In the age of AI, oil isn’t just possibly made from dinosaurs — it is a dinosaur. Nobody’s running a data center on diesel, opting instead for nuclear.
As a result, oil prices have largely traded in a sideways $60-$70 range over the past few years. And relative to gold, oil is now substantially undervalued:
Gold’s price is far above oil’s, a trend that’s likely to close up. (Source: Trading View)
We like the value proposition in oil today. We don’t see gold going lower.
Oil is going higher.
In real, inflation-adjusted terms, bubblin’ crude is cheap. And it’s still valuable for transportation, plastics, backup power, you name it.
The big oil companies have reasonable cash flows and pay big dividends — including the player in our model portfolio.
And in a world where commodity prices are trending higher, oil prices may be the next to pop.
~ Addison
P.S. It’s no surprise we’ve got commodities on the brain: This afternoon on Grey Swan Live!, Portfolio Director Andrew Packer and contributor Shad Marquitz will review the latest developments in the commodity space and determine the best commodity plays through the end of 2025 and into 2026.
If you have any questions for us about the market, send them our way now to: feedback@greyswanfraternity.
