BarnacleBob
04-18-2003, 06:18 PM
Understand that oil is still traded for a certain number of US$ but after the deal is done a certain amount of gold is also purchased "with the future flow of oil as collateral". If the world price of gold gets to high then the oil price is falling. So long as gold stays cheap in currency terms oil will be in good supply.
Too hard to follow? If real physical gold trading dries up it's price will rise forcing down the value of oil.
http://www.usagold.com/GoldTrail/archives/ANOTHER1.html
Too hard to follow? If real physical gold trading dries up it's price will rise forcing down the value of oil.
http://www.usagold.com/GoldTrail/archives/ANOTHER1.html