The U.S. and world markets will crack in 2016. This will be due to the extremely low price of oil. There is a possibility that oil will drop below $20 as storage levels increase towards capacity in the United States. Already oil storage at Gulf Coast and Cushing, Oklahoma are at 85% capacity (source).
I sat down with Kenneth at Crush The Street and discussed how the low price of oil will be the factor that sends the U.S. and world stock markets lower in 2016, while pushing up the values of the precious metals. This is a very strange situation as history has proven that gold and silver tend to increase with a rising oil price. However, the falling oil price is destroying energy and commodity producing countries and their currencies.
Investors worried about the continued decline of currencies throughout the world are finding precious metal investment as a safe haven.
Here is the interview below:
You can also find the interview at Crush The Street.
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