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May 21, 2008

Is diversification more important than ever as Dollar confidence vanishes?


"Oil Crosses $130 a Barrel for First Time

Crude prices touch fresh trading high as supply worries mount, dollar weakens.

Oil prices rose above $130 a barrel for the first time Wednesday as supply concerns mounted and the dollar weakened.

U.S. crude for July delivery traded as high as $130.25 a barrel in electronic trading. The July contract closed at $128.98 in the floor session.

The dollar had become less of a factor as attention turned to supply and demand concerns, but that seems to have changed this week.

'We've seen an about-face turn on the dollar in the last couple of days,' said Mark Pervan, senior commodity strategist at Australia & New Zealand Bank in Melbourne.

'It looked like it was starting to recover, but I think there's a less certain outlook at the minute and ... enough reason to be buying commodities as a currency hedge again.'"

*This information is solely an excerpt of a third-party publication and is incomplete. Please subscribe to the referenced publication for the full article. This is not an offer to buy or sell precious metals. Investors should obtain advice based on their own individual circumstances and understand the risk before making any investment decision.

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