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While silver investment demand is totally off the radar, certain indicators, including the Gold-Silver ratio, suggest that interest in the poor man’s gold will likely increase significantly over the next few years. The rising interest in silver will also occur as the broader markets continue to meltdown towards more realistic valuations.

In my recent youtube video, Amazing Silver Setup & Stock Market Update, I had a few comments stating the selloff of silver and rise in the stock market suggested that my analysis was incorrect. I find this sort of short-term thinking quite interesting when I noted that the information in the video was presented to occur over the next 1-2 years. Furthermore, in looking at my Youtube analytics of that video, the average watch time was about 10 minutes. The video was 24 minutes long.

Unfortunately, the attention span of individuals today isn’t what it used to be. So, even though the material is presented in detail, many people don’t even take the time to either read or watch it in its entirety. Moreover, when someone replies that the silver price selling off since the video was produced doesn’t understand that markets trade over a LONG PERIOD OF TIME. Anyone who is concerned with the silver or gold price on a daily basis (not including professional traders), needs to realize that TRENDS TAKE TIME.

Also, the naysayers that claim the precious metals analysts have been wrong since 2012 tend to overlook the massive money printing, the enormous increase in debt and the continued disintegration of the global oil industry. If I am not getting my point across, let me provide the following chart that shows just how quickly things can fall apart when investors have been BAMBOOZLED by the Fed and Wall Street:

How did Bear Stearns go from nearly $90 a share down to $2 in a relatively short period? How did the market not realize the big problems at Bear Stearns had taken place years prior to its selloff?? The market was oblivious due to the type of rubbish put out by Wall Street analyst CNBC’s Jim Cramer on March 8th, 2008 stating the following:

…click on the above link to read the rest of the article…

WATCH OUT BELOW: Dow Jones Index Next Stop… 19,000

March 21, 2018

WATCH OUT BELOW: Dow Jones Index Next Stop… 19,000

As investors continue to believe the stock market correction is over, the next big stop LOWER for the Dow Jones Index is 19,000. When the Dow falls below 19,000, all doubt will be removed as the best investment strategy would be to sell the rallies, rather than buy the dip. However, most investors buy at the top and sell at the bottom. So, it looks like investor carnage will continue for the foreseeable future.

I am quite surprised that investors don’t see the writing on the wall as it pertains to the most overvalued stock market in human history. While the PE Ratio of the S&P 500 isn’t as severe as it was in 1999, the debt, leverage, and margin are orders of magnitude higher. For example, in 1999 the U.S. Govt. debt was only $5.6 trillion compared to the $21 trillion today. Also, with higher debt levels comes higher interest payments.

Unfortunately, the U.S. Government and the economy is in a nasty feedback loop heading towards complete destruction. You can’t continue to print money, increase debt and leverage without causing severe disruptions in the future.

Today, investors have become way too complacent as the broader markets trade near their highs. However, as the markets really start to fall, complacency will eventually turn into panic. According to my analysis, the next critical level for the Dow Jones Index is 19,000:

I picked the 50-month moving average (MMA), shown in the blue line as the first critical level. Once the Dow Jones Index falls below 19,000, the next critical level will be 13,000, or the 200 MMA (in red). These levels aren’t “possibilities,” but rather, “guarantees” to occur over the next few years. Why do I say a guarantee? Well, if we look at some of the insane stock price charts below, you would have to be a complete imbècil to arrive at a different conclusion.

…click on the above link to read the rest of the article…

BIGGEST BREAKTHROUGH IN ENERGY: Investor Warning

March 16, 2018

BIGGEST BREAKTHROUGH IN ENERGY: Investor Warning

As the U.S. and global oil industry continue to cannibalize itself just to stay alive, the market is totally clueless because investors are being misled by the fallacy that technology will solve our peak oil crisis. While technology has allowed more oil to make it to the market, it has done so at a very high cost. Unfortunately, a significant percentage of the increased cost to produce this high-tech oil was subsidized by debt from unsuspecting investors.

Hundreds of billions of Dollars were invested in the U.S. Shale Energy Industry by investors who were looking for a higher return on their money than they could receive from banks or other financial institutions. Sadly, most investors will not see the return of their funds as the U.S. Shale Energy Industry isn’t making the profits to pay back this debt.

