Silver Is On A Tear Today

I must have been dumb as a rock, or at best, a neanderthal.

 

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A $20 drop in oil prices would totally collapse the US oil industry

 

It would stop all exploration for a while, and put production cuts in place. But collapse? I don't think so. I remember in March 2020, oil futures went NEGATIVE. I don't understand how that works. At the time, I joked that I was going to rent vacant land and have the oil producers PAY ME to stockpile it.

 

You realize, oil prices have not increased with Russian oil sanctioned, Ukrainians putting 45% of Russian oil/ gas offline, almost every oil refinery has been hit more then 5 X in past year. Now with US finally ready to nail Iran and get Regime change, still no increases. Before 2020, even a Hurricane in the Gulf of America spooked oil markets=higher prices at pumps. Katrina debacle, prices here went to $1.70 a litre!

 

The metric system gives me heartburn.

 

The 2020 collapse was due to the economy closing down for Covid, storage limitations & futures market monthly expirations. A trading anomaly. Profits on oil exploration, especially fracking, disappear quickly as prices drop. Wells get shut in quickly. Drillers stop quickly.
The traders react even faster.

 

Yeah, odd things happen to the oil market when you suddenly close all the places people would normally drive to.

 

Sell it. Although the nice thing about being a collector is that as long as you have your coin collection you'll never be flat broke.

 

Love me some Frankie's. I have put together several circulated complete sets over the years as a fun way to stack silver.

 

It's true, just watch Seifeld episode, the abstinence.

 

There's a dirty little secret about where new highly intelligent people come from.

 

At least the PM’s were up for the weekend.

 

The metric system is far superior, I grew up at first with metric (Germany) then antiquated English system Canada, now Canada joined Germany has metric. The whole world is on metric.

 

This is a bit of a puzzle, because we know the money supply keeps growing, and I view official statistics on inflation with skepticism (though not at the John Williams of Shadowstats level). When I talk about inflation, I am informally alluding to the M2 money supply - this can grow significantly while official inflation numbers are subdued. No, I am not an economist, so feel free to slam me (I am open to be corrected by anyone). So you have the depreciating value of the U.S. dollar over time (think boiling frog), and you have global instability that includes a desire to be independent of the U.S. dollar by many nations, and you have nations treating natural resources as strategic assets and hoarding them (such as China), and also retail and institutional traders that have erased the boundaries of what were previously conceived of as nations where silver investing is popular vs. not. It's tough to untangle this knot and figure out what's the greater force at any moment.

 

Tell that to the tool manufacturers.

 

I am/was an economist, but am not gonna slam you, PM !!

Let's just say that the demand curve has permanently shifted up and to the right meaning a higher floor at a minimum and overall higher prices.

I think the old Gold Bug fear of dollar depreciation and inflation has been taken up by the crypto/Bitcoin folks and they haven't done anything for a while now.

I think unless you live in a country where the currency can be revalued overnight and/or subject to high inflation or hyper-inflation, you really don't need to worry about low inflation rates or slow depreciation of the currency. Since your living expenses are tied to that currency, what's the difference ?

You can always buy TIPs or something directly tied to the CPI Index if you are afraid of something going kablooey. Over time, stocks in fact have been the best hedge against inflation or currency devaluation.

 

I think I deal with metric nuts and bolts more than imperial at this point. I've certainly got sockets for both systems.

 

Paul Sankey was talking negative oil prices in late-2019 or early-2020 before Covid hit full bloom. I remember.

BTW, much of his research is on his website and FREE. If you are into energy stocks or just tracking the sector, it's great stuff. And Paul is a funny writer with tons of stories from behind the scenes. His comment to the CEO of a firm that he wanted to provide coverage on, one that didn't have any publicly traded equity or bonds, was classic.

 

As an American, I find it sad that we are the only country that embraces the imperial system of weights and measures. Metric is a LOT easier to use. I believe we are the only country that uses it 100%.

I ran manufacturing companies for several years, making consumer products both domestically and overseas. Pieces and parts were always measured in Metric. It was only for the American market that we converted to imperial. Even our American plants used metric measurements. The world is passing us by.

 

A lot of things are mismanaged in USA, the worst is the overspending, printing "C" notes like its monopoly $$$.
Also the "tariffs" are hurting entire world economy. And another thing, in 1934 they printed 10/ 5/ 1K notes. Today, when a $100 note has purchasing power of a $1 greenback printed in 1954....why are there no $500s $1000 notes?
EU prints 500E/ Malaysia $5K US note......
Today, you can't even fill up your car with a $100 bill