Welcome To The Conversation: Important Information Why The Precious Metals Price Smash Is Meaningless

Investors need to realize the precious metals paper price smash this week is meaningless when we consider the underlying fundamentals of the U.S. and Global Financial System continue to disintegrate.  Financial Industry expert, Vic Patane and I discussed why the current precious metals selloff is a nothing more than a mere distraction from the ongoing systemic financial disaster taking place at Deutsche Bank.

In addition, we covered many other topics, including the strange 2016 U.S. fiscal debt increase of $1.4 trillion, while the budget deficit was less than half of that.  We also discussed why the U.S. net worth of $89 trillion (Q2 2016) versus $58 in 2010 is not based on reality as our total energy consumption is actually lower.

During our conversation, I reference the chart below:


Investors need to realize that financial assets must be based on energy.  Only a growing energy supply can lead to an increase in net worth.  In the chart above, we can clearly see that total U.S. energy consumption as been relatively flat since 2010, however total U.S. net worth has jumped $31 trillion.

On the other hand, total U.S. energy consumption nearly tripled from 34 quadrillion Btu’s in 1950 to 98 quadrillion Btu’s in 2000.  Thus, the increase in energy consumed translated into a higher net worth of the U.S. assets.

Vic and I also touched on why it is very important to educate oneself when buying and storing precious metals.  Many companies are charging high fees for selling and storing precious metals.

Lastly, I provided some information about my interesting conversation with Bedford Hill of the Hills Group on their Thermodynamic Oil Collapse model.  Even though it has taken more time to get Louis Arnoux and the Hills Group on for an interview, I believe it will be well worth the wait.

Lastly, if you haven’t checked out our new PRECIOUS METALS INVESTING section or our new LOWEST COST PRECIOUS METALS STORAGE page, I highly recommend you do.

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18 Comments on "Welcome To The Conversation: Important Information Why The Precious Metals Price Smash Is Meaningless"

  1. Steve,

    What a great conversation between you and Vic. Great Advice to ignore the day to day vibrations in price except if you are looking to buy.

    One commentator on Kitco suggested that the price drop looked like it may have been the result of an undisclosed hedge fund liquidation. It remains to be seen if this proves to be true.

    Anxiously awaiting the interviews with Arnoux and the Hill Group.



  2. Physical gold and silver in your own hands as the ultimate store of energy AND medium of exchange between other stores of energy like good quality handtools, food, priveliges.

    Your work is awesome Steve.

    We still have a few years, due to the efforts of central banking, to frontrun the imposition of a new, “improved”, physical world. A world without distractions like central banking.

  3. DisappearingCulture | October 8, 2016 at 10:46 am |

    Preaching to the choir for the most part, but for newer readers:


  4. Question: there are already mayor disturbances in financial markets, like 13 trillion dollars in negative yielding gov debt, 2.5 billion paper gold dumps within one minute and a worldwide 300+% debt/gdp ratio (gov, business & private).

    My guess is we won’t make it until 2026 when the BW Hill, Arnoux reports come due. Migration, talks about an Aramco ipo, Brexit, Deutsche Bank, Italian banks on the brink of collapse etc etc.

    We will have a banquet of consequences way before 2026.

    Any opinions?

    • DisappearingCulture | October 9, 2016 at 2:25 pm |

      “We will have a banquet of consequences way before 2026.”

      WAY before. Having seen a lot of rabbits pulled out of the hat, and increasingly draconian government, who knows what the Fed, Plunge Protection Team, ECB, BOJ, etc. and their allied groups…plus the world’s governments they control… will do.

      But they can only delay the mess they have set in motion.

    • I agree, there will be monetary and markets crash probably well before 2020, and those will cause a social and industrial crash due to non-reformation of the design of the monetary system, and failure to bring efficient energy tech to the masses, and this probably will result in an ugly population crash. I also believe this is what the elites desire as the outcome. So this would still be in line with a lowest nadir point at 2026, and until 2035 before anything gets ‘solved’. Again, I think this is the desired outcome. They want princes and paupers, it is what the system is designed around. And they have very little need for paupers when robotics are scalable.

  5. houtskool,

    You”re right. Probably won’t make it to 2020 given the state of the Italian banks and the rise of the 5Star party promising to exit the European Union. If that happens, no one can save Deutsche Bank which will pretty much mean Party Over!


    • Racial tensions in the US? Social tensions in China?

      Look at this: http://www.aljazeera.com/programmes/101east/2016/09/china-economy-160913081105227.html

      Leverage of human labour is a bitch, especially with 7 billion people and declining profits. A real bitch.

      • What a laugh, they prebuilt their ghost towns but ours will still end up about the same.

        This planet just can no longer support 7+ billion people, maybe 2-3 billion given our depletion of commodities and the compounded complexity of operating systems. And then, only in small, local, agriculturally based communities

        Unlike the lemmings though that just throw themselves off the cliff when unsustainable overpopulation happens, we have the elites and the central banks driving us off the cliff.

        The ironic or perhaps saddest part is that 99% have absolutely no f**ing idea what shit storm tsunnami is about to crash down on their heads.

        A real bitch for sure.


  6. Like i said!In a world where it is possible to print endless paper money the centralbanks determine what asset has which value.

    Next step the EZB decide to buy stocks.The FED will do thhe same, when it is necessary.

    • DisappearingCulture | October 10, 2016 at 7:51 am |

      “Next step the EZB decide to buy stocks.The FED will do thhe same, when it is necessary.”

      out in the open the U.S. Fed can’t buy stocks without cpngressional mandate. Equities buying so far has probably been the plunge protection team

  7. Fundamentals for gold and silver look soggy with Silver’s fundamental price below $16 bases on basis. https://monetary-metals.com/partial-silver-crash-report-9-october-2016/

    Gold and silver can go to any price in the long-term, but based on Friday’s basis it is better to destock rather than carry.

    I may not like Keith Weiner but he reports the data/fundamentals of basis. I prefer to have my fantasies catered to–Silver $200

  8. Steve…Here is another way to look at What Happened Last Week with Gold, Silver & the U.S. #Dollar and The Answers….@ http://www.free-bullion-investment-guide.com/#chart

  9. Silver Savior | October 12, 2016 at 12:46 am |

    Silver $1200 Gold 35-$50,000 or fiat currency can’t buy it at all. All mine is not for sale or trade for atleast 30 years or when the valuation is beyond ridiculous. Whichever comes first.

    I love investing in precious metals.

  10. bill simmons | October 17, 2016 at 3:27 am |

    A few years back HSBC entered into a contract to purchase all future production of the largest Polish silver producer, a company that supplies about 40 million ounces of silver to world production.My question is– is this production included in available world supply and is the 40 million ounces included in silver demand.This information would have a profound affect on the annual silver supply/demand deficits

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