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Precious Metals

Gold and Bitcoin- Besties or Enemies?

Below is a graph of the gold price and Bitcoin since the beginning of the year. Many of the investors in gold and Bitcoin agree that money printing by…

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This article was originally published by Goldcore

Below is a graph of the gold price and Bitcoin since the beginning of the year. Many of the investors in gold and Bitcoin agree that money printing by central banks should stop.

They also agree that governments should help people with special programs during a crisis but that once a crisis ends the government should repay the money it borrowed.

No one who owns these investments wants to see governments borrow money every year forever [which is what they have done and plan to do still].

Gold V/S Bitcoin Chart
Gold V/S Bitcoin Chart

The above paragraph is a list of what investors in gold and Bitcoin agree upon.

However, most of this year the price of gold and Bitcoin have moved in opposite directions – when gold is rising bitcoin is declining and vice versa.

Although there are some agreements among investors that both investment choices offer the same alternative to central bank cash, there are many that strongly believe that one is better than the other. 

Gold V/S Bitcoin

Some bitcoiners like Michael Saylor are using social media to tell everyone that gold and silver are going to zero because bitcoin ‘replaces’ them.  Demographics play a big factor in determining if someone owns bitcoin versus gold (or silver).

Younger generations tend to own bitcoin because technology is more trusted by them than by old people – and they are looking for a quick rise and outlandish returns.

Baby boomers have more wealth to protect, they understand that wealth must be passed down to generations and that gold and silver has stood the test of time. They also have experience with declining markets and tax changes.

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Baby Boomer gold bulls like Peter Schiff understand governments cannot easily tax physical metal holdings, but that digital blockchains are completely open for governments to study and tax.

Also, let’s now talk about things Bitcoiners and physical metal owners disagree about.  Electricity is a big one! How can bitcoin be a storage of wealth if a simple blackout means you cannot spend it, or buy it, or even prove that you ‘own’ it?

And what exactly does it mean to ‘own’ bitcoin?  If your bitcoin gets stored on an app offered to you by some platform company or brokerage, you don’t actually own anything.

And there is no way to convert Bitcoin into any type of physical form. Physical metal is the only thing that you truly own because it requires no broker, government, or app, not even electricity to be wealthy. Moreover, this argument was made by Peter Schiff in a Twitter reply to Elon Musk.

Peter Schiff Tweet

And one further tweet on the electricity issue and Bitcoin.

Electricity Issue and Bitcoin Tweet

And then there is the problem of forgotten passwords or destroyed drives that make Bitcoin unretrievable – and with other cryptocurrencies that have seen sharp rises, such as Shiba, there is the question on where it can even be converted into a usable form.

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As stated above, many Bitcoin and gold investors hold these assets for many of the same reasons. However, there is the main distinction that Bitcoin is entirely digital, and gold is a physical asset.

There can be a place for both Bitcoin and gold in a portfolio, but the volatility and digital nature of bitcoin do not make it a substitute for gold in a portfolio.

Besties or Enemies?

Globally, Central Banks have two levers in their quiver to assist in guiding an economy, fiscal and monetary policy.  Fiscal policies (such as the recently passed Infrastructure Bill in the U.S.) seeks to boost employment and economic activity through increased spending by the government.

Through monetary policy, Central Banks see to stimulate activity by lowering or increasing policy interest rates. It is our view that global governments and Central Banks will never allow independent cryptocurrencies to gain traction to the point that their monetary or fiscal policy levels are weakened. 

As an example, the ability for citizens to pay taxes and/or receive entitlements via independent cryptos is highly unlikely. 

However, we do see the government issuing their own digital currencies in the future as the power of these policy levers are maintained.

Central banks buy gold and hold gold to preserve wealth because gold does not belong to anyone else. Central banks will never ‘issue’ their own gold because they cannot make gold, only supernovas do that.

So, it seems bitcoin and gold are besties, standing together against needless money printing. But like brothers and like enemies they disagree loudly when comparing themselves to one another in search of supremacy.


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From The Trading Desk

Stock Update:

Gold Offer Dublin – We currently have a limited number of gold 1oz Gold Maple coins for storage or delivery in Ireland at spot plus 3%.

Please contact our trading desk to avail of this offer. 

Gold Offer Zurich – We currently have a limited number of Gold 1kg bars for storage in Zurich at spot plus 1.25%.

Please contact our trading desk to avail of this offer. 

Excellent stock and availability on all gold coins and bars with 1oz bars at a very competitive 3.75% over spot. 

Silver coins are now available for delivery or storage in Ireland and the EU with the lowest premium in the market.

Starting as low as spot plus 32% for Silver Britannia’s.

