Pricing Oil In Gold Is "Inevitable" | Luke Gromen

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Do the recent headlines speculating that Saudi Arabia may be ready to give up the petrodollar and start pricing oil in grams of gold?
Luke Gromen sees that as "inevitable"
Here's the link to the Howard Marks investor letter mentioned in this interview: www.oaktreecap...
And here's the link to the active management investment approach discussion with New Harbor from last week: • Market Uncertainty Is ...
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#oil #gold #inflation
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IMPORTANT NOTE: The information and opinions offered in this video by Wealthion or its interview guests are for educational purposes ONLY and should NOT be construed as personal financial advice. We strongly recommend that any potential decisions and actions you may take in your investment portfolio be conducted under the guidance and supervision of a quality professional financial advisor in good standing with the securities industry. When it comes to investing, past performance is no guarantee of future results. Any historical returns, expected returns, or probability projections may not reflect actual future performance. All investments involve risk and may result in partial or total loss.

[@Wealthion]

READ ADAM'S NOTES (for free) from this conversation with Luke at wealthion.com/adamsnotes/

[@issenvan1050]

Timestamps would help.

[@MrTigerStarX]

27:00 - Very unnatural to force John and Mike to agree with Luke who has been wrong all year. Please stop shoehorning bad guest ideas, and treating them as equals with new harbor. It's highly unprofessional.

[@InversorTotal]

@@MrTigerStarX Could you explain what Luke has being wrong about? And what John and Mike had said differently in the past? thanks

[@issenvan1050]

Looks like Luke Gromen has pivoted before the FED…

[@ssuwandi3240]

The dollar has peaked and further trending lower the past weeks. Everything was wrong from that point onward

[@The_Argent]

As a small suggestion on ease of use, rather than telling people to go to your KZbin page and search for part 1 of an interview, most channels will place a direct link to the video in the description.

[@bp5662]

How about just do it in one episode? Maybe have the reaction section as another video.

[@The_Argent]

@@bp5662 I think they're concerned about it getting too long for one sitting.

[@markz.5891]

There is a link in the description

[@The_Argent]

@@markz.5891 to their YT channel. Not the actual video.

[@crcampbell2210]

Shout out to Adam for doing these Interviews while being sick. Much love brother! Thanks for bringing us this great information. Luke is the man

[@Wealthion]

Thanks for the kind words!

[@trapOrdoom]

This was one of those “can’t believe this was free” type of episodes. He gave so much alpha about the global macro scheme, I’ll have to rewatch it. Seriously please have this man return. I can’t express how much I appreciate his insight!

[@theonlyconstantischange123]

💯

[@markuswattinger1505]

Thank you for bringing on Luke regularly - he is so valuable

[@ScarletKnightmare]

See Luke's wood stove ready to rock and roll? True macro analysts see what's coming in the big picture, and that extends beyond capital markets. You the man Luke! 🫡

[@Mdaddy4]

The brilliance of Luke Gromen, Brent Johnson and Polsar Zoltan. And yourself have to be pretty smart to keep up with their logic.

[@walkingintheway]

Thank you Adam for bringing Luke back! I am a mere working woman... I listen to your podpast faithfully... When Luke is on while I'm working I stop what I'm doing get out my wealthyon notebook... And make notes so exciting and yes I can't believe you offered it to us free... You have helped me so much... And Luke is one of my favorites... You opened up the discussion $ asking Luke how gold is considered a real currency in purchasing oil...Bam!

[@ScarletKnightmare]

Self teaching is the way. Keep up the great work sister!

[@christophere7426]

A barrel of oil is 42 gallons, a standard developed in the 19th-century Pennsylvania oil industry. This barrel size was called a "tierce" and weighed about 300 lbs, a size and weight that a strong worker could reasonably move or roll. Larger barrel sizes were too unwieldy and lesser sizes too unprofitable to ship.

[@kedarmukherjee5007]

What a fascinating session!. I live his level of insightful analysis. Thanks Adam to bring such thought leaders in your channel.

[@edwindaniel305]

Great interview… What a great strategic thinker!

[@PaulLobosco]

Adam Taggart is the standard for disseminating financial market information to individuals and institutions alike. EVERYONE has much to gain by following him. He works hard, knows a ton, is very professional, and really knows how to conduct an interview.

[@Wealthion]

Wow -- thank you for the kind words! I will do my best to earn that praise.

[@jerrymoriarty3319]

@@Wealthion You've taught me so much I can't thank you enough.

[@tonymaroni2769]

Why don't you marry him buddy.....

