The play here is first gold, then energy. In a few years, when worldwide econimic downturn starts to be in the rear view mirror, energy consumption will rise again. Then we who believe we are past peak oil will recognize once again that demand overtakes supply, the price goes up, and so on. The difference in a few years is that by that time, prudent nations will have invested more in alternative energy. More percentage in wind, hydro and other renewable forms, better infrastructure, smaller, more fuel efficient cars, better more well insulated homes etc. The test will be, to what extent are the growing economies less dependant on oil? The more dependant the world is on fissile fuels, the more acute the supply / demand relationships. They are very dependant now, so the downturn is acute. The upturn should be more gradual, as I will have retired my Suburban by then.

Look at how low natural gas prices are. WOW, a clean fuel being sold so cheap. ENCANA would be a great buy if we are near the bottom. I think it's a quarter away from a bottom in Nat gas / Encana.

But gold should lead all of this, as the re-adjustment of the currencies, as others have posted, seems a necessary although not a sufficient condition for economic recovery in the G20 economies, US and UK to be sure. So if we see a weakening of the US dollar (or eevaluatin), we don't need to see a collapse. Gold price will rise above the $1,000 level, as it's not really that far off enven now. As gold goes up, and the 2 or 3 quarters needed to see the bottom in this downturn play out, gold exploration shares will have the best uplegs. When tyhee hits $10.00 in about 2 years, the price of oil will be reflecting increased demand curve, but still cheap. Time to diversify from gold to oil will be after the 2010 olympics.

So much can happen in the mean time, how many of you will hold on until tyhee is a producer?

SKELEG