Commodities and my dream of green energy
There was a post a few days ago about the increasing price of commodities. They are absolutely exploding right now. WIth the ever decreasing value of the dollar, inflation MUST set in and prices across the board will rise, including crude oil. My dream of green energy and other alternatives may become a reality sooner than later
1.) Gold is at an all time nominal high, Hit $1375 an ounce yesterday. For those of you that think gold is a hedge against inflation, IT IS NOT. If that were the cause, then the price would never decrease, because we are always experiencing inflaction. Gold is a hedge against political instability and government defaults. Dare to disagree?
2.) Silver, which I have been long bullish on, it at $24 an ounce. Which is the most since 1980...30 years!!!
3.) Copper is at a 27 month high
4.) Corn is at a 2-year high along with grains, which have been a total global glut for the past few months.
5.) And finally, crude oil. For the past 6 or so months, the price has hovered around 69-85/bbl, which it is approaching 84/bbl. Oil prices are set to increase as the dollar and other commodities increase. Oil is a true hedge against inflation, and the true only hedge against inflation.
This is truly a good thing to happen for our country. Now, finally, we will seek out alternative solutions for energy and food. My dream of alternatives will be here sooner rather than later.
It would be nice to get off our oil dependence so we can tell the middle east to fuck off.
right we rely so much on ME oil... tell your politicians to stop this perpetual lie http://www.eia.doe.gov/pub/oil_gas/petroleum/data_publications/company_… Top 5 include 1 ME nation. Top 15 include about 3 (Do you consider Algeria ME? debatable)
Thats just for imports. We make between 5-6 mbpd, which is about 1/3 of our consumption. http://www.eia.gov/oog/info/twip/twip_crude.html
As for gold, I'm not a gold bug, but Gold makes sense as an investment. First off, name one other investment that has been up 10 out of the last 10 years (Treasuries up for 9 out of 10, equities up 6 out of 10). Take a look at gold vs.equities over the last ten years. Of course, past performance is not indicative of future performance. But in an inflationary environment or a deflationary environment (no one is certain of which will prevail in the short term), gold is a safe play that will make money (again, it might rise in value only because the currencies it is priced in fall in value, but capital preservation is key in an environment like this)
Gold is a currency. It must be thought of as such. The thing that makes it great is that its supply curve is much more inelastic than the supply curves of fiat currencies (aka you can't print gold like you can bills).
Glad to see somebody's aware.
Plastic baby...plastic.
Ok, maybe I phrased that incorrectly. I'm more interested in not only the US getting off oil dependence but the rest of the world as well (especially China). Then the ME would really be screwed.
Oil is a global commodity with a single pool, which means we are absolutely dependent on ME oil production.
We happen to import most of the physical commodity from Canada, Mexico, and VZ because they're the closest foreign producers.
If we weren't dependent on ME oil we honestly wouldn't care about Iraq, it would be relegated to the same status in US foreign policy as places like Jordan, Syria, Morocco, and Bangladesh.
What do you think happens if we refuse to sell Saudi Arabia fighter jets and tell them and Wahabism to go screw itself?
You mean Canada...
Well google is expanding into the industry so I hope it picks up. They are spending 1.2B I think (to lazy to check) on underwater transmission lines to connect wind power throughout the NE. The wind farm is supposed to be one of the largest and it is going to be 15 miles offshore. Go google!
They started in software, moved to tech hardware, to VC, to alternative energy... When are they going to enter the investment banking space?
They actually have, or in the process of creating, a new trading room at their office.
My solar stocks were up today. I would look into TAN. Its an alternative energy etf, was up about 2% today. The whole sector crushed it today. 3M came out with a new thin film technology which will benefit first solar.
While we get the most from Canada, Mexico, and Venezuela I believe, the majority of it comes from the M.E
When you can spend billions turning wind/water/whatever into energy, and have said energy then cost less than a gallon of milk, you let me know. Until then, it is a pipe dream.
And we're third in the world in oil production. i'm cool getting the rest from somewhere else.
Also, my money is on near term deflation.
Gold, while undoubtedly high-flying in recent years, has annualized return over 50 years of ~7%.
Also, I like this video http://www.ritholtz.com/blog/2010/08/i-love-gold/
I think the increase in price of precious metals, especially tech. industry standards (gold, silver, platinum) for high efficiency electronics is much more due to the demand from industry then scared investors looking to hedge inflation. This demand is always there, high inflation or low inflation, and thus the price for these tracks up over time. The explosion in the last few years of chip and circuit production account for the vast price increases. The grain price can be attributed to low yields for this season in the midwest. In fact, I read in the NYT yesterday that another year of growing like the past year could mean huge price increases across the board for foodstuffs. As for getting the U.S off oil, until we learn to turn water into wine, then wine into clean gasoline, i think we are screwed.
No sir I totally disagree, respectfully of course. There has been a drop in demand for tech products all across the world and to attribute the increase in silver and gold to anything but a hedge is inexcusably naive and slightly unimformed. The reason grains have spikes is because Russian has stopped exporting grains to anyone for the remainder of the year. The ancillary reason is that yields are low, but definitely not the main reason.
Did Jacob Moore post this?
Jake Moore's knowledge and passion for green energy pales in comparison to mine
lol nice
this year is going to make or break (or severely hinder) the green energy movement
First we have prop 23 coming early november. if it passes basically green energy will get screwed as lots of utility-owned projects will cease.
Then the FTIC cash-based grants might expire at the end of the year. when they expire firms will go back to receiving production tax credits and because the ecomony is so shitty there are not enough tax-equity investors to meet the supply of PTCs.
Soo... we'll see what happens
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