[@harmankardon478]

simp much?

[@bruce5895]

The elimination of all fossil fuels is on the table with the great reset coming and there is no way that gold will have anything to do with oil. Gold may be tied to the new digital currency when it comes out as a means to make it have more value than the old fiat currency, we will just have to wait and see.

[@troybaca912]

Thank you for bringing another excellent guest and topic to us, this is invaluable information that is presented in an easy to understand format, Adam - your questions and rephrasing of some of the responses from your guests is very helpful to some of us that may need it distilled for clarity, I am one of those people. I have a fairly strong understanding of the markets but I am not an expert and I have taken away a greater understanding of the financial picture we see.

[@aaronsterlind6334]

Luke Gromen, top five people I trust and listen too. Not only that, but it's always enjoyable. Keep up the good work fellas.

[@robertwatson3111]

@4:15 min mark - Yes you nailed it Adam & my thoughts exactly!! It does sound very much like Felix's Discussion. By the way, just want to comment on how much I really enjoy your efforts and interviews Adam!! Excellent work!! Also, Really enjoy your weekly market wrap with Lance as well!! Enjoy listening and paying attention!!!

[@1CCCP]

A minor error at about 22 minutes into this video: A barrel of oil is NOT 55 gallons. It is 42 gallons. This has been the standard volume since 1866.

[@rpfifferling]

(1) This is a fascinating, rational, and exciting presentation. Thank You! (2) A little embarrassed for you two: When it comes to oil, a "barrel of crude" contains only 42 gallons rather than 55 gallons like many of us associate with the size of an average industrial barrel. This amount became the standard back in the mid-1800's during the first American oil boom in Titusville, Pennsylvania.

[@Wealthion]

Yep. Sorry about that. I publicly corrected my error on the next video (Weekly Market Recap with Lance)

[@toddbrown417]

Barrel of oil is 42 gallons

[@bruce5895]

We are going into a depression that will last at least 10 years or more.

[@RadicallyFRUGAL]

With the fusion experiment it was a milestone but the problem is they generated a fusion reaction for one 400 millionth of a second and with lasers and they need the lasers to fire thousands of times a second and it took them half a day to charge up the laser for one shot so Fusion will ultimately happen but not for 20 to 40 years unless there's a massive breakthrough

[@taylorcollins615]

It was also incredibly expensive just to conduct those tests

[@RadicallyFRUGAL]

@@taylorcollins615 here's a cheaper efficient energy project. In 2006 I met a man in his 80s the Asbury Park Press did a story on him and I went to meet him he lived in Toms River New Jersey he set up a 3 ft windmill he was living on the bay across from Seaside Heights he set up at 3 ft windmill to capture the wind and he used a hot water heater tank that he got from the junkyard painted it flat black and put it in a little Greenhouse underneath the south facing living room window of his house and he was able to use a solar powered low volume pump to pump the hot water through his Heating system to heat the house at zero cost and he also use the hot water for his hot water needs for showering and for his sinks and so forth. It cost them maybe $150. And it worked for years

[@alfredepding974]

Excellent guest. Broad based reality check that people need. People will really have to work at making investment profits. Research and very practical application from that research.

[@derekcho2312]

Finally... confirmation for the thesis I developed months ago. Increase price Oil. Inflation higher. Real Estate Decrease. Recession Deep but not 2009. No interest rate increases after March 2023

[@paulwise6856]

Putin is offering 2 BBL for one Grahm, that triples the value of gold vs. USD but the actual number will be cost of mining gold vs cost of pumping oil, dollars won't be part of the equation as they will be mostly good for starting fire stoves from preferably repurposed toilet paper

[@thoughtsbeforefeelings]

If the supply of gold is fixed, or at least limited to 2% mining related inflation, then wouldn't this just make gold a proxy for pricing everything in the economy in oil?

[@Withnail1969]

everything is in fact already priced in oil and always has been. oil creates dollars but dollars can't create oil.

[@rushsecure5995]

This is why we maintain the world reserve currency by making everyone buy oil in dollars. This is, however changing right now as we saw last week in Saudi.

[@mth469]

@@rushsecure5995 Saudi Arabia is going to turn out like Iraq in 1991 if they are not careful. No wonder they are trying to build nuclear weapons.

[@thoughtsbeforefeelings]

@Withnail1969 Agree up to when the US broke its deal to manage the dollar within a price range of oil between about $50-$80/barrel. With a fixed currency supply (gold), it appears oil becomes the world reserve currency.

