bbq:

Your question and its premise overlook the supply/demand side of the equation with respect to oil. Over the past several months the demand side of the equation has reduced significantly in N. America as the supply side of the equation increased considerably. Greater supply and reduced demand equal lower price. This relationship is now becoming more in balance as the producing nations have reduced production by about 4 million barrels per day and hence the market being an anticipatory mechanism, we are seeing a firming in oil prices. This has beeen exacerbated by the fact that recently, US consumption of oil has increased

With respect to precious metals, demand is being driven by the fear of lack of economic stability and the belief that the current deflation will morph into inflation as all major economies are printing inordinate quantities of currency in a reflation attempt. This has caused greater demand for precious metals. Though the price for gold has temporarily retreated, it is projected to rise through the previous highs relatively soon. This is the reason gold stock prices have not come down proportionately to the decrease in metal price. Again the market is acting in a predictive fashion.

Brian