There is a lot of talk about Bitcoin versus gold, but the blockchain technology that serves as the foundation for Bitcoin may become an important part of the gold market in the future.
According to a Bloomberg report, the London Bullion Market Association (LMBA) plans to seek proposals including the use of blockchain to track gold ownership.
Markets in commodities from crude oil to diamonds and even tomatoes are looking at using the digital ledger technology that underpins cryptocurrencies like Bitcoin — known to some as ‘digital gold’ — to track ownership. Tracing gold supply is key to preventing metal that funds armed conflict from entering world markets, identifying owners and maintaining security from mine to vault.”
Ten-year bond yields have hit their highest level since July 2014.
Meanwhile, the stock market has gone up about 45% since that time. Contrast that with earnings that have increased just 6%. As Peter Schiff pointed out in his most recent podcast, a lot of the justification for that increase in stock market valuation has been lower interest rates.
Well, they’re not lower anymore. They’re back exactly where they were in July 2014. But what’s more ominous is not where they are but where they’re headed.”
We’ve written extensively about the stock market bubble blown up by artificially low interest rates and Federal Reserve quantitative easing. But stocks aren’t the only asset bubble out there. In fact, 2017 may go down as the year of the bubbles. And the new housing bubble is one that seems to be floating under the radar.
Financial manager James Stack has noticed it. He predicted the housing crash in 2005, and he told Bloomberg the housing market is flashing red again.
It is 2005 all over again in terms of the valuation extreme, the psychological excess and the denial. People don’t believe housing is in a bubble and don’t want to hear talk about prices being a little bit bubblish.”
The SchiffGold Friday Gold Wrap podcast combines a succinct summary of the week’s precious metals news coupled with thoughtful analysis. You can subscribe to the podcast on iTunes.
The queen is not pleased!
Her golden carriage is uncomfortable.
All kinds of factors impact the price of precious metals, but supply and demand are the most fundamental. With that in mind, the stage seems to be set for silver to have a strong year in 2018.
According to the Silver Institute 2018 Market Trends report, the silver market faces growing demand and shrinking supply in 2018.
Global wealth increased to a new record of $280 trillion in 2017, according to Credit Suisse Global Wealth Report 2017. That seems like pretty good news until you consider global debt is increasing nearly three times as fast.
The crypto crash earlier this week sparked a run to gold.
Regulatory concerns set off the panic. Bitcoin fell below $10,000 for a time, and other cryptocurrencies saw precipitous drops. Crypto markets appeared to have stabilized Thursday morning, with Bitcoin back up over $11,000.
The sudden plunge served as a reminder of the extreme volatility in the cryptocurrency markets. Bitcoin has seen swings of $10,000 over the last three months. As Bitcoin’s price fell through the floor this week, some investors sought out the stability and historical safe haven of gold.
Bitcoin dropped below $10,000 for a short time Wednesday (Jan. 17) as a selloff sparked by increased talk of government regulation spooked the market.
South Africa may run out of gold within four decades, according to the Environmental Economic Accounts Compendium published by African Statistics Day.
Analysts say that at current production levels, South Africa has only 39 years of accessible gold reserves remaining. This is significant considering South Africa ranks as the number five gold producing country in the world, and could be another sign the world is approaching, or has reached “peak gold.”
