• Category Archives Crypto Currency
  • After Slamming Bitcoin As A Money Laundering Tool, JPMorgan Busted For Money Laundering

    Score one for the poetic irony pages.
    Two months after JPMorgan CEO Jamie Dimon lashed out at bitcoin, calling it a “fraud” which is “worse than tulip bulbs, warning it won’t end well”, will “blow up” and “someone is going to get killed” and threatened that “any trader trading bitcoin” will be “fired for being stupid” as it was merely a tool for money-laundering, today Swiss daily Handelszeitung reported that the Swiss subsidiary of JPMorgan was sanctioned by the Swiss regulator, FINMA, over money laundering and “seriously violating supervision laws.”
    As the newspaper adds, the Swiss sanctions relate to breaches of due diligence in connection with money laundering standards. In other words, JPMorgan was actively aiding and abeting criminal money laundering.

    This post was published at Zero Hedge on Nov 17, 2017.


  • NOV 15/A ANOTHER RAID ON GOLD AND SILVER: GOLD DOWN $5.15 AND SILVER DOWN 10 CENTS/MARKETS IN ASIA CRUMBLE WHICH SET THE MOOD FOR EUROPE AND THE DOW/THE ALL IMPORTANT CPI SHOWS CONSIDERABLE ADVAN…

    GOLD: $1277.7 DOWN $5.15
    Silver: $16.98 DOWN 10 cents
    Closing access prices:
    Gold $1278.30
    silver: $17.01`
    SHANGHAI GOLD FIX: FIRST FIX 10 15 PM EST (2:15 SHANGHAI LOCAL TIME)
    SECOND FIX: 2:15 AM EST (6:15 SHANGHAI LOCAL TIME)
    SHANGHAI FIRST GOLD FIX: $1289.94 DOLLARS PER OZ
    NY PRICE OF GOLD AT EXACT SAME TIME: $1281.20
    PREMIUM FIRST FIX: $9.39
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    SECOND SHANGHAI GOLD FIX: $1292.56
    NY GOLD PRICE AT THE EXACT SAME TIME: $1282.40
    Premium of Shanghai 2nd fix/NY:$10.16
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    LONDON FIRST GOLD FIX: 5:30 am est $1285.70
    NY PRICING AT THE EXACT SAME TIME: $1285.70
    LONDON SECOND GOLD FIX 10 AM: $1282.20
    NY PRICING AT THE EXACT SAME TIME. 1282.60
    For comex gold:
    NOVEMBER/
    NOTICES FILINGS TODAY FOR OCT CONTRACT MONTH:0 NOTICE(S) FOR nil OZ.
    TOTAL NOTICES SO FAR: 991 FOR 99,100 OZ (3.082TONNES)
    For silver:
    NOVEMBER
    2 NOTICE(S) FILED TODAY FOR
    10,000 OZ/
    Total number of notices filed so far this month: 874 for 4,370,000 oz
    XXXXXXXXXXXXXXXXXXXXXXXXXXXXXX
    Bitcoin: BID $7121 OFFER /$7145 up $532.00 (MORNING)
    BITCOIN : BID $7257 OFFER: $7282 // UP $668.00(CLOSING)

    This post was published at Harvey Organ Blog on November 15, 2017.


  • SegWit2x’s Failure Confirms Bitcoin’s Status As Digital Gold

    When 10,000 Bitcoins were used to buy two pizzas, the digital currency was a truly decentralized peer-to-peer payment network that operated across the globe instantly.
    Today, the price has risen nearly a million-fold, but the network is no longer quite as functional as it was back in those days.
    Bitcoin still struggles with its identity, as many would like it to revolutionize money, but they are equally happy sitting on hordes of it and watching it appreciate in value faster than perhaps any other asset in history.
    A single dollar invested in Bitcoin on the original Bitcoin pizza day would be worth over $3 mln today.
    While upgrades have been made to Bitcoin along the way, it looks like Bitcoin is becoming less of a payment network and is instead evolving into digital gold. The failure of SegWit2x, which aimed to decrease transaction costs and improve confirmation speed, failed for a number of reasons.
    Some of them were good, and some were mere straw men. But at the end of the day, one thing is clear: there is clearly no rush to increase Bitcoin’s capacity.

    This post was published at Zero Hedge on Nov 15, 2017.