However, many resource analysts aren’t able to understand the ramifications of the falling EROI – Energy Returned On Investment and Thermodynamics in the energy industry. Thus, they believe in the fantasy of unlimited oil production and economic growth on a finite planet. Analysts and the public believe this nonsense due in part to claims of new revolutionary energy extraction technology. Once such company is Petroteq Energy that claims that it can produce oil sands at a low-cost of $20 a barrel.

Over the past several months, I have received countless emails from followers who provided links to articles promoting these amazing new energy technologies:

Clean Oil That Only Costs $20

Why The Next Oil Boom Will Be Fueled By Blockchain

This Revolutionary Technology Could Deliver $22 Oil… In A $70 World

Interestingly, all of these articles were promoting the same company… Petroteq Energy.

…click on the above link to read the rest of the article…

Tom Cloud Precious Metals Update: Market Update March 2018

March 12, 2018

Tom Cloud Precious Metals Update: Market Update March 2018

In the newest update, Tom Cloud discusses what is going on in the precious metals market in March. He explains that while the small retail investor has pulled back on gold and silver buying, his company have seen the biggest purchases by larger investors. This makes perfect sense because the smaller retail investor tends to purchase when the price is going higher while the larger investor acquires more during sell0ffs or lows.

Tom also includes information on his services. I have to say if an individual is interested in storing metals, you should give Tom Cloud a call. Tom Cloud offers the best rates for storing metals than the overwhelming majority of dealers. If you go to the LOWEST COST PRECIOUS METALS STORAGE PAGE, you will see that the text and images are blurred. I had to do that because his low rates caused such a stir in the industry, the storage services asked to remove that information. Basically, the storage service provides plans for many dealers in the industry, but because Tom has been around for 40+ years and has been an excellent client, he received the best rates.

Now, for those who don’t believe in storing metals in a third-party facility, please don’t leave comments explaining why people shouldn’t store metals… we all know the reasons. However, some people like to store their metals in several locations, which is probably a wise thing to do. Also, some wealthy investors don’t have a choice because it doesn’t make sense to store all their metal at their home.

One more important thing. The reason I sponsor Tom Cloud on my site is due to the fact that he is one of the most upfront, honest and lowest cost precious metals dealers in the industry. Also, Tom and his associate Dan, do not try to HARD SELL those who call them. They don’t mind answering questions, even if a person does not purchase. There are some dealers that won’t even spend much time with a would-be client if they only had a little money to spend. I find that sort of business practice totally unprofessional.

The Amazing Amount of Gold The U.S. Exported Since 2000

March 9, 2018

The Amazing Amount of Gold The U.S. Exported Since 2000

The U.S. exported a stunning amount of gold since the turn of the century. As the price of gold surged along with the massive increase in U.S. debt, gold exports jumped to record highs. In 2012 alone, the United States exported nearly 700 metric tons of gold. The total amount of U.S. net gold exports over the past 17 years equaled the combined gold reserves of six high ranking countries.

While the U.S. exported nearly 8,000 metric tons (mt) of gold since 2001, it also imported a great deal as well. Thus, we arrive at a “net export” figure by subtracting gold imports from gold exports. During the past 17 years, there were only four years where the U.S. imported more gold than it exported. These net gold import years were in 2004-2005 and 2010-2011 and totaled only 322 mt.

However, U.S. gold net exports were the mainstay as a staggering 2,340 mt of gold were shipped abroad. If we look at the chart below, U.S. gold net exports picked up during the 2007-2008 U.S. Housing and Investment Banking collapse:

From 2012 to 2017, U.S. net gold exports totaled 1,354 mt or 43.5 million. That’s one heck of a lot of gold. Of course, the United States produces a lot of gold, 210-225 mt annually, however, domestic demand consumes a large percentage of that amount.

Now if we compare U.S. net gold exports versus the official reserves at top-ranking countries, the number turns out to be quite large. The combined official gold holdings of the U.K., Saudi Arabia, Portugal, Taiwan, European Central Bank and India of 2,512 mt is about the same amount of U.S. net gold exports (2,430 mt) from 2001 to 2017. Moreover, Italy (2,452 mt) and France (2,436 mt) which rank 4th and 5th respectively in official world gold reserves, are approximately the same amount of U.S. net gold exports during the same period (official gold reserves: source, World Gold Council).

