What’s going on with oil, gold, and copper?

Posted January 25, 2012 at 1:52 am

by Frank Holmes

I recently spoke with Matt Nesto, host of Breakout at Yahoo! Finance, about the current climate for commodities and what I expect to see during the first half of 2012.

We kicked off our discussion talking about oil’s surge above $100 per barrel and what price implications rising tensions with Iran could have if the situation boils over.

I explained that I don’t think a European Union (EU) ban on Iranian oil imports would have a significant long-term effect on oil prices.

The real long-term catalyst is increasing demand for oil from the developing world. Regions such as Africa don’t have debt problems like the U.S. and the EU, and the GDP growth rates for many of these economies is around 7 percent.

Matt and I then transitioned our discussion to gold where I explained how the Fear Trade and the Love Trade are driving gold prices. I highlighted the staggering amount of  [continue]…

Related posts:

• Euro-bailout to send gold and silver prices much higher
• Dr. Copper is ignoring talk of an economic slowdown
• The Dynamics of Gold, The U.S. Dollar, And Gold Equities
• Where is gold and silver heading?