Posts Tagged oil

Will the High Cost of Oil and Low Value of the Dollar Effect Gadgets?

ipodoil.jpgIf you’ve been paying attention to the news at all, you’ve probably heard about how expensive the cost of a barrel of oil has gotten–topping $94 as I type this. Another thing you may have learned about on the news (though it is less likely) is that the US dollar is at it’s weakest in a very, very long time. In fact, a quick check of the exchange rates (again, as I type this) at XE.com shows that the USD is still trailing the Canadian dollar by about five cents. Not a lot, but we’re still weaker than the Canadian dollar!

So, what does this mean for gadgets? It could mean nothing, but then again, gadgets do contain a lot of plastic, which is a petroleum product and gadgets do cost money to buy. What this may mean eventually for us is more expensive gadgets. In fact, it’s a little surprising that we haven’t seen at least small price jumps in the years since oil began it’s astronomical rise and the dollar’s long fall. However, there are certain physical laws when it comes to money and they can’t be ignored forever.

Here’s how price jumps will work when they come (and they will):

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