Dow Jones Tanks As Silver Market Price Bottoming

During the last 90 minutes of trading on Wednesday, the Dow Jones Index tanked by 400 points.  Supposedly, the steep selloff had something to do with the release of the Fed minutes.  However, today, the market has reversed once again and is up by 200 points.  Unfortunately for mainstream investors, it doesn’t matter what the Fed or Wall Street have to say; the broader markets will continue to fall precipitously over the next few years.

Interestingly, as the indicators point to extreme leverage in the markets, the opposite is true for the silver price.  In my newest YouTube video, I discuss the different fundamental market indicators for the Dow Jones Index, the oil, gold, and silver price.  While the Dow Jones Index and oil price are closer to a top, the silver price is reaching a bottom.

I also discuss the tremendous increase in U.S. public debt over the past five months.  The U.S. Government is increasing debt at the fastest rate ever.  One of the negative side-effects of adding a great deal more debt to the public’s balance sheet is that the U.S. Treasury has to pay an ever-increasing amount of interest to service that debt.

After the Dow Jones Index fell 3,500 points in a short period, investors came back in to BUY THE DIP.  This “buy the dip” mantra is being played up by Wall Street and other assorted analyst gadflies.  While I don’t give out investment advice, if I were in the market, I would be SELLING THE RALLIES, not buying the dips.

Even though the Dow could move higher, and even surpass its previous high of 26,600, the leverage is still too extreme to allow the index to move up considerably from here.  In the video, I show how the Dow Jones Index had three peaks and declines before it sold off in 2008.  Thus, the index did not fall in a straight line, and it took nearly a year from the peak before the crash took place:

Lastly, there seems to be a group of analysts and followers of my work who are unable to understand CRITICAL THOUGHT and LONG-TERM FUNDAMENTAL ANALYSIS.  For example, due to the rapid increase in U.S. Shale Oil Production, we see analysis and comments on the internet suggesting that peak oil is dead and that those who adhere to fundamentals of resource depletion on a finite planet are just plain wrong.

While I won’t get into details here on why I disagree, the situation in the U.S. Shale Oil Industry is much worse shape than the market realizes.  These shale oil companies have put out presentations and financial reports that are misleading investors, so they continue to receive funds to keep the biggest energy Ponzi Scheme in history.  If the market thought ENRON was the biggest energy Ponzi scheme in history, they haven’t seen anything yet.

The only reason the U.S. Shale Oil Industry was allowed to continue producing uneconomic oil for the past decade is that it used OPSM – OTHER POOR SLOBS MONEY.  Unfortunately, analysts and individuals who have been hoodwinked by the supposed “technological advances” in lowering the cost of shale oil production and notion that it will continue for decades have done so because of their failure of CRITICAL THOUGHT.

If an individual continues to believe in infinite growth on a finite planet, there is no use debating this person because the wiring in the HEAD has malfunctioned.

Pay attention carefully to what happens to the U.S. Shale Oil Industry over the next several years, and when the cow excrement finally hits the fan, the financial and economic situation for the United States will likely deteriorate rapidly.


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51 Comments on "Dow Jones Tanks As Silver Market Price Bottoming"

  1. Michael Kohlhaas | February 22, 2018 at 4:59 pm |

    Wer are all doomed!!!

  2. Fracking is like the foam or head on a glass of beer. It will liquefy but you will not get much. Of course we have a finite world with limited assets so the industrial materials that are depleting will and have to increase in cost even in this government (Fed and plunge protection team) manipulated market. Can anyone say fascism style government or as Mussolini said “Fascism should be called corporatism”. Oh yeah, Switzerland is buying USA stocks…with whose money? The Feds? Obviously. Japan is buying Japan stocks which makes sense though it is a losing practice but the corrupt USA has to hide their corruption. What a losing system. Free market rewards the well run company but a government manipulated market does not reward success but failure so bailout is to keep the failure in place and not reward success. You talk about wanting the greatest depression then just look at the present government and market practice.

  3. Unfortunately, when the market crashes, so is GOLD! Remember in 2008, Dow Jones crashed 50%, but so did gold, about 40%. Maybe this time, Dow Jones will Crash 75%,but gold is going to tank as well. not 75%, but perhaps 40%. In other words, I would not wish for a crash because everything will go down, but always good to have some physical as a security because your FIAT currency will devalue very quickly.

    • Northwest Resident | February 22, 2018 at 8:33 pm |

      The reason that gold/silver crashes along with the market in those examples you stated is likely due to all the paper gold/silver being sold. Actual holders of physical gold/silver are very unlikely to unload their physical during stock market dives, since the reason they bought it in the first place is to preserve wealth during economic downturns. Paper gold/silver — worthless! Sell it all!