[@williammiller7362]

Credit Unions are paying higher rates on their savings accounts, at least the two Credit Unions that I have accounts at. It ranges on deposit size, but they are paying around 3% on money market and savings accounts. CD's for 1 to 2 years are up at 5% now at my credit unions. I do not know why anyone would have a personal account at a bank when they can choose to work with a good local credit union.

[@marcopolotimetraveller]

Excellent guest.... excellent host. Thank you 🙏

[@mikesmith2315]

No petro-dollar ? What's that strange droning sound in the distance ? Oh heavily loaded B-52s...

[@mth469]

Any country dropping the usd and planning a gold backed currency will be invaded. That's what happened to Libya when they tried to introduce the gold dinar (coin) and dropping the USD for oil payments. They got invaded with France, Germany, UK all grabbing the country's wealth and its gold.

[@4000angels]

I love this channel. Top shelf content. Thank you.

[@popsmcgee9775]

Great show, Adam! Thank you.

[@stevemichels6650]

Adam, best interviewer, all the right probing questions 👏

[@BlackSwansFine-co6cd]

Holding gold is absolutely amazing. You just know its special. Gold/silver are the world reserve money. Always have been, everything else is a lie.

[@nauxsi]

in normal society you will have substitutes for day to day trading so life can carry on away from speculators.

[@mohammediqbal123]

FABULOUS DISCUSSION A REAL EXPERT THANKS ADAM

[@arthuntington9338]

Adam/Luke, oil is 42 gallons per barrel, not the typical 55 gallon drum that most people think of. That's roughly 24 barrels of oil for each ounce of gold at today's prices. So, Adam's point is a good one. You can store a lot of oil equivalent in a few gold coins.

[@kevinreed4487]

Adam. There are 42 gallons in a barrel of oil. I know this because i was a roughneck working the tecas oil fields during college summers 40 years ago

[@Wealthion]

Thanks. Should have looked that up going in to this interview

[@adoremus4014]

As far as I am aware, commercial oil is sold in 55 gallon drums, crude oil in 42 gallon drums.

[@steveborchers2080]

Gold silver may be back into “money”.

[@nestorkutzev1559]

Great conversation. Thank you!

[@slipkid68]

Adam, what a great interview. Keep these coming.

[@tiananman]

15 years ago, Jeff Rubin was making a similar point about crappy sovereign paper vs. increasingly dear oil. He was early, and therefore worse than wrong, and he didn't predict the gold factor, but he was still on it.

[@mental4macro]

Need to have a debate between luke and Brent on wealthion!!!!

[@timdieckman2162]

If you don’t hold it you don’t own it. Is that w bitcoin as well as Gold/ silver ?

[@sisterbrothers1677]

It's difficult to take someone seriously when they mention bitcoin as an investment.

[@DoubleOhSilver]

You can't deny reality. You would still be in profit if you bought 2 years ago during the months it was under 10k. If you bought enough 10 years ago when it was a few hundred dollars, you'd be rich, even right now in this crypto bear market. But if you want to only see the volatility instead of results, then don't expect to make any money through any of your investments.

[@knockoutfever4]

Gold is money, but sadly, bitcoin is harder money than gold by an Austrian definition. I am a gold guy but can’t deny that BTC is the ultimate money.

[@johnbirman5840]

@@knockoutfever4 I hate to say it, but the Maximum currency comes out of a barrel. “How much do I owe you” says the man with gun “Nothing Sir.” As long as the USA controls the Seas, the USA controls the economic world. The Navy is the true value of the dollar. BitCoin? It’s a mathematical equation that has no enforcing ability.

[@walden6272]

@@DoubleOhSilver If I join Bernie Maddoff scam early when he started, I would be rich too. :)

[@walden6272]

@@knockoutfever4 BTC ultimate money? Can only process 7 transactions per second? There is a reason why it's not used as money.

[@gscorsone]

Thanks for the great ideas and info!

[@10percentforthebigdementedguy]

Always awesome to have Luke on.

[@paulfiala7669]

Gold .... Jim Rickards recently referenced an article on Goldbacks, could you get someone to talk about these and how they might fit into a portfolio? Thanks

[@JohnDaniels]

Incoming rant, we need to get together and get figured out how to get a new law passed in Congress to limit the feds powers. Just like Greenspan said we could print unlimited money we can do whatever it takes and that's exactly what they've been doing and in the process destroying the purchasing power of the hard working individuals a wealth transfer if you will this is got to stop we have to get legislation passed and reform the Fed.

