Oil

copperhead said:
If oil hits $10 a Barrel any predictions on the PM market
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If oil hits $10 then silver will be $1000 and gold $25000 an ozt and i can finally marry Tinkerbell in Neverland .
Mind you i thought $30 would be near impossible also:)
 
copperhead said:
If oil hits $10 a Barrel any predictions on the PM market
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@ $10 oil I reckon we'd see Sub $15 Silver and Sub $1100 Gold.

In any case if we are at $10 oil the worlds economy is in the sh!tter. Saudi may still keep pumping it at that price just to screw the Russian's and the American frackers.
 
If you look at the seventies to the eighties, movements there in oil prices, gold and geopolitical upheavals, this might echo:

But despite the glut in global oil production somewhere around 1 mb/d the margin from excess to shortage is thinner than most people think. OPEC is producing flat out and spare capacity is actually remarkably low right now. The EIA estimated that OPEC spare capacity stood at just 1.25 mb/d in the third quarter of 2015, the lowest level since 2008.

As a result, even though it remains a remote possibility, direct military confrontation between Saudi Arabia and Iran could well put oil back into triple-digit territory in short order.

http://www.zerohedge.com/news/2016-01-13/war-between-saudi-arabia-and-iran-could-send-oil-prices-250
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The middle east has it's eggs in one basket , There is wealth there . Not looking to point fingers
but there are people there willing to die for a cause .
So I worry could OPEC members create a war with no regard to human life ( as it's not theres )
to cause a shortage to stabilize crude . In the long run we are blackmailed to OPEC .
Picture the middle east with no more oil income . They would not be particularity happy
 
You mean start a war for greed/profit/control of resources?
Without looking too hard you may find a number of precedents.
the question isn't so much is it possible, its more is it probable?
 
copperhead said:
The middle east has it's eggs in one basket , There is wealth there . Not looking to point fingers
but there are people there willing to die for a cause .
So I worry could OPEC members create a war with no regard to human life ( as it's not theres )
to cause a shortage to stabilize crude . In the long run we are blackmailed to OPEC .
Picture the middle east with no more oil income . They would not be particularity happy
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Crude is "stabilized"......................low but stable.
Did you mean create a a war to INCREASE THE PRICE?
 
I thought it was common knowledge that the Saudis were deliberately pushing the oil price down to try and drive some of the marginal producers (in the US and elsewhere) out of business. If this is the case, why would they start a war to push the price back up? Job is not done yet....
 
the oil to gold ratio is a long term average of about 15:1,
Gold%2BOil%2BRatio%2B40%2Byears%2B1970%2Bto%2B2011.png

Source: Bullion Baron

The current ratio is around 35 or 36 to 1, this is an all time high. This situation cannot last and we know oil is not going back up for a few years and may fall much further.
Oil at $30 means the gold price is going to $450, oil at $10 means gold will go to $150. If the ratio undershoots to 7:1 as it has done and oil hits $10 then gold will be $70, yes paper gold futures might go to $70 per paper ounce.

These gold prices are for the paper markets and while I do expect we will see a huge drop. I also expect physical bullion to be completely unavailable under the cost of production (~$833).
 
bubbleboy said:
the oil to gold ratio is a long term average of about 15:1,
http://1.bp.blogspot.com/-vwdWyby1L...1600/Gold+Oil+Ratio+40+years+1970+to+2011.png
Source: Bullion Baron

The current ratio is around 35 or 36 to 1, this is an all time high. This situation cannot last and we know oil is not going back up for a few years and may fall much further.
Oil at $30 means the gold price is going to $450, oil at $10 means gold will go to $150. If the ratio undershoots to 7:1 as it has done and oil hits $10 then gold will be $70, yes paper gold futures might go to $70 per paper ounce.

These gold prices are for the paper markets and while I do expect we will see a huge drop. I also expect physical bullion to be completely unavailable under the cost of production (~$833).
Click to expand...

Bloody hell talk about a good time to stack PM's.

The next few years are going to be crazy low prices!!!
 
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