    • DisappearingCulture | February 23, 2018 at 8:48 am |

      “Maybe this time, Dow Jones will Crash 75%,but gold is going to tank as well. not 75%, but perhaps 40%.”

      No it won’t drop below it’s mining & refining cost by much. If it does the COMEX price will be very irrelevant to the actual selling price of physical [high premium over COMEX price].
      Anyone who doesn’t understand this just doesn’t know the score.

      • This time it’s different, this time Gold, Silver, Gold mining stocks and cryptos will explode higher and never look back! Keep stacking!!

    • There’s a difference –

      Gold will never go to zero.

    • Silver is already on a 90% off sale. If we get a 2008 style crash and silver goes to $8.00 again then it’s really time to back up the truck! Although you couldn’t buy the phyzz back then for less than $15.00 if I remember correctly.

  4. You can tell we are getting more and more desperate to keep the lights on. I was reading this ZH article and it’s discussing how Shale producers are needing a specific “frac sand” and it has to be brought in from Canada. So they are now resorting to using “brown sand” which is not as good. This is exactly what “Peak Oil” was all about, trying to get the super high hanging fruit that makes it even more expensive to get.

    So yeah, peak oil is a myth, lol.

  5. What is going to crush the Oil ?
    maybe dollar is going up ?,then gold will go down too?,
    or something big is coming!!
    Regarding growing Debt ,they go for maximum now.Use it or loose it.They fooling everybody and everybody only is looking. What about 20 trillion missing ?

  6. Even if you are right, who cares anymore.

    Do you take us for fools, Steve? It’s like you believe none of us know these things. It’s like you guys believe you are part of some secret club, and everybody else is some sort of idiot.

    WE ALL know about this. We are all aware of it. And yet all of the predictions of the stock market crashing and gold and silver rising have not come true.

    Everything you write, I’ve basically known the general outlines since 2009. And none of it has come to pass. The stock market rose. Silver rose and then crashed, erasing all of its gains. Gold meandered along going nowhere.

    Too late. You only live once. I’m not interested in this anymore.

  7. I enjoy SRSRocco reports because the facts are there . One may not agree with the conclusions but the actual facts are presented and I appreciate that . I am recommending the SRSRocco reports to my family and friends .

  8. dolph…for someone not interested in this discussion any longer, you certainly seem to be interested…constantly. Just leave…

  9. @63percentwater | February 23, 2018 at 9:32 pm |

    Damn I sensed an echo of M.C.R. in there.

  10. I invested in Silver back in 2011. I invested a substantial amount of money in silver. I drank the cool-aid and have suffered greatly as a result. Now, we worry about a large market crash occuring and what will happen to the Price of silver. Will silver go down more? Steve says silver is getting ready to bottom? Thats nice. I have no opinión on silver at this point. Analysts and pundits were wrong in 2011 so I suspect they will continue to be wrong. I am not selling my silver since I am down about 60% on my original investment value. I will just wait and see. With huge amounts of skepticism. The stock markets are about to get a taste of what happened to silver fairly soon in my opinión though. We will see soon.

    • Glen
      I also read the material and it persuaded me (blindly to take a large stake in physical metals) pretty tough going through this, but dont despair, we can always turn our stash into fishing sinkers.
      In the mean time I have been teaching myself the art of price action and the correct use of fibonacci retracement levels and technical/fundamental analysis. This gives you the ability to make up your own mind.
      Steve has nothing to gain from his analysis or views unlike some other websites/ companies peddling bullion.
      Hang in there mate you will at least get your money back

    • Do you complain when you loose money in the stock market? I’m sure you noticed that silver went from around $8.00 in 2008 to $48.00 in 2011. You followed the crowd and momentum traders in 2011 and bought at the peak. Right now silver sentiment is at its lowest. Welcome to the world of the contrarian. You have to be able to trust yourself to be a successful contrarian and be willing to stick through the pain of being early. Based on the fundamentals silver is extremely undervalued. One day when the real world matters and the Elon Musks of the world have flown off to Mars you’ll be glad you have silver.

  11. I do value the information here…a lot. I believe every word here,and I believe his advice is right, the problem is timing. Steve has no control over what the Fed does, and that in turn distorts the view of where we really are in the cycle. Nobody here is an insider so you might as well come to grips that you’ll never know the perfect time to know when or where to move to. I’m not a professional economist, but I think the Fed has the ability to keep this thing going for another 10 years easily. More QE, more lies, more CB collusion, and before you know it you’ll be on your death bed just knowing that the crash will be any day now.
    Take a good position and hold it for however long it takes, and then get on with your life…

  12. Glen, You’re down but you’re not out. There’s a big difference in there. Keep in mind that what you’re holding is not attached to a fad or some other kind of event that is hot today and not tomorrow. It is attached to extremely important needs and uses which can only become more so in the future. With all that has and is economically occurring around us regarding allot more busts than booms of late, the old reliable gold and silver almost certainly will shine again.

