• Tag Archives Bitcoin
  • Gold and Silver Are “Asymmetric” Trades

    An asymmetric trade is a situation where investing a relatively small amount of money holds the potential of yielding a profit many times the amount of the original sum at risk. In other words, where the risk to reward is skewed massively in the direction of reward.
    This took place recently with Bitcoin (BTC). Is this conceptually different from bets made years ago on Microsoft, Cisco, Amazon, or Facebook, which yielded hundreds of percent profit to intrepid investors? Does it have relevance to the possible returns during the next few years for those who hold physical gold and silver?
    I would answer “yes” and “yes.”
    The current “mania” in the cryptocurrency space – most notably BTC and Ethereum (ETH), along with a few other “app coins” – offers an in-future lesson for a similar setup in the precious metals. (For more on the above topic, see “The Blockchain: A Gold and Silver Launchpad?”
    First: This may be the first time ever that an investment “story” has had the ear and investment dollars of a global audience on a simultaneous basis. Individual investors, hedge funds, businesses, and even countries, are sending a torrent of funds, with the effect, to paraphrase Doug Casey’s famous remark, of “trying to push the power of the Hoover Dam through a garden hose.”

    This post was published at GoldSeek on Friday, 23 June 2017.


  • Oil, Gold and Bitcoin

    The falling price of oil did not garner any mainstream financial media attention until today, when U. S. market participants woke up to see oil (both WTI and Brent) down nearly $2. WTI briefly dropped below $43. The falling price of oil reflects both supply and demand dynamics. Demand at the margin is declining, reflecting a contraction in global economic activity which, I believe the data shows, is accelerating. Supply, on the other hand, is rising quickly as U. S. oil producers – specifically distressed shale oil companies – crank out supply in order to generate the cash flow required to service the massive energy sector debt load.
    I am quite surprised by the rapid fall of oil (WTI basis) from the $50 level, because I concluded earlier this year that the Fed was attempting to ‘pin’ the price of oil to $50:
    The graph above is a 5-yr weekly of the WTI continuous futures contract. Oil bottomed out in early 2016 and had been trending laterally between the mid-$40’s and $55. I read an analysis in early 2016 that concluded that junk-rated shale oil companies would implode if oil remained in the low $40’s or lower for an extended period of time. Note that some of the TBTF banks who underwrote shale junk debt were stuck with unsyndicated senior bank debt (i.e. they were unable to find enough investors to relieve the banks of this financial nuclear waste). Thus, the Fed has been working to keep the price of oil levitating in the high $40’s/low $50’s, in part, to prevent financial damage to the big banks who have big exposure to shale oil debt.

    This post was published at Investment Research Dynamics on June 21, 2017.


  • The Next Economic Crisis Is Going To Leave The Majority Of People In Shock – Episode 1307a

    The following video was published by X22Report on Jun 15, 2017
    EU has decided to put Greece further into debt. It is becoming clear that Greece will never get out of this debt hole. 70% of the people support the BREXIT. Canada’s existing home sales has declined rapidly. Bitcoin dropped on worries about cyber attacks and regulations. Nike cutting 1500 people. The US manufacturing industry declines once again. Illinois is worse now than back in the great depression of the 30s. Bloomberg’s Mike Cudmore says the Fed has just pushed us into a recession, what he really means a collapse of the economy. Japan has decided that they will look into joining China’s belt and road trade system. The Fed is now pushing the collapse is not holding back, most of the people are going to be shocked when this hits.


  • Precious Metals & The Block Chain, A Game Changer? David Morgan

    The following video was published by The Morgan Report on Jun 15, 2017
    Precious Metals expert David Morgan’s talk at the Cambridge House Metal Writers Conference in Vancouver.
    His talk was on the state of Blockchain technologies along with the pros and cons of this technology and its role as currency.
    He goes through the parabolic cycle and compares it to the 1980 parabolic cycle of silver and gold.
    Other things is the dangers of Bitcoin and Blochchains in a volitile digital cyber security world.


  • Bundesbank’s Weidmann: Digital Currencies Will Make The Next Crisis Worse

    When global financial markets crash, it won’t be just “Trump’s fault” (and perhaps the quants and HFTs who switch from BTFD to STFR ) to keep the heat away from the Fed and central banks for blowing the biggest asset bubble in history: according to the head of the German central bank, Jens Weidmann, another “pre-crash” culprit emerged after he warned that digital currencies such as bitcoin would worsen the next financial crisis.
    As the FT reports, speaking in Frankfurt on Wednesday the Bundesbank’s president acknowledged the creation of an official digital currency by a central bank would assure the public that their money was safe. However, he warned that this could come at the expense of private banks’ ability to survive bank runs and financial panics.
    As Citigroup’s Hans Lorenzen showed yesterday, as a result of the global liquidity glut, which has pushed conventional assets to all time highs, a tangent has been a scramble for “alternatives” and resulted in the creation and dramatic rise of countless digital currencies such as Bitcoin and Ethereum. Citi effectively blamed the central banks for the cryptocoin phenomenon.

