Bitcoin and Gold – Similarities and Differences
On last week’s weekend show Valentin joined me to discuss the hot topic of Bitcoin and cryptocurrencies. We continue this week comparing Bitcoin to gold. There are many things to consider when comparing the two but a few key points of security, scarcity, and overall value need to be considered.
Click here to visit the Epoch Times where Valentin is the Business Editor.
Click download link to listen on this device: Download Show
good,
Again, I sincerely appreciate your charts!
Thank you Chris, I’m glad you find them useful.
I say so all the time, but one more time won’t hurt…. Thanks Matthew.
The charts are very useful to many readers of the KER. Much appreciated.
You’re welcome amigo!
Yes they are great charts. I can’t seem to get any good looking ones. Maybe I need to register and get a membership. Looks like gold will head to the 200 day at least and maybe a dip lower than that.
Thanks Paul. If you do register, you sure don’t need the premium membership to do almost anything you might want to.
I agree about gold going lower and think it will reach the 200 week MA.
http://stockcharts.com/h-sc/ui?s=%24GOLD&p=W&yr=3&mn=0&dy=0&id=p02680654796&a=529800598
SIL has pierced downtrend resistance in four of the last five weeks. The current pullback should give it the running start it needs:
http://stockcharts.com/h-sc/ui?s=SIL&p=W&yr=2&mn=7&dy=0&id=p96575247144&a=528173519
Bitcoin 101: Everything You Need To Know About Cryptocurrencies
For those who can’t spot a bubble on a chart, here’s another bubble indicator: celebrity interest.
http://bitcoinchaser.com/pop-culture/pitbull-bitcoin
+1
Now we just need strong crypto recommendations from an Uber driver and we’ve arrived.
I actually never saw an advantage to bitcoin other than transferring money.
Which was why I never bought any.
I can do the same thing with my debit card, costs me nothing.
I can deposit into someone elses account, it costs me what? a couple bucks?
The advantages of bitcoin just dont seem advantageous enough to own it.
I cant buy gas with it for example, my food stores dont accept it etc.
It may very well work in some circles, and so do collector coins or pokemon cards in some circles.
I figure, when the government accepts bitcoin for taxes, then I might want to own some, except I have fiat for that so I still really wouldnt need any.
As something that could go to $1 million per coin (forget who said that)
maybe its worth a roll of the dice.
But for using? why?
….Carmer said…”bitcoin going to a $1million”
“Do the opposite Jerry…. ” (George Costanza)
{that was in reference to anything Cramer discusses}
🙂
Ignorance is bliss…………….
Bitcoin is here to stay……etherium is another…jmo
With the govts going after bitcoin…….maybe they will lighten up on controlling silver..
Monopolists hate monopolies controlled by other people.
Funny how the talk about bitcoin has changed in just a couple of weeks……..lol
Bitcoin is trans=national, but gold is becoming less so.
The limit of movement of gold out of the US is $10,000 per trip.
The problem with Bitcoin is going to be a tax audit, and investigation every year, when your country gets mad at bitcoin.
I used Via Mat to fly gold and silver out of the U.S. There was no limit with that arrangement and it was insured.
That is financially beyond reach for most people. Bitcoin’s transaction fees have gone up enormously in the last two years, but it’s still less than $2 to send *any* amount of money (and there’s reason to believe those fees may go down in the future, as efficiency improvements are rolled out and so-called “2nd layer” technologies are built atop the base Bitcoin network).
* That said, gold has been a store-of-value for thousands of years, so it’s not advisable to go selling your metal to rush into crypto-currency (no less given the current spike in the price).
A big thumbs up to that.
Wiring cash out would also be far cheaper than flying metals out and would be far safer than Bitcoin. Price volatility risk alone could easily make Bitcoin the most expensive of the three.
The silver-gold ratio appears to have little downside:
http://stockcharts.com/h-sc/ui?s=SLV%3AGLD&p=D&yr=1&mn=5&dy=13&id=p00366246466&a=521853037
It’s time for Silver to get on it’s bike and ride…. (like a WingNut)
As regards the US: We have a government that believes ALL money belongs to it.
