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Get ready for a new era of precious metals investor. That’s correct. Up until now, the primary buyer of gold and silver have been the older generation, 40-65+, but that will all change when the next financial crisis hits. The Millennials, or those in the 23-38 age group, have participated less in the stock market than previous generations. And, rightly so.

According to one study, Millennials preferred cash (30%) as their largest investment over stocks (23%). This should be no surprise as the older Millennials have experienced two market crashes, the dotcom NASDAQ crash and the 2008 market meltdown within a decade. Furthermore, the Millennials are likely very concerned and worried about the massive underlying debt and leverage in the system. Of course, it is probably true that most Millennials don’t understand the details of the financial markets, but have an excellent innate ability to recognize that SOMETHING IS SERIOUSLY WRONG.

In my newest video update, New-Age Precious Metals Investor: Pension Fund Disaster, I discuss how surprised I was to learn that the largest age group that followed the SRSrocco Report website were the Millenials, not the older generation. Now if that wasn’t surprising enough, the next largest group of readers came from an even younger group, aged 18-24:

The chart comes from my Google Analytics dashboard so that you can thank Google for that statistic. How on earth does Google know the demographics of my website, that is a subject matter for another day? Regardless, while the mainstream media suggests that the younger generation are less interested in finances and politics, I actually believe they are hungry for GOOD INFORMATION. Unfortunately, they will not find quality information in the mainstream press. Which is precisely why many of the Millennials are quite concerned about the future and continue to question everything.

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

U.S. SHALE OIL INDUSTRY: Not In The Business To Make Money, But To Take Money

January 21, 2019

U.S. SHALE OIL INDUSTRY: Not In The Business To Make Money, But To Take Money

The U.S. Shale Oil Industry has been a financial trainwreck since day one. And, with nearly $300 billion in public and private debt racked up by the shale industry since its inception, that hasn’t stopped investors from throwing good money after bad to continue the biggest energy Ponzi scheme in history.

Unfortunately, the worst is still yet to come because the industry hasn’t provided the market with analysis on what happens to the shale oil companies and investors holding their debt when production finally peaks forever. I don’t believe the market has any idea just how quickly and violently the U.S. Shale Oil Industry could implode. Get ready for the Sun to Set on the U.S. Shale Oil Industry.

Veteran oil analyst, Art Berman, mentioned in his interview on Peak Prosperity that he believes the oil industry “IS DONE.” He also explains why the U.S. Shale Industry is not in the business of making money, but rather, taking money. I highly recommend “ALL,” my followers to listen to the interview below as it confirms the dire energy predicament we face:

In my last video update, DOW, GOLD & SILVER: Markets Disconnect In 2019, I explained the following image below which is a typical shale well completion layout and the tremendous amount of equipment needed to frac and produce shale oil and gas. What we need to understand about shale industry is that it consumes so much more energy (capex, equipment & labor) to produce oil, there is less available net energy to provide real economic growth. Furthermore, a larger segment of the economy is driven by the enormous amount of shale energy activity that when it falls back into a recession-depression, it will have a much more negative impact on the U.S. economy.

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

U.S. Government Debt Bomb Much Higher Than Americans Realize

January 17, 2019

U.S. Government Debt Bomb Much Higher Than Americans Realize

The U.S. Federal debt bomb continues to increase, even with the government shut down. In just one day, the U.S. public debt increased $50 billion on Jan 15th. While the total outstanding Federal debt has now reached nearly $22 trillion, it doesn’t include all U.S. government debt.

That’s correct… there’s a lot more debt than Americans realize sitting on the balance sheet of the U.S. Government. For example, there are other obligations such as U.S Government Agency Debt that isn’t well-known. According to the USGovernmentSpending.com website, U.S. Agency debt is the amount of outstanding debt issued by federal agencies (such as FHLB and GNMA) and government-sponsored enterprises (such as Fannie Mae and Freddie Mac). The amount of U.S. Agency debt

Then we have also to include State and Local Debt that is not apart of the U.S. Federal public debt. California holds the highest amount of State Debt in the country at $155 billion followed by New York at $141 billion. You can check out the debt of each state here: Compare State Debt.

