GOLD and SILVER: Can The Price of Gold Hit and Exceed $ 2000 per Ounce: Part Seven:
Dateline: Tuesday, August 06, 2019
FNB is a precious metals industry leader. Each weekday, we post information and financial facts (and opinions!) that relate directly to the financial markets and also that have direct impact upon the daily lives of investors.
In our last session, FNB examined global insecurities and soft-spots in global currencies that trigger: “Helicopter Drops!”
In this session, FNB takes a deep dive into how oil prices and oil diplomacy could seriously impact the upward draft pressure on the price and value of both gold and silver.
Oil Prices and OIL DIPLOMACY:
The price and value of gold and silver–but primarily gold–is closely wedded and tied directly to the price of oil. Oil is a standard, excessively utilized ‘alternative asset’ that holds the price of gold in the balance.
Oil diplomacy certainly impacts the price and value of gold. Think about the fact that multiple countries depend upon ‘oil producing nations’ and “OPEC” for their very existence. This direct, energy dependence makes purchasing countries beholden to producing nations that may in fact not have their nation’s best interests at heart.
In fact, it is clear that in many instances, the oil producing nations have interests that are directly in opposition and in many ways produce direct harm to their purchasing national partners.
Here are some key issues that smart investors have to consider and keep a keen eye on RE: oil production + oil prices + oil diplomacy:
Inflation: the price of oil right now seems pretty stable. However, ‘peak oil’ is a real and not imagined phenomena
‘Choke Points’: as global tensions increase, there are a few ports of call and fewere still safe passage sea lanes that if contramanded by the wrong forces could seriously jeopardize developed national economies in a twinkle of an eye
Production Costs: as exploration and discovery and then recovery of oil and other ‘alternative assets’, the price per barrel is going to rise exponentially
The biggest factor that ties the price and value of gold to the price of oil is the fact that both assets are traded in United States Dollars.
As the value of the US dollar goes, so goes coefficeintly the corresponding prices of gold and oil.
In our next session, FNB will take a look at the current surge in pricing that is taking place in both gold and silver.
FNB strongly urges all savvy and thoughtful investors to ramp up their physical gold coins, bars and bullion holdings. FNB invites all to visit our website:
FNB invites all that live in or near our three physical locations in San Diego, Del Mar and Scottsdale to stop in and visit and meet one-on-one with our Team of precious metals experts.
FNB posits and strongly asserts that capitalism and the capacity to own, manage and profit from the collective of private properties and/or business initiatives is a driving force that America and its leaders simply must protect.
FNB remains diligent and unwavering in the call for common, average American people to seek out the Safe Havens of gold and silver coins, and gold and silver bullion.
FNB, a national precious metals industry leader and reputable gold and silver coin dealer urges investors, bond-holders, speculators and all who manage and/or oversee their family’s financial portfolio begin now migrating larger allocations into the historical safe harbors of: Gold and Silver.
Founder and Owner,
First National Bullion
For direct consultation with a gold and silver expert contact FNB: