Petrol price only rising because paper Rand is falling

Price of oil falling when measured in real money

The price of oil has moved much higher in rand terms in recent months, causing the price of diesel to breach the R10 per litre mark a month earlier than we expected.  However, the price of brent crude oil is still well below levels we paid in 2004-08 when measuring the cost in real, un-debasable, just, sound money – gold.  That’s what the chart above shows.  In 2002 it cost about 0.08 ounces of gold for one barrel of brent crude oil.  From 2004 to 2008 this price shot up to 0.15 ounces, yet the economic collapse has seen the price drop back to 2002 levels again.  That’s nearly a 50% price decline in just over two years!

In the video clip below, listen to Peter Schiff klapping it for freedom on CNBC earlier this week and discussing exactly this topic. How to protect yourself from politicians thieving your purchasing power? Use gold as money!