Category Archive: 6a) Gold & Bitcoin

Each Bitcoin Transaction Uses As Much Energy As Your House In A Week

While Bitcoin bulls will probably never have it so good as they have in 2017, we wonder whether many of them have stopped to think about the environmental downside of this roaring bull market. After all, back in the dot.com boom, people had ideas about potential internet businesses, issued pieces of paper representing ownership and watched their prices go parabolic parabolic.

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The Big Reversal: Inflation and Higher Interest Rates Are Coming Our Way

This interaction will spark a runaway feedback loop that will smack asset valuations back to pre-bubble, pre-pyramid scheme levels. According to the conventional economic forecast, interest rates will stay near-zero essentially forever due to slow growth. And since growth is slow, inflation will also remain neutral.

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German Investors Now World’s Largest Gold Buyers

Today, gold is increasingly viewed by German investors as a regular form of saving: 25% of those surveyed in 2016 said their gold purchase had been part of a regular review of their investments, while 23% said it was part of their retirement planning.

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Gold Price Reacts as Central Banks Start Major Change

Bank of England raised interest rates for the first time in ten years. President Trump announces Jerome Powell as his choice to lead the U.S. Federal Reserve. Most investors outside the US Dollar and Euro see gold prices climb after busy week of central bank news. Inflation now at five-year high of 3%. Inflation, low-interest rate, debt crises and bail-ins still threaten savers and pensioners.

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Why Switzerland Could Save the World and Protect Your Gold

Precious metals advisor Claudio Grass believes Switzerland can serve as an example to rest of world. Switzerland popular for gold storage due to understanding of the risks inherent in fiat money and gold’s value as a store of wealth. International investors opt to store gold in Swiss allocated accounts due to tradition of respecting private property.

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Invest In Gold To Defend Against Bail-ins

Italy’s Veneto banking meltdown destroyed 200,000 savers and 40,000 businesses. EU bail-in rules have wiped out billions for savers and and businesses, with more at risk. Bail-ins are not unique to Italy, all Western savers are at risk of seeing savings disappear. Counterparty-free, physical gold bullion is best defence against bail-ins.

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Gold and Silver Get Powelled – Precious Metals Supply and Demand

Keith Weiner’s weekly look on Gold. Gold and silver prices, Gold-Silver Price Ratio, Gold basis and co-basis and the dollar price, Silver basis and co-basis and the dollar price.

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Wozniak and Thiel Fuel Bitcoin-Gold Debate: Gold Comes Out On Top

Gold versus bitcoin debate makes further headlines as tech experts weigh in. Peter Thiel tells Saudi conference he believes bitcoin is underestimated and compares to gold. Steve Wozniak tells Money 20/20 that bitcoin is a better standard of value than gold and U.S. dollar. Both men recognise that the US dollar has little value and there are worthy competitors to its crown as reserve currency. Gold continues to hold its value and has multiple uses,...

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Le vol de l’or de Chine.

L’histoire de la Chine et de son obsession pour l’or a été ravivée cette année, comme nous le prouvent les chiffres des importations effectuées via de Hong Kong et négociées sur le Shanghai Gold Exchange. Mais au vu des articles que nous, commentateurs du marché de l’or, écrivons au sujet de l’amour de la Chine pour l’or, il est surprenant de constater qu’il y a moins de cent ans, le pays perdait l’équivalent de milliers d’années de...

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Gold Is Better Store of Value Than Bitcoin – Goldman Sachs

Gold is better store of value than bitcoin – Goldman Sachs report. Gold will continue to perform well thanks to uncertainty and wealth demand. Bitcoin’s volatility continues to impact its role as money. Gold up 12% in 2017, bitcoin over 600%. BTC is six times more volatile than gold – see chart.

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Why Governments Will Not Ban Bitcoin

Those who see governments banning ownership of bitcoin are ignoring the political power and influence of those who are snapping up most of the bitcoin. To really understand an asset, we have to examine not just the asset itself but who owns it, and who can afford to own it. These attributes will illuminate the political and financial power wielded by the owners of the asset class.

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Falling Interest Rates

Amassing Unproductive Debt.Last week, we discussed the marginal productivity of debt. This is how much each newly-borrowed dollar adds to GDP. And ever since the interest rate began its falling trend in 1981, marginal productivity of debt has tightly correlated with interest. The lower the interest rate, the less productive additional borrowing has in fact become.

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Russia Buys 34 Tonnes Of Gold In September

Russia adds 1.1 million ounces to reserves in ongoing diversification from USD. 34 ton addition brings Russia’s Central Bank holdings to 1,779t; 6th highest. Russia’s gold reserves are at highest point in Putin’s 17-year reign. Russia’s central bank will buy gold for its reserves on the Moscow Exchange.

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Next Wall Street Crash Looms? Lessons On Anniversary Of 1987 Crash

Next Wall Street Crash looms? Lessons on anniversary of crash. 30 years since stock market ‘Black Monday’ crash of 1987. Dow Jones Industrial Average fell 22.6% on October 19, 1987. S&P 500, FTSE and DAX fell 20%, 11% & 9% respectively. Gold rose 24.5% in 1987 (see chart), acting as safe haven. Prior to crash, stocks hit successive record highs despite imbalances. Imbalances that lead to 1987 crash are much worse today

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Precious Metals Supply and Demand

Keith Weiner’s weekly look on Gold. Gold and silver prices, Gold-Silver Price Ratio, Gold basis and co-basis and the dollar price, Silver basis and co-basis and the dollar price.

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What Made Gold Go Up Last Thursday

Claim-Less Delirium. Yesterday, the Department of Labor announced that initial jobless claims dropped. Quite a lot. So naturally, markets reacted. The stock market began to rise. The euro rose, at least for a while. And the prices of our favorite heavy metals rose, particularly silver. Silver was around its low of $16.92 before the report. Two and a half hours later, it was $17.26. Our first reaction was to ask, “really??

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Key Charts: Gold is Cheap and US Recession May Be Closer Than Think

Every year, Ronald-Peter Stoeferle and Mark J Valek of investment and asset management company Incrementum put together the report In Gold We Trust – 160-plus pages of charts and thoughts, mostly gold-related, on the state of the world’s finances. There’s so much to look at and consider. It’s a sort of digital equivalent of a coffee-table book.

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Gold Up 74percent and One Of Top Performing Assets Since Last Market Peak 10 Years Ago

10 year anniversary of pre-Global Financial Crisis market peak in S&P 500 on October 9th. Gold up 74% since the last market peak a decade ago; 11% pa in USD, 9.4% pa in EUR and 12.4% pa in GBP. Precious metal has climbed $736/oz on Oct 9th 2007 to $1278.75 ten-years later. S&P 500’s 102% climb is thanks to asset-pumping policies by central banks, rather than value. Gold’s performance is slowly forcing mainstream to re-consider gold.

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How Gold Bullion Protects From Conflict And War

What Steel’s study shows is that, as with any monetary force, it is how it is managed rather than what it is that carries responsibility for conflicts and the resulting financial situation. Steel’s work also demonstrates the strength and protection access to gold will give a country or army during times of conflict.

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Is This The Best Way To Bet On The Fed Losing Control Of The Bond Market?

Authored by Kevin Muir via The Macro Tourist blog, Lately, one of my biggest duds of a call has been for the yield curve to steepen. Sure, I have all sorts of fancy reasons why it should steepen, but reality glares back at me in black and white on my P&L run. Sometimes fighting with the market is an exercise in futility.

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