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


  • Jeff Berwick: Buy Gold and Bitcoin Before the Financial System Fails

    The following video was published by The Dollar Vigilante on Jun 13, 2017
    Jeff is interviewed on May 28, 2017, by Charlotte McLeod for the Investing News Network, topics include: cryptocurrencies, bitcoin up 80,000%, in a bubble? gold and gold stocks, financial collapse, SDR and one world government, interest rates, The Dollar Vigilante solutions.


  • In Gold we Trust: Must See Gold Charts and Research

    In Gold we Trust Report: Bull Market Will Continue
    The 11th edition of the annual ‘In Gold we Trust’ is another must read synopsis of the fundamentals of the gold market, replete with excellent charts by our friend Ronald-Peter Stoeferle and his colleague Mark Valek of Incrementum AG.
    ***
    Key topics and takeaways of the report:
    – ‘Sell economic ignorance, buy gold …’
    – Many signals suggest that we are about to face a big shift within the financial and monetary system
    – 5 reasons why the gold bull market will continue
    – Gold’s gains in 2016 dampened due to high expectations of Trump’s growth policy
    – Gold still up 8.5% in 2016 and 10.2% since January 2017
    – Attempt at normalization of U. S. monetary policy will be litmus test for US economy
    – Bitcoin: Digital gold or fool’s gold?

    This post was published at Gold Core on June 13, 2017.


  • China’s “Bubble Prophet” Sees Unprecedented Surge In Home Prices

    Beijing’s ability and eagerness, to create and roll from one bubble, whether it is in housing, equities, commodities, cars, bitcoin and so on, into the next has been extensively documented, however, of all recurring bubbles to impact the Chinese economy, housing is by far the most important. The reason for that is that housing provides Chinese society with a dramatic wealth effect, far greater than the stock market, and as Deutsche Bank calculated in March, in 2016 the rise of property prices boosted household wealth in 37 tier 1 and tier 2 cities by CNY 24 trillion, almost twice their total disposable income of RMB12.9 trillion (fig.11).

    This post was published at Zero Hedge on Jun 11, 2017.


  • India GST News Powers Gold Higher

    Gold is the world’s ultimate asset, and another spectacular week is underway for investors. While May was mostly sideways (and lower for many gold stocks), it’s starting to look like the month of June could be a serious ‘barnburner’. Please click here now. Double-click to enlarge this daily bars gold chart. Gold tends to stage a decent rally in the days following the release of the US jobs report. That’s in play now, as I suggested it would be, but the rally is also on ‘Indian demand steroids’. Please click here now. It’s unknown how big black market demand is, but the official demand alone came in at over 100 tons for May! This weekend’s government announcement of a 3% GST rate on gold sales has sent Indian jewellery stocks skyrocketing. The new GST effectively cuts the total tax rate in the state of Kerala, which I have dubbed ‘world gold demand headquarters’. In my professional opinion, the bear cycle in Indian demand is over. Once the Diwali festival buying season arrives, I’m predicting that imports could reach a new single month record high of 200 tons. Please click here now. Double-click to enlarge this big picture gold chart. With the bear cycle in Indian demand over, gold is likely to begin its rise out of the huge $1923 – $1045 consolidation pattern. Gold is essentially poised to play ‘catch-up’ with the skyrocketing price of anti-fiat currency bitcoin, and begin a steady rise to my targeted $2800 price level.

    This post was published at GoldSeek on 6 June 2017.


  • Qatarstrophe Sends Gold Near Post-Election Highs As Crude Tests 2017 Lows

    With Treasury yields at their lowest since the election, it appears a shift towards safe-havens (or Trumpflation unwinds) is well underway. Gold is nearing $1300 this morning – its highest since the election. WTI Crude has sunk back to a $47 handle, ignoring dollar weakness as the Qatarstrophe raises more doubts about OPEC coordination.
    A weaker dollar is helping precious metals (and Bitcoin) but not crude – a break in the relationship regime we have seen this year.

    This post was published at Zero Hedge on Jun 6, 2017.