…click on the above link to read the rest of the article…

SILVER INVESTMENT: The Lowest Risk, Highest Return Potential vs. Stocks & Real Estate

March 3, 2018

SILVER INVESTMENT: The Lowest Risk, Highest Return Potential vs. Stocks & Real Estate

While silver is completely off the radar to most investors, it will turn out to be one of the best investments to own as the massive amount of leverage in the stock and real estate market evaporates. Unfortunately, investors, today are no longer capable of recognizing when an asset displays a HIGH or LOW risk. Thus, fundamental indicators are ignored as the investors continue the insane strategy of “Buying the Dip.”

A prudent investor is able to spot when an asset becomes a high risk and then has the sense to move his or her funds into one that is a lower risk. However, the majority of investors do not follow this practice as they are caught by surprise when a Market Crash occurs… again and again and again. Even worse, when investors are shown that the indicators are pointing to assets that are extremely risky, then ignore it and continue business as usual.

Today, complacency has turned investors’ brains into mush. They are no longer able to discern RIGHT from WRONG. So, when the market really starts to correction-crash, they will hold on to their stocks waiting for Wall Street’s next BUY THE DIP call.

Regardless, if we can understand the fundamentals, then we would be foolish to keep most of our investment funds in Stock and Real Estate assets. The following chart follows the KISS Principle – Keep It Simple Stupid:

You don’t need to be a highly-trained financial or technical analyst to spot the HIGH vs. LOW-RISK assets in the chart above. Hell, you don’t even need to see the figures in the chart. If we understand that all markets behave in cycles, then it’s common sense that asset prices will peak and decline.

…click on the above link to read the rest of the article…

MEXICO’S OIL INDUSTRY CONTINUES TO DISINTEGRATE: PEMEX Suffers $18 Billion Loss

March 2, 2018

MEXICO’S OIL INDUSTRY CONTINUES TO DISINTEGRATE: PEMEX Suffers $18 Billion Loss

The situation in Mexico’s oil industry continues to rapidly disintegrate as falling oil production and rising costs resulted in an $18 billion fourth-quarter loss for the state-run oil company, PEMEX. Part of the reason for the huge financial loss at PEMEX was the fall in the value of the Mexican Peso. While PEMEX’s costs are in Pesos, it sells crude oil and purchases petroleum products in Dollars. Because the Mexican Peso declined 8% versus the Dollar, it put a huge strain on the company’s year-end financials.

Regardless, Mexico’s oil production continues to fall due to the natural decline from resource depletion. However, as Mexico’s oil production falls, its net oil exports have dropped significantly as well. Thus, falling net oil imports translates to less revenue for PEMEX. According to BP’s 2017 Statistical Review, Mexico’s net oil exports hit a low of 587,000 barrels per day (bd) in 2016, down from 1,867,000 bd in 2004:

While Mexico’s oil production declined from a peak in 2004, its domestic consumption has remained basically flat. Which means, Mexico’s net oil exports have fallen by more than two-thirds in just 12 years. Unfortunately, it looks like Mexico’s oil production will be down another 10% in 2017.

The next chart from Mazamascience.com shows Mexico’s net oil exports since 1960:

Mexico’s total oil production is shown in the grey area, while consumption is displayed by the black line. The green area reveals the country’s net oil exports. As we can see, Mexico’s net oil exports peaked in 2004 at 1.86 million barrels per day (mbd) and are now likely below 0.5 mbd. Falling net oil exports are a death-knell to the Mexican government because it receives a lot of its revenue from PEMEX.

…click on the above link to read the rest of the article…

Top Gold Producers Mine Supply To Fall Right When Potential Investment Demand To Surge

February 20, 2018

Top Gold Producers Mine Supply To Fall Right When Potential Investment Demand To Surge

The gold market is setting up for a perfect storm as the top mining producers’ supply is forecasted to decline right when demand is likely to surge. The surge in gold demand will occur as the broader stock markets roll over and begin their inevitable massive correction. Due to the tremendous amount of leverage in the system, the coming market correction will be quite violent at times. If investors believe the correction is over, and high times are here again, then they haven’t learned anything about the cyclical nature of markets.

