The Israel Deception

Is the return of Israel in the 20th century truly a work of God, or is it a result of a cosmic chess move to deceive the elect by the adversary?

Showing posts with label etf. Show all posts
Showing posts with label etf. Show all posts

Wednesday, June 7, 2017

Technical chart for the GLD ETF showing trend towards higher prices as paper gold compliments the physical gold price

With gold's decent 1% move yesterday to nearly $1300, the positive technical indicators that began in late May have now moved into the paper gold markets as well.  And on June 7, the technical chart for the GLD ETF is now in line with the physical gold price charts, which signal a move towards even higher gold prices.

The 2017 high of $1,298.8 was set on Tuesday. Gold has been above a "golden cross" where the 50-day simple moving average moved above its 200-day simple moving average on May 22. A "golden cross" indicates that higher prices lie ahead. My monthly value level of $1,152.6 with a quarterly pivot is $1,233.2 and a weekly pivot of $1,273.7. My annual risky levels have been $1,660.1 and $1,674.1 since the beginning of the year. 
The weekly chart for the Gold Bullion ETF ($123.10 on June 6) is positive, with the ETF above its five-week modified moving average of $120.33 and above its 200-week simple moving average of $118.39, which is the "reversion to the mean" tested several times between the week of Feb. 24 and the week of May 19. Weekly momentum is projected to rise to $69.72 this week, up from $62.38 on June 2. Buy weakness to my weekly value level of $121.14. My quarterly value level is $116.89, with my annual risky level of $160.24. - The Street

Wednesday, April 26, 2017

Move over Bitcoin as SEC may choose to allow Ethereum ETF instead

With the SEC announcing yesterday that it was reopening the case for the Winklevoss twins Bitcoin ETF, another crypto-currency is also vying for the same market regulators approval.

And this one might have a better chance of success than the Father of All digital currencies.

Ethereum is a crypto-currency that has the backing of many large S&P 500 companies, and this provides it a much better foundation for approval as an exchange traded fund according to the SEC.

Image result for ethereum
Then today, in similarly favorable news for holders of Bitcoin's smaller peer, Ethereum, it was revealed that the SEC had quietly begun the process of considering whether to approve an exchange-traded fund for the cryptocurrency ethereum. Recall that ethereum exploded higher at the end of February when it was revealed that a consortium of venerable corporations including JPM, Intel, Microsoft and many others, had created a blockchain alliance based on the ether technology. 
In same ways, whereas bitcoin has been seen as the more venerable, if "renegade" cryptocurrency, ether has developed the reputation of the smaller, better-behaved relative, one which is backed by major banks and corporations, which in the past has distanced itself from bitcoin due to limitations associated with its specific blockchain technology. 
While ether and bitcoin are similar, they are also very different. First of all, none of the big Chinese exchanges lists ether for trading (which means it is only a matter of time before they do) sending it into orbit as the traditional Chinese bubble stampede does. Second, the two biggest ether exchanges are Coinbase and Kraken, both regulated.
Ethereum is backed by almost all household brands who have formed an alliance in support of the platform. Microsoft is a big proponent, with ether’s protocol added to Hyperledger, the open-source cross-industry blockchain development effort headed by the Linux Foundation. 
Whether that makes an ether-based ETF more likely remains to be seen. What we do know is that the backers of the EtherIndex Ether Trust first filed in July 2016, seeking to launch an ETF backed by a cache of ethers on the NYSE Arca exchange, according to Coindesk. NYSE Arca then filed for a proposed rule change clearing the way for the ETF listing in December, according to a notice published in January
Then, in a new notice from the SEC, the agency announced that it has begun considering whether to approve the proposed ETF, opening up a comment period for outsiders. - Zerohedge

Wednesday, March 29, 2017

SEC shoots down second financial product to try to put Bitcoin on Wall Street

On March 29 the SEC rejected the second Exchange Traded Product (ETP) in the past 30 days to try to take Bitcoin to Wall Street and financialize the crypto-currency.

Citing the primary fact that Bitcoin is an unregulated currency as the reason for the rejection, in the end for Bitcoin purists the last thing they want is for the currency to become blemished through financialization and being destroyed by derivative trading.