And all resources, too — including human.
Amen! Operate from that position to protect your net worth……..
We need to stop referring to them as “our government” or “the government”. They’re a cabal of (mostly greedy, crooked, and power-lusting) people that assume they own everything (as you point out), but they have no higher moral claim on those things than a beggar on the street.
Greedy, crooked, and power-lusting… I think government is a good word for that — there’s never been any other kind.
Ethereum Core Developers meeting LIVE;
Video Update: Downside Risk Increasing
by @TheDailyGold (Jordan Roy-Byrne) on June 16, 2017
https://ceo.ca/@thedailygold/video-update-downside-risk-increasing
Jr. Miner Investment Strategies and Opportunities with Jr. Mining Junky
David Erfle – Cambridge House – Jun 8, 2017 (VIDEO)
Gold and Junior Miner Summer 2017 Market Outlook with David Erfle
MiningStockEducation.com – June 6, 2017
“Professional junior mining stock investor David Erfle stops by to share his Summer 2017 market outlook for gold and gold junior resource shares. In this interview, David also offers tips on where to look for some of the best opportunities to invest in the junior gold sector this summer and how to trade illiquid junior gold stocks.”
I prefer my Mickey Mantle baseball cards from 1958–1961 and my Yaz rookie card in mint condition to bitcoins. And they cost me just a penny each with gum too. And I’ve also got Yogi, Stan, Whitey, Sandy, Elston, Nellie, Willie and the Duke! Put me in Coach, I’m ready to play…
funny but not as fungible
Hey, you can’t dismantle the merits of an investment in Mantle so easily!
I read in the WSJ that a rookie card of Yaz in mint condition sold for 20K at auction in Boston. From 1 penny to 20K in 56 years! What is the compound rate of return?
Haha – I used to run a Baseball Card booth every weekend and spent countless days and weeks of my life in stores, at shows, researching the value, researching what card were trading for, etc… Thank goodness Ebay came along.
I converted 95% of my cards into paypal, then transferred those digits to my bank account, and then transferred those digits into Silver coins, and then sold those Silver coins to buy Gold mining stocks.
At the time my lady thought I was a lunatic, because I was at the post office almost every day, but I dubbed it my “Cardboard to Gold” campaign. 🙂
don’t forget The Scooter, The Barber and The Newc
I do have Maris, Aaron, Mathews, and Spahn. And Ted Kluszewski who went to I.U.
Ethereum Road Map:
Also worth a listen:
Bitcoin is just another segment of the intrusion by artificial intelligence to take away the social qualities of the human race. Remember the days when you could go to a bank with your passbook and have people interacting while your were there, now all you here is, “learn to use the machine before it is too late.” Meanwhile the lowly bank tellers are too stupid to see that robo-advisors have now replaced any chance they had for a promotion. DT
So true DT. The bank tellers know nothing. I’ve just pulled out of Santander fearing that it could go belly-up at any time. Mind you my new bank is locked into a cartel that’s bound to follow suit in due course.
Happy days!
This is silly. While I can agree with you that technology can lead to ‘anti-social’ behavior (witness people that spend more time with Facebook than real faces), Bitcoin offers to *save* us time we’d otherwise spend in front of the computer: sending BTC around is *way* faster and easier (generally speaking) than futzing around with online banking, PayPal, credit cards, overzealous fraud-detection, etc, etc.
And that’s not to mention the benefit sound money brings to wealth preservation, which can save one years of unnecessary labor (sitting in front of a computer screen, for many people).
You should investigate how involved JPMorgan and other banks are HEAVILY involved with cryptos.
Very involved with centers in Berlin and London.
Bix has been mentioning the same for several weeks………most are not paying attention.
This just did not happen,…. been going on for several yrs.
JPMorgan’s involvement is less than a year old….
I would have to agree with your comment on JPM…… I was referring to something else, my mind was wondering…..sorry…. 🙂
Cryptocurrency is about divorcing yourself from an anachronistic financial system that has never missed an opportunity to abuse you.
Precisely. Most of the people that hang out here just don’t get it.
