Published On: Thu, Nov 23rd, 2017

Exiting Bitcoin to Enter Gold, Silver – Right? No Sane Person would go a Other Way Around

Exiting Bitcoin to Enter Gold, Silver - Right? No Sane Person would go a Other Way Around

Hedge Funds Slowly Buying Gold, Silver

For a second week in a row, sidestep supports waded solemnly behind into a bullion and china market, according to a latest trade information from a Commodity Futures Trading Commission.

The disaggregated Commitments of Traders news for a week finale Nov. 14 showed income managers increasing their suppositional sum prolonged positions in Comex bullion futures by 2,875 contracts to 190,657. At a same time, brief bets declined by 2,511 contracts to 14,559. Gold’s net length increasing to 176,098 contracts.

Commodity analysts during Commerzbank remarkable that gold’s net length is during a middle six-week high. The trade information enclosed a cost transformation from Nov. 10, as markets and traders were held by warn after 4 million ounces in destiny contracts were sole in a matter of minutes.

In a new talk with Kitco News, George Milling-Stanley, conduct of bullion investments during State Street Global Advisors, pronounced that gold’s new resilience is a pointer that investors and comment managers are solemnly accumulating gold, building defensive positions as equity markets continue to demeanour overvalued.

Ole Hansen, conduct of commodity plan during Saxo Bank, pronounced that bullion benefited from safe-haven direct as doubt started to build around due U.S. taxation remodel legislation. While a House of Representatives upheld a tax-reform check final week, a Senate has usually started to pull a possess chronicle forward.

The renewed seductiveness in bullion final week was not adequate to pull prices out of a stream range. During a consult period, bullion prices rose 0.56%. The bullion marketplace has been stranded been stranded in a parsimonious operation given mid-September.

Many analysts note that bullion will usually be means to attract poignant financier seductiveness when prices pull above a Oct highs during $1,306 an ounce.

Investor seductiveness in china also grew final week. The disaggregated news showed money-managed suppositional sum prolonged positions in Comex china futures increased by 1,092 contracts to 78,464. At a same time, brief positions fell by 1,342 contracts to 10,274. Silver’s net length now stands during 68,190 contracts.

Silver’s net length increasing roughly 4% from a prior week; however, prices usually saw a middle arise of 0.79% during a consult period.

Commerzbank analysts remarkable that silver’s net length is during a nine-week high. – Neils Christensen

Gold Or US Dollar Or Bitcoin – Which Will Remain Money?

The tip priority for a subsequent decade should be how to strengthen one’s possess wealth, according to arch economist during ABC Bullion, who reviewed gold, a US dollar, and bitcoin to see that item acts as a best sidestep opposite risk.

“If story is to repeat, or even usually rhyme, afterwards investors and savers should be on a surveillance for a vital change to a financial complement in a entrance years. More importantly, they should do their best to safeguard their portfolios are amply strong to continue that change, and take compulsory transformation if required,” Jordan Eliseo pronounced in a news published Monday.

For Eliseo, a best proceed to proceed this is balance, that is slanted towards a changed metals.

“Precious metals are expected a best and, usually as importantly, simplest means of safeguarding my family’s resources by a formidable marketplace sourroundings we all face in a years ahead,” Eliseo said. “Physical bullion has no counterpart when it comes to safeguarding purchasing appetite over prolonged time periods, and since it has been humankind’s elite choice of income for millennia.”

But, regulating all 3 means in several degrees is not wrong, he added.

“Crucially, this need not meant investors and savers have to select usually one financial basket, and put all their resources into changed metals, fiat banking or cryptocurrencies,” Eliseo said.

The arch economist admits that his possess proceed involves gripping a estimable “portion of [his] possess resources in fiat currency” and “a poignant holding in earthy bullion (and silver).”

He also says that a tiny investment into bitcoin is understandable, nonetheless controversial during stream prices, cautioning traders of a probable pile-up in a short-term.

“Maybe a bomb gains will continue for years to come, nonetheless [the] kind of advertising, and a other factors during play advise BTC [bitcoin] and a CCM [cryptocurrency movement] is a burble price-wise today, with a poignant possibility of a vital fall in a entrance months.”

The many critical thing to ask when selecting is “whether or not Bitcoin, a US Dollar or earthy bullion will sojourn money.”

When examining any asset, Eliseo lists 7 characteristics: durability, portability, divisibility, consistency, benefaction recognition, acceptability and unique value; as good as 3 functions: section of account, middle of exchange, and store of value.

