Think gold and silver will continue to be the whipping post for the banking cartel? No so fast. While the paper game continues it seems the time is running short due to the fact that the energy stored within these precious metals will soon be on the decline. Combine this with the fact, that China, India and Russia are removing almost 75% of global mining production and recycled materials on an annual basis and you have a situation that is unsustainable for the rest of the world. Currently these three countries are removing approximately 3,500 tons of gold in a global market that is approximately 4,200 tons.

I sat down with Rory at TheDailyCoin and discussed several topics on energy, the precious metals and mining.  Here is the link and intro to the interview:

Steve St. Angelo | Silver, Shale, September – It’s Gonna Get Ugly

By Rory,

The Daily Coin Does anyone believe the current gas prices are going to stay this low for much longer? Well, if you do, you may want to listen to what Steve St. Angelo from SRSrocco Report has to say. Shale is failing and will be on it’s last leg within the next 5 years and just about dried up completely within 10 years.

“The US shale gas industry is a commercial failure”. The US set up 35,700 drills, Russia set up 8,000 drills and Saudi Arabia 399. The US produces 11.7mm barrels of oil per day, Russia produces 10.9mm barrels per day and Saudi Arabia 11.4mm barrels per day. That’s a lot of more work for, basically, the same amount of production. That’s a lot more resources for, basically, the same volume of production. To be sure the US did produce more by-products, such natural gas liquids, condensate which is similar to gasoline. “We could see a significant fall by 2020-2025.”


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12 Comments on "SILVER, SHALE, SEPTEMBER– It’s Gonna Get Ugly"

  1. Short, sweet and to the point.



  2. Re. due to the fact that the energy stored within these precious metals will soon be on the decline.
    I’m sorry, I don’t get this. Once mined and processed into some form, the energy is invested – it doesn’t go down. Please explain – and I did listen to your interview.
    Thank you, RSD

    • RS Dorsey,

      Let me clarify. The metals do not contain ENERGY, rather they store ECONOMIC ENERGY or ENERGY VALUE. Energy and labor are the basics of our modern complex economy. An ounce of gold or silver contain this store of energy value that can be traded for goods and services of similar energy value.

      When PEAK of unconventional oil production arrives, it doesn’t change the Economic Energy or energy value contained in gold or silver, it destroys the VALUATION of most paper and physical assets. You see, most paper assets are based on the economic principle of NET PRESENT VALUE. The paper asset actually takes future earnings and calculates a share price or value today. However, this valuation is based on a growing energy supply.

      Once peak oil arrives and starts downward, it destroys the valuation of most paper assets that derive their value from burning energy. Gold and silver do not have this problem because they contain energy value, while most paper assets are in fact ENERGY IOU’s.

      So, as paper assets implode due to peak oil, it makes sense that investors will flee paper and head into physical gold and silver to protect wealth. This is when we will see silly prices-values for the precious metals.

      Does that help?


      • “So, as paper assets implode due to peak oil, it makes sense that investors will flee paper and head into physical gold and silver to protect wealth. This is when we will see silly prices-values for the precious metals.”

        I’m going to postulate however the value of PM’s will go way up priced in fiat currency before the “mass-effect” of peak oil.

        For certain on the COMEX they will fight tooth & nail not to allow that to happen. Until recently I believed this charade could go on until physical defaults broke the manipulation, and that would take more time than many believe it could be extended.

        But the U.S. and other nations’ stock and equities markets are way overvalued. More so than about any time in history. According to research/analysis I was exposed to about 50% of people in the financial services industry know this. They are poised near the exit door to escape personal carnage. The stampede may make market corrections become market crashes. If we have drops comparable to circa 2008 I do not think the manipulative consortium can stop a huge rise, and their ability to cap it will be more limited than in the past.

        The last resort to prop up sovereign fiat currencies is some sort of tyranny, but I don’t think that will work in nations in which citizens have the right to bear arms.

  3. It takes Energy to get the metals out of the ground and refined. In that sense they are a “Store” of Energy.

    • lastmanstanding | April 30, 2015 at 7:12 am |

      +1…It takes ALOT of energy for that brother…If you think about it, how much energy has been used over the years to continuously develop better mining/drilling/construction equipment?

  4. Silverwillwin | April 28, 2015 at 3:51 am |

    Silver has got energy written all over it. It is kind of like a capsule of energy in mass. Check out atoms in silver…

  5. Steve,
    Thank you for the explanation but while I agree with all of it (and I know that precious metals are not batteries), your wording that I cited still makes no sense to me. “due to the fact that the energy stored within these precious metals will soon be on the decline.”

    If they are precious metals, as opposed to unmined ore, they have X energy invested. As the cost of energy goes up, the cost of the energy invested in the PM goes up even if the foot pounds of energy to produce the PM does not. Since energy cost is not likely to be going down, I can’t see why the energy “stored” in the PMs would be any less (decline) in the future. Your wording indicates a future decline in energy invested to provide PMs. That would only be true if the ores were significantly richer or energy cheaper.

    • RS Dorsey,

      If I made that statement, it’s incorrect. Energy value stored in already minted silver and gold coins does not go down. Just think about it. In 2000, you could buy an ounce of gold for $350. Today, its over $1,200. The price of oil moved up from $20 to over $110 these past several years… except for recently.

      So, the energy value in gold still remains high. Of course we have to factor in the declining ore grades as it takes a great deal more energy now to produce the same amount of gold… not including the higher cost.

      Please disregard that statement… it’s false. If I made it (by mistake) then it’s incorrect. What will fall in the future is ENERGY PRODUCTION. And I don’t believe we are going to see higher and higher oil prices. the world can’t afford high oil prices, which is why we peak in oil production.

      Just focus on Peak Oil and it’s impact on the valuation of most paper and physical assets. Gold and Silver will be some of the highest valued physical assets, much better than Real Estate.


      • Thanks very much. We are in agreement. I appreciate your research.
        Best, RSD

        • RSD,

          Steve is absolutely right. The collapse of the paper asset market and many of the physical asset markets is inevitable because of the declinging EROI. It is insurance against that collapse, but the owning of PMs, especially silver for a lot of reasons I won’t go into, is a whole lot more. It is insurance against the collapse of the market because one day Comex can’t make a delivery on a contract., it is insurance against a mega volcano, an asteroid event, a major war, a major weather disaster. It is insurance against any global catastrophy. Who knows which may come first. We do know that the the decling EROI will lead to a papper market colapse but whats to say some other disaster may rear it’s ugly head sooner.

          The concept of insurance is familiar to everyone. You pay your homeowners or car insurance and the premium is dead money until you have a claim. So far, a payout of PMs as insurance has not been needed. Once you own PMs, the cost of the insurance is the lost interest on the principal invested which today is about 1% per year. When you add the fact that you can buy PMs at or below production costs, which can’t continue for very long, PMs, silver particularly, are a no brainer.

          Buy for cash and stash.


          • lastmanstanding | April 30, 2015 at 7:22 am |

            On April 25,2011, a dinky little coin shop in my dinky town did nearly $300k in sales of pm’s.

            Shortly there after, they crashed…These people thought if was over then and were running to the safety of real earthly items.

            Most still have them. Some don’t.

            It will happen again. A run up…imo, no crash ever again.

            True earthy survival depends on very few things. If you get that, you have a chance.

            “don’t go down without one helluva fight”

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