Big Commodities Taking Hits in Future

So today we see a lead analyst at Gulf calling oil price per barrel to hit $50 by year end.  That is over 50% in a reduction of cost from its current price standing.  Now some analysts of the gold commodity are saying that history has led us to the assumption that gold price will be dropping by as much as $500 in the next quarter or two.  In the case of gold, we already know that the market price has fallen over 20% this year and shows a steady decline.   While this price reduction for these commodities is occurring we are seeing dollar growth on the currency exchange markets, which on (digital) paper looks great for the US.

 

These are among the two most valuable commodities in the world.  Well depending your morning priorities, some might feel that coffee as a commodity is far more valuable.  Never the less, is now a time to get out?  What is this price change going to do to the valuation of currencies around the globe?

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Thousands of Dollars…for a Rock

Ask any man who has ever had to buy an engagement ring for his fiance, or any man who has had to buy diamonds in general.  The piece of rock that is extremely tiny probably made them think once or twice about buying anything else for the next few months after.  It is amazing the price of diamonds these days.  Having taken a resource conflicts class while in college, i was made well aware of where the diamond industry found it origins.  I also understand the human element and cost.

However, from a marketing standpoint diamonds are increasingly becoming more and more valuable so much that it has become almost a huge scam.  Over inflation year over year while there is no need for the price increase.  There seems to be no shortness of supply, and the ways that they mine and make the diamonds is becoming incrementally cheaper for the big brands of diamonds.  Diamonds are really not forever, when you sit down and think about how often that loved one is going to want additions to it to make it look more glamorous.  We must always remember as either men or women that the diamond is still at its foundation, a rock.  A clear rock.  Furthermore, what we as MEN must remember, is the true value of providing happiness to the woman that we each care for. 

Egypt’s Unrest is Unresting our Economy and Those Abroad

Gas prices June 2, 2013 SoCal

Gas prices June 2, 2013 SoCal (Photo credit: Lynn Kelley Author)

This has happened pretty quickly today so I wanted to jump in on the issue that most journalists are not reporting on.  So for the first time in well over a year Oil prices have risen over the $100 per barrel mark  and this is pretty significant.  As these protests are increasing in the middle east, our oil prices are moving right with the increase.  One would wonder if we should step in and try a diplomatic solution or help reassure some of the Egyptian citizens that democracy will find a way to settle their unrest.  Otherwise when this problem gets worse, we are going to pay for it with our wallets.

Real and Nominal (inflation adjusted) oil prices

Real and Nominal (inflation adjusted) oil prices (Photo credit: Wikipedia)

While in college i had at least a semester to study resource conflicts such as this or the diamond trade and how unrest and protests greatly affect the end user price point.  OPEC tends to hurt the end user in a few ways.  First of all the gas stations and oil companies can raise the price in as little as 3 days.  However, when it comes to lowering prices, it can take 2 weeks or longer.

Recently, we have had pretty steady and not so bad prices at the pump, it is a shame that it is most likely over.  Let me know how you feel.