Silver Britannia’s for UK delivery or storage are still available at the lowest premium in the market also (which includes VAT at 20%).

These can now be purchased online. 

Silver 100oz and 1000oz bars are also available VAT-free in Zurich starting at 8% for the 1000oz bars and 12.5% for the 100oz bars. 

Please see below our extended trading hours. 

** We have extended our opening hours. Phone lines, online ordering, and WebChat are now open until 09:00-22:00 (Europe/Dublin) USA 09:00 to 17:00 EST**

Market Update:

Gold has held on to its gains after we had the big move up last week on the back of the records CPI numbers out of the Fed Reserve.

The combination of a dovish FOMC and really strong inflation numbers helped drive real yields lower which helped support gold even on the back of the stronger USD. 

We are continuing to see consistent flows coming in on the buy-side over the last week, with a buy-through rate at 80% with a noticeable increase in the ticket size too. 

Moreover, we have some excellent offers at the moment (see above) on Gold Maple leaf 1oz coins for delivery or storage in Ireland and gold kilo bars for storage in Zurich.

Please call our trading desk to avail of this limited time offer as stock is limited. 


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GOLD PRICES (USD, GBP & EUR – AM/ PM LBMA Fix)

17-11-2021 1858.45 1864.90 1383.80 1384.87 1642.68 1648.01
16-11-2021 1872.25 1859.20 1392.02 1384.73 1648.52 1638.88
15-11-2021 1863.80 1859.90 1388.72 1385.07 1627.10 1626.11
12-11-2021 1850.00 1860.55 1381.03 1387.97 1616.16 1624.82
11-11-2021 1859.25 1857.90 1387.93 1387.11 1620.89 1620.09
10-11-2021 1824.95 1859.40 1348.46 1375.21 1576.03 1608.57
09-11-2021 1824.40 1827.30 1341.85 1348.00 1573.18 1575.13
08-11-2021 1818.00 1822.35 1347.87 1344.71 1572.21 1574.51
05-11-2021 1793.20 1801.85 1335.58 1338.23 1554.70 1562.92
04-11-2021 1778.10 1796.15 1305.30 1330.05 1540.19 1556.00

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The post Gold and Bitcoin- Besties or Enemies? appeared first on GoldCore Gold Bullion Dealer.



Author: Stephen Flood

Precious Metals

Gold Springs Discovers New Gold System – Shares Jump 20%

Gold Springs [GRC-TSX; GRCAF-OTCQB] reported assay results from hole J-21-015 with an average…

Gold Springs Resource Corp. [GRC-TSX; GRCAF-OTCQB] reported assay results from hole J-21-015 with an average of 1.0 g/t gold equivalent over more than 163 metres located 180 metres south of the discovery hole J-21-006 at the 100%-owned Gold Springs property located on the border of Nevada and Utah.

The results confirm the existence of a new gold-mineralizing system called intrusive-related gold system (IRGS) on a new target that the company has named Tremor. This new gold system is situated along the northern extension of the Jumbo trend of the large Gold Springs project of 8,000 hectares.

J-21-015 highlights include 1.0 g/t gold equivalent over 163.1 metres: 1.42 g/t gold equivalent over 33.5 metres within the vein, which includes 3.26 g/t gold equivalent over 10.7 metres within the vein; and 0.94 g/t gold equivalent over 123.5 metres within the intrusive and contact zone.

Randall Moore, executive vice-president of exploration, stated: “We have been anxiously awaiting these results, which now confirm what we believe to be a major new discovery. The existence of an IRGS at Gold Springs opens a potentially large area to develop a new gold resource. Hole J-21-015 extended both the high-grade vein system and the gold mineralization associated with the intrusive first seen in hole J-21-006. We would also like to highlight that both holes ended in gold mineralization. We are now awaiting assays from another 15 holes at Tremor that are currently in the laboratory for testing. Drilling has extended this northern vein for over 200 metres and the Tremor intrusive zone for 600 metres along strike as seen in the drill cuttings. The thickest intercept within the intrusive thus far has been 280 metres.”

The company is waiting to receive assays from 24 holes on two targets; 15 from Tremor and nine from White Point, in the coming weeks.

Gold Springs Resource is confident of the presence of an intrusive-related gold system within the Tremor target situated along the north extension of the Jumbo trend in Utah where a strong CSAMT (controlled source audio magnetotelluric) high resistivity anomaly extends for 1,200 metres.

The company completed 18 holes at Tremor designed to test the extent of the intrusive-hosted gold system. These holes demonstrate the intrusive extends for 600 metres and is open to the north, south and at depth. In addition, the vein system in hole J-21-006 has been traced for 200 metres. For details on hole J-21-006, which returned 6.87 g/t gold equivalent over 24.4 metres, included grades of 30.9 g/t gold equivalent over 4.6 metres.

