Dave on why technology made energy cheap and precious metals expensive
When Mike talks about precious metals and oil, you need to understand that technology has actually made it more expensive to produce precious metals, whereas it’s gotten ridiculously cheap to produce energy. Natural gas and oil cost of production has come way down over the last 20 years, whereas gold cost is actually higher, mostly because of oil as an input and environmental laws. And silver, we don’t produce enough. When you look at precious metals, technology is not really helping. Plus there’s only so much in the earth’s crust anyway. They’re going to diverge based on that deflation of technology not existing for precious metals. So the monetary aspect is what you’re seeing.
#Gold #Silver #Oil #Macro #Markets
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