All that glisters
When President Bush acceded in January 2001, we pointed out in an editorial in November, a barrel of oil was selling for 8.25 100th’s of an ounce of gold. By November of 2007, it was selling for 8.32 100th’s of an ounce of gold. Today, it’s selling for about 8.9 100ths of an ounce of gold. In other words, the price of oil isn’t spiraling upward. The value of the dollar is spiraling downward.
On the other hand, by some measures the dollar is back where it was a decade ago, so perhaps oil and gold were cheaper than we appreciated at the time in 2001.