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April 27, 2006

Comments

Isn't the main reason behind the price increase of silver (and gold) from the devaluation (due to inflationary policies) of the US dollar? Not exactly the same reason as behind current (short-term) oil price fluctuations.

If that is true, what it is still just as expensive to buy gold in euros?

Oil is only relatively inelastic. When gas is at $30 a gallon instead of $3, people will be riding horses to work once again.

If demand for gas is inelastic, what happened between 1978 and 1983? Perhaps there is more here than just "It is" or "It isn't", like maybe time dependence and a nonlinear relationship between price and demand?

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