The drill has moved to Charlie Ross where eight additional holes are planned to follow up that new discovery.

Author: Staff Writer

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Precious Metals

Sprott Physical Gold and Silver Trust (CEF): A Brand-New Prospect for Investors

Sprott Physical Gold and Silver Trust (CEF) is currently valued at $17.10. When the trading was stopped…

For the readers interested in the stock health of Sprott Physical Gold and Silver Trust (CEF). It is currently valued at $17.10. When the trading was stopped its value was $17.21.Recently in News on April 13, 2021, Sprott Physical Gold and Silver Trust Updates Its “At-The-Market” Equity Program. Sprott Asset Management LP (“Sprott Asset Management”), a subsidiary of Sprott Inc., on behalf of the Sprott Physical Gold and Silver Trust (NYSE: CEF) (TSX: CEF) (TSX: CEF.U) (the “Trust”), a closed-ended mutual fund trust created to invest and hold substantially all of its assets in physical gold and silver bullion, today announced that it has updated its at-the-market equity program to issue up to US$1 billion of units of the Trust (“Units”) in the United States and Canada. You can read further details here

Sprott Physical Gold and Silver Trust had a pretty Dodgy run when it comes to the market performance. The 1-year high price for the company’s stock is recorded $20.38 on 06/01/21, with the lowest value was $16.75 for the same time period, recorded on 09/29/21.

Sprott Physical Gold and Silver Trust (CEF) full year performance was -5.37%

Price records that include history of low and high prices in the period of 52 weeks can tell a lot about the stock’s existing status and the future performance. Presently, Sprott Physical Gold and Silver Trust shares are logging -16.09% during the 52-week period from high price, and 2.09% higher than the lowest price point for the same timeframe. The stock’s price range for the 52-week period managed to maintain the performance between $16.75 and $20.38.

The company’s shares, operating in the sector of Financial managed to top a trading volume set approximately around 2939308 for the day, which was evidently higher, when compared to the average daily volumes of the shares.

When it comes to the year-to-date metrics, the Sprott Physical Gold and Silver Trust (CEF) recorded performance in the market was -11.63%, having the revenues showcasing -4.09% on a quarterly basis in comparison with the same period year before.

Specialists analysis on Sprott Physical Gold and Silver Trust (CEF)

According to the data provided on Barchart.com, the moving average of the company in the 100-day period was set at 17.91, with a change in the price was noted -1.84. In a similar fashion, Sprott Physical Gold and Silver Trust posted a movement of -9.71% for the period of last 100 days, recording 489,960 in trading volumes.

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Trends and Technical analysis: Sprott Physical Gold and Silver Trust (CEF)

Raw Stochastic average of Sprott Physical Gold and Silver Trust in the period of last 50 days is set at 16.43%. The result represents improvement in oppose to Raw Stochastic average for the period of the last 20 days, recording 6.72%. In the last 20 days, the company’s Stochastic %K was 2.89% and its Stochastic %D was recorded 4.11%.

Now, considering the stocks previous presentation, multiple moving trends are noted. Year-to-date Price performance of the company’s stock appears to be encouraging, given the fact the metric is recording -11.63%. Additionally, trading for the stock in the period of the last six months notably deteriorated by -14.50%, alongside a downfall of -5.37% for the period of the last 12 months. The shares -3.66% in the 7-day charts and went up by -4.26% in the period of the last 30 days. Common stock shares were lifted by -4.09% during last recorded quarter.

Author: Sarah Baker

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Precious Metals

It’s The Taper, Stupid!

It’s The Taper, Stupid!

Submitted by QTR’s Fringe Finance

It is astounding to me how much market commentary I have seen over the last 48…

It’s The Taper, Stupid!

Submitted by QTR’s Fringe Finance

It is astounding to me how much market commentary I have seen over the last 48 hours placing blame for the market “volatility” (read: 2% off all time highs) on the Omicron variant.

The extent of our recent “volatility”.

While there are definitely still some uncertainties about the new variant, early indications make it look as though it is not going to be meaningfully deadlier than other variants and that, one way or the other, we will be able to deal with Omicron and see our way through it – just as we did with the Delta variant. That is, unless the government implements more of what one trader calls a “criminal” response to Covid and issues more lockdowns and mandates.

While Omicron uncertainty has likely contributed slightly to market volatility, I don’t think it is the driving force behind it. Rather, I believe that current volatility is a result of Jerome Powell’s surprising, and so far unrelenting, hawkish stance that a taper and rate hikes look to be necessary.

