Steve St. Angelo: Will Miners Confirm Gold’s Moves?
Tom welcomes back Steve St. Angelo of the SRSrocco Report.
Steve discusses several topics related to the precious metals market, gold mining, renewable energy, and the oil industry. He believes that the current precious metals rally may not be sustainable and is driven by paper digital futures markup rather than increased demand from institutions and high net worth individuals. He also discusses the potential impact of decreased demand if investors start investing in financial assets and treasuries instead of gold. Steve suggests that gold prices are affected by the amount of money invested in gold mining and various production costs.
He discusses the disparity between gold and silver prices and the struggles of primary silver miners. They mention the growth of the US treasuries and the battle between treasuries and the gold market. Steve believes that there is an unsustainable increase in financial assets compared to the real GDP growth and lack of energy to settle these assets.
Lastly, Steve discusses the renewable energy sector and its challenges, highlighting the need for a new market to develop to improve energy efficiency. The interview concludes with a discussion on the US oil industry and the challenges it faces, including declining shale production and new regulations.
Talking Points From This Episode
- The current precious metals market has been sustained due to options and futures which can make it unsustainable if external events and financial crises don’t occur.
- The Federal Reserve has increased the Fed funds rate which has grown US treasuries to 21.5 trillion by the end of 2020, creating a battle between gold and the US treasuries.
- Renewables are gaining in popularity but the capacity factor and return on investment demand a different market structure.
Time Stamp References:
0:00 – Introduction
1:25 – Gold Moves & ETF Flows
3:05 – Neg. Divergence in Gold
4:36 – Bonds & Returns
6:46 – Miner Production Costs
8:24 – Energy Inputs & Costs
9:29 – All-In Sustaining Costs
12:23 – Poor Grades & Production
14:24 – Gold Price – Factors
16:16 – GDX Weakness – Causes
18:30 – Central Bank Buying?
21:00 – Silver Miner Outlook
22:43 – Total Production Costs
24:30 – Debt Issuance & Limits
29:56 – Renewables & Lag Effects
33:47 – EROI on Renewables
38:56 – U.S. Oil Exports & SPR
42:55 – Shale Oil Production
47:52 – Euro NatGas Reserves
51:46 – Diesel – No Substitutes
54:54 – Outlook & Wrap Up
Guest Links:
Website: https://srsroccoreport.com/
Twitter: https://twitter.com/SRSroccoReport
YouTube: https://www.youtube.com/channel/UCED7G7CZfqdSV9zttlr1M_g
Independent researcher Steve St. Angelo (SRSrocco) started to invest in precious metals in 2002. Later on, in 2008, he began researching areas of the gold and silver market that, curiously, most of the precious metal analyst community have left unexplored. These areas include how energy and the falling EROI “Energy Returned On Invested” stand to impact the mining industry, precious metals, paper assets, and the overall economy.
Steve considers studying the impacts of EROI one of the most important aspects of his energy research. For the past several years, he has written scholarly articles on some of the top precious metals and financial websites.
You can find many of Steve’s articles on noteworthy sites, such as GoldSeek-SilverSeek, Market Oracle, Financial Sense, GoldSilver.com, SilverDoctors, TFMetals Report, Outsiderclub, SGTreport, BrotherJohnF, Hartgeld, Der-Klare-Blick, PeakProsperity, SilverStrategies, DollarCollapse, FurtureMoneyTrends, Sharpspixley, FinancialSurvivalNetwork, PMBull, Deviantinvestor, PMBug, Wealthwire, and ZeroHedge.