Gold clearly meets a initial 5 characteristics of income as good as a final one: “In that it is “intrinsically profitable – both as an magnificent arrangement of resources (think jewelry) and in some industrial applications.”

The yellow steel also meets one of a functions of income given it has an well-developed store of value over a prolonged run. “Today, it is not unequivocally used as a middle of sell or a section of account, that affects a acceptability in daily commerce.”

When it comes to a US dollar, a initial 6 characteristics of income and a initial dual functions are simply “satisfied,” wrote a arch economist.

The biggest problem in box of a US dollar for Eliseo is a store of value. “The USD, and indeed all fiat currencies, does a terrible job, with a USD carrying mislaid a improved partial of 95% of a purchasing appetite in a final 100 years, according to information from a St Louis Federal Reserve.”

Looking during bitcoin, Eliseo pronounced it is durable, portable, divisible, and now recognizable. But, “the jury is still out as to a consistency” and acceptability is mostly a “no.”

“As for possibly or not BTC is alone valuable, one could remonstrate possibly side of this – nonetheless for me, usually as we see some unique value in a USD, so too do we see an fundamental value in BTC,” he said. “When it comes to a functions of money, BTC is not used as a section of account, and it is not a widely used middle of exchange.”

On tip of that, it is too early to tell possibly bitcoin will have a store of value given it has not even been around for 10 years. – Anna Golubova

Selling Out Of Gold, Silver Buying Bitcoin …. Very Bad Idea

There is a new trend by people in a choice media community who are now offered out of changed metals and shopping into Bitcoin and cryptocurrencies.  While this competence seem like a good idea, generally when Bitcoin and a cryptocurrencies strech new all-time highs, it is expected a large mistake.  Now, we am not observant that people shouldn’t deposit in cryptocurrencies.  Rather, it’s a lousy thought to sell all of one’s changed metals land and put it all into Bitcoin and cryptocurrencies.

Recently, Sean during SGTReport published a brief video in that partial of a headlined was patrician as “SILVER BULL CAPITULATES.”  In a video, Sean explains how past visit guest and changed steel analyst, Andy Hoffman, has sole out of all his china and is now usually in Bitcoin and gold.  Andy explains in his talk on Crush The Street that he sole all of his china this summer as he unequivocally has no seductiveness in it.  He goes on to say, “Because, in a digital age, we usually don’t trust people are going to store thousands of pounds of china anticipating that a gold-silver ratio is going to come down.”

I have to tell you, not usually do we find this arrange of thinking, definitely preposterous, we also find it utterly discouraging that analysts who have been compelling changed metals for a past decade are now implying that bullion and china are no longer high-quality stores of value.  we remonstrate wholly with this inadequate and extraneous analysis.

There are several reasons since we trust it is essential to reason many of one’s resources in changed metals than in Bitcoin and cryptocurrencies.  However, a many critical cause has to do with a frail inlet of a rarely technical formidable complement that allows Bitcoin and cryptocurrencies to function.  It takes a extensive volume of appetite to say and appetite a internet, servers and mechanism systems that give life to Bitcoin and cryptocurrencies.

Unfortunately, a infancy of a choice and mainstream media analysts trust in a ENERGY TOOTH FAIRY ( a tenure coined by Louis Arnoux).  What do we meant by a ENERGY TOOTH FAIRY?  It is a faith by a poignant apportionment of a open and researcher village that a modernized universe economies and markets will continue to pullulate and grow forever.  Moreover, some analysts, such as Harry Dent, trust that if we got absolved of a hurtful bankers and politicians and concede people to have a lot some-more babies, afterwards mercantile expansion will continue indefinitely.

For some peculiar reason, Harry Dent totally omits a impact of appetite in his demographic research of a markets.  Does ole Harry not comprehend that a exponential boost in tellurian oil prolongation has coincided with a exponential expansion in tellurian population???  Of march not.  If he did, he would stop focusing on demographics and place his courtesy on what is function in a tellurian appetite industry.

Regardless, offered out of one’s changed metals land competence be foolish if we cruise that a cost of bullion and china are closer to their lows, and Bitcoin and a cryptos are reaching new highs.


