Over 25 years ago when I took my first geology course, one of my associate professors said, if you are thinking of becoming a geologist to have a career in the oil industry, you will be disappointed. Back in the early 1980s, he predicted that at the rate we were producing and using petroleum, we will not have a job for long! Well, we still have oil and gas but it is dwindling fast! I am out of the petroleum industry now but still read about it from time to time to update myself of the latest.
Now gold? That is an interesting question! There will always be a demand for gold. Why? Let me share a personal experience with you. When we Chinese get married, it is traditional to give gold jewellery as presents for relatives and even close friends. When babies are born, we also give gold jewellery. Most of the time, we do not wear this jewellery. They are mostly kept in a safe somewhere. Now that I think about it, it is really a wise gift. My mother made some money with the ever increasing price of gold and this helped towards financing our tertiary education in the USA.
If you get a piece of gold jewellery 10 years ago, you probably have made about 200% (read gold price 1998 and gold price today) from selling it! Wow! You wonder why Chinese always buy gold! Indians buy a lot of gold, too! Now there are about 2 billion Chinese people in the world and over a billion of Indians! You do the Mathematics and you have the answer as to why there is always a demand for gold and thus the rising price!
Petroleum, you use and it will be gone! Gold, it can be melted and resold again!
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