Knowing future precious metals prices can be difficult to project in stable times. Perhaps more so now, because the old world order is changing. But we believe gold and silver will do well in 2019. Oil has had a rapid and significant drop, that thus far has not been halted by production cuts. An increasing part of the oil trade is now done outside the realm of the Dollar. We could see a situation in 2019 where the price of oil is rising in Shanghai, while the WTI price is lower, due to decreased worldwide demand for the contract (not the oil) priced in Dollars.
Currently Canadian crude is even lower, a strange phenomenon causing them to lose money on every barrel. We believe low oil will be short-lived. Many interesting developments are currently in play, that the world has never seen. Another major driver for market disruption and higher precious metals prices in 2019 has to do with disruption in the debt markets. Increasingly, debt has been used to help keep equity prices high, while often used to force gold and silver prices lower. We believe the wheels are already coming off of the debt markets, with 2019 seeing gold and silver as primary beneficiaries.