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Crashing Oil Demand Provides Silver Lining for Miners

Mike Maloney outlines in “Helicopter Drops & Biggest Bailouts in History Are Here” where the markets and precious metals may be heading. With WTI crude trading in the mid-$20s, oil demand is collapsing as transportation grinds to a halt. While the energy sector is reeling amid this massive sell-off, miners and other operators are about to experience a dramatic decline in expenses.

Maloney explains,

“It’s good news for some producers… in the mining industry, a very high portion of their costs is energy. So, that’s good news for them; it reduces their costs.”

And that investors should,

“Look for the most and largest bailouts in history coming at us.”

Speaking yesterday, Mike warns investors that,

“Stock markets have now lost 1/3 of their value in just one month. This is one of the biggest things that has ever happened in world history.”

The Dow had a tragic reversal in value Friday, March 20th, as it dropped more than 1,300 points from its intra-day high of 20,531 to below 19,200.

Oil Demand Destruction Crushes WTI Crude Prices

Giovanni Serio, head of research at Vitol, told Reuters on March 20th that,

“Demand destruction this year depends on how many countries follow an Italian-style lockdown. The drop in Italian consumption has been dramatic. If you extrapolate it to the rest of Europe, and particularly the U.S., then you can get as bearish as you like.”

The article World’s Top Oil Trader: Global Demand To Plunge More Than 10%, explains,

“California, for example, is already under lockdown, after ordering on Thursday its 40 million residents to stay at home unless they have an essential reason to go out.”

 

Maloney talks about a $12 trillion margin call and discusses the physical gold market and the “severe shortage” currently hitting the space.

Famous for stating, “Almost everything is in a bubble,” Maloney explains his stance towards US stocks.

Mike looks at the P/E ratio of the S&P 500 and argues the second-largest stock bubble of all time is bursting. He argues that as earnings collapse, P/E ratios may even rise, despite crashing stock prices.

Finally, Mike Maloney answers questions from haters and doubters who are losing faith in gold and silver as prices languish. As oil demand fades, it will bolster precious metal producers and lower all-in sustaining costs, when they go back to work. As we know, Trump controls the Fed. The only question is if it has enough credibility left to stabilize the markets during a crisis it is not designed to fix.


Alexander Smith

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