Steve St Angelo on Palisades Radio
Tom welcomes a new guest to the show, Steve St. Angelo from the SRSrocco Report. Steve says, “You don’t have an economy unless your burning energy. Today, we take energy for granted.” For thousands of years, gold and silver represented that energy store.
Steve discusses his video “The Energy Cliff,” which argues that technology itself is an energy consumer. Since GDP is directly linked to energy, there is an increasingly bad feedback cycle coming. Shale oil over the past decade has been responsible for current economic growth. This expensive and unsustainable oil source has temporarily propped up the world.
He discusses how energy returned per barrel has declined massively since the 1930s. Today, the world is consuming four barrels of oil for every new barrel discovered. Debt and low-interest rates are being used to offset this lack of energy availability.
He argues that you can’t offset a decline in energy from fossil fuels with wind and solar. Alternative energy requires a lot of energy input to create those panels and turbines.
He discusses the limits of nuclear power and why he believes we will see peak gold production in the coming years.
The 2008 financial crisis and now the pandemic crisis has made people understand gold and silver. As this energy crisis worsens, more people will want to acquire precious metals. Steve argues that the next bull market in precious metals will not end. He believes the pandemic has provided us with a preview of where real estate and the economy will head.
Lastly, Steve discusses why silver will be driven by investment demand and why futures markets only work in a stable economy with stable production levels.
Talking Points From This Episode
- World Takes Energy for Granted
- Energy Return on Investment
- Lack of Oil Alternatives
- Uranium, Gold, Silver & Futures
Time Stamp References:
0:00 – Intro
0:54 – Steve’s Energy Thesis
3:41 – Growth & Energy Cliff
6:22 – Technology & EROI
8:00 – Unsustainable Shale Oil
9:42 – EROI Statistics
12:09 – Oil Usage & Green Energy
17:09 – Uranium & Nuclear
19:24 – Peak Gold Production?
22:50 – Oil & Metal Price Trends
25:20 – Next Gold Bull Won’t End
27:20 – Thermodynamic Economy
34:30 – Why Silver is Undervalued
36:25 – Investment Demand
37:22 – Technicals
39:51 – Futures Contracts
43:00 – Bitcoin & Energy