Inca One Gold Closes First Tranche Of Private Placement
VANCOUVER, BC – June 12, 2017 – INCA ONE GOLD CORP. (IO) (ISVLF)
“The proceeds from the Offering will be used for operating cost reductions, plant infrastructure upgrades, and mineral purchases.”
“Inca One is a Canadian-based mineral processing company. The Company’s activities consist of the production of gold and silver from the processing of purchased minerals located in Peru. Peru is the 6th largest producer of gold in the world and the Peruvian government estimates the small scale mining sector accounts for a significant portion of all Peruvian gold production, estimated to be valued approximately US$3 billion annually. The Company purchases its minerals from government registered small-scale mining producers from various regions and processes it at its Chala One milling facility located in Chala, Southern Peru.”
http://incaone.com/news/news_releases/index.php?content_id=195
“Jonah Goldberg has observed that we have reached certain epic levels of craziness in our society, such that violent protests are described as ‘free speech,’ and any exercise of free speech (by conservatives) is described as ‘violence.” – Doug Wilson, Pastor, Moscow, Idaho
The Canadian dollar has been impressive lately and still looks like it can take out resistance before taking a break:
http://stockcharts.com/h-sc/ui?s=%24CDW&p=D&yr=0&mn=11&dy=13&id=p96464786813&a=524751879
Thanks for this discussion guys. Although I remain interested in the cryptos they still leave me feeling the whole enterprise remains inscrutable to ordinary Joes like me! Bob Moriarty says he wouldn’t touch them with a bargepole, whilst others like Andy Hoffman and Bix Weir are unshakeable in their acceptance of them. , i.e. crypto currencies ARE the future and that while many of the 750 or so in circulation will go to the wall,l bitcoin and ethereum plus a few others are here to stay. Yet there are many other unknowns in regard to bitcoin. For instance although phenomenal profits have (apparently) been made and still stand to be made, an actual retrieval of one’s bitcoins appears is said to be far from easy. Furthermore if but a few large investors withdraw their coins all at once other investors will be locked into plummeting returns. Bix Weit is also adamant that you must hold your cryptos in a secure ‘paper’ walled (whatever that means)!, because Coinbase (correct name?) is government controlled, and can like a bank bail-in be shut down at will.
Bix Weit can sound very plausible, but apart from him we hear little from anyone else that the Grand Canyon conceals a truly massive cache of hidden gold!? So is this guy fully kosher?
Slow and steady may still win the race. I for one subscribe to Gold Money where through making regular payments can buy gold in incremental amounts. That way through Gold Money’s Master card, gold becomes fully portable, while one’s balance advances as and when gold grows in price.
great comment………
I still think the coming breakout will be to the upside:
http://stockcharts.com/h-sc/ui?s=GDX&p=W&yr=3&mn=9&dy=0&id=p77358209077&a=522809896
Speak to us Merle!
https://www.youtube.com/watch?v=sxLtXJzo3Ew
TLT:GLD is looking pretty good right now but I still believe that the ratio is making a very large top. There will be massive gains in the gold space when the breakdown comes (and more good gains in anticipation):
http://stockcharts.com/h-sc/ui?s=TLT%3AGLD&p=W&yr=6&mn=9&dy=0&id=p73043475331&a=518122837
REPUBLICANS tell MUELLER to go after LYNCH…………zh………about time……..
BP has a very strong chart. It bounced off the 50 day yesterday at 35 and I bought some. It is now 35.93. I put my gdx money into it. Added more BP today plus Cisco near the bottom.
Mannarino’s take on bitcoin along with PMs…
http://sgtreport.com/
Miners: Next Two Weeks Will be Very Interesting
Next two weeks will be the most interesting ones for the miners in many months…
June 16, 2017 – The Hedgeless Horseman
http://www.thehedgelesshorseman.com/gold/miners-next-two-weeks-will-interesting/
Portfolio Update: Adds and Cuts
June 16, 2017 – The Hedgeless Horseman
Action over the last two weeks
* New positions:
Bitterroot Resources (re-entry)
Avino Silver and Gold Mines (re-entry)
Impact Silver (re-entry)
Brixton Metals (re-entry)
Americas Silver Corp (re-entry)
Golden Arrow Resources Corp (re-entry)
Klondex Mines
Red Eagle Mining
Almadex Minerals
Aurvista Gold Corp
– Most new positions are max 3% and thus quite small. I am looking to add more in some cases.
