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Ripple Effect

Oil’s Undervalued

Loading ...Addison Wiggin

September 25, 2025 • 1 minute, 6 second read


Oil

Oil’s Undervalued

In the age of AI, oil isn’t just possibly made from dinosaurs — it is a dinosaur. Nobody’s running a data center on diesel, opting instead for nuclear.

As a result, oil prices have largely traded in a sideways $60-$70 range over the past few years. And relative to gold, oil is now substantially undervalued:

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Gold’s price is far above oil’s, a trend that’s likely to close up. (Source: Trading View)

We like the value proposition in oil today. We don’t see gold going lower.

Oil is going higher.

In real, inflation-adjusted terms, bubblin’ crude is cheap. And it’s still valuable for transportation, plastics, backup power, you name it.

The big oil companies have reasonable cash flows and pay big dividends — including the player in our model portfolio.

And in a world where commodity prices are trending higher, oil prices may be the next to pop.

~ Addison

P.S. It’s no surprise we’ve got commodities on the brain: This afternoon on Grey Swan Live!, Portfolio Director Andrew Packer and contributor Shad Marquitz will review the latest developments in the commodity space and determine the best commodity plays through the end of 2025 and into 2026.

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If you have any questions for us about the market, send them our way now to: feedback@greyswanfraternity.com.


American Life: Less Ordinary

December 2, 2025 • Bill Bonner

But Green is describing more than just a new calculation. He’s talking about a new form of misery.’ It’s a poverty where you may still have most of the accoutrements of middle-class life. But your relationship with the financial elite has changed: you are indentured to the credit industry — for life.

American Life: Less Ordinary
The Inflation Episodes – Act I

December 2, 2025 • Addison Wiggin

Historically, when the Fed has cut into inflation above 3%, one of two outcomes tends to follow:

A brief reprieve, followed by a larger inflation wave (see: 1970s).

A crisis born from cheap money rather than expensive money (see: housing in the 2000s).

We are heading into another round of cuts with:

• A still-bloated balance sheet

• A new digital plumbing that auto-funds the Treasury

• Hard-asset markets flashing warning lights

Paul Tudor Jones summed it up in one dry quip: interest expense is now one of Washington’s largest bills; commodities are “ridiculously under-owned”; and “all roads lead to inflation.”

The Fed’s flip from QT to easing doesn’t end this inflation episode. It likely begins its next season.

The Inflation Episodes – Act I
Looking For 10% Monthly Returns? Google It

December 2, 2025 • Addison Wiggin

The question investors should ask themselves isn’t whether this trend is sustainable – it isn’t.

Instead, they should ask if the $2 trillion increase in Google’s market cap has sucked capital away from other promising parts of the market – and if so, where investors can expect a rally when Google reverses.

Looking For 10% Monthly Returns? Google It
The Problem With Fake Money

December 1, 2025 • Bill Bonner

Long have we dwelt on the corrupting influence of funny money on capital asset prices and on the economy. Everything gets distorted, perverse…and false. We get high prices. We get low prices. What we don’t get are honest prices.

Yesterday, we looked at the ‘small time crooks’ — ripping off the public for a million or two.

Today, we move to the big fry.

You’ll recall that the money in question was never earned by anyone. No one has a genuine claim to it. And what kind of apple falls from this funny money tree? Just what you’d expect…a funny one…with the worms already in it.

The Problem With Fake Money