What is the REAL price of gold and oil today? Who is benefiting and losing from these ';high'; prices?

Tricky question... By ';real'; price do you mean accounting for inflation?


In 1955 the average price of gas was $.29 a gallon





If inflation ONLY happened to the price of gasoline should be: $1.99





Account for massively increased demand, and a smaller increase in supply, and you get higher prices.





Who is benefitting? Everyone. When supply and demand are allowed to do what they do, we allocate resources properly and efficiently. Even temporary price spikes work to allocate resources properly. The higher prices cause entrepreneurs to rush into the area and bring the supply and demand back into equilibrium.





Hope this helps,


Good luck!





PS The reason Gold prices are higher:


1) Buying has increased as protection against inflation, as prices rise, gold will rise faster.


2) Stock market has declined, gold will hold the value till the stock market stops falling.What is the REAL price of gold and oil today? Who is benefiting and losing from these ';high'; prices?
A good question. Based on inflationary numbers, prices for both gold and oil are still high, but not as bad as they were in the late 1970's and early 1980's.





Oil, for example, was 36.50 in 1981. That seems like mere pittance compared to $90 today. But if you adjusted that 36.50 to today's inflation, it would be $88.00. Hardly a difference.





Obviously, anybody holding stock in oil companies or possess gold certificates is benefitting right now. Oil prices go up and down on simple supply and demand, or the perception of it. If pipes in Nigeria are attacked, that will send oil prices up for everybody, regardless of where they get their oil. The conflict in Iraq has helped oil prices skyrocket, making gas more expensive. It shot up in this country, even though we haven't gotten oil from Iraq since the early 90's.





Hopefully, the next president will have more of a tougher stand against the oil companies and get the US population to stop using oil.What is the REAL price of gold and oil today? Who is benefiting and losing from these ';high'; prices?
The ';poor'; people are still losing, and the ';Rich'; are still getting richer.Exxon/Mobil had another record year...They made 40 billion dollars profit for the last fiscal year...How much did you make? Gold is about $600.00 an ounce. Oil is about $100.00 a barrel...