The U.S. Securities and Exchange Commission on Tuesday denied for the second time this month a request to bring to market a first-of-its-kind product tracking bitcoin, the digital currency. 
The SEC announced in a filing its decision denying Intercontinental Exchange Inc's NYSE Arca exchange the ability to list and trade the SolidX Bitcoin Trust, an exchange-traded product (ETP) that would trade like a stock and track the digital asset's price. 
Previously, the regulatory agency said it had concerns with a similar proposal by investors Cameron Winklevoss and Tyler Winklevoss. 
"The Commission believes that the significant markets for bitcoin are unregulated," the SEC said in its filing, echoing language from its decision earlier this month on the application by CBOE's Bats exchange to list The Bitcoin ETF proposed by the Winklevoss brothers. On Friday, Bats asked the SEC to review its decision not to allow that fund to trade. - CNBC

Friday, March 10, 2017

Bitcoin price flash crashes as SEC rejects application for a Bitcoin ETF

In a move that should have seen holders of Bitcoin rejoice rather than panic, the SEC on March 10 rejected the Winklevoss twins application to create a Bitcoin ETF, which would have seriously harmed the crypto-currency by financializing it under Wall Street control.

Yet because Bitcoin has become the primary crypto-currency of choice, easily winning out over other digital forms such as Etherium, Dash, and Monero, its volatility is extraordinary since it has already become partially financialized via Bitcoin exchanges.

And thus when the news broke we saw the price in USD fall nearly $300 down to $978.


After much anticipation (and a spike to record highs earlier today), The SEC has decided to reject the Winklevoss application for a Bitcoin ETF. 
The SEC premise appears to be the unregulated natuire of the underlying: 
Based on the record before it, the Commission believes that the significant markets for bitcoin are unregulated. 
Therefore, as the Exchange has not entered into, and would currently be unable to enter into, the type of surveillance-sharing agreement that has been in place with respect to all previously approved commodity-trust ETPs—agreements that help address concerns about the potential for fraudulent or manipulative acts and practices in this market - the Commission does not find the proposed rule change to be consistent with the Exchange Act. - Zerohedge
The irony is that Bitcoin should have gone higher rather than flash crash because supporters of the crypto-currency desperately want to keep it out of the hands of Wall Street, banks, and government regulators.  However, when we look at how activities taken by the Chinese government last month could cause the same type of volatility to the price of Bitcoin as today's ruling did, the question needs to be asked if the digital money has not already been corrupted to the point in centralization that it no longer provides the wealth protection and security that were the platforms that made Bitcoin unique.

Friday, February 24, 2017

World's largest gold backed ETF now certified as Sharia Law compliant

On Feb. 23, the U.S. run SPDR Gold Shares ETF was certified as Sharia Law compliant, making it the first gold based financial instrument to be open to the new Islamic statutes on gold ownership for the world's 1.6 billion Muslims.

Run by State Street Global Advisors, and reportedly backed by $30 billion in physical gold, the ETF could soon become a springboard for new investment from the Islamic community.

Image result for sharia law gold
U.S. asset management company State Street Global Advisors has announced that a huge exchange-traded fund for investment in gold has been certified as being compliant with Islamic financial law. 
The question of whether ETFs themselves comply with Islamic law has not been addressed. However, the certification by Amanie Advisors of Malaysia, a leading sharia advisory company specializing in Islamic financial institutions, is expected to stimulate investment in the gold ETF within the Muslim world.  
The fund, called SPDR Gold Shares, is one of the world's largest ETFs backed by gold bullion, having a net asset balance of more than $30 billion. Managed and marketed by State Street Global, it is listed on the New York Stock Exchange. - Asia.Nikkei

Wednesday, January 18, 2017

Demand for gold surging as paper gold in the GLD ETF running at levels not seen since 2011

2011 was the year gold reached its all-time high against the dollar when it climbed from $1325 at the end of January to over $1900 by early September.  And during that year investments in the GLD ETF were also at record highs.

