Thursday, October 30, 2014

Will small and mid-cap Oil and Gold companies start to disappear?

By this time next year, hundreds .... yes, I said "hundreds"  ..... of small and mid-cap Oil and Gas and also Gold and Silver mining companies will disappear for good if the present Oil and Gold prices insist on sweeping the floor.  It won't be just Canadian small cap companies, although we are gonna suffer more than others .... many in the US will also have to shut down.  You don't have to believe me now,  wait until the gurus of the financial institutions think it's time to divulge their "secrets" to you the sheeple.

So, why is this happening?  It's all to do with the dangerous thinking coming from the powers-that-be in the USA.  If you think Saudi Arabia is doing what's it is doing to bring down oil prices is without directives from the USA you are living in a snug and comfortable cocoon and my advice would be that you keep staying there .... a delusional way of looking at our world is better than looking at the dirty naked truth.

Which country is responsible for the manipulation of the Gold market?  I can't tell. It could be Russia or even China or a combined effort from both or it could be the USA again. Cheap gold is good for both Russia and China for accumulation now and for use in their future plans. If USA is manipulating the Gold price, then that is mega stupid thinking because then it is letting its biggest rivals accumulate tonnes of it at these prices. And, if the USA thinks it can crash Gold to a much lesser status, then that country has really and truly gone senile and warrants our pity instead of our criticism.

Hassan Chakrani writing at AlAkhbar:
Why is Saudi Arabia flooding the oil market?  

Oil prices declined sharply in the past few weeks, with Brent crude dropping to a two-year low as Saudi Arabia continued to slash its oil prices, raising many questions about Saudi Arabia’s policy towards its depletable wealth.

Selling crude oil for the same price during the Global Financial Crisis in 2008 and 2009 is an economic blunder, with some people even saying it is better to burn the oil instead of selling it for less than $35 a barrel.

However, Saudi Arabia did just that, and will apparently continue to do so within certain limits. The country has been selling fossil fuel to its clients in many regions for this supposed “nominal price.”

Though the Saudi move may seem puzzling in market terms, it becomes less complicated when analyzed within the world of geopolitics which is plagued by competition over strategic markets and where oil is used as political leverage.

Analysts involved in the current market’s dynamics who were interviewed by the Financial Times, along with recent statements by Saudi Aramaco, suggest that it is very unlikely for Saudi Arabia to reduce its oil output, even if this leads to a large surplus in supply and brings oil prices down to unusual levels. What is its motive? Saudi Arabia seeks to increase its shares in essential export markets, especially in Asia.

Saudi Arabia’s measures brought Brent crude prices down to $92 this week, its lowest level in the past 28 months, while US crude oil prices dipped below the $90 mark.
The Saudi move is also expected to have numerous implications, mainly in the Organization of the Petroleum Exporting Countries (OPEC), after Riyadh dealt a severe blow to the organization's strategy of keeping oil prices at a fair level.

In fact, a conflict of interest is raging within OPEC, particularly between Saudi Arabia and Iran.
Saudi Arabia has the largest oil reserve in the region and enjoys a wider margin to cut prices by flooding the market in order to please its allies or to draw political gains. Iran, meanwhile, is one of the hawks always advocating for increasing prices to above the $100 mark.

Aside from analysis of new markets, it seems that Saudi Arabia is flooding the oil market with low-price oil in order to exercise political pressure on Iran because its nemesis is more likely to be affected by lower oil prices......

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