General Question

arllyn's avatar

Do you think fall in US dollor effected the oil prices?

Asked by arllyn (19points) July 30th, 2008
Observing members: 0 Composing members: 0

3 Answers

SquirrelEStuff's avatar

I think it is the main reason for the rise in gas prices. Speculation also affected gas prices, but people are speculating in commodities because no matter what currency you link them to, they still hold value, as opposed to American companies that deal with only dollars.

Here are some links that pin the high gas prices on the low value of the dollar…

n 2000. with $100 i could buy 69 gallons of gas at 1.45 a gallon.
In 2008, with $100 I could buy 25 gallons of gas at $4 a gallon.
In 2000, with 1 oz. of gold, at $300 an oz, I could buy 207 gallons of gas at $1.45 a gallon.
In 2008, with 1 oz..of gold at $943 an oz., I could buy 235 gallons of gas at $4 a gallon.

aidje's avatar

“That quarter came close to paying for a gallon of gas that year – the average price per gallon was 30 cents. And the 1963 (or earlier) quarter was, shall we say, sturdier than today’s version: 90 percent silver, 10 percent copper. Today’s quarters, according to the U.S. Mint, “are ‘clad,’ which means layered. The inner core is pure copper and the outer covering is copper mixed with nickel.”

A quarter weighs about a fifth of an ounce. At today’s silver price of around $18 per ounce, the 1963 quarter had the equivalent of today’s $3.24 of silver in it. Thus, silver essentially buys the same amount of gasoline today that it did 45 years ago.

Gas isn’t getting more expensive; the government’s money just continues to be degraded.”

(source: )

”… for twenty straight years, the price (and supply) of gas was actually disgustingly stable, only subject to the effects of currency inflation.”

(source: )

gooch's avatar

@ aidje I agree. I wish we would convert back. I know that will never happen. I am a coin collector. I also feel the weakening of the dollar has accelorated faster and faster due to the government cranking out more and more.

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