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<p>[QUOTE=&quot;fatima, post: 1224323, member: 22143&quot;]This is because Oil is the only commodity that is directly tied to Gold.&nbsp; Oil, Gold and the USD form the trioka in which the modern economic world is&nbsp; currently based on.&nbsp;&nbsp; There is a simple reason for this.&nbsp;&nbsp; The US military absolutely assures that any nation that wishes to buy oil, can do so as long as they use the United States Dollar.&nbsp;&nbsp; This makes Oil directly convertable into USD and vice/versa.&nbsp;&nbsp; i.e. Oil can be used as currency.&nbsp; However, Oil does not have the intrinsic properties of a currency so central bankers and governments will hold Gold as a substitute which gives them a hard asset to acquire Oil and USD as needed.&nbsp;&nbsp; When the USD is debased by over printing or other means, the value of the other 2 legs of this troika rises to balance it out.&nbsp; </p><p><br /></p><p>(Note don&#039;t confuse this with the $ being directly convertible into Gold because it isn&#039;t, however the central bankers don&#039;t use their own confetti to settle with each other.&nbsp; They know the folly of that. ) </p><p><br /></p><p>This is why gold will continue to rise.&nbsp;&nbsp; I take great note of the fact, which continues to be ignored here, that the safes of the central bankers and governments are not full of sugar, pork bellies, AND silver.&nbsp; They only hold Gold.&nbsp; While these other commodities&nbsp; may rise due to the bad economic policy of the USA, it&#039;s simply a fallacy to believe it is due to the fundamentals that affect gold.</p><p><br /></p><p>I asked raise the issue before about Gold being held by the central bankers and governments, and it continues to be ignored.&nbsp; (except for the irrelevant one-liner that was posted).&nbsp;&nbsp; Anyone who honestly wants to understand the difference between Gold, Silver and pork bellies, would do themselves well to understand this.[/QUOTE]</p><p><br /></p>

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