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Re: Toppcats post# 8845

Wednesday, 03/09/2005 12:23:11 AM

Wednesday, March 09, 2005 12:23:11 AM

Post# of 51804
toppcats - gold and oil are not investments...

gold and oil are no more investments than swiss francs and coffee! They are just commodities like cotton and orange juice to be purchased or sold.

Oil company stock on the other hand is a great investment, because you are not only hedging against inflation via their reserves increasing in price; but you are also participating in their new discoveries to increase those reserves, and the income from refining and marketing of gasoline, motor oil, etc. The oil industry is the biggest industry in the world (the auto industry is 2nd, and the computer industry is 3rd). Your article clearly states that the reason the price of oil is increasing faster than the price of gold, is because most of the oil that has ever been pumped is all used up, whereas most of the gold that has ever been mined is still around. Oil is a necessity, whereas gold is a luxury.

If you want to compare investments, compare the performance of oil stocks versus gold stocks (no contest)!




-Bliss







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