Okay, let’s start adding up all the U.S. Government debt and put it into perspective. The total U.S. Federal debt is $21.97 trillion while U.S. Agency debt comes in at a whopping $9.26 trillion and State-Local Debt is $3.1 trillion:

Thus, total outstanding U.S. Government debt is a staggering $34.3 trillion. So, there is an additional $12.4 trillion of debt on the U.S. Government balance sheet, which turns out to be more than half of U.S. Federal Debt. A trillion here and a trillion there really starts to add up.

So, if we include all of this debt and compare it to the U.S. GDP, it is substantially higher than the current 104% stated by the Federal Reserve.

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

GET READY FOR TURBULENT MARKETS IN 2019: Gold & Silver To Outperform Most Assets

January 14, 2019

GET READY FOR TURBULENT MARKETS IN 2019: Gold & Silver To Outperform Most Assets

Investors should prepare for crazy and turbulent markets in 2019. As the correction in the broader markets picks up speed and heads much lower, investor worry will start to turn into fear. At this point, the precious metals will likely disconnect from the markets and move higher as investors move into gold and silver to protect wealth.

I discuss this in my newest video update: DOW, GOLD & SILVER: Markets Disconnect In 2019. In the video, I show how gold and silver rallied over the past month while the broader markets, copper, and energy sold off. I believe the precious metals will continue to disconnect even further from the markets in 2019 and 2020.

In the video, I also describe the image below and why the U.S. Shale Oil Industry continues to lose money:

This shows the typical slick water shale frac completion layout and the massive amount of equipment and energy it takes to produce shale oil and gas. The drilling rig has been removed, and the wellheads (in RED) receive an enormous amount of water, frac sand, and chemicals under high pressure from the 20 pressure pumping truck rigs.

Furthermore, I explain the following chart and why the gold price will continue to disconnect from the Dow Jones Index in 2019:

While I explain more technical analysis in the video, the fundamentals will still play a leading role in guiding the economy and markets over the next several years. However, the technicals provide us with a crystal ball in how the prices will trade over this period.

2019 MARKET MELTDOWN: What The New Year Brings

January 1, 2019

2019 MARKET MELTDOWN: What The New Year Brings

If history is our guide, we are on track for a severe market meltdown in 2019. While the U.S. broader indexes remained in record territory for most of 2018, December turned out to be a complete disaster for stocks. So, even though the markets have reversed higher from their Christmas Eve lows, this is nothing more than a bear market rally.

It’s really that simple. Thus, all the hype about “Fed Market Rigging” to push the markets up a record 1,000 points following the Christmas Eve massacre, becomes white noise as markets always correct higher after a massive selloff, with or without the Plunge Protection Team (PPT). Furthermore, the notion put forth by members of the Alt-Media suggesting that the Fed rate hikes will cause another market crash, and wealth transfer makes no sense in an EROI Collapse (Energy Returned On Investment).

As the EROI of the oil industry falls even lower with the addition of oil sands and shale oil, there will come a time when the economy and market will disintegrate due to a lack of profitable net energy. In this future net-energy-starved economy, most ASSETS will become LIABILITIES. So, the lousy conspiracy that the Fed is using their “rate hike policy” for the “grand elite wealth transfer,” needs to be thrown in the waste-bin for good.

Folks, it’s time to stop focusing on lousy conspiracies and figure out what you are going to do when energy becomes a real problem.

Unfortunately, hype and conspiracies sell a lot of books and subscriptions because they are more exciting than facts, data, and information. It seems to me that a large number of the Alt-Media followers are being misled just as much as their Mainstream media counterparts. However, they don’t realize it… LOL.

Okay, let’s get back to the 2019 Market Meltdown.