  • BANK ADMITS FIAT CURRENCIES ARE FAILING AND CRYPTOCURRENCIES MAY REPLACE THEM

    As the transition towards a blockchain based economy continues, the established financial powers are desperately trying to stay relevant. In an attempt to boost their credibility, analysts at Deutsche Bank are finally admitting that state-run fiat currencies are becoming obsolete. For years, blockchain entrepreneurs and other critics of central banking have been branded either conspiracy theorists or criminals. But recently, those controversial opinions about the inevitable changes coming to the world’s financial system are being echoed by mainstream pundits.
    Deutsche Bank’s top strategist, Jim Reid, recently articulated a view on the economy that is shared by many but rarely talked about:
    ‘Central banks and governments which have ‘dined out’ on the 35 year secular, structural decline in inflation are not able to prevent it rising as raising interest rates to suitable levels would risk serious economic contraction given the huge debt burden economies face. As such they are forced to prioritise low interest rates and nominal growth over inflation control which could herald in the beginning of the end of the global fiat currency system that begun with the abandonment of Bretton Woods back in 1971.’

    This post was published at The Daily Sheeple on NOVEMBER 15, 2017.


  • Bank Of America: “This Is A Clear Sign Of Irrational Exuberance”

    The latest monthly Fund Manager Survey by Bank of America confirmed what recent market actions have already demonstrated, namely that, as BofA Chief Investment Strategist Michael Hartnett explained, there is a “big market conviction in Goldilocks leading to capitulation into risk assets” while at the same time sending Fund managers’ cash levels to a 4-year low, and pushing “risk-taking” to a new all-time high, surpassing both the dot com and the 2007 bubbles.
    BofA’s takeaways from the survey, which polled a total of 206 panelists with $610 billion in AUM, will not come as a surprise to those who have been following this survey in recent months, and which reaffirms that while investors intimately realize how bubbly assets have become, they have no choice but to buy them.
    The latest survey highlights:
    It’s still all about FAANG froth: the biggest market conviction is in Goldilocks (+ price action in FAANG/BAT, Bitcoin) resulting in bull capitulation; A stunning chart shows that risk-taking among Fund Managers hit an all time high in the lastest period…

    This post was published at Zero Hedge on Nov 14, 2017.


  • Is GE A ‘Black Swan’ In Plain Sight?

    GE hit $8 in 2008. If you short the stock with some patience, in my opinion it’s a low-risk bet that it will drop at least 50% over the next 12-18 months. – From the January 29, 2017 Short Seller’s Journal with GE stock at $30
    At the end of January, with the stock at $30, I presented GE as a ‘boring and conservative’ short-sell idea. The chart technicals suggested that smart money was dumping their shares. Through today, shorting GE stock when I presented the idea has returned 41.6%. I’m sure Bitcoin bandwagon bubble-chasers would sneer at that ‘low’ ROR but it in the context of the overall stock market, it’s been a significant outperformer.
    GE is a GDP company. Its business activity largely ‘mirrors’ overall real economic activity. If GE’s business is eroding, you can be sure that the Government’s GDP calculations are fraudulent. Yet, GE’s GAAP numbers hide the extent of GE’s deteriorating economic and financial fundamentals. GE has always been a bundle of accounting gimmicks and earnings management. Former CEO Jack Welch was practically the inventor or earnings management.
    The latest drop in GE’s price is being blamed on GE’s dividend cut. But this is nonsense. GE had literally raised its dividend in December 2016 and that did not cause GE stock to move higher. GE’s business continues to deteriorate. Through the first nine months of 2017, GE’s trailing twelve month net income is down about $1 billion from it run-rate at the end of 2016. The cash GE generates from its continuing operations (cash flow from operating activities) YTD for 2017 is slightly higher than for the same period in 2016, but that’s because GE cut $1 billion from inventories and harvested its account receivables. The latter two attributes reflect declining business activity and a reduced outlook for future business activity.

    This post was published at Investment Research Dynamics on November 14, 2017.


  • China Gold Import Jan-Sep 777t. Who’s Supplying?

    While the gold price is slowly crawling upward in the shadow of the current cryptocurrency boom, China continues to import huge tonnages of yellow metal. As usual, Chinese investors bought on the price dips in the past quarters, steadfastly accumulating for a rainy day. The Chinese appear to be price sensitive regarding gold, as was mentioned in the most recent World Gold Council Demand Trends report, and can also be observed by Shanghai Gold Exchange (SGE) premiums – going up when the gold price goes down – and by withdrawals from the vaults of the SGE which are often increasing when the price declines. Net inflow into China accounted for an estimated 777 tonnes in the first three quarters of 2017, annualized that’s 1,036 tonnes.
    ***
    Demonstrated in the chart above Chinese gold imports and known gold demand by the Rest Of the World (ROW) add up to thousands of tonnes more than what the ROW produces from its mines. One might wonder where Chinese gold imports come from, which is why I thought it would be interesting to analyse as detailed as possible who’s supplying China. Is one country, or only the West, supplying China? Although absolute facts are difficult to cement, my conclusion is that China is supplied by a wide variety of countries on several continents this year.

    This post was published at Bullion Star on 14 Nov 2017.


