S Rocco: “What Happened to Ammo Will Happen to Gold & Silver

[neilgin1]

this is an outstanding 38 min discussion with SRS Rocco....WELL worth the time over morning coffee.

[Recyclersteve]

Can you bottom line this in 1-2 paragraphs and give us a few key points?

[neilgin1]

Can you bottom line this in 1-2 paragraphs and give us a few key points?

sure, i'll try........Rocco talks about BOTH the PM miner's AND the oil industry, and their interrelationship , he speaks of the 12 major mining concerns gross earnings last year of 3.8 bln, yet as a whole they lost 57 mln USD, and the mean price of each ounce at $19 and change.....he then speaks of usage, about 500-600 mln ounces of industrial usage staying static, because most end industrial users put $2 worth of silver in an $800 refrig, but retail demand keeps ramping upward......he then talks of the shale oil industry versus the conventional oil industry and the effect of ERoEI.....he talked of an old oil guy in Okla, that he speaks with, who still finds conventional oil in the US....this guy found a million barrels last year, and with daily usage in the US of 19 mln barrels a day, that million is about an hour's national usage, but the guy makes money, BECAUSE he "spends" one barrel to 20-30 barrels....that's ERoEI....and this old guy wont go anywhere NEAR shale oil, or tar sands, because shale oil is maybe at a 1-5 ERoEI ratio....he's saying that a LOT of these new medium size oil concerns WILL go bk, and their debt paper too....which led into a discussion of peak silver and peak oil....and silver producers never really talk with oil producers and vice versa....Rocco believes we'll see peak silver in 2017, and when silver takes off, it'll be JUST LIKE the ammo market....not too long ago, a 1,000 round box of 5.56 M855's was 300.....now?

(thanks to you, brother, I just made a purchase, the OTHER PM)

its a great conversation, you wont be bored. n

[nero12345]

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