Subsequently traders saw the gold price fall over the course of the next four years, ending its bear market run in January of 2016.  But as we enter into a new Presidency in January of 2017, and conditions looking very similar to what occurred last year in the gold markets following the central bank's first rate hike in over a decade, something else is occurring that is sure to spark a run in the gold price and it is happening once again in the paper gold market.

On January 17, the GLD ETF had risen 13 of the last 15 trading days, creating a scenario for gold not seen since it rose to its all-time high back in 2011.

Gold chart for September 2011 when it reached its all-time high 
The popular gold-tracking GLD ETF has risen in 13 of the past 15 sessions through Tuesday, the first time it has done so since summer of 2011. 
Gold has suffered a precipitous drop since peaking in mid-2016, with Donald Trump's election and the Federal Reserve's rate hike serving as two notable bearish catalysts. 
Each of the events sent the dollar surging and yields rising — both of which are bad news for gold. After peaking at nearly $1,380 per troy ounce in July, gold found itself below $1,130 per troy ounce in the middle of December. 
Since then, gold has staged a subdued but nonetheless persistent rise. In the 15 sessions since Dec. 22, gold has risen more than 7 percent. 
The last time the GLD rose as consistently was in the 15 sessions ended July 26, 2011, which similarly saw the ETF rise a bit less than 7 percent. 
To be sure, 2011 is not a year that gold fans remember fondly. The metal topped out just a few months later, in September, at $1,923.7. A gut-wrenching decline was ahead, and the value of the metal has pretty much been declining ever since. - CNBC
Gold price to date for 2017

Wednesday, October 12, 2016

Analysts believe gold demand will continue higher as price expects to hit $1400 by end of year following pullback

The recent pullback, or slam down in the gold price over the past two weeks has done little to stop the demand for gold... as seen by the huge buying of physical metal, as well as ETF paper in the period following gold going down to $1260 from $1330.  And many analysts concur that the manipulated smash in the gold spot price will only continue to fuel this demand, and bring the price to over $1400 before the end of the year.

Gold prices are on the move again, settling at $1,260 per ounce at market close on Monday, according to Apmex
That's after gold prices fell 5% last week, the largest decline in the metal of Midas since 2013. "Gold prices are quite appealing after the recent correction," notes Richard Xu, portfolio manager at China-based HuaAn Gold. "In China, what we see today is that there is some demand to buy gold following its dip." 
Former U.S. Congressman Ron Paul concurred with that assessment in an appearance on CNBC last week. A healthy economy "will be fundamentally good for gold," Paul said. 
Paul says that an ongoing low-interest rate policy by the Federal Reserve will boost gold prices and that the volatile U.S. presidential race, no matter which candidate emerges victorious, won't substantially impact precious metal prices. - The Street

Sunday, September 4, 2016

As the world rushes to hoard cash, and gold supplies dwindle, what might a frenzy on gold buying look like?

Two interesting events are taking place right now in different parts of the world that threaten to create a frenzy not unlike the bank runs we saw in the 1930's and again following the bursting of the Housing Bubble in 2007.

Trust in banks have seriously eroded in places like Japan and Germany to the point where average people are making a run on home safes, and moving their cash out of financial institutions.  The root cause of course is the advent of negative interest rates and the growing fear that insolvent institutions will soon be forced to conduct bail-ins to stave off bankruptcy.

But it is not just a run on cash that is occurring in different pockets of the market.  Last week demands for delivery of physical gold were met with severe resistance, and this is a signal that most paper gold ETF's are not actually backstopped with physical gold, and which could soon bring about a run that would skyrocket the price to well over $5000 according to well respected metals analyst David Morgan.