  • My Conviction in Gold Royalty Companies and Bitcoin

    Some of you reading this might already be familiar with the ‘Parable of the Talents,’ but it’s worth a brief retelling. The story, which appears in the gospels of Matthew and Mark, involves a master who entrusts three servants with some of his ‘talents,’ or gold coins, while he’s away on business. Two of the servants take a risk by putting the money to work and end up doubling their master’s wealth. The third servant, however, buries his share to ‘keep it safe’ and so doesn’t generate any returns. (Indeed it likely loses value because of inflation.)
    When the master returns, he’s so pleased at how the first two servants grew his wealth that he puts them in charge of ‘many things’ and invites them to share in his own success.
    The third servant, though, he calls ‘wicked and lazy’ and says he might as well have deposited the money in a bank while he was away – at least then he would have received a little interest. The servant is punished by having his share of the talents given to the two who faithfully grew their master’s money, leaving him with nothing.
    The lesson here should be plainly obvious, and we can express it in a number of different ways: There can be no reward without risk. You must spend money to make money. You reap what you sow. This should resonate with investors, entrepreneurs and any true believer in the power of capitalism.
    Jesus’ parable applies not just to individuals but to corporations as well. Companies must grow to keep up with the rising cost of labor and materials and to stay competitive. To do that, they must put their money to work just as the two servants do.
    And just as the two servants were invited to share in their master’s success, corporate growth has a multiplier effect – for the company’s employees and their families, shareholders, the local economy, strategic partners, companies up and down the supply chain and much more.

    This post was published at GoldSeek on Tuesday, 14 November 2017.


  • The IRS Is Puzzled: Why Out Of 500,000 Coinbase Users, Only 900 Reported Gains Or Losses

    Almost exactly one year ago, the IRS realized that it could be leaving billions of dollars on the table in the form of uncollected taxes, and launched a tax-evasion probe on the largest US Bitcoin exchange, Coinbase, seeking to identify all Coinbase users in the U. S. who ‘conducted transactions in a convertible virtual currency’ from 2013 to 2015.
    ***
    In a vexing paradox for cryptocurrency traders who had hoped they could avoid the IRS indefinitely as someone, somewhere once may have mentioned, the higher the price of bitcoin rose, the more motivated the IRS was to obtain access to user transaction records. Or, as Bloomberg put it, “the exploding value of the cryptocurrency since its first real-world transaction in 2010 is one reason the U. S. Internal Revenue Service is pushing to see records on thousands of users of Coinbase Inc., one of the biggest U. S. online exchanges. The company’s digital currency platform allows gains to be converted into old-fashioned dollars in transactions that the IRS alleges are going unreported.”

    This post was published at Zero Hedge on Nov 13, 2017.


  • NOV 13/GOLD UP $4.85 AND SILVER RISES 16 CENTS/CHAOS IN ENGLAND AS THERESA MAY COULD BE OUSTED AS LEADER/TENSIONS AGAIN ESCALATE THROUGHOUT THE MIDDLE EAST/GE CRASHES TODAY/

    GOLD: $1278.85 UP $4.85
    Silver: $17.05 UP 16 cents
    Closing access prices:
    Gold $1278.50
    silver: $17.05
    SHANGHAI GOLD FIX: FIRST FIX 10 15 PM EST (2:15 SHANGHAI LOCAL TIME)
    SECOND FIX: 2:15 AM EST (6:15 SHANGHAI LOCAL TIME)
    SHANGHAI FIRST GOLD FIX: $1288.37 DOLLARS PER OZ
    NY PRICE OF GOLD AT EXACT SAME TIME: $1276.60
    PREMIUM FIRST FIX: $11.77
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    SECOND SHANGHAI GOLD FIX: $1288.37
    NY GOLD PRICE AT THE EXACT SAME TIME: $1276.60
    Premium of Shanghai 2nd fix/NY:$11.77
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    LONDON FIRST GOLD FIX: 5:30 am est $1278.40
    NY PRICING AT THE EXACT SAME TIME: $1278.10
    LONDON SECOND GOLD FIX 10 AM: $1277.95
    NY PRICING AT THE EXACT SAME TIME. 1277.30
    For comex gold:
    NOVEMBER/
    NOTICES FILINGS TODAY FOR OCT CONTRACT MONTH: 2 NOTICE(S) FOR 20000 OZ.
    TOTAL NOTICES SO FAR: 991 FOR 99,100 OZ (3.082TONNES)
    For silver:
    NOVEMBER
    1 NOTICE(S) FILED TODAY FOR
    5,000 OZ/
    Total number of notices filed so far this month: 872 for 4,360,000 oz
    XXXXXXXXXXXXXXXXXXXXXXXXXXXXXX
    Bitcoin: BID $6729 OFFER /$6764 DOWN $308.00 (MORNING)
    BITCOIN CLOSING; BID $6498 OFFER: $6523 // UP $78.00

    This post was published at Harvey Organ Blog on November 13, 2017.


