Gold and Energy Advisor: Gold, Oil & Energy Markets Investment Research
James DiGeorgia, Mr. Macro
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Dan Hassey, Mr. Retirement
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Gold and Energy Advisor's Real Wealth

Real Wealth #331  10/28/2015 6:12 PM EDT



Why President Hillary Clinton Looks Inevitable: What Does This Mean For Gold And Oil investments?

Former Secretary of State Hillary Clinton looks unbeatable for the Democratic nomination. Running against a GOP candidate espousing the end of Medicare and Medicaid, putting a large number of troops back in Iraq, deporting 11 million people and taking insurance away from millions much less reducing Social Security benefits will deliver a Goldwater sized defeat in next year.

Dear Subscribers,

Love her or hate her Hillary Clinton's campaign look like a juggernaut.

Nothing less than a criminal indictment stemming from the current FBI investigation over her emails will stop her from becoming the next President of the United States.

Following the first Democratic debate, non entry by VP Biden, and her testimony before the House Select Committee on Benghazi last week, Clinton is now enjoying a big ramp up in her polling numbers. She leads Bernie Sanders by almost 40 plus points nationally.

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How would another 8 years of a Clinton administration affect the precious metals and energy markets? It depends on the margin of victory. If the GOP suffers a loss like it did in 1964 when the Grand Old Party (GOP) nominated Barry Goldwater and the Democrats gain control of both chambers of Congress with 60 votes in the Senate. The upside for gold at the end of two full terms in our opinion is north of $2,500 per ounce.

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A Hillary Clinton Presidency with control of the House and Senate would mean...

  • A huge $1 Trillion 10 year nationwide public infrastructure program ... the fastest way to spur economic growth is to borrow at the current low rates and rebuild America's roads, bridges, airports and shipping ports.                                                                                         
  • The naturalization of as many as 10 million undocumented residents in the U.S. in the following 10 years ...While many on the right will go nuts at another amnesty, the fact remains that immigration is a big net positive for the U.S. economy.                                                        
  • Clinton's Wall Street connections will mean a reduction in the corporate tax rates, but also much higher personal social security taxes, no change in the estate tax and higher income taxes for people making $5 million a year, plus a new mega wealth tax for those with 9 figure incomes.                                                                                   
  • Alternative Energy companies can look forward to bigger subsidies, the coal industry would be crippled further - but big oil will be given free access to exporting production.                                                      
  • Medicare and Medicaid are likely to be finally allowed to negotiate drug prices with the pharmaceuticals in exchange for raising the retirement age to 67 years of age.                                                          
  • Military Spending will surge to over $1 trillion a year by the time she leaves office in 2025.                                                                      
  • If a Hillary Clinton Presidency from 2017 through 2024 sounds like a potentially big spending era, that's because it will be. Clinton makes no claim to want to balance the U.S. Federal Budget during her term(s). Her focus will not be on reducing/paying down the cumulative National Debt.

Her policies will increase the rate of inflation, and weaken the U.S. Dollar. That will be a huge catalyst for higher gold and precious metals prices. In concert with the dramatic Quantitative Easing (QE) being undertaken in Europe and China, the economic expansion will accelerate monetary growth and eventually a doubling of the rate of inflation - a few times. The perfect environment for gold.

As the world economy expands with the help of cheap and newly created trillions from the World's Central Banks the end result will be both higher gold and oil prices.

Right now there's enormous pressure on the price of oil. Saudi Arabia, Russia, and the all of the international oil producing countries are refusing to cut back production. The reality however is that oil production is going to drop in 2016 if the price of Crude Oil stays under $70 a barrel. All of the newly discovered oil resources as well as long defined unexploited sources will cost over $65 a barrel to produce, and must go to market via the Futures Markets for at least $70 a barrel  to spur new oil production projects.

The most likely scenario: We'll see oil production start to drop and will likely see oil over $75 before any new big oil projects launched. It's our opinion that the supply glut will become a supply deficient in late 2016 early 2015 and that oil will move back over $70 a barrel.
We will soon be launching our Gold and Energy #4 Portfolio. We're expecting many of the most oil stocks to jump 40% to 100% in by the end of 2017. We'll be sticking mostly with oil producers with large resources far from the hot war zones in the Middle-East and Africa.

Other Stories to keep an eye on ...

Chinese Rapidly Expanding its Military Power

Iranian Troops in Syria

Russian's Training and Providing Airpower in Defense of Assad Regime

The bottom: there's a enough danger in the world, newly printed money and economic pressures to drive the price of oil and gold up over 40% in the next 18-24 months. Don't get caught by surprise. Get ready to start building your Gold and Energy #4 portfolio.

Best Wishes,

James DiGeorgia

Editor/Publisher

P.S. Today at 9:45 a.m: EDT Petroleos Mexicanos (Pemex) announced that they would begin to import up to 75,000 barrels a day of crude oil from the United States. This is the first step in easing the 40 year ban on domestic oil imports. Markets loved this news and took crude higher by 6.30%.  We consider this to be too much too soon.

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