[@LDP..]

just as an outsider , hearing you say " when everything goes perfectly well we are still many decades away from commercialisation of cheap carbon neutral fusion energy " that just makes me so sad , and shows me that nothing will change with the blindsided ness and greed of the human race !!!! i also bought gold as an investment , but i wouldn't let the prosperity of the next generation go to waste for its price to go 3x .

[@deirra7540]

Adam and Luke... awesome 🤟

[@richardsutcliffe98]

Love how he compared to others. David hunter described what they also think first, timing is always out with all of them but the reasons, links are very similar. David hunter said this over a year ago, both interviews are very good

[@sonnyeastham]

Is a barrel of oil measures in 35 imperial gallons, not 55 U.S. gallons?

[@warrenmaker798]

" Their heads explode"... LMFAO 🤣

[@BeeJay226]

Very intersting .. I also wonder if the main short term driver for this would be no USD usage for Russian oil

[@rodneyparker5313]

Great discussion. Thank you.

[@cobra_joe6237]

Great interview with Luke. Plain English for complex issues.

[@mauricegiuliani3806]

Luke is always awsome. Thanks Adam.

[@SCOTT-ki3ve]

A genius talking to a master! An oracle talking to an icon

[@mth469]

But is he a stable genius...

[@scottsmith4145]

Very impressive and knowledgeable guest! Thank you!

[@jamesevans2173]

Thanks Luke, impressive analysis.

[@riversedgegoatdairy297]

In summary. Days of printing fiat dollars are over. What's next? Which country can you trust to value their dollar, a dollar that is commodity based? Oil countries have it pretty easy...... Now what about the dynamic ones? America? France/Germany or the UK?

[@MrsDelicious307]

As a business owner, we’ve seen $25,000 less in income this year. That’s a 20% decrease from last year. But because of how we used the monies, we aren’t starving by any means.

[@danieldecides7894]

Luke is a total legend and the host is very decent also. I agree that BTC is a decent trade at the levels it is and i think Luke is very candid and straightforward and i admire his intellect also.

[@darryls6329]

Always love the topics discussed on this channel. Would you do a deep dive on XRP, with an expert?

[@highclimber25]

Anyone with a wood stove like that has good wisdom

[@danieljones908]

55 gal steel barrels are typical in the US, but a barrel of oil is 42 gallons.

[@-homerow-]

Best intro clip ever

[@seanobrien7751]

great conversation!

[@TylerMarsh87]

Great video once again. I can here the Cold/Flu in your Voice. Get well soon.

[@quant2011]

Luke, why you focus only on Oil? Will Gas and Coal also be traded for gold? How about nickel, iron, copper, weapons and microchips? all traded for gold, right?

[@kevkeary4700]

on USD spot gold and WTI spot, 1 troy Oz of gold will buy 23 barrels of 55 gallon drums of oil = 1314 gallons = 4977 litres of oil

[@koltoncrane3099]

Interesting he says when they pivot commodities and other things do better then the ten year. Doesn’t it matter why they pivot though? If there’s a crash like 2008 or 2020 and the fed just cuts rates several percentages wouldn’t that mean bonds would appreciate a lot more then commodities etc if we have a stock market crash? Luke makes sense if there’s a pivot but no crash. Maybe the fed does like what the Bank of England did and just change or pivot without an actual crash happening.

[@joostonline5146]

Outlook for Bitcoin is 150.000 Mt. Gox coins coming on the market from people who bought below 1000 dollars. Outlook for Gold is that BASEL3 is going active as of january and Russia will start selling oil for Gold end of march.

[@kevinphillips9052]

How does revaluing Gold help the treasury with the debt spiral? Is there a number that would buy more time for them or fix the issue? Is that number realistic?

[@joostonline5146]

25:56 Bitcoin was 10 cents 10 years ago....is it currently cheap or still expensive?

[@merchantsailor]

cant have it both ways, did other countries make bigger gains on thier oil exports when the USD was cheap cheap cheap to thier soverieign currency? If yes than gold will vary up and down just like fiat, when the players try to game this system, only thing constant in all this market tallk is greed and fear on a sovereign level.

[@MikeStillUK]

23:02 Key takeaways: bitcoin not crypto. Self custody. Keep stacking sats.

[@gsmith3696]

Adam, I’m a little surprised that you haven’t raised the issue of the recent pension bailout that President Biden announced.

[@Wealthion]

I'm pretty sure I did in a past Weekly Recap with Lance

[@mattanderson6672]

Thanks Guys!!

[@trailguy]

I think oil drums are 45 gallons. So 31 barrels that are 45 gallons each. It’s about 10,000 lbs of oil.

