The dollar is getting weaker and weaker by the day. Gold has crossed $1,000/ounce while oil has climbed to over $110/barrel with no end in sight! Meanwhile, the Fed almost has no choice but to continue to lower interest rates in an attempt to save the credit markets with the goal of hopefully making a speedier recovery for the housing market gone bust.

So how does an average person profit from all this? Well, if you believe Gold and Oil will continue to rise, the easiest way is to invest in the United States Oil Fun, ticker USO, and the streetTRACKS Gold Shares, ticker GLD. In laymans terms, both of these mirror the price of oil and gold. Some investors have invested in mining companies such as ABX, NEM, AEM and AUY with the expectation that as gold goes up, the mining companies’ profits will rise. This is generally the case, but the price of these stocks also depend on their management. Some would rather bet on the actual commodity than a company’s management team that I know nothing about.

I think oil will average about $95-$105 a barrell this year due to the weakness of the dollar. Gold should continue higher but is definitely due for a small pullback and should stay above $1,000 an ounce for at least a few months in the summer.

I personally have positions in these commodity stocks: AUY, SU, RIO, COP, XTO.

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