Oil and gold prices have been correcting sharply over the past month. While some say the bull markets in these two commodities are over, I'm in a second camp that believes we're witnessing a classical price correction for oil and gold. In my opinion, too many investors and speculators got in too fast on both commodities. And that spells opportunity for you.

Demand for oil remains strong. Sure the speculators might have pushed oil too high at $70 U.S. per barrel. But, we must remember a few items on the demand side for oil: China's economic engine continues to roar. The country is demanding more and more oil each year.

And, speaking of engines, I still haven't seen a gas alternative vehicle that GM, Ford, or the other big auto companies are forging ahead with. It's been said that we only have 100 more years of proven oil reserves in the ground. Until alternatives to gas and oil are developed, the demand will continue. Throw in the occasional foreign oil producing country having political issues (or demanding euros for their oil), and supply could easily be cut.

Gold's in a different boat than oil. Gold is looked upon as a safe haven for money in times of weak fiat. (Fiat is paper money.) The most widely recognized currency in the world since the end of World War II has been the U.S. dollar. In fact, the U.S. dollar has become the peg upon which other currencies are valued. The burgeoning debt of U.S. governments and its citizens isn't getting smaller. Nor is the U.S. trade deficit. At what point will foreigners stop accepting the greenback for their goods... at what point will foreigners get so concerned about debt in the U.S. that their demand for U.S. bonds starts to decline? In my belief, it's only a matter of time. May not be today, may not be next year. But, like all great currencies in history, eventually the shine comes off and gold rises in price. It's been happening for 5,000 years. Today is no different.

Technically, from what I can read of the charts, both oil and gold remain in bull markets. The long-term upward trend these two commodities started some years ago remains intact.

There are plenty of good quality oil and gold stocks out there that could be had for a song today. Their prices have corrected... the speculators are fleeing... and a great opportunity may be presenting itself for patient, wise investors.