Thursday, November 15, 2007


Think oil prices can't go higher ? Think again.

In 1900, the US started to industrialize. We were using one barrel of oil
per person per year. By 1970, we were using 27 barrels per person. In 1950,
Japan started to industrialize, they were using 1 barrel per person. By 1970,
they were using 17. In 1965, South Korea started to industrialize. They were
using one barrel per person per year. By 2000 they were using 17. Today, China
uses 1.3 barrel per person per year and India uses .7. China currently has 168
power plants under construction. Copper probably won’t go down much.

Read the rest of the article

Good stuff. Oil prices will probably pull back here. But long term unless a
substitute is found oil prices will continue the upward trend. China and India
and the rest of the world is growing way too fast. Commodities in general will continue trending upwards for another 7-10 years at the very least. I don't think one can go wrong holding commodity funds or ETFs long term. GLD SLV DBA DBC UNG USO are all great long term holds.

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