My favorite indicator outside of my statements from my investments is the price of oil. Oil just hit the $130.00 a barrel mark today. Now I feel that the$150.00 mark will be just around the corner, maybe by the end of the summer or best the end of the year. If I were a commodities man, I’d lunge out there and say it is a good time to go long – maybe I should call my broker. I have read that folks are even purchasing oil futures almost a decade in advance.
What is really troubling, like I said were things that I use as indicators that I never have before like copper and wheat. Copper prices are climbing fast, so fast that even the Chinese government via the China's State Reserve Bureau (SRB) is trying to bring down prices to cover fast-approaching short positions. Especially since one usd = 8.1 yuan. But that is just the short of it. Over here, although historically copper, a vital and frequently overlooked metal, from an investment perspective, to me it’s just as good or like Gold. I mean of al the metals used it ranks third.
Don’t even mention that World food supplies are shrinking while the population worldwide is increasing. And don’t sleep, they all connected because higher food prices is are correlated directly with higher energy prices. And they way this sexless mind thinks, things can and will only get worse. And places like the Ukraine and the US are stock piling wheat now.