The world markets reels from Recession fears!

It is that time of the year when we all get to eat the 'humble crow' and tell all the pessimists that they were right all the time and that recession is indeed setting in. The Bush administration thought that they could hold the recession at bay with their stimulus plan and it seems to have backfired miserably.

The unveiling of the plan sent many an investor running for the hills. Lets face it, even if Bush had managed to come with a fantastic plan, the current one is not that bad, even then, it would just not be enough. Once the financial markets decide to recede, there is nothing much anyone can do but to bite ones teeth and go for the ride! That is all about what one can do at times like these!

With the Fed cutting rates at the drop of the hat, the Dollar is taking quite a beating across all of the world markets. What is more, with the Dollar no longer supporting the Oil, the prices are shooting up day by day. And the only good thing that is there for the investors to invest in, what seems to be the safest bet of all is none other than the famous 'yellow metal'. So, if you are an investor, this is where you should be heading!

Hoarding Gold at $900 an ounce?

With the Dollar seeing new lows against a hoard of currencies, it is time for the Gold to hit new highs as the traders seem to be intent on purchasing the Yellow metal as fears of recession seems to have set in. This is mainly due to the presence of the weak dollar, the already high demand for gold from the Asian countries and also due to the high Oil prices.

One would think that such high rates for the Yellow metal, at $900 an ounce, would soften the buying. But that does not seem to have happened as of yet, if anything, the frenzy seems to have gone from bad to worse in the last few days as the traders keep pushing up the gold prices to new levels.

The irony is that once upon a time, the Dollar was thought to be a safe currency and was pegged to the Gold itself. The delinking of the dollar from the gold happened way back in the ’70. But ever since then , the Dollar has been taking hit after hit, but none as worse as the current times seems to have delivered to it. As things stand, the gold prices are predicted to rise to new levels and one should not be too surprised if the gold starts hitting the $1000 level itself!

OPEC forecasts more gloom on the Oil front!

I have to say that as a layman even I am pretty disappointed with the way that OPEC is handling this bullish trend in the oil prices. One would have thought that with all the resources that they have at hand, the OPEC would do more to bring down the price of Oil, but that seems to be far from happening.
It is not just the United states that is bound to be affected by OPEC's shilly shallying, but the entire world. Here, in India, the government is forced to foot the oil bill and this situation cannot go on forever. Either the OPEC acts by increasing the supplies as that will definitely bring down the price of oil or they should at the very least allow the International body like the United Nations to take over. We are all feeling the pinch of the Oil these days and it seems, according to OPEC, that we are bound to do so for quite some time to come!

Going up, going, Gone, Oil reaching for the 100$ !

The Oil scenario is not getting any brighter with the crude prices touching nearly 98$ and then settling at 97$. The middle east tension coupled with the Afghanistan blasts and the Yemen oil pipeline disaster is making the Oil shoot even higher.
At these current trends and with dropping crude inventories in the United states, the chances of Oil falling down seem slim, at the most one can expect the Crude prices to base the current rise at 95$.
The Pakistan tangle does not make things any brighter and the chances of a full blown war in the Middle east seem all the more likely as the bad news keeps getting worse. Lets not forget the Nukes in Pakistan. As things stand, people all over the world are jittery at the thought of these weapons falling into the wrong hands and the recent news of Militants capturing the border cities in Pakistan indicates that a showdown with the Pakistani military is imminent. Either way the tension factor in Pakistan and the middle east only seems to be going up and were that to happen, the Crude supplies would drop drastically. We all know what happens with the demand and supply song, with more demand and less supply the prices will surge up even further! It just is no longer possible to predict what will happen with the Crude prices as the entire Middle east geo politics keeps changing at the drop of the hat!

Heap more profits, lesser price for oil!

With the markets being the way that they are, it seems that even the rats want to sell of their oil bonds and futures to make a quick buck. Probably the rat many not know that the very act of mass sell off's in oil bonds and futures is bringing down the price tag of oil, but hey I am happy that it is happening as I am sure that the rest of the world are. Of course, OPEC did not do much about the oil hike but then again since they all have a deeply personal stake in oil, i do not see what they could do. Of course they could have increased production by a huge margin, thereby impacting the price of oil , since huge supply leads to lesser demand and therefore to a lesser price. Had they done that they all could have saved the world a ton of worry, but they did not do that. There are times that I think that the OPEC is an antiquated organisation that needs to be re hauled totally.
Either way the price of oil is down and it is all because the markets are jittery and everyone wants to see some profits while it is still possible. Be that as it may, soon if the markets do not show some recovery and the plunge continues, then the profits will dry up and the oil surge will start all over again, this time aiming for new heights!

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