I must thank the people here for studying Gold Trends and posting the same in the relevant “Gold” Thread.

Thanks for sharing your knowledge of the same.

Unitech will give returns for 2011. Nothing like riding emotions.

Gold and Oil

There certainly exists a correlation between Gold prices and Oil prices. Clearly the next commodities boom in 2030 will certainly see Oil not being a major basket (as supplies are expected to run out). Policies of the Governments will play a crucial role in this regard.  Mr.Warren Buffett when making an investment in Wells Fargo had to contend with three variables in the 1990's. One was the impact of an earthquake in California, the second one being the general recession to the delinquency of housing loans. I think clearly California being in the past a major center of gold rush in the 1800's cannot really give us the comfort of no earthquakes in this century. We will take to Coal in a big way as our addiction will lead to smog filled streets with even visibility of 100 metres being affected. Shale Gas is clearly expensive and is beyond the use of common people who will not be able to afford the high prices. Natural Gas reserves would be exhausted latest by 2040-50. Natural Gas which cannot unlike Oil be sold freely on account of it being not a liquid will have depressed prices with even Liquefication. We certainly have only Coal and Thorium to burn. Coming to solar energy and the photovaltic technology we would not be able to get our hands on the precious metals. Some countries will hoard on them. Solar cookers are the only alternative apart from Solar water heaters (with the warming that we have we probably would not need them). Companies like Moser Baer will clearly make the wrong capital allocations and suffer on account of running after "exotic" technologies. The major issue with these two resources when available in abundant is the behaviour of consumers who are loathe to think we have so much and they waste the same.

Gold will certainly come under the standard and will see lower prices. One does not see western central banks accumulating gold except for Asian economies. Which makes me bullish about Gold. Internet which is clearly priced lower could see higher prices as the inventors of the same might think of charging for the same. It thus would be costly in the future to access the internet.  

      I would be wary of creating an environment of increased threat apprehensions by my posts. A few companies which might be targeted by terrorists like Genpact and Tata Consultancy Services would have to provide for increased security to prevent such attacks. Both the companies are spread out far and wide and have offices in major regions of the world. In addition a lot of expatriate employees sends a chill down my spine !