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

SANTA CLAUS RALLY TURNS INTO MARKET CARNAGE: Precious Metals Push Higher In A Sea Of Red

December 25, 2018

SANTA CLAUS RALLY TURNS INTO MARKET CARNAGE: Precious Metals Push Higher In A Sea Of Red

The much awaited and hoped for Santa Claus Rally turned into a complete rout today as the broader markets continued to sell-off to new lows this month. The Dow Jones plunged a stunning 653 points today, the worst in the in the 122-year-old history of the index. Furthermore, the Dow is on track for its biggest December loss since the Great Depression.

The Dow Jones was trading at nearly 26,000 at the beginning of December and just closed at 21,792. That is a 16% decline so far this month. As I mentioned in my last video, GOLD INVESTING: What Really Drives The Market Price, I posted a chart showing that the Dow Index had a critical support level of 24,000. I stated that the Dow reached a high of 26,000 at the beginning of 2018 and has been trading up and down off the 24,000 support level for the entire year. The Index actually hit another record high of nearly 27,000 at the beginning of October.

When the Dow finally closes below the 24,000 on a monthly basis, it can get very ugly. We still have three full trading days and a half day on New Year’s Eve for the Plunge Protection Team to do their magic and push the Dow back above the 24,000 level, but I doubt they will be able to do so. If the Index was down 500-1,000 points from the 24,000 level, then it might be possible. However, the Dow is down 2,200 points from that level.

Here is my updated Dow Jones Index with the Monthly support and resistance levels:

You will notice that the present Dow (monthly) candlestick is the biggest decline ever.

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

A VERY RARE SETUP: Who Will Win The Tug Of War In The Oil Market?

December 14, 2018

A VERY RARE SETUP: Who Will Win The Tug Of War In The Oil Market?

There has been a tug of war in the oil price over the past two weeks. Due to a very rare setup in the market, the oil price has traded in a very narrow range as traders fight it out to see who will win control… the BULLS or the BEARS. My bet is on the bet is on the bears. Amazingly, the oil price is literally stuck right between two critical technical levels.

Ever since the oil price peaked at $77 at the beginning of October, it has fallen $25 and is now trading in a tight volatile range between $50-$53. As we can see in the chart below, the oil price dropped to $50 at the end of November and now has been trading up and down with no clear direction:

Oil Price Daily Chart (Each candlestick = 1 day of trading)

Even though the oil price touched $54 for a few days, it has mostly been trading in a tight $3 range. In looking at this daily chart, we have no idea why the oil price is behaving in such a way. However, if we look at the longer-term monthly chart, we can see the apparent reason why. The oil price has been pushed between the 50 Month Moving Average (BLUE) and the 300 Month Moving Average (ORANGE):

Oil Price Monthly Chart (Each candlestick = 1 month of trading)

If you look at the magnified view, you will see that the oil price that closed today at $52.58 remains between these two moving averages. The large red candlestick shows the decline in the oil price in November as each candlestick represents one month of trading.

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

Gold & Silver Prices Rise As The Markets & Oil Decline

December 9, 2018

Gold & Silver Prices Rise As The Markets & Oil Decline

Over the past week, the gold and silver prices have held up rather well compared to the overall markets. While precious metals investors still fear that a huge sell-off in the gold and silver prices will take place during the next market crash, it seems that the metals continue to be very resilient during large market corrections.

Now, I am not saying that the metals prices cannot fall any lower, but a lot of the leverage in the gold and silver market has already been removed and is now at a near all-time low. So, even though we could see weaker precious metals prices, the overwhelming leverage and bubble asset prices are in the stock and real estate markets.

Furthermore, one of the reasons precious metals investors still fear that a major selloff is imminent is that they are using the 2007-2008 economic market meltdown as a guideline. However, when gold and silver prices were plummeting from their highs in 2008, along with the rest of the market, speculators held huge long positions while the commercials controlled an enormous number of short contracts.

