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Gold and oil.
I see you are greatly thrilled by an opportunity to invest in gold. I think that it won’t be an idle information if I talk about a certain relation between prices of gold and oil and their influence on each other in terms of different political events occurring in the world.

As you can see, the nature of changes in prices for gold and oil are quite the same when analyzing the curve in 1979-1982 which painfully recalls the curve of the period in 2001-2003. Analyzing the reasons for the rise and fall of the price at different periods of time you can make some predictions and conclusions about the price for the nearest and distant future. So, I would like to recall a chronology of events regarding the price of gold.

In 1971 President Nixon, in violation of the postwar Breton Woods agreement made the US dollar become free of gold coverage. Inflation began and the price of gold started growing. In fact, gold ceased to be a reflection of the value of commodities became one of the many products.

1973 was denoted by the war between Syria and Israel. As a result of OPEC embargoed oil sales to countries of Western Europe and this raised the price of crude oil. Accordingly, there was a rise for gold.

1979 was remarkable by the Islamic revolution in Iran. The overthrow of Shah Mohammed Reza Pahlavi Iran resulted in the first Islamic republic under the leadership of Ayatollah Khomeini. As a result of it there appeared the reduction of oil supplies by 3.5 million barrels per day, and the price of oil rose. At the same time in the second half of 1979 there occurred the decline of the US economy and off course the decline of the dollar against other currencies.

In 1980 was known by the Iran-Iraq war, the largest international military conflict since the Second World War. Iraq attacked Iran in an attempt to gain control of the oil-rich areas. As the result of that war gold and oil rose.

At the same time in 1980, the credit crunch broke out. Developing countries ceased to lend. Against the background of the unstable political situation in the world, many Arab sheiks began to withdraw their investments from the short-term US bonds and buy gold, the prices of which rose once again. After the crisis the economy needed “real money”, and speculators began to sell previously bought gold for profit, and the price went down. Along with the economic crisis the was a decline in the jewelry industry.

You know that September 11, 2001. A terrorist attack on the “twins” was carried out in the US. This event was not just another terrorist act. This day was a day when world opinion was submitted to a new enemy of terrorism and when the USA actually began the era of a new type of “war on terror”. Gold and oil continued with their simultaneous growth.

And in 2003 with the war in Iraq oil prices jumped up once again dragging prices for gold at the same time. I hope that has been a good source for your making conclusions as for the prospects of gold investment.

At this moment precious metals’ attractiveness is seriously increasing. People who want to get cash for gold are creating a unique opportunity on the market.

In case you are one of those who plan to get some cash for gold, then please make sure that you know the typical tricks of the cash for gold.

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