For example, I have stated that Bitcoin and the Crypto Market are classic bubbles, and wasn’t at all surprised by the collapse of the Bitcoin price from $20,000 to $6,500 in a short period. However, now that Bitcoin and the Crypto Market have reversed, I see analysis and comments that anyone suggesting that Bitcoin is in a bubble is flat out wrong. I would kindly like to remind these individuals that markets don’t go down in a straight line.

We can see this quite clearly in the following two charts which came from the article, As Bitcoin Nears $11,000, Here’s A History Of Its Biggest Ups And Downs:

The price of Bitcoin in 2013 surged higher, crashed and then corrected higher before falling over the following year. The same thing took place in 2013 and 2014:

At the end of 2013, the Bitcoin price surged more than ten times to a high of $1,150 before falling to nearly $500, reversed direction and shot back up to $900+. However, over the next year, the Bitcoin price trend was lower.

Now, I put this chart together to compare the current Bitcoin price trend with the previous graphs:

…click on the above link to read the rest of the article…

U.S. Public Debt Surges By $175 Billion In One Day

February 15, 2018

U.S. Public Debt Surges By $175 Billion In One Day

After the U.S. Government passed the new budget and debt increase, with the President’s signature and blessing, happy days are here again. Or are they? As long as the U.S. Government can add debt, then the Global Financial and Economic Ponzi Scheme can continue a bit longer. However, the days of adding one Dollar of debt to increase the GDP by two-three Dollars are gone forever. Now, we are adding three-four Dollars of debt to create an additional Dollar in GDP. This monetary hocus-pocus isn’t sustainable.

Well, it didn’t take long for the U.S. Government to increase the total debt once the debt ceiling limit was lifted. As we can see in the table below from the treasurydirect.gov site, the U.S. public debt increased by a whopping $175 billion in just one day:

I gather it’s true that Americans like to do everything… BIG. In the highlighted yellow part of the table, it shows that the total U.S. public debt outstanding increased from $20.49 trillion on Feb 8th to $20.69 trillion on Feb 9th. Again, that was a cool $175 billion increase in one day. Not bad. If the U.S. Government took that $175 billion and purchased the average median home price of roughly $250,000, they could have purchased nearly three-quarter of a million homes. Yes, in just one day. The actual figure would be 700,000 homes.

Regardless, we are now off to the races when it comes to adding GOBS of DEBT to continue a Ponzi Scheme that would make Bernie Madoff jealous.

There is so much that I want to write about and put into videos, but there is only so much time in the day.

…click on the above link to read the rest of the article…

DOW JONES INDEX CORRECTION & CRASH LEVELS: A Chart All Investors Must See

February 12, 2018

DOW JONES INDEX CORRECTION & CRASH LEVELS: A Chart All Investors Must See

As the Dow Jones Index continues to drop like a rock, the worst is yet to come. Today, investors once again plowed into the markets because they are following the Mainstream Financial advice of BUYING THE DIP. Unfortunately, those who bought the dip before yesterday’s 1,032 point drop and the 400+ point drop this afternoon, have thrown good money after bad.

Of course, we could see a late day rally to calm investor’s nerves…. but we could also see an increased sell-off. Either way, I could really give a rat’s arse. Why? Well, let’s just say the Dow Jones Index has a long way to fall before it gets back to FAIR VALUE. However, my fair value is likely much lower than the Mainstream analysts’ forecasts.

I wanted to publish this post today but will be putting together a Youtube video with more detail this weekend. However, let’s take a look at the Dow Jones Index chart from my Youtube video:

If you haven’t seen this video, I highly recommend that you do. When I published that video, the Dow Jones Index was trading at 26,100. Today it is already down to 23,400. However, as I stated, we have much further down to go. Here is my newest chart:

While the Dow Jones Index has already declined by 2,500 points since my first chart, I wanted to provide the different correction and crash levels as I see it taking place on the Dow Jones Index in the future. The first level the Dow Jones will reach its Support level at about 18,000 points. Once this level is broken, then it breaks down to the 200 Month Moving Average (RED line) at 13,000. Who knows how long it would take to get down to 13,000, but it will.

