West Texas Crude & Canadian Gold

If Iran were to close the Strait of Hormoz, oil could hit $150 to $200 a barrel. At least that’s what the "expert" on Bloomberg Television just said; "otherwise" he continued "oil will still go up an additional $20". Hmmm, $20 divided by the current $76 price is about a 25% move, and that's a given according to him, even without such a provocative maneuver. If Iran did take a chokehold on the Strait’s shipping lanes, crude could double or even triple. That statement makes for an interesting interview and all that, but, the reason I bought shares of the United States Oil Fund LP (USO) ETF yesterday is because the chart is pointing higher.


The second trade I made yesterday involves a Canadian Gold and Silver play, by buying shares of the Central Fund of Canada Ltd. (CEF). The fund is an Exchange Traded Fund that trades on the AMEX, and is backed by gold and silver holdings. In mid May the fund traded over $10, then in June pulled back to just under $8 for a day or two. Now it's moving higher with the metals. The fact that this is a Canadian company could also benefit the stock price if the Dollar continues to weaken against other currencies.