There is , its mainly located in the darkest regions of Wales and New Zealand, but be careful before (Sheep) dipping your toe in or ewe may find yourself fleeced.
Open question - Financial
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There is , its mainly located in the darkest regions of Wales and New Zealand, but be careful before (Sheep) dipping your toe in or ewe may find yourself fleeced.
Modest spread of global ETFs still vastly outperforming silver and gold 6 months later. Fun to have some shiny things and as a small hedge maybe even sensible, but I’d be cautious of following the hype here when it comes to PMs.
Long term this is likely to continue to be the case, but hey, none of us can know what’s going to happen. Fingers crossed that whatever you have does well for you.
Long term this is likely to continue to be the case, but hey, none of us can know what’s going to happen. Fingers crossed that whatever you have does well for you.
Alongside some other savings and investments a small stash of shiny for emergency cash is always worth having. So long as it keeps pace with inflation and selling costs in relation to what you paid.
It's been a brutal 6 months that's for sure! If you're willing to be patient I'm still confident that you'll be pleasantly surprised when it makes it's move.
The fundamentals drivers that were pushing the price of silver up have not changed. So the way I see things are thus: As I considered silver to be a fair to good value investment proposition when it was priced at £88 during its peak in January then that must mean that at just £44 it's now back on sale again for half price. Happy days! That's great news for anyone who wanted to buy but felt like they had missed out on the opportunity when it spiked up so quickly in January.
Ok so at £44 that may not be quite the massive raging bargain that it has been for the past decade or so when it was stuck in a range between £10 and £20 and no one was interested in it. But at £44 that is still fantastic value by my reckoning.
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Personally, right now, I'm most interested in food, oil, silver and copper in that specific order.
I think food will rise in price by the highest percentage, then silver, then oil, then copper. But all four look like promising investment opportunities in my opinion.
Ps This not investment advice etc etc...
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Update regarding the silver shortage situation if anyone is interested.
https://no01.substack.com/p/the-silver-shortage-is-over
Update regarding the oil shortage situation: The US government now intends to drain the strategic oil reserves to 'fully empty' rather than just using up the 'operational' oil reserve.
For anyone who doesn’t understand what this means or how the strategic oil reserves actually physically work here is a brief explanation: The oil is stored by pumping it into vast underground salt caverns. To remove the oil afterwards water is pumped into the caverns via a long pipe which reaches to the bottom. This causes the oil to float on the water and come up to the top of the cavern where it is then pumped back out and used. Simple.
These salt caverns are vast is size and during normal operation they are only able to use the oil which is stored in the top half of the cavern. The reason for this is because if they pump too much water into the bottom it dissolves the salt walls further up and permanently damages the integrity of the cavern. This means that around 30 to 50% of the oil stored at the bottom can never be retrieved back without permanently damaging the caverns forever! So by fully draining all of the strategic oil reserves right to the bottom rather then just using the 'operational' oil in the top half means that the US is now willing to permanently damage a large portion of their future oil storage capacity in return to keep the oil price suppressed for a bit longer.
How much more time will this buy them? I don’t know. A few months maybe? Probably not for very long at the current rate of drainage though.
So why is the US willing to significantly and permanently sacrifice their ability to store oil in the future just to give them a couple of extra months of relatively low oil prices? I don’t know why they are willing to do this now but it's a serious decision to make which feels significant.
For anyone who doesn’t understand what this means or how the strategic oil reserves actually physically work here is a brief explanation: The oil is stored by pumping it into vast underground salt caverns. To remove the oil afterwards water is pumped into the caverns via a long pipe which reaches to the bottom. This causes the oil to float on the water and come up to the top of the cavern where it is then pumped back out and used. Simple.
These salt caverns are vast is size and during normal operation they are only able to use the oil which is stored in the top half of the cavern. The reason for this is because if they pump too much water into the bottom it dissolves the salt walls further up and permanently damages the integrity of the cavern. This means that around 30 to 50% of the oil stored at the bottom can never be retrieved back without permanently damaging the caverns forever! So by fully draining all of the strategic oil reserves right to the bottom rather then just using the 'operational' oil in the top half means that the US is now willing to permanently damage a large portion of their future oil storage capacity in return to keep the oil price suppressed for a bit longer.
How much more time will this buy them? I don’t know. A few months maybe? Probably not for very long at the current rate of drainage though.
So why is the US willing to significantly and permanently sacrifice their ability to store oil in the future just to give them a couple of extra months of relatively low oil prices? I don’t know why they are willing to do this now but it's a serious decision to make which feels significant.
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I don't believe this to be true. There is no official statement of 'completely draining' that I have found. Plus, the brine that replaces the oil is just as capable of supporting the semi-fluid salt caverns anyway.
But, there's probably a third truth.
But, there's probably a third truth.