For example, a stream bullion cost during $1,280 is usually 10% above a annual normal low of $1,160 set in 2015, while china during $17 is usually 8% aloft than a normal yearly low of $15.68 during a same year.  However, if we demeanour during Bitcoin, a cost is nearby a stream high of $8,200:

Here we can see that Bitcoin has increasing some-more than 10 times from $800 during a commencement of 2017 to over $8,000 currently.  While Bitcoin traders and speculators with Dollar signs in their eyes are betting on many aloft prices, let me uncover we another chart.  This is a initial Bitcoin cost spike that skyrocketed to over $1,000 in 2013:

As we can see in a chart, Bitcoin’s cost surged 10 times from $115 in Oct 2013 to $1,150 during a finish of December.  If we went behind to this accurate time, it looked like Bitcoin’s cost was going to continue higher.  However, if we see what happened after Bitcoin peaked to $1,000, there was a outrageous converging period:

One year after Bitcoin strike $1,150, it was trade during $250.  It took scarcely 3 some-more years before Bitcoin surpassed a prior high.  Will this occur to Bitcoin again?  Who knows?  It is roughly unfit to sign a value of Bitcoin and a cryptocurrencies.  Yes, we could see Bitcoin continue towards $10,000.  However, we contingency comprehend that many people are not removing into Bitcoin since they know a intensity advantages of blockchain technology, nonetheless rather since a cost is surging aloft and higher.  There’s zero like a skyrocketing cost to move in a speculators in outrageous numbers.

Recently, Mike Maloney of settled in a video that he took some Bitcoin boost and purchased silver.  He believed that it was intelligent to take boost from Bitcoin as it looked like it was potentially overvalued and buy china as it was undervalued.  we agree.

Those Who Sold Their Precious Metals For Bitcoin Forgot About Our Dire Energy Predicament

As we settled during a commencement of a article, people who trust in a new high-tech universe with Bitcoin and cryptocurrencies using a financial complement contingency have lost about a apocalyptic appetite difficulty we are facing.  This baffles me.  The U.S. infrastructure is descending detached while North American suffers from over 250,000 H2O categorical breaks a year, and we are going to transition into a new high-tech universe of robots and cyborgs?  Who are we fricken kidding?

Has anyone taken a good demeanour during what happened to a Great Egyptian, Mayan and Roman Empires???  They PEAKED and DECLINED… LOL.  And it was all formed on their Falling EROI – Energy Returned On Investment.  The some-more modernized and formidable a multitude becomes, a some-more appetite it takes to run and say it.  Folks, we have run out of a CHEAP, ABUNDANT ENERGY.

I have supposing many clues in prior articles, nonetheless we trust it’s a good thought to benefaction a few charts once again.  The Global Oil Industry is cannibalizing itself usually to stay alive.  We know this is function by looking during a large boost in long-term debt:

The tellurian vital oil companies long-term debt had quadrupled from $84 billion in 2007 to scarcely $380 billion final year.  Why did their long-term debt boost when they were enjoying $100 a tub of oil from 2011-2014??  The problem is that Falling EROI is now pulling costs aloft as a net appetite in a tub of oil declines.  Thus, we have a double-edged sword.

For example, these tip 7 vital tellurian oil companies enjoyed a sum net income distinction of $100 billion in 2004 when a cost of oil was $38 a barrel.  However, even nonetheless a cost was aloft during $44 final year, their sum net income fell nearly 90% to $10.5 billion:

So, a BIG PROBLEM now is that a universe marketplace can’t unequivocally means high oil prices and a oil companies can’t furnish oil during a reduce cost.  If we take during this final chart, we can see usually how bad a conditions has spin for a world’s vital oil companies:

In 2004, these tip 7 tellurian oil companies enjoyed a Return On Capital Employed (ROCE) between 20-40%.  We contingency remember, that year a cost of oil was $38.  However, when a oil cost was aloft during $44 final year, these companies ROCE fell to a low singular digits.  Thus, they lapse on collateral employed collapsed.

These 3 charts paint a really grave destiny for a tellurian oil industry.  Without a blazing of oil, a economy grinds to a halt.  we would like to remind those who trust WIND, SOLAR, and ELECTRIC VEHICLES are going to save us… they are zero some-more than hoary fuel derivatives.  The universe needs to bake a lot of oil, healthy gas and spark to furnish a supposed renewable immature technologies.

So, when oil and healthy gas supply declines, so will a misinterpretation of renewable energy.  Now, we am not observant it isn’t correct to possess solar panels on one’s home or to have an electric car.  Instead, it’s foolish to trust solar, wind, electric vehicles, and a new high-tech universe is a future.

It isn’t.

