Either or. If traders believe oil is going up, its a corollary that oil dependent mining products will have to go up, if you assume efficient commodity theory.
There is a mole in the fed meeting that will stick a suction cup garfield cat to her hotel window at lunch of the first day of the meeting if the rates are going to stay the same. If they are going to raise the rates, it's an Odie doll. No rate change tomorrow. In all seriousness now, I don't think it was a big move. I think it was a normal trading day. These tenth of a percent days have been dragging on for a while. I wouldn't be shocked to see a $13 handle by the end of the day tomorrow in silver.
I'm with Medora. PMs went up in response to oil production being cut in the US. I still say the US should be stockpiling oil right now... until we're staring $80 oil in the face.
They can't work for free. I'm sure they'd love to keep going, but they'll burn up their assets if they keep doing it for low margins. Our ability to produce so much here should help keep a decent lid on the outrageous prices for a while.
My bet is that oil will stay constant with a downward slope due to weak domestic demand; oversupply of Natgas; and a very weak global GDP. China spiked commodities for the last decade or so, and their demand has tailed off while trying to shift to a consumer economy from an export driven economy. You also have new international supply on the horizon from Iran, and if they can get it together, from Iraq. Add in the Saud's who keep pumping more oil into a weak market, one has a reciept for declining oil prices
I see only two things that can bring oil up from here. War in the middle east, or a prolonged reduction in drilling so that rigs that go offline are not replaced. It seems the oil producers are all in a game of chicken with one another to see who'll blink or go bankrupt.
as a middle class man I feel like I have been porked by oil companies and gov. makes you wonder why it was $100 BARREL, just putting it to the normal john and jane doe's of the world.
Read a bit more up in the thread. Specifically look at the comments about war in the Mid. East. I think oil will eventually settle in around $65-$70 a barrel, with nat gas pricing eventually coming in around $35-$40 BOE after a global (including the US) conversion of vehicles from diesel/gasoline to LNG. Non-renewable energy is extremely cheap now, which is killing the renewable infrastructure industries. The good thing about all of this is, of course, shale is once again (as it's always been) an idiotic concept.
Its not bad to drill into and crack to release natgas, but yeah, dumb to try to convert to oil. Heck, grinding up turkey parts for oil is smarter than oil shale.
Anyone notice silver jumped up 60 cents in the last day and markups fell by an equal amount? I only checked a couple places and items. But it makes me wonder if I'm crazy when I wonder if that $15.80/oz cost mark will ever be broken to the downside in plain bullion.