This is only hearsay to be fair and not an official statement from the US government.
However it is known that they have have now used up virtually all of the oil from the 'operational' section of most of the caverns so if they keep draining them for much longer...
However it is known that they have have now used up virtually all of the oil from the 'operational' section of most of the caverns so if they keep draining them for much longer...
The brine, being less dense than the salt layer, will only support the brine partially, and will cause it to collapse gradually as nature tries to balance the two densities. Oil does not mix/dilute with the salt in the same way and is denser, so no cavern collapse, although there is always salt loss over time.
Depending upon the location and degree of any collapse, the usual way is to flush it out and reshape with a pumped water jet. If there is enough salt strata left. Big If. On this sort of collapse risk, it might expose other rock strata around the salt dome, which will be permeable and render the salt layer/dome useless.
The only other use for it is to dispose of chemicals/pollution nasties that the US does not want folk to know about. E.g. redundant nerve agents, chemicals so nasty and untreatable industry no longer uses them, etc.. They have form on doing this, and it caused earthquake tremors on San Fran fault lines.
Yes, of course it will also leak thru the same exposed rock strata. But they will be long gone by the time this becomes apparent, so they deny or self- justify doing it etc.
Depending upon the location and degree of any collapse, the usual way is to flush it out and reshape with a pumped water jet. If there is enough salt strata left. Big If. On this sort of collapse risk, it might expose other rock strata around the salt dome, which will be permeable and render the salt layer/dome useless.
The only other use for it is to dispose of chemicals/pollution nasties that the US does not want folk to know about. E.g. redundant nerve agents, chemicals so nasty and untreatable industry no longer uses them, etc.. They have form on doing this, and it caused earthquake tremors on San Fran fault lines.
Yes, of course it will also leak thru the same exposed rock strata. But they will be long gone by the time this becomes apparent, so they deny or self- justify doing it etc.
Oil has recently gone from $70 to $100 per barrel.
Is it just me or does anyone else think that this is still massively undervalued considering the current situation?
We now have not one but two major shipping straights closed and things in both the Middle East and Russia look like they are about to escalate to a whole new level. It seems reasonable that we could see oil in excess of $200 per barrel, a severe fertilizer shortage and the bursting of financial bubbles all by 2028 at this rate.
Is it just me or does anyone else think that this is still massively undervalued considering the current situation?
We now have not one but two major shipping straights closed and things in both the Middle East and Russia look like they are about to escalate to a whole new level. It seems reasonable that we could see oil in excess of $200 per barrel, a severe fertilizer shortage and the bursting of financial bubbles all by 2028 at this rate.
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I do agree that things are going to escalate.
Yes that pressure will cause movement.
I'm more concerned at the moment with the tail wind effect of that in human lives and increasing the pressure in a time of cost of living crisis at home. Its going to cause a lot of additional pressures from everything down stream of it.
Also - as something to bring to a state of closure - that won't be quick either considering timescale and all the regional agents in the area.
I think we might see things change after the mid-term elections. But much of the damage is already done and will show downstream.
Don't think it will go to $200/barrel but could get close. Winter cost of living rises might cause us to review our diets as well as our waistlines.
The EU is particularly exposed on fertilisers, both for its own agriculture and from food imported from places like Brazil, India etc. Ditto for animal feed.
The US is highly reliant on imports especially Potash, but from "safe" sources., particularly Canada, and Trinidad&Tobago, Israel. So might still be acting bullish internationally.
Don't think it will go to $200/barrel but could get close. Winter cost of living rises might cause us to review our diets as well as our waistlines.
The EU is particularly exposed on fertilisers, both for its own agriculture and from food imported from places like Brazil, India etc. Ditto for animal feed.
The US is highly reliant on imports especially Potash, but from "safe" sources., particularly Canada, and Trinidad&Tobago, Israel. So might still be acting bullish internationally.
Sending it the gas pumps so voters don’t notice that the Iran war has become a global cluster f£&*
Saw some interesting info recently. Apparently China is now regulating the global oil price by selling oil, (a lot of it) and this is holding the price from rising.
China's stocks dwarf any other country, including normal US stock levels. At the same time it has a very long term deal with Brazil, (2nd largest oil producing region and larger than rest of S.America) and continues to buy 60% of their total output. Presumably their selling price exceeds their buying price with Brazil and elsewhere.
China's stocks dwarf any other country, including normal US stock levels. At the same time it has a very long term deal with Brazil, (2nd largest oil producing region and larger than rest of S.America) and continues to buy 60% of their total output. Presumably their selling price exceeds their buying price with Brazil and elsewhere.
China normally have to be a net importer of oil to cover all of their needs. As they have now become a net exporter I assume they are probably steadily depleting their reserves to enable them to do it. I wonder how long they can keep this up for?
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