so I am including it here. Dear Sir, Greetings, I am a student of  International Islamic School Malaysia, Kuala Lumpur. I hope you are well. I am in grade 10 and I take business studies as one of my subjects. Recently I  had a class on inflation in my school. The teacher said when fuel prices alone rises we cannot term that as inflation. I disagree with that because I think that rising fuel price is the only exception where we can say that it is inflation. When fuel prices increase the price of all other commodities increase ... please tell me if  it is right or wrong to say that … [Read more...]

Inflation, Oil and the Environment

I recently received a great question from a 6th Grader on Inflation, Gas Prices and the environment all rolled into one. It isn't often that 6th graders think about these issues so I would like to share my response with you... To whom it may concern, My name is Sam and I am a 6th grade student at (deleted) Middle School. I love traveling. Whenever I go places I see lots and lots of poverty. I think to myself why? Than I look ahead of me and see the outrage sky high prices for food, gas and many other things. You may be wondering why I’m telling you this .I’m doing a project on one of the things that you know a ton about. My subject is inflation of consumer and gas prices. As I think … [Read more...]