Current price of Gold

 

 

 

Gold prices will surely rise if the public feels that oil supplies are running low.

 

Movements in gold prices are often caused by shifts in public perception and confidence. For instance, when confidence in the U.S dollar goes down, gold prices typically go up.

Right now there is another issue that could cause a significant blow to public confidence. Oil supplies, globally, appear to be at a much lower level than we have been led to believe.

 

According to a recent article in the UK's Guardian newspaper, "The world is much closer to running out of oil than official estimates admit, according to a whistleblower at the International Energy Agency who claims it has been deliberately underplaying a looming shortage for fear of triggering panic buying."

 

The article goes on to say, “The senior official claims the US has played an influential role in encouraging the watchdog to underplay the rate of decline from existing oil fields while overplaying the chances of finding new reserves.”

 

If this is true, and if the story gains traction publicly, then we will likely see a lot of activity driven by panic. One of those activities will surely be to buy more gold.

 

Why buy gold if oil supplies are running low? For sure, you can’t run your car or your heating with gold. But loss in confidence often leads to specific actions that make us feel safer and independent of global uncertainty.

 

Owning gold is a safety net. It gives us a sense of security and safety. It’s not about investing or making a killing by buying and selling at the right time. It’s about feeling secure. It’s about putting some of our wealth into a physical asset we can touch and have faith in.

 

For now we should keep a close eye on the story about oil supplies. If the story in the Guardian turns out to be true, I believe we can look forward to an increase in the price of gold.