I've published other charts that involve the ratio of gold to oil but this chart just "looked" like something I wanted you all to see. You can see the "relationship" that silver and crude oil have over the long haul (the last 10+ years) and how these markets move with each other.
When we look for a bull market in silver, for example, we really also need a bull market in crude oil to help it along. You don't get one without the other.
The cost of goods has fallen here and have enriched all of the consuming countries and are leaving the producing countries and companies in a dangerous position here where their ability to survive is being challenged.
The amount of debt in the energy sector will have a difficult time being rolled over with every day that oil spends down at these prices.
I'll make a ratio chart next to see how many ounces of silver it takes to buy a barrel of oil over the long term and see where we are in the relationship. Is oil too cheap here relative to the S&P500? I think so. Could it go lower still in the short term? Yes, of course. Traders could push it down further and squeeze the producers who are running short on cash. OR, we could have a supply disruption event like we saw in the 1970's where all of our assumptions could be turned upside down very quickly.
What are your thoughts? Feel free to share here.
Easier question: What direction is the next $10 move in crude oil?
I'll put an UP comment and a DOWN comment - click on AGREE of whichever one you think. (Only vote once)
Tim 11:42AM EST 11/17/2015
When we look for a bull market in silver, for example, we really also need a bull market in crude oil to help it along. You don't get one without the other.
The cost of goods has fallen here and have enriched all of the consuming countries and are leaving the producing countries and companies in a dangerous position here where their ability to survive is being challenged.
The amount of debt in the energy sector will have a difficult time being rolled over with every day that oil spends down at these prices.
I'll make a ratio chart next to see how many ounces of silver it takes to buy a barrel of oil over the long term and see where we are in the relationship. Is oil too cheap here relative to the S&P500? I think so. Could it go lower still in the short term? Yes, of course. Traders could push it down further and squeeze the producers who are running short on cash. OR, we could have a supply disruption event like we saw in the 1970's where all of our assumptions could be turned upside down very quickly.
What are your thoughts? Feel free to share here.
Easier question: What direction is the next $10 move in crude oil?
I'll put an UP comment and a DOWN comment - click on AGREE of whichever one you think. (Only vote once)
Tim 11:42AM EST 11/17/2015
评论:
17 up votes - 25 down votes after one day as of 1:10PM EST 11/18/2015
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