If your like our Forex Robot team, you've been watching equity prices follow general market trends. It's been observed that whenever the USD strengthens against other currencies, commodities that are traded in US dollars are inversely effected. With so much fear and instability in Europe, the dollar has risen sharply over the last few weeks. Additionally, economic indicators spanning throughout the globe point to a significant slowdown and possible double dip recession for large developed Western countries.
For individuals who aren't afraid of volatility, members of Forex Robot believe that this is an excellent opportunity to start buying commodities, including silver and oil. We suggest avoiding gold for the interim, which we believe will see an correction. However, oil will continue to remain in high demand regardless as to the economic climate. When you consider developing economies and the number of new cars being purchased, it is not unreasonable to assume that oil prices will reach $150-$200 within the next 3-5 year. When you factor in the political situation in the Middle East, including continued violence in Syria, Iran's continued pursuit of nuclear weaponry, the UN bid for Palestinian statehood, and Israeli-Turkey tension, we believe oil is a sure bet.