The growing mantra to see your gold and replace it with oil is being promoted by the Bank Credit Analysts, an advisory service in Montreal often followed by conservative, prudent investment managers in the US. Crude oil futures in the US are selling at $85 a barrel, $16 less than Brent crude futures in London, a peculiar differential that could offer a unique investment opportunity.
On the side of oil going higher are growing unrest in the Middle East, 3 gas explosions in Iran and safety problems with the Alaska pipeline. With the dollar stronger last week, and Mubarak’s departure, gold did not streak upward as a haven against political unrest....
Oil ties in with the recovery play, while gold doesn't. Of more immediacy, oil has a Middle East tie-in that gold doesn't. Should turmoil in the region flare up further, oil should benefit more than gold - so argue people who weren't impressed with gold's reaction to the Egyptian revolution.
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