{"id":41338,"date":"2018-12-06T07:28:37","date_gmt":"2018-12-06T12:28:37","guid":{"rendered":"https:\/\/olduvai.ca\/?p=41338"},"modified":"2018-12-06T07:28:37","modified_gmt":"2018-12-06T12:28:37","slug":"gold-silver-the-markets-whats-next-for-2019","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=41338","title":{"rendered":"GOLD, SILVER & THE MARKETS: What\u2019s Next For 2019"},"content":{"rendered":"
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GOLD, SILVER & THE MARKETS: What\u2019s Next For 2019<\/a><\/h3>\n<\/header>\n
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The big question on the minds of most investors is what will happen to the markets and precious metals in 2019.\u00a0 Well, the answer depends mainly on two factors, the oil price and overall weakness in the economy.\u00a0 If the oil price continues to decline, it will indicate a deflationary outcome for the economy and markets.<\/p>\n

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.\u00a0 A lower sustained oil price, as I wrote about in my previous article, IT BEGINS\u2026 Rapidly Falling Oil Prices First Guts Tar Sands, Then Shale Oil<\/strong><\/em><\/a> will begin to destroy the oil industry, especially the unconventional oil industry.\u00a0 I don\u2019t believe Americans or the investors realize the tremendous amount of economic activity it takes to produce shale oil.<\/p>\n

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<\/strong>.\u00a0 Some energy analysts don\u2019t believe the U.S. shale oil industry has that much of an impact on the market, but I disagree.\u00a0 Since the 2008 market crash, the U.S. shale oil industry has brought on nearly 7 million barrels per day (mbd) of tight oil.\u00a0 U.S. oil production has surged from 5 mbd in 2008 to 11.7 mbd currently.<\/p>\n

So, to understand what happens to the markets in 2019, we need to focus on the number one driver of the economy\u2026 THE OIL PRICE.\u00a0 In my most recent video,\u00a0GOLD, SILVER & MARKETS: What\u2019s Next For 2019<\/strong><\/em><\/a>, I discuss what is taking place in the broader markets, gold-silver, and the oil price:<\/p>\n