In fact, several Fed governors have commented over the last 48 hours about potentially accelerating both rate hikes and tapering. This language, as I noted days ago, is an admission that the Fed has lost control of inflation.

In fact, it looks as though inflation has gotten so bad that the Fed is going to have to try and attempt to “stick the landing” of presenting hurried tapering and rate hike plans to the market. Of course, the Fed won’t really be able to stick the landing on either because politicians on the left and castrated on-air finance personalities will cry foul as soon as the market has a 10% pullback as a result of higher rates (just as they did on the Covid crash).

But for now, the company line is that we are going ahead with rate hikes and looking to accelerate the taper. This – not the Omicron variant – is what is moving markets.

I said just days ago that Powell doesn’t even need to say anything for the market to continue to stay volatile at this point because his standing position on the matter is very hawkish. Yet, instead of saying nothing, he went as far as to reaffirm his hawkish stance on Wednesday of this week. From my piece earlier this week:

If the Fed does look to accelerate the taper and toss around the idea of rate hikes in order to try and rope inflation in, as indicated, I think we can expect further downside in equity markets in December, as I predicted about a week ago. In fact, Powell doesn’t even have to re-acknowledge what he said yesterday, he simply has to say nothing until the Fed’s next official nod to the markets.

As I said during my interview yesterday with Jack Boroudjian, tapers cause markets to crash: it is that simple. Just take a look at what happened in December 2018. This time is not going to be different. If the Fed goes ahead and decides to taper, you can expect risk assets to get smacked.

Small caps and technology have gotten the “worst of it” during this volatility and I continue to believe that that will be the trend.

The Russell 2000 and NASDAQ are just so chock-full of overvalued, cash burning companies that the world would actually be better without – malinvestment that should’ve been corrected years ago – that I believe those indexes will move disproportionately lower.

I also continue to be profoundly negative on ARKK, an actively managed fund whose flagship component and largest weighting is up 90.6% in the last twelve months, yet has still somehow managed to plunge -11.9% over the same time period.

That takes some very special “active management”.

Source: Ycharts

In fact, just yesterday after hours, another Cathie Wood holding, Docusign, took a 25% haircut.

Wood contends that the growth from her companies will eventually make up for this volatility in the very long term, but I think her portfolio of egregiously overvalued names represents the first head on the chopping block if market volatility continues. And, as I noted days ago, if Tesla ever starts to sell off, ARKK holders should look out below.

As I’ve said before, I also think there will be somewhat of a rotation trade back into cash generating blue chip names, consumer staples and the few companies that still pay a dividend and have modest price to earnings ratios – one of which I profiled as my favorite just weeks ago.

Some of my other favorite names that I am looking to buy if they continue to sell off are well-known blue chip staples that have seen their stocks trade sideways or disproportionately lower over the last couple of months, despite growth-style P/E’s for some. I’d argue names like Disney (DIS) and Walmart (WMT) offer GARP (“growth at a reasonable price”) should they keep selling off. I also love Johnson & Johnson (JNJ)(my largest holding in my all-dividend portfolio which I add to almost daily) and Intel (INTC), which I believe will undergo a renaissance and eventually retake its throne as king of chips – if it isn’t bought out first at these levels.

Gold has continued to selloff on the expectation that a taper is actually coming.

Source: Ycharts

The selloff could easily continue for the short- to mid-term, at least until we get to the point that gold needs to be bought as a volatility hedge due to a taper, or the point where the Fed finally caves and stops its plans for tapering or raising rates. It will be interesting to see how inflation may drive the Fed’s decision making going forward.

Heading into the weekend and into the back end of this month, traders would do well to focus their energies more on Fed commentary than on developments with the Omicron variant, barring any massive change with what we know regarding the new strain. Obviously, if Omicron turns out to be a flesh eating variant of the virus that kills people instantly, that is going to have a profound effect on equity markets (Neel Kashkari heard shouting it the background: “Not if I can help it!”).

But for the time being, thank God that doesn’t seem to be the case. Heading into 2022, I still think the markets could be in for a collapse, as I wrote here, as it appears that this is the only man that can move markets in this day and age:

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DISCLAIMER: 

I own JNJ, WMT, DIS and INTC. I own ARKK, IWM, SPY puts. I own puts and calls in GLD and own a host of gold-related and precious metals related names. None of this is a solicitation to buy or sell securities. Positions can always change immediately as soon as I publish this, with or without notice. You are on your own. Do not make decisions based on my blog. I exist on the fringe. The publisher does not guarantee the accuracy or completeness of the information provided in this page. These are not the opinions of any of my employers, partners, or associates. I get shit wrong a lot. 

Tyler Durden
Fri, 12/03/2021 – 10:25






Author: Tyler Durden

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