If we look at the following Gold Hedgers Chart, we can clearly see that the market setup today is the exact opposite of what it was in 2008:

When gold was trading near $1,000 in early 2008, the commercial banks held a record high of 252,000 net short contracts compared to the present gold price of $1,222 (time of chart), with the commercials only holding 16,000 net short contracts. The commercial short positions are shown by the blue line. Thus, the higher the commercial short positions, the lower the line goes and the lower the number, the higher the line moves. Currently, the gold price and commercial net short positions are both at the near lows. Also, the speculator net long positions are close to their lows as well

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

GOLD, SILVER & THE MARKETS: What’s Next For 2019

December 6, 2018

GOLD, SILVER & THE MARKETS: What’s Next For 2019

The big question on the minds of most investors is what will happen to the markets and precious metals in 2019. Well, the answer depends mainly on two factors, the oil price and overall weakness in the economy. If the oil price continues to decline, it will indicate a deflationary outcome for the economy and markets.

While this sounds counter to the notion that falling oil prices will drive higher consumer demand, we also must remember that it will negatively impact the U.S. shale oil industry. A lower sustained oil price, as I wrote about in my previous article, IT BEGINS… Rapidly Falling Oil Prices First Guts Tar Sands, Then Shale Oil will begin to destroy the oil industry, especially the unconventional oil industry. I don’t believe Americans or the investors realize the tremendous amount of economic activity it takes to produce shale oil.

Now, the last U.S. economic bubble in 2007-2008 was based on a highly leveraged housing market. However, the present economic bubble is being propped up by the U.S. Shale Oil Ponzi Scheme. Some energy analysts don’t believe the U.S. shale oil industry has that much of an impact on the market, but I disagree. Since the 2008 market crash, the U.S. shale oil industry has brought on nearly 7 million barrels per day (mbd) of tight oil. U.S. oil production has surged from 5 mbd in 2008 to 11.7 mbd currently.

So, to understand what happens to the markets in 2019, we need to focus on the number one driver of the economy… THE OIL PRICE. In my most recent video, GOLD, SILVER & MARKETS: What’s Next For 2019, I discuss what is taking place in the broader markets, gold-silver, and the oil price:

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

IT BEGINS… Rapidly Falling Oil Prices First Guts Tar Sands, Then Shale Oil

December 4, 2018

IT BEGINS… Rapidly Falling Oil Prices First Guts Tar Sands, Then Shale Oil

The rapidly falling oil prices have finally claimed the first victim, but it won’t be the last. The Alberta Canadian government announced late yesterday for a substantial cut in tar sands oil production to stem the hemorrhaging low oil price. The price paid for tar sands oil has fallen a stunning 77% from its peak just two months ago.

While the Canadian tar sands oil price has fallen the most, various U.S. benchmarks are also experiencing substantial discounts to the standard West Texas Crude Oil price. For example, the price paid for Bakken oil has dropped by 42% from its peak in October. This is terrible news for the shale oil producers in North Dakota.

However, as bad as the situation is becoming for the U.S. oil industry, it isn’t as bad as the disaster taking place in Alberta, Canada. According to the Zerohedge article, Alberta Orders “Unprecedented” Oil Output Cut To Combat Crashing Prices:

So in a long-awaited and according to local energy traders, overdue response, Canada’s largest oil producing province ordered what Bloomberg called “an unprecedented output cut”, an effort to ease a worsening crisis in the nation’s energy industry and adding to global actions to combat a recent price crash ahead of this week’s OPEC+ summit where oil exporters will similarly seek to slash output.

… The plan, which was announced late on Sunday, will reduce production of raw crude and bitumen from Alberta by 325,000 barrels a day, or 8.7% from January until excess oil in storage is drawn down. The reduction would then drop to 95,000 barrels a day until the end of next year at the latest.

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

ANALYSTS TOTALLY WRONG ABOUT GOLD: Top Gold Miners Production Cost Still Provides Floor In The Market Price

November 26, 2018

ANALYSTS TOTALLY WRONG ABOUT GOLD: Top Gold Miners Production Cost Still Provides Floor In The Market Price

While the debate on the dynamics of the gold market continues, at least the top gold miners production cost provides us with a floor price. Or rather, a basic minimum price level. I get a good laugh when I read analysts suggesting that the gold price will fall back to $450-$700. For the gold price to fall back to $450, then we would need to lose 95+% of global gold mine supply.

