Oil Pulse (II)
Given two finite natural commodities, one a consumable energy resource undergoing accelerating absolute depletion, the other an indestructible precious metal, there can be no question about the fundamental trend of price divergence, surely? Except, apparently there can. Pure reason (or principled intuition) fails once again:
The world seems determined to thrash us into empiricism.
If there is a trend, it shows up more persuasively in the erratic sequence of consistently-escalating negative oil price shocks.
ADDED: Patri Friedman helpfully points to Hotelling’s Rule.