…click on the above link to read the rest of the article…

Future U.S. Oil Production Will Collapse Just As Quickly As It Increased

February 8, 2018

Future U.S. Oil Production Will Collapse Just As Quickly As It Increased

While U.S. oil production reached a new peak of 10.25 million barrels per day, the higher it goes, the more breathtaking will be the inevitable collapse. Thus, as the mainstream media touts the glorious new record in U.S. production that has both surpassed its previous peak in 1970 and Saudi Arabia’s current oil production, it’s a bittersweet victory.

Why? There are two critical reasons the current record level of U.S. oil production won’t last and is also, a house of cards. First of all, oil production profiles tend to be somewhat symmetrical. They rise and fall in the same manner. While this doesn’t happen in every country or every oil field, we do see similar patterns. For example, this similar trend is taking place in both Argentina and Norway:

Here we can see that oil production increased, peaked and declined in a similar pattern in both Argentina and Norway. However, many countries had their domestic oil industries impacted by wars, geopolitical events, and or enhanced oil recovery techniques that have resulted in altered production profiles. Regardless, the United States experienced a symmetrical oil production profile from 1930 to 2007:

As we can see in the chart, U.S. oil production from 1930 to 2007 increased and then declined in the same fashion. On the other hand, the new Shale Oil Production trend is much different. What took 23 years for U.S. oil production to double from 5 million barrels per day (mbd) in 1947 to a peak of nearly 10 mbd in 1970, was accomplished in less than a decade with the new shale oil industry. Total U.S. oil production doubled from 5 mbd in 2009 to over 10 mbd currently.

…click on the above link to read the rest of the article…

ECONOMIC CRASH LIKELY? Stock Market Insanity & Risk Reaching Nose-Bleed Levels

February 3, 2018

ECONOMIC CRASH LIKELY? Stock Market Insanity & Risk Reaching Nose-Bleed Levels

With the Dow Jones Index falling 665 points today, the risk of a large market correction has just increased significantly. Ironically, I discussed the very indicators that were setting up for a huge market correction in my newest video which I recorded on Tuesday. Unfortunately, I wasn’t able to get the video posted on my Youtube channel on Friday morning and now on my website until late in the evening.

Regardless, the 665 point decline is just the beginning. Oh sure, we could see a continued selloff and then a move towards 27,000 or even higher. But, for the stock market to move up to 27,000 or 30,000 means absolutely nothing. Well, maybe it provided investors with a brief feeling of higher wealth until the markets really crashed.

In my newest video, I provide some fundamental analysis and indicators of why the Stock Market is reaching totally unsustainable levels. Also, I discuss what would happen with the gold and silver price during a big market correction. And, it resembled what happened today in the markets. The gold and silver price will initially selloff because most trades are done via algorithms. Thus, when the markets crack by 665 points in one day, it does damage all across the board.

Furthermore, the gold and silver price are based on their commodity-price mechanism… and this is the cost of production. So, if the price of oil declines, so will the gold and silver price… FOR A SHORT WHILE. However, after the initial selloff, I see both gold and silver moving higher as the broader markets continue to decline.

…click on the above link to read the rest of the article…

DANGER AHEAD FOR U.S. GOVT: Unable To Service Debt As Interest Rates Surge

February 2, 2018

DANGER AHEAD FOR U.S. GOVT: Unable To Service Debt As Interest Rates Surge

The U.S. Government is in serious trouble when interest rates rise. As interest rates rise, so will the amount of money the U.S. Government will have to pay out to service its rapidly rising debt. Unfortunately, interest rates don’t have to increase all that much for the government’s interest expense to double.

According to the TreasuryDirect.gov website, which came back online after being down for nearly a month, reported that the average interest rate paid on U.S. Treasury Securities increased from 2.2% in November 2016 to 2.3% in December 2017. While this does not seem like a significant change, every increase of 0.1% in the average interest rate, the U.S. Government has to pay an additional $20.5 billion in interest expense (based on the $20.5 trillion in total U.S. debt).

