Tuesday , 3 October 2023

Gold, Silver, Oil & the Markets: What’s Next?

“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.”

By Lorimer Wilson, editor of munKNEE.com – Your KEY To Making Money! 

[This synopsis of edited excerpts* (426 words) from the original article (799 words) by Steve St. Angelo provides you with a 47% FASTER – and EASIER – read. Please note: This complete paragraph, and a link back to the original article, must be included in any article re-posting to avoid copyright infringement.]

“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…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…I discuss several oil charts and how the price trades in between these technical levels and what…is in store for 2019…

Furthermore, I explain what is going on in the gold and silver price charts.…Gold and silver are much closer to their BASE PRICE LEVELS than are the broader markets…[and that] is why I don’t believe we are going to see a crash in the precious metals prices along with the broader markets.  However, if the oil price does continue to fall lower, which seems likely, then it could pull down the gold and silver prices a bit more in the short-term

If we look at the next chart I discuss in the video, it shows why the gold price hasn’t fallen to new lows as some analysts have suggested:

While the gold and silver prices are close to their base support levels, due to the cost of production, the broader market valuations are in bubble territory and will likely start to correct violently in 2019. 

Thus, as the markets continue to crack (crash), FEAR will motivate investors to rotate out of stocks and [real] estate and into the precious metals…[which] will push their values to new record levels.”

(*The author’s views and conclusions are unaltered and no personal comments have been included to maintain the integrity of the original article. Furthermore, the views, conclusions and any recommendations offered in this article are not to be construed as an endorsement of such by the editor.)

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