Due to two factors of rising energy prices and falling ore grades in the gold mining industry, COSTS WILL NEVER go back to where they were a decade ago. Again, the only way for that to happen is if a large percentage of gold mine production was shut down.

Furthermore, analysts continue to wrongly forecast the gold price based mainly on gold supply and demand forces. This is a NO-NO. The overriding factor that has determined the gold market price has been the gold mining industry cost of production. I proved this point by showing the increase in the gold production cost at Homestake Mining (the United States largest gold mine 1970’s) from 1971-1979:

Homestake Mining was producing gold at the cost of $42 an ounce in 1971 when the average price was $40.80. Thus, Homestake Mining lost money producing gold in 1971. However, as energy-driven inflation ravaged throughout the economy as the price of a barrel of oil increased from $2.24 in 1971 to $31 in 1979, this impacted the cost to produce gold significantly. By 1979, Homestake Mining’s gold production cost jumped to $247 an ounce.

While it is true that the tremendous demand for gold by investors also drove the gold price to new highs in the 1970s, we can see that at least 80+% of the increase in the gold price from 1971-1979, in the case of Homestake Mining, was due to higher production costs.

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

GLOBAL DEBT INCREASE 2018 vs. GOLD INVESTMENT: Must See Charts

November 23, 2018

GLOBAL DEBT INCREASE 2018 vs. GOLD INVESTMENT: Must See Charts

Global debt increased at the fastest rate at the beginning of 2018. In just one quarter, total global debt jumped by more than $8 trillion. That is quite surprising as total world debt rose by $22 trillion for the full year in 2017. Thus, the increase in global debt last year averaged $5.5 trillion each quarter.

However, global debt according to the Institute of International Finance dropped by $1.5 trillion in the second quarter of 2018. While mature markets saw their debt decline in Q2 2018, emerging market debt increased by $1 trillion lead by China. In looking at the data from the Institute of International Finance (IIF), they stated that global debt jumped by over $8 trillion in the first quarter of 2018 to $247 trillion, but then declined $1.5 trillion to $247 trillion in Q2 2018.

So, the global debt must have jumped by $9.5 trillion to $248.5 trillion during the first quarter of 2018 and then dropped $1.5 trillion in Q2. Thus, the IIF must be revising their figures each quarter. Either way, the net increase in global debt in the first half of 2018 was $8 trillion.

If we look at the following chart below, we can see how the increase in global debt compares to the value of the total global gold investment as well as the value of world gold supply:

From my research, total world gold investment, Central bank and private investment total approximately $3 trillion. This is based on the data from the next chart that estimates global gold investment of 2.25 billion oz valued at a $3 trillion:

Interestingly, when I did the chart above earlier this year, the market price of gold was trading at $1,330. Today, it is $100 less. So, if I want to be totally accurate, total Central bank and private gold holdings are presently valued at $2.8 trillion. Regardless, global debt increased $8 trillion in the first half of 2018, more than 2.5 times than the value of all world investment gold holdings.

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

Tom Cloud Update: Mainstream Financial Planners Getting More Interested In Gold & Silver

November 20, 2018

Tom Cloud Update: Mainstream Financial Planners Getting More Interested In Gold & Silver

In Tom Clouds newest update, he discusses many topics on rising precious metals premiums, silver miners production cost higher than the market price, skyrocketing debt and the coming rise in the gold and silver price. However, one of the most important parts of his video is the number of financial planners now calling him because they are becoming more interested in precious metals.