  13. I think Paul might have a point here.

    The FED may be able to keep this Ponzi afloat longer than we originally thought. Maybe 5 more years but I doubt 10.

    Silver mines will probably be depleted before 2040; oil fields before 2060; even as technology/automation, conflict, and population continue to explode worldwide into the 2020’s.

    The FED might be able to keep this up; but if they can keep it up more than 5 years, color me very impressed.

  14. Thanks Steve. Something from a Jeffrey Snider article “What they establish instead is a real economy that can’t even produce nominal wage gains sufficient to address only a partial rebound in oil and gasoline prices. Think about that. The reason real pay is down for that two-year period is because oil moved from less than $30 to a little more than $65”.

  15. Richard Heinberg, good interview. Why we will face degrowth, voluntarely or forced upon us.

    The reason you should own some physical gold and silver is not for ‘profits’, you greedy basterds. Its to preserve.

    • To me it’s not to preserve.

      Instead, I would like to be buried like a mighty pirate in the medieval age with all my wealth. 1000 years later, once archaeologists open up my grave, they’ll definitely be convinced I was very important and very rich person.

      We, gold and silver hoarders, should stick to this basic idea.

      • Its bytes and bits
        Until it hits
        Both legs cut off
        In the shed some wood
        So you walk again
        With those who understood
        In worlds beer and tits

        That was funny Jan

  16. Steve. Listened to Peter Schif and he believes the price of oil will go up because the value of the dollar will drop or crash. What say you ? I feel we will hit stag flation and the only things that will go up are necessities ie. energy. Food. Etc along with gold and silver. What say you.

  17. After some thought, I think shale is economical, just not as much as investors thought. If they invested 10 dollars for something that cost 5 dollars, hoping to make 20 dollars in the future, but only getting 7 back, they lost 3 dollars. Shale still made 3, if bought at true cost. This is the only way I can see to explain how shale companies can’t make enough to pay investors back, but still produce enough oil so that overall us oil imports are down.

  18. Like to do a piece on “Petro Gold” Venezuelan gold backed crypto Steve???

  19. I’m looking for 55 oil, 16 silver, and 1250 gold.
    There will be one last shakeout in the next couple weeks.
    I’m waiting patiently for the new rock bottom.
    My thesis gives us a dollar rally when the broader market tanks.
    I was shorting the S&P from 2750; I watched in amazement as the S&P rallied
    Friday afternoon; I got stopped out with a profit. I went short again at Friday’s close.
    In the next two weeks; don’t be surprised when the dollar index hits 93 or higher as everything sells off during the shakeout.

    • Hummm,
      I see things a bit different.
      Hyperinflation, moon shot for pms, cryptos, and the dow.
      Not all good though, $20 per gal gas, $15 for dozen eggs.
      When things start to crash, fed will print like crazy.
      When all you got is a hammer, everything looks like a nail.

  20. I have read Steve’s articles many years now. and agree with much he says. He does his homework, understands debt, interests rates,oil, and how they all dance together. He knows far more than I do, and I continue to value his comments and views, as I agree with his fundamental viewpoints.

  21. A few more days oil will hit the 63/64 per barrel mark and then with all those record shorts positioned on the Chicago Mercantile Exchange as of 18/01/20 ish down she will go to around app $50 per barrel. Trade your charts people, not an expert but learning how this money game is played

  22. FANG reachead another new all time high today, no end in sight for stocks, and even some bonds.

  23. The stock market is quickly erasing the losses. Here on Monday 26th Feb the Dow surges 399 points and is now back to 25,700. So much for the big market correction … LOL The stock market correction is one of the many fake predictions made by Gold & Silver bugs like hyper-inflation, bond market collapse, USD collapse, mega recession, etc.

    Silver mine production is expected to set new highs in 2018
    Anyone expecting higher silver prices might be disappointed as there will be plenty of Silver around.

  24. DisappearingCulture | February 27, 2018 at 11:29 am |

    It has been 9 years since what?

  25. This is so simple: The Fed will manipulate the markets up until the Dollar is removed from the world reserve currency status. End of Story. Then the fun begins….
    ( And in the meantime I will keep making a killing in the cryptos and accumulating silver while the Gold and Silver Bugs whine and moan )

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