Friday 25th November 2005 AD
"THE LESSER OF BROTHERS"

The headlines or our financial press often loudly herald the obvious, while completely overlooking the more subtle.

"The Coming Oil Crisis", "The World After Oil", "In the Grip of Oil Supply Fears" are all examples of recent headlines pointing to the obvious and important structural supply problems in the global energy market. However, while all the attention seems focused around the global Crude Oil market, a more critical market, and one that is being largely
overlooked, is that of Natural Gas.

Last week energy analyst Simon Romero wrote; "fears persist that an energy shock may be unfolding as the nation (US) heads into winter. This time, though, the coming squeeze is in natural gas rather than oil."

Similarly, with the strong move in precious metals prices in recent weeks,  headlines have again singled out gold; "Gold Breaks Out Against Key Currencies" and "Gold Reaches Highest Since Dec 1987". 

Don't misunderstand; balanced and accurate reporting and discussion on GOLD and OIL are important and necessary, as we have often said, "While Oil is the King of Commodities, Gold is the King of Money." However, we must not focus all our attention or strategies at the expense of their 'Lesser Brothers' 

There are complex interrelations in markets. There is clearly a link between Gold and Oil.  Likewise there is a link between Gold and Silver as there is between Oil and Gas.

Is there a natural interaction or communication between these market sectors and the individual commodities themselves?  If the future outlook is good for Gold and Oil, then what about Silver and Natural Gas? Do these Lesser Brothers share some similar characteristics and properties?  Is it possible that these 'Lesser Brothers' could become the 'Greater Brothers' in the future? Keep watching our Daily Digs as we dig for answers ~ to provide a little perspective in a confusing age.

Best Regards  - Philip Judge pjudge@anglofareast.com