Stock market analyst Tom Scollon offers his insights into the price of important commodities and metals. Soaring oil prices is a sore point for many, due mainly to the direct impact these prices have on industry and consumers alike.
For others, such as those mining oil, or those that have investments in oil stocks, rising prices can be good for the hip pocket.
Since 1998, the price of oil has gone up 900%.
Quite an incredible increase — and indeed the mining industry has been a beneficiary of this rise.
Recently however, we have seen Oil drop in value by around 10% – but I think this is merely a consolidation time and we should see the price take off into the New Year.
As demand continues to grow, and supply shortening, basic economics suggest that there is only one way for the price of oil to go for now.
Gold is another commodity that has been on an upward trend since the middle of this year, and is expected to continue on the up over the coming months.
It is likely that the price of metals will consolidate and move marginally higher in the coming week.
Many are showing a similar pattern to that of nickel, that is, a clear downward trend.
This may not be such a bad thing for those investors out there — it is well worth buying quality resource stocks when the price is low as they invariably wander back up in due course.
*Tom Scollon is the Chief Analyst of SharesBulletin.