Tom starts by discussing the rising precious metals premiums on certain products since the summer. He then talks about the primary silver miners average cost of production is above the current market price. I have written a recent article on this, which he quotes, and it’s true:

As I mentioned, Tom was quoted the data from the chart below which shows how the top primary silver miners average All-In-Sustaining Cost (AISC) is now $16.10. However, the AISC does not include all costs and also deducts by-product credits. I believe the costs are even higher:

All the primary silver miners shown in red posted a higher AISC than the current market price. There were only two that posted a lower AISC. Even though the silver production cost is not the only factor that determines the market price, it is at least helps provides a floor. We must also remember, these AISC were based on much higher oil prices in the third quarter. Oil prices have now fallen by more than $20 from their highs. So, I believe the primary silver miners costs will continue to decline over the next several quarters if oil prices remain at the current level or fall further.

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

TAR SANDS OPERATIONS GO FROM BAD TO WORSE: Now Losing Billions A Month

November 17, 2018

TAR SANDS OPERATIONS GO FROM BAD TO WORSE: Now Losing Billions A Month

The situation at Canada’s Alberta Tar Sands Operations has gone from bad to worse as the super-low oil price is now costing the industry billions of dollars each month. Unbelievably, the price for the Western Canadian Select heavy oil fell to a gut-wrenching $14.65 yesterday down from a high of $58 in May. Tar sands oil is now selling at an amazing $40 discount to U.S. West Texas Oil which is trading at $56.

The main reasons for the falling price of Alberta tar sands are due to Canadian pipelines full to capacity as well as midwest U.S. refineries shut down for seasonal maintenance. Furthermore, the announcement by a U.S. Federal Judge to block the construction of the Keystone XL Pipeline on November 9th, didn’t help.

According to data from the Natural Resources Canada, the Alberta Tar Sands Operations were producing 2.7 million barrels per day (mbd) of oil in 2017. I would imagine production this year is likely to reach close to 3 mbd. The largest tar sands producer in Alberta is Suncor. Suncor produced a record 476,000 barrels per day of tar sands in the third quarter of 2018.

Now, Suncor reported a handsome $1.4 billion profit in Q3 2018 on $8.3 billion in revenues. However, that profit was based on much higher Western Canadian Select (WCS) oil price which was trading over an average of $35 for the quarter. Unfortunately, the average price of WCS so far in the fourth quarter is $20.75. And, if the price of WCS stays at the current low price, the tar sands operators will be receiving less than $20 a barrel.

In the article, Capacity shortages costing Canadian producers $100M/day, it stated:

“Heavy-oil producers are getting 40 percent of what they normally would be paid if we had access to markets,” said Grant Fagerheim, CEO of Calgary-based Whitecap Resources, which produces about 60,000 barrels per day.

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

Global GDP Still Propped Up By A Massive Amount Of Debt

November 10, 2018

Global GDP Still Propped Up By A Massive Amount Of Debt

While the government agencies and economists continue to publish strong GDP figures, they seem to overlook how much debt it took to produce that growth. Or should I say, the “supposed growth.” The days of adding one dollar of debt to get one dollar of GDP growth have been long gone for more than 40 years. And, as global debt has increased, it has forced governments to lower interest rates.

Yes, it’s really that simple. I get a good chuckle when I hear analysts talk about rising interest rates to 10-15%. If the U.S. Government interest rate on the Treasury Bonds increased to just 5%, Uncle Sam would be paying over a trillion dollars a year just to service the debt. So, no… we aren’t going to see 10-15% rates again.

Well, we could… but, most of the global debt would have to collapse or be forgiven. Unfortunately, if global debt vaporizes or is forgiven, then the entire economy collapses as well. We must remember, GDP growth is also driven by oil production growth. There is no way in HADES that the oil industry can fund future production with 10-15% interest rates. IT JUST AIN’T GONNA HAPPEN.

Why? If it weren’t for the Fed dropping rates down to nearly zero, the Great U.S. Shale Oil Ponzi Scheme and the six million barrels per day of unprofitable shale oil production would have been a pipe dream. I can assure you that the shale oil industry could not fund operations or service their debt with 10-15% interest rates.

Most shale oil companies are paying on average between 4-5% interest to service their debt. If the companies’ interest rates double or triple, then it would make it extremely difficult to service the shale industry debt that is estimated to be $280-$300 billion.

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

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