  • SWOT Analysis: Turkish Demand for Gold Near a Four-Year High

    Strengths
    The best performing precious metal for the week was palladium, 0.41 percent. CenterraGold is set to buy Aurico Metals for $1.80 per cash share for a 38-percent purchase price premium on the Toronto Stock Exchange. Centerra currently holds more than $350 million in cash and has now secured a $125 million acquisition facility, according to Bloomberg. Gold prices rose after Saudi Arabia said a recent attempted missile strike at Riyadh’s airport could be an act of war by Iran. Additionally, Turkish investors are continuing to buy gold with demand expected to reach the highest since 2013. According to Google Trends, global searches for ‘buy bitcoin’ have overtaken ‘buy gold’ demonstrating a surge in popularity of the cryptocurrency. However, the BullionVault Gold Investor Index edged slightly higher to 54.6, demonstrating the number of buyers is higher than sellers. Weaknesses
    The worst performing precious metal for the week was platinum, down 0.82 percent. Due to platinum’s primary use in internal combustion engines, the metal could be among the biggest losers from electrical vehicle growth, reports Mining Review. The World Gold Council said it’s a tough quarter for gold as prices weakened in September and October. Global gold demand fell 9 percent in the third quarter as investor buying slowed and regulations in India tightened, reports Eddie van der Walt.

    This post was published at GoldSeek on 13 November 2017.


  • Cryptos may destabilise fiat

    The assumption in some quarters is that crypto-currencies will replace gold as money, or at least challenge it. This is an error borne out of a misunderstanding of catallactics, or the theory of exchange. It also ignores the fact that beyond a few European countries and North America, gold is firmly money in the minds of ordinary people. I wrote an article on this subject, explaining why cryptocurrencies are not a new form of money, here.
    Anyone reading this article may wish to read my original article first, to understand the true status of cryptocurrencies. I concluded that cryptocurrencies are the purest form of financial bubble in the history of speculation, and will be of great theoretical interest to future generations, just as the phenomena of the Mississippi, South Sea, and tulip bubbles are to us today. I also wrote that
    ‘It’s worth noting that all crypto-currencies together are worth $120bn, with bitcoin $55bn of that total. This is only a very small fraction of cash and deposits worldwide. Therefore, the point where new money to fuel the craze runs out does not appear to have been reached, and could have much further to go.’

    This post was published at GoldMoney on November 09, 2017.


  • November Macro Update: Recession Risk Remains Low

    Summary: The macro data from the past month continues to mostly point to positive growth. On balance, the evidence suggests the imminent onset of a recession is unlikely.
    The bond market agrees with the macro data. The yield curve has ‘inverted’ (10-year yields less than 2-year yields) ahead of every recession in the past 40 years (arrows). The lag between inversion and the start of the next recession has been long: at least a year and in several instances as long as 2-3 years. On this basis, the current expansion will last well into 2018 at a minimum. Enlarge any image by clicking on it.
    You may also like Bitcoin, Real Estate, and FAANG Stocks – Investment Manager Compiles List of World’s Largest Bubbles

    Unemployment claims are also in a declining trend; historically, claims have started to rise at least 6 months ahead of the next recession. Note that recent hurricanes had a short-term negative impact on economic data. In the past, growth has quickly resumed. Thus, jobless claims recently spiked higher after Harvey/Irma, as it also did after Katrina and Sandy, but recent claims are already at a new 40+ year low.

    This post was published at FinancialSense on 11/10/2017.


  • NOV 10/GOLD DROPS $13.00 AND SILVER FALLS BY 11 CENTS AS THE BANKERS UNLOAD A HUGE $4 BILLION NAKED COMEX GOLD SHORT/BITCOIN DROPS A HUGE $718.00/CHINA WILL NOW OFFICIALLY ALLOW FOREIGNERS TO TAK…

    GOLD: $1274.00 UP $13.00
    Silver: $16.89 DOWN 11 cents
    Closing access prices:
    Gold $1276.20
    silver: $16.91
    SHANGHAI GOLD FIX: FIRST FIX 10 15 PM EST (2:15 SHANGHAI LOCAL TIME)
    SECOND FIX: 2:15 AM EST (6:15 SHANGHAI LOCAL TIME)
    SHANGHAI FIRST GOLD FIX: $1293.33 DOLLARS PER OZ
    NY PRICE OF GOLD AT EXACT SAME TIME: $1285.70
    PREMIUM FIRST FIX: $7.63
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    SECOND SHANGHAI GOLD FIX: $1292.60
    NY GOLD PRICE AT THE EXACT SAME TIME: $1284.45
    Premium of Shanghai 2nd fix/NY:$8.15

    This post was published at Harvey Organ Blog on November 10, 2017.