If it works, we will get unlimited amounts of clean energy for low cost in about 20 years. Oil will only be used to make plastics and fertilizer, taking the price down to $10 for domestic production only. The crude left in the Middle East will become worthless.
Silver gives you additional diversification into the precious metals space with that extra bit of spice on the volatility side. It is nothing less than owning gold with a turbocharger. Silver gives you a nice double play.
The bottom line for all of this is that we are just seeing a market correction, not a major collapse, that the medium-term trend is still up, and that you should probably be buying here and not selling.
The world’s largest Muslim country offers a combination of a population with great demographics that is also a major energy and commodities exporter. The archipelago is the biggest country in Southeast Asia and a huge exporter of oil and LPG.
The global resource frenzy has grown so heated that money has begun pouring into the marginal fringes of the universe. The Mongolian stock market has been one of the world’s best performers over the last three years, posting two back-to-back 100% gains.
Texas Tea has to take the full brunt of collapsing demand caused by economies in free-fall like Europe, China, and Japan. There are no bailouts here. On top of that, Saudi Arabia wants to whip some discipline into its fellow OPEC members.
Everyone is stunned over how little oil has gone up in the wake of the Israeli air attacks on Gaza that killed the military leader of Hamas. It’s an old trader’s rule that if you throw good news on a market and it fails to go up, then you sell it.
If you rode gold from $800 to $1,900, oil, from $35 to $110, and Apple rom $200 to $610, why sweat trying to eke out a few more basis points, especially when the risk/reward ratio sucks so badly, as it does now?
I don’t get to meet with Nobel Prize winners very often, so I thought I would give you the full blast. Believe it or not, I left out some of his more incendiary opinions. After all, I have dined with only three in the past month.