[@100perdido]

Ask the last guy who decided to sell oil for gold....Oh yeah. You can't ask him. "We came. We saw, He died. tee hee".

[@robmcilroy1894]

Times they are a changin.

[@shanedavison7473]

The first time I ever heard of a job called Financial Advisor was in the newspaper. I went for an interview for the job but didn't get hired. Then they called me a few months later because of my high test scores to go for another interview but I didn't go because I didn't want a commission job. This was 30 years ago before I even got BS in accounting. A degree I never used

[@issenvan1050]

Timestamps would help.

[@danelias8658]

Get well soon, Adam.

[@MeJonTheDon]

Just for reference, crude is put in 42 gal barrels

[@johnbirman5840]

“I think the reports of my death have been vastly exaggerated” A famous quote more appropriately applied to US hegemony. As long as the US Navy controls the seas, which they do, the US dollar will continue to be the world’s currency. The ability to inflict harm at will, or remove the protection provided to the sea lanes, is what backs the Dollar. That, and a Incredibly rich, large country easily accessed, and a large homogeneous population (in spite of the tales to the contrary) means the USA is Not ending anytime soon. Want to know where to put your money? Right here in the Best bang for your buck country in the world: the USA. I love the Dollar!

[@ajjil9464]

Great guests, thank you Adam.

[@h.b2029]

Excellent. Very helpful. Thanks.

[@scurtumarian8725]

When they buyers of that oil don't have the gold they will have to shut in the oil wells. Does not sound sustainable.

[@brupag1403]

Nothing sounds sustainable at this point...😞

[@scurtumarian8725]

@@lakshmineuroscience cut on consumotion means cut in demand for oil means oil wells shut in

[@jaywhoisit4863]

You will still be able to use your National currency to purchase oil. You can swap and hedge gold and fiat just as they do today with petrodollars. It’s not difficult to understand!

[@scurtumarian8725]

@@jaywhoisit4863 if a currency is backed by gold is the same as using gold. A currency is either hard(limited cap, backed by something or) fiat as we have it now. If it's the same as we have it now what's the point. If it's in any way connected to gold or limited assets or commodities what i said in my initial comment still applies

[@Toneload11]

@wealthion What about if they sell a oil for 2 Oz. Of silver. What will happen then?

[@paulelder6702]

42 gallons per barrel of crude. Products are sold commercially in 55 gallon drums.

[@michaelpetrus19]

Thank you

[@Tential1]

I'll say, this is definitely one of the better interviewers. The TV guys are way too liberal partisan. Major networks need to look out, because, I am preferring this every day to their work.

[@comment2250]

If gold is to be used to buy oil and other commodities, to be brought back into the monetary system to be used as money, more importantly, if it is to be convertible into any fiat currency it will have to be repriced much, much higher; high enough that it can be used to buy commodities in huge volumes but too expensive for the public to buy. You won't have to worry about a run on gold by the public when it is trading anywhere between ten thousand and a hundred thousand an ounce, or more, it can be used in international trade at such price levels but would be out of reach for the everyday man on the Main Street.

[@anonymousAJ]

Real assets will be sold for money (precious metals) instead of irredeemable currency, of course

[@shansaeed8645]

Good analysis @LukeGromen except for bitcoin

[@AJ-zz3qm]

Mike made a very interesting comment about how people often will say “you can’t go to your local store buy a loaf of bread with gold”. Can any of you comment on how you would see gold possibly used as money if we truly arrive in that economic environment in the world?

[@nauxsi]

It would create demand for gold, where there isn’t enough you can substitute for non-perishable items.

[@AMBoss8561]

FYI: There are 42 gallons of oil in a barrel respecting commodity trades. If you purchase from a manufacturer you get 55 gallons in a barrel!

[@Tential1]

41:40 I believe passive will work, just not the current allegation, it's going to be a much more complex allocation required to get actual good returns now. The only reason 60/40 worked so well was because it was just riding interest rate

[@hagengocht3891]

And the Oscar goes to………. Adam Taggart!!!!! Why? How many barrels of oil can I store here in my office? Hard to say. How much gold can I store in the palm of my hand? Spectacular… Edit that into a 30 second clip and send it to Zulauf. You’ll get his Oscar vote as well…

[@2coolartsmusicmom572]

Thank you Adam. Wow what a great interview. Going to listen again. Please find some Canadian connections Like Harbour financial for us Canadian They are amazing.

[@valerieprice1745]

A thought provoking conversation. Awesome relief from the click bait. I think touting Bitcoin is irresponsible, but otherwise, good content.