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**Paiblyelaxy** · 04-28-2011, 07:29 AM

Don't forget speculation. Right now, there is no problem with supply--it's adequate. There hasn't been a change in demand. What's driving prices now is speculation.

I don't think speculators can move the market like this, but let's assume they can. Who gives the fuel to the speculators? The Federal Reserve.

Either they provide the cheap credit directly (interest rates at zero) or they drive people to real assets (those fearing dollar devaluation) or they encourage speculators because they need to look at yield somewhere.

As mentioned on another thread active here, gas in terms of gold and silver is pretty consistent over time or is getting lower.

04-28-2011, 07:29 AM	#25
Paiblyelaxy Join Date Oct 2005 Posts 417 Senior Member	Don't forget speculation. Right now, there is no problem with supply--it's adequate. There hasn't been a change in demand. What's driving prices now is speculation. I don't think speculators can move the market like this, but let's assume they can. Who gives the fuel to the speculators? The Federal Reserve. Either they provide the cheap credit directly (interest rates at zero) or they drive people to real assets (those fearing dollar devaluation) or they encourage speculators because they need to look at yield somewhere. As mentioned on another thread active here, gas in terms of gold and silver is pretty consistent over time or is getting lower.
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