* Fully cut positions:
Maya Gold and Silver (Ethical reasons)
GMV Minerals (may re-enter later)
* Increased positions:
Newrange Gold
Dolly Varden Silver
Otis Gold Corp
Novo Resources (small add)
* Decreased positions
Telson Resources (Still bullish)
Metals Creek Resources (Neutral)
Sunvest Minerals (Neutral)
TerraX Minerals (Neutral)
“… There has been a fair amount of re-shuffling in the portfolio these past couple of weeks. Mostly it has been because of “alternative costs” and not because any specific company has shown a material change in story. Some stocks simply held up better while others have seen large pull backs, therefore spurring me to take profits (or losses) in some, while loading up on companies that has been (IMHO) unfairly punished.”
http://www.thehedgelesshorseman.com/horsemans-portfolio/portfolio-update-adds-cuts/
Lots of good companies on the Hedgeless Horseman’s portfolio update list.
The Fed Dot Plops the Gold Sector
David Erfle – Friday June 16, 2017
“The gold sector has been particularly difficult to gauge during the past few months of trade. Gold miner participants have been whipsawed between numerous market catalysts, as the lagging GDX action in relation to the recent gold surge has had investors on edge.
Early last week, mounting geopolitical worries including upcoming elections and terrorist attacks in the UK caused the gold price to rocket towards the $1300 level. The daily breach of the 6-year downtrend at $1280 in the gold price had many pundits calling this a bullish breakout, only to have the sector begin to reverse just before the UK election. The GDX also made a large daily move upwards with the gold price early last week, only to end the week’s trade with a nasty bearish reversal candle when the UK snap election results were announced.
Nevertheless, many of the oversold junior miners, which were affected by massive selling after the mid-April GDXJ re-balance announcement, have made very nice moves since the beginning of June.”
http://www.kitco.com/commentaries/2017-06-16/The-Fed-Dot-Plops-the-Gold-Sector.html
GDXJ Components (updated post-rebalance)
The MVIS Global Junior Gold Miners Index counts currently 48 components. The full list of the components with the respective weights in the total return net index is available below.
Items 1-48 of total 48
COMPONENT COUNTRY WEIGHT
KIRKLAND LAKE GOLD LTD CA 7.06%
REGIS RESOURCES LTD AU 5.24%
OSISKO GOLD ROYALTIES LTD CA 4.97%
SILVER STANDARD RESOURCES INC CA 4.49%
TOREX GOLD RESOURCES INC CA 4.10%
CENTERRA GOLD INC CA 4.09%
ST BARBARA LTD AU 4.00%
ENDEAVOUR MINING CORP KY 3.85%
HOCHSCHILD MINING PLC GB 3.40%
NOVAGOLD RESOURCES INC CA 3.37%
FORTUNA SILVER MINES INC CA 2.83%
GUYANA GOLDFIELDS INC CA 2.75%
SARACEN MINERAL HOLDINGS LTD AU 2.64%
MAG SILVER CORP CA 2.60%
MCEWEN MINING INC US 2.23%
SEMAFO INC CA 2.22%
KLONDEX MNS LTD CA 2.17%
HARMONY GOLD MNG-SPON ADR ZA 2.16%
SANDSTORM GOLD LTD CA 2.11%
SILVERCORP METALS INC CA 2.08%
ALACER GOLD CORP CA 2.01%
RESOLUTE MINING LTD AU 1.88%
CONTINENTAL GOLD INC CA 1.71%
SEABRIDGE GOLD INC CA 1.63%
CHINA GOLD INTERNATIONAL RES CA 1.56%
ENDEAVOUR SILVER CORP CA 1.54%
RICHMONT MINES INC CA 1.53%
PREMIER GOLD MINES LTD CA 1.42%