  • GOLD, SILVER or BITCOIN-CRYPTO CURRENCIES: Where Will The Big Money Be Made?

    When the Central Banks finally lose control of propping up the markets, will the BIG MONEY be made in owning gold, silver or crypto-currencies? This is the question many investors who are focused on ‘alternative assets’, outside the typical mainstream stock, bond and real estate markets, are asking.
    Most investors who have been concerned about the massively inflated Bubble Markets and the Greatest Financial Ponzi Scheme in history, have been investing in gold and silver. However, a new kid on the block, called Bitcoin and the other crypto-currencies, have gained a lot of attention due to the huge increase in their prices over the past few months.
    So, now many investors are wondering what to make of these extremely volatile crypto-currencies and if they are nothing more than purely speculative and gambling vehicles. This is a logical assumption based on the massive spike in many of their crypto-currency values.

    This post was published at SRSrocco Report on JUNE 2, 2017.


  • The Silent Economic Boom

    [Note: I was recently interviewed by Kenneth Ameduri who hosts the Crush The Street internet show. In it I discuss my take on gold, stocks, Trump, the economy and Bitcoin. The interview can be found here: Though many Americans aren’t feeling it, the economy is quietly gathering forward momentum. With consumers gaining in confidence and real estate heating up on both the commercial and residential levels, the U. S. economy is much stronger than it may seem at first glance.
    One reflection of the strengthening economy is the equity market, which is in the eighth year of a bull market since the bottom of the credit crash. The bromide, ‘As goes the stock market, so goes the economy,’ is something that hardly needs explaining, yet so many investors lose sight of this cogent fact that it bears repeating. Rising corporate profits and efficiencies in recent years have contributed in large part to the economic improvement.
    Another reflection of the recovery can be seen in our in-house New Economy Index (NEI), which combines the stock prices of the leading U. S. retail and business service stocks. The graph below shows that NEI continues to hit all-time highs on almost a weekly basis and as such is reflecting a strong consumer retail economy.

    This post was published at GoldSeek on Friday, 2 June 2017.


  • Asian Metals Market Update: June-01-2017

    Factors which can affect markets
    There are a lot of economic data releases today. There is even the US weekly crude oil inventory today. The next two days are make or break days for metals and energies. Either they rise or there will be a big crash.
    In June the factors that I will be looking at are: (a) The impact of May nonfarm payrolls on US interest rate hikes for the rest of the year (b) UK elections. A bad performance by Ms. Theresa May can result in zooming of gold prices on safe haven demand and vice-versa. (c) The situation in Philippines should never be ignored due to its strategic location. If the war with ISIS in Philippines spreads to some geographical area in the nation, gold prices will be positively affected. (d) Direction of bitcoin will also affect gold prices.

    This post was published at GoldSeek on 1 June 2017.


  • RIPPLE Crypto-Currency Up 20% Today….. It’s The Wild West Out There

    After the crypto-currency, Ripple, fell 12% yesterday, it surged over 20% in trading today. Folks, it’s the Wild West out there in crypto-currency land. I have been spending some time looking into these crypto-currencies because there seems to be a great deal of mystery behind them. And I like looking into and solving mysteries.
    Of course, the rapid increase in price has sparked some interest, but very few realize just how much energy and capital it takes to produce one Bitcoin today. Actually, I was quite surprised.
    I want my readers to know that I will be doing some research and writing some articles and Reports on these crypto-currencies (along with Gold & Silver) as I believe we are going to be seeing a lot more about them as well as rising interest in the markets going forward.

    This post was published at SRSrocco Report on MAY 31, 2017.


  • Are Stock Traders Actually More Pessimistic Than Bond Traders?

    Authored by Kevin Muir via The Macro Tourist blog,
    As a former equity guy, it pains me to say that when the bond and equity markets are at odds, it usually pays to go with the bond guys. Let’s face it, the bond guys are better at math, often smarter, and less likely to fall for a story. Therefore I am a little at a loss regarding this next chart, as it appears the stock jockeys are more sanguine about rates than the fixed income crew.
    Yesterday the SPDR Utility ETF closed at a new all-time high. With all the excitement regarding the FANG stocks, along with the manic chasing occurring in TSLA and bitcoin, you would figure that sentiment would be bubbling over. Shouldn’t investors be dumping utility stocks like University students returning on Thanksgiving weekend to their old high school sweethearts? Instead, we find investors gobbling up utilities like rates are never going higher.

    This post was published at Zero Hedge on May 31, 2017.