I trust we are going to knowledge one ruin of a marketplace pile-up and deflation.  Not usually will a oil cost dump like a rock, nonetheless so will a value of many STOCKS, BONDS, and REAL ESTATE.  If we have sole your changed metals for cryptos during this time, we competence find out that was a large mistake. – SRSroccoreport

Gold Vs Bitcoin: The Pro-Gold Argument Takes Shape

Sound income advocates who adore a judgment of cryptocurrencies nonetheless don’t wish to desert changed metals have been perplexing to explain their thoughts of late. Risk Hedge usually helped, with a extensive matter of a pro-gold position. The following is an excerpt. Read a full article here.

All a Reasons Cryptocurrencies Will Never Replace Gold as Your Financial Hedge

Despite what a crypto-evangelists will tell you, digital tokens will never and can never reinstate bullion as your financial hedge. Here are 6 reasons why.

#1: Cryptocurrencies Are More Similar to a Fiat Money System Than You Think.

The clarification of “fiat money” is a banking that is authorised proposal nonetheless not corroborated by a earthy commodity.
It’s transparent that cryptocurrencies partially fit a clarification of fiat money. They competence not be authorised proposal yet, nonetheless they’re also not corroborated by any arrange of earthy commodity. And while sum supply is artificially constrained, that imprisonment is just… well, artificial.

You can’t review that to a earthy imprisonment on gold’s supply.

Some countries are also exploring a thought of introducing government-backed cryptocurrencies, that would take them one step closer toward fiat-currency status.

As Russia, India, and Estonia are deliberation their possess digital money, Dubai has already taken it one step further. In September, a dominion announced that it has sealed a understanding to launch a possess blockchain-based banking famous as emCash.

So ask yourself, how can we effectively sidestep opposite a fiat income complement with another form of fiat money?

#2: Gold Has Always Had and Will Always Have an Accessible Liquid Market.

An item is usually profitable if other people are peaceful to trade it in lapse for goods, services, or other assets.
Gold is one of a many glass resources in existence. You can modify it into income on a spot, and a value is not firm by inhabitant borders. Gold is gold—anywhere we transport in a world, we can sell bullion for whatever a internal banking is.

The same can't be pronounced about cryptocurrencies. While they’re being supposed in some-more and some-more places, broad, mainstream acceptance is still a prolonged proceed off.

What creates bullion so glass is a measureless distance of a market. The incomparable a marketplace for an asset, a some-more glass it is. According to a World Gold Council, a sum value of all bullion ever mined is about $7.8 trillion.
By comparison, a sum distance of a cryptocurrency marketplace stands during about $161 billion as of this writing—and that marketplace top is separate among 1,170 opposite cryptocurrencies.

That’s a prolonged shot from apropos as glass and widely supposed as gold.

#3: The Majority of Cryptocurrencies Will Be Wiped Out.

Many Wall Street veterans review a stream arise of cryptocurrencies to a Internet in a early 1990s.
Most bonds that had risen in a initial call of a Internet disturb were wiped out after a detonate of a dot-com burble in 2000. The crash, in turn, gave arise to some-more tolerable Internet companies like Google and Amazon, that flower to this day.

The same will substantially occur with cryptocurrencies. Most of them will get wiped out in a initial critical correction. Only a few will spin a standard, and nobody knows that ones during this point.

And if vital countries like a US burst in and emanate their possess digital currency, they will expected make competing “private” currencies illegal. This is no opposite from how secretly released banknotes are bootleg (although they were authorised during a Free Banking Era of 1837–1863).

So while it’s expected that cryptocurrencies will still be around years from now, a doubt is, that ones? There is no need for such guesswork when it comes to gold.

#4: Lack of Security Undermines Cryptocurrencies’ Effectiveness.

Security is a vital obstacle confronting a cryptocurrency community. It seems that each other month, there is some news of a vital penetrate involving a Bitcoin exchange.

In a past few months, a comparatively new cryptocurrency Ether has been a aim for hackers. The sum sum volume stolen has roughly reached $82 million.

Bitcoin, of course, has been a largest target. Based on stream prices, usually one spoliation that took place in 2011 resulted in a hackers holding reason of over $3.7 billion value of bitcoin—a towering figure. With confidence issues surrounding cryptocurrencies still not entirely rectified, their capability as an effective sidestep is compromised.

When was a final time we listened of a bullion repository being robbed? Not to discuss a fact that many depositories have full word coverage.

The bullion vs bitcoin discuss has a prolonged proceed to run. But if a outcome is a universe in that income is what a marketplace — rather than a supervision — says it is, afterwards hopefully there will be room for both. – John Rubino


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