WESTGOLD RESOURCES PTY LTD AU 1.31%
HIGHLAND GOLD MINING LTD JE 1.26%
KOZA ALTIN ISLETMELERI AS. TR 1.24%
GOLD STANDARD VENTURES CORP CA 1.18%
FIRST MINING FINANCE CORP CA 1.16%
WESDOME GOLD MINES LTD CA 1.16%
ARGONAUT GOLD INC CA 1.11%
ASANKO GOLD INC CA 1.07%
GOLDEN STAR RESOURCES LTD CA 1.06%
TERANGA GOLD CORP CA 0.90%
PERSEUS MINING LTD AU 0.87%
GOLD RESOURCE CORP US 0.86%
GREAT PANTHER SILVER LTD CA 0.81%
RAMELIUS RESOURCES LTD AU 0.79%
BEADELL RESOURCES LTD AU 0.79%
SILVER LAKE RESOURCES LTD AU 0.77%
DUNDEE PRECIOUS METALS INC CA 0.76%
DRDGOLD LTD ZA 0.63%
MUNSUN CAPITAL GROUP LTD KY 0.40%
PRIMERO MINING CORP CA 0.21%
Correction to the GDXJ Holdings. This was downloaded off Van Eck’s site and is the most up to date:
GDXJ Fund Holdings as of 06/16/2017
Number Holding Ticker % of net assets
1 Kirkland Lake Gold Ltd KL CN 6.17%
2 Iamgold Corp IAG US 5.00%
3 Regis Resources Ltd RRL AU 4.21%
4 Osisko Gold Royalties Ltd OR US 4.18%
5 Alamos Gold Inc AGI US 3.99%
6 Silver Standard Resources Inc SSRI US 3.91%
7 B2gold Corp BTG US 3.86%
8 Centerra Gold Inc CG CN 3.76%
9 Torex Gold Resources Inc TXG CN 3.42%
10 Vaneck Vectors Gold Miners Etf GDX US 3.26%
11 St Barbara Ltd SBM AU 3.22%
12 Endeavour Mining Corp EDV CN 3.12%
13 Novagold Resources Inc NG US 2.71%
14 Pretium Resources Inc PVG US 2.69%
15 Fortuna Silver Mines Inc FSM US 2.51%
16 Hochschild Mining Plc HOC LN 2.42%
17 Guyana Goldfields Inc GUY CN 2.40%
18 Saracen Mineral Holdings Ltd SAR AU 2.22%
19 Mag Silver Corp MAG US 2.11%
20 Mcewen Mining Inc MUX US 2.07%
21 Sandstorm Gold Ltd SAND US 1.85%
22 Semafo Inc SMF CN 1.83%
23 Alacer Gold Corp ASR CN 1.80%
24 Silvercorp Metals Inc SVM CN 1.71%
25 Harmony Gold Mining Co Ltd HMY US 1.63%
26 Klondex Mines Ltd KLDX US 1.61%
27 Resolute Mining Ltd RSG AU 1.49%
28 Seabridge Gold Inc SA US 1.32%
29 Endeavour Silver Corp EXK US 1.25%
30 Richmont Mines Inc RIC US 1.24%
31 China Gold International Resources Corp CGG CN 1.19%
32 Premier Gold Mines Ltd PG CN 1.15%
33 Westgold Resources Ltd WGX AU 1.06%
34 Continental Gold Inc CNL CN 1.05%
35 Highland Gold Mining Ltd HGM LN 1.03%
36 Gold Standard Ventures Corp GSV US 0.97%
37 Asanko Gold Inc AKG US 0.97%
38 Koza Altin Isletmeleri As KOZAL TI 0.96%
39 Wesdome Gold Mines Ltd WDO CN 0.94%
40 Argonaut Gold Inc AR CN 0.91%
41 First Mining Finance Corp FF CN 0.84%
42 Golden Star Resources Ltd GSS US 0.83%
43 Gold Resource Corp GORO US 0.76%
44 Teranga Gold Corp TGZ CN 0.75%
45 Ramelius Resources Ltd RMS AU 0.67%
46 Great Panther Silver Ltd GPL US 0.66%
47 Perseus Mining Ltd PRU AU 0.61%
48 Beadell Resources Ltd BDR AU 0.61%
49 Silver Lake Resources Ltd SLR AU 0.61%
50 Dundee Precious Metals Inc DPM CN 0.60%
51 Drdgold Ltd DRD US 0.50%
52 Yamana Gold Inc AUY US 0.49%
53 Eldorado Gold Corp EGO US 0.30%
54 Munsun Capital Group Ltd 1194 HK 0.30%
55 Zhaojin Mining Industry Co Ltd 1818 HK 0.27%
56 Primero Mining Corp PPP US 0.17%
57 Real Gold Mining Ltd 246 HK 0.04%
58 Patagonia Gold Plc PGD LN 0.02%
59 Sulliden Mining Capital Inc SMC CN 0.01%
60 Other/Cash -2.23%
Week end GDXJ Holdings update $TGZ $KDX $KLDX $CNL $SMF $KL $BTG $BTO $EDR $EXK $RIC $FVI $FSM $RSG.AX
This showed how the holding have changed in the stocks above over the last 4 weeks.