Already, the U.S. Government is off to a BANG as it’s interest expense paid for the first three months of the year increased to $147 billion compared to $139 billion in the same period last year:

This chart was taken directly from the TreasuryDirect.gov site, with my added annotations. As we can see, the U.S. Government paid $126.5 billion to service their debt Oct-Dec 2015. We must remember, the U.S. Government Fiscal period starts in October. So, in just two years, the interest expense the U.S. Government paid for Oct-Dec increased more than $20 billion. Now, what is interesting is that the average interest rate in Dec 2015 was 2.33%, but in Dec 2017 it was only 2.31%. Thus, it was actually lower, even though the interest expense increased by $20 billion.

The reason for the $20 billion increase in the interest expense during Oct-Dec 2017 versus Oct-Dec 2015 was due to a more than $2 trillion increase in U.S. debt over that two-year period. So, the U.S. Government will have a serious problem as interest rates really start to rise… and that doesn’t even include the continued increase in total U.S. debt.

…click on the above link to read the rest of the article…

WORLD’S LARGEST SILVER MINES: Suffer Falling Ore Grades & Rising Costs

January 30, 2018

WORLD’S LARGEST SILVER MINES: Suffer Falling Ore Grades & Rising Costs

The world’s two largest silver mines have seen their productivity decline substantially due to falling ore grades and rising costs. Gone are the days when silver mines could produce silver at 15-20 ounces per ton. Today, the Primary Silver Mining Industry is likely producing silver at an average yield of 4-5 ounces per ton.

In my newest video, I discuss the changes that have taken place in the world’s two largest silver mines, the Cannington Mine in Australia and the Fresnillo Mine in Mexico. Falling ore grades and rising energy costs have contributed to the doubling and tripling of production costs at many silver mining companies. Investors who believe it still only costs $5 an ounce to produce silver, as it did in 1999, fail to grasp what is taking place in the silver mining industry:

A big problem that has confused investors is the reporting of the “CASH COST” metric by the mining industry. Some silver mining companies can brag that they have a very low cast cost of $5 an ounce, but they arrive at that figure by deducting their “by-product credits.” By-product credits are the revenues they receive from producing copper, zinc, lead, and gold along with their silver.

For example, Hecla Mining stated their silver cash cost of $0.16 per ounce for the first three-quarters of 2017. They were able to report that very low $0.16 cash cost by deducting $175 million of their zinc, lead and gold revenues. Hecla’s three silver mines had total revenues of $278 million, but they deducted $175 million in by-product credits to get the low $0.16 cash cost. They deducted 63% of their revenues to arrive at that low meaningless cash cost.

According to Hecla’s financial statements, they only made $4.2 million in net income on a total of $417 million in total revenues Q1-Q3 2017 (including $140 million from their Casa Berardi Gold Mine).

…click on the above link to read the rest of the article…

The Coming Market Crash Will Set Off The Biggest Gold Panic Buying In History

January 26, 2018

The Coming Market Crash Will Set Off The Biggest Gold Panic Buying In History

The leverage in the economic system has become so extreme; investors have no idea of the disaster that is going to take place during the next stock market crash. The collapse of the U.S. Housing and Investment Banking Industry in 2008 and ensuing economic turmoil was a mere WARM-UP for STAGE 2 of the continued disintegration of the global financial and economic system.

While the U.S. and the global economy have seemingly continued business as usual since the Fed and Central Banks stepped in and propped up the collapsing markets in 2008, this was only a one-time GET OUT OF JAIL free card that can’t be used again. What the Fed and Central Banks did to keep the system from falling off the cliff in 2008 was quite similar to a scene in a science fiction movie where the commander of the spaceship uses the last bit of rocket-fuel propulsion in just the nick of time to get them back to earth on the correct orbit.

Thus, the only way forward, according to the Central banks, was to increase the amount of money printing, leverage, asset values, and debt. While this policy can work for a while, it doesn’t last forever. And unfortunately, forever is now, here….or soon to be here. So, it might be a good time to look around and see how good things are now because the future won’t be pretty.

To give you an idea the amount of leverage in the markets, let’s take a look at a chart posted in the article, A Market Valuation That Defies Comparison. The article was written by Michael Lebowitz of RealInvestmentAdvice.com. I like to give credit when credit is due, especially when someone puts out excellent analysis. In the article, Lebowitz stated the following:

…click on the above link to read the rest of the article…

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