Tag Archives: black gold

For 1000s of years much of the Middle East has held some of the world’s greatest concentrations of wealth. To outsiders it’s one big desert. To the insiders, it’s the ultimate gold - black gold!

Since gold is physical liquid money and oil is an essential commodity for the economy, it is normal that they correlate negatively in real prices. When the economy goes well, demand for oil increases, whereas demand for gold diminishes. However, if inflation hits, the nominal prices of both assets increases at the same time with inflation