http://cdn.ceo.ca/1ck8uiq-Screen%20Shot%202017-06-16%20at%208.39.06%20PM.png
There was a huge volume spike in each of the GDXJ holdings today during rebalancing. This dwarfs the volume we saw in many of these stocks in mid-late December 2016, which preceded a multi-week bull run. Could it happen again?
I’d say today was the finalization of the rebalancing, and some funds had time sales/purchases for today. Most analysts expected large volume spikes today as there was a final reshuffling.
Moving forward there are those that expect a further pullback through the summer (like Jordan’s video up above), and that is the normal seasonal pattern.
However, there is quite a bit of money that has been sitting on the sidelines that may flow back in (now the GDXJ rebalance is over and they’ll be adding, and now that the Fed-babble is over).
This Frank Holmes interview from earlier in the week gets into how many investors were waiting until June 16th, and will be buying between now and the end of the month. I was active doing a little buying & reshuffling today 🙂
________________________________________________________________
Frank Holmes: A Tsunami of Selling in Gold Miners Is About to End
Palisade Radio Jun 13, 2017
“Frank discusses how the GDXJ became just a buying index with no separation of value and little understanding of who was doing well fundamentally. The re-balancing has created a large uncertainty with five billion dollars initially moving into the space and now three billion dollars leaving it. This will affect many of the small and mid cap producers. The investment money is being reallocated to the big names like the Barricks, the Newmonts, and the Goldcorps of the world. You should use this as an opportunity, as some of these stocks have been sold down indiscriminately even though they are reporting phenomenal fundamentals.
June 16th is the last drop date for names that will be sold, look for opportunities to buy in afterwards and towards the end of the month. You want to be selective and look for those stocks with higher profit margins and high returns on invested capital. His analysis shows that a lot of shareholder value has been destroyed by companies increasing their shares. Only a few companies protected their shareholders wealth, and the large capital flows into GDXJ has tended to cover for those that did not. Wesdome and Klondex are two companies that Frank feels have exceptional value.
They discuss the valuations and pricing methodologies for gold royalty and streaming companies and why these companies have high efficiency ratios. Silver Wheaton for example has one of the highest profit margins per employee. He thinks streaming companies know how to properly ebb and flow within the capital markets.”
Carube Copper Adds Tony Manini and Yale Simpson to Board
@newsfile on June 16, 2017
https://ceo.ca/@newsfile/carube-copper-adds-tony-manini-and-yale-simpson-to
Now I get why they were covered on the KER 😉
Wishing them all success.
A battle for supremacy in the Lithium Triangle
Jun 15th 2017 | LA PAZ, SAN SALVADOR DE JUJUY AND SANTIAGO
“Three South American countries have much of the world’s lithium. They take very different approaches to exploiting it”
Silver does not appear to have much downside from the current level:
http://stockcharts.com/h-sc/ui?s=SLV&p=D&yr=1&mn=0&dy=13&id=p92494733995&a=528251782