PM & Oil expert Steve St. Angelo joins the show this week for a power packed interview discussing:
- Mexican standoff in the silver market– will Asian physical demand overwhelm naked paper shorts?
- Steve Explains Why Peak Oil Will Destroy the Value of Paper Assets, & Decimate the US Market
- US Gold & Silver demand ROARS back: Wholesale US gold market CLEANED OUT of all secondary market coins in past 48 hours
- Steve compares what is coming to the US in the next 3 years to the end of the Roman Empire, and discusses why backing the US’ $17 trillion in debt won’t prevent A COLLAPSE WE DON’T COME OUT OF!
The SD Weekly Metals & Markets With The Doc, Eric Dubin, & special guest SRSRocco is below:
Give me a one-handed economist! All my economics say, ”On the one hand? on the other.” — President Harry S Truman# # # #We recorded this week’s show after the market close, Thursday. It’s hard to say what will happen Friday given the release of the non-farm jobs report. Traditionally, precious metals are bombed on these jobs reports. Certainly, the carnage in mining shares Thursday would argue that cartel monkeys are signaling a major raid dead ahead. Time will tell.
One would think that the ECB lowering interest rates and signaling a willingness to expand the ECB balance sheet to about 2.7 trillion euros from the roughly 2 trillion euro level today would be precious metals friendly. It was! That is, until the cartel painted the tape later in the day. How many times have we seen this movie?
Peak Oil and the metals marketsPeak oil is a tricky subject to address. Many scoff at the “theory.” Yet the vast majority of peak oil critics invariably do not understand the science and history of peak oil. Even the case for abiotic oil is largely irrelevant because its rate of production is trivial and more importantly, accessibility is an issue.The world witnessed a peak in conventional petroleum production in 2005. As conventional oil flow per day has declined, the difference has been made up by natural gas liquids, heavy oil sources like tar sands and the diversion of part of the net final demand for refined products with the substitution of ethanol. This is an indisputable fact. Fracking and other technology results in the availability of more supply squeezed out of lower “quality” geologic sources. But it takes far more energy equivalent in resources to extract oil from shale plays, resulting in a much lower energy return on energy invested.
The world will NEVER run out of oil. If you hear a critic of peak oil make jokes to this effect, that only speaks to the critic’s ignorance. We have a situation where oil is becoming more expensive in terms of necessary energy to extract oil. New supplies will come online, especially in the arctic. But the general trend is in place and the numbers don’t lie. On a future show, we’ll dive deeper into this subject.
Steve DeAngelo noted that peak oil could lead to a collapse that society will have a very difficult time reversing. I have a somewhat different take. I believe society will go on, but that the disparity between the wealthy and the masses will expand — again, another big topic for discussion at a later date. If you’d like to dive into this subject further, along with more detail about peak oil in general, I highly recommend a podcast Chris Martenson recorded in March with Richard Heinberg. Click here.
Thanks for tuning in! — Eric Dubin