Economist David Morgan of The Morgan Report is one of the world’s best known silver investors. In the following interview with Future Money Trends Morgan discusses his personal experiences during the last major run-up in gold, when it hit a price of $850 in early 1980. As Morgan describes it, there was significant panic buying during that time period, and should central banks and governments continue on their current course, we’ll see a similar endgame play out this time around: 
"What’s good for gold is the end of empire… And we’ve got governments that are failing… When these bond markets blow up further, that’s when you’re going to see a run to gold than we’ve already seen… 
Wait until the physical market freezes up, which could happen. I am not saying it would happen, but it could. With the worldwide demand and a failing currency across the world, where do you think people are going to go? They’re going to go to precious metals which have been trusted for thousands of years. 
If that were to occur, and I think it could happen… could you imagine the amount of money sitting on the sidelines in a panic mode that would go into the mining shares? It’s incredible. 
I saw it once… I saw what happened with gold and silver when it was a panic buy… My commodities broker was a woman. She worked for Dean Witter… She was very savvy… She would leave her office at lunchtime and go and buy gold at the local coin dealer… then after she closed her office she would stand outside her front door and sell gold coins to people who were lined up… believe it or not. 
That’s the kind of frenzy you get at the top of the gold market." - SHTFPlan

Thursday, August 11, 2016

Demand for gold hits a new record in the first half of 2016 even as supply and reserves are declining

On Aug. 11, the World Gold Council announced that demand for the precious metal hit a new record for the first half of 2016, with investment surpassing jewelry as the key factor for this move.

In addition, demand for gold is being weighed against an increasing decline in supplies as last year a Goldman Sachs analyst predicted that there is only about 20 years worth of mineable gold left available.

Investors' rabid appetite for gold is showing no signs of abating, as figures from the World Gold Council show record investment in the first half of 2016.
The trend for exchange-traded funds (ETFs) to pile in to the precious metal, a classic safe haven amid uncertainty in the global economy and the search for yield, sent the price of gold soaring by 25 percent in the first half of the year, the biggest price rise since 1980. For the first time ever, investment, rather than jewelry, was the largest component of gold demand for two consecutive quarters. 
Demand by investors set a record of 1,064 tons during the first six months of 2016. For comparison, this was 16 percent higher than in the first half of 2009, when the financial crisis raged. - CNBC

Tuesday, August 9, 2016

London to open new LMEprecious ETF to sell paper gold futures contracts to customers (suckers)

As the new Gold Bull market continues to grab ever larger portions of both individual and fund investment monies, Wall Street and the City of London are rushing in with new products to try to ensure they can direct these investments into their paper ponzi schemes, rather than into actual physical gold bullion.



And on Aug. 9, the World Gold Council announced that the London Metals Exchange (LME), along with many Western banks such as J.P. Morgan and Goldman Sachs, are creating a new paper gold futures market called LMEprecious which will introduce a suite of exchange-traded and centrally-cleared precious metals products for clients (err suckers) to put their money into.
The World Gold Council and the London Metal Exchange (LME), together with Goldman Sachs, ICBC Standard Bank, Morgan Stanley, Natixis, OSTC and Societe Generale, today announce their intention to introduce a suite of exchange-traded and centrally-cleared precious metals products. 
Today’s announcement follows an extended process of engagement with major market participants and users, and the LMEprecious service has been designed based on extensive consultation with core market players. Advanced discussions are taking place with a number of other leading institutions that have indicated their strong support for this initiative. 
Aram Shishmanian, the Chief Executive of the World Gold Council, said: “This is another important step in the modernisation of the gold market. It will strengthen London’s position in the global gold market, enabling it to meet the needs of all participants, attract new players and satisfy the highest standards of regulatory compliance. 
”We are proud to have been the catalyst for this process, defining the new trading capabilities and driving market engagement. We are confident that the new offering will be successfully implemented and supported by the market.” 
LMEprecious will comprise spot, daily and monthly futures, options and calendar spread contracts for gold and silver. Future developments will include platinum and palladium contracts.  All trading will be centrally cleared on LME Clear, the LME’s cutting-edge, real-time clearing house, and leverage the London market’s existing delivery infrastructure. The new product suite will complement the bilateral over-the-counter (OTC) market, offering market participants similar levels of execution flexibility, including the ability to bring bilaterally negotiated (phone-based) trades into clearing. Market participants will also benefit from tight on-exchange price discovery and a product model designed to maximise capital efficiencies. - World Gold Council
The City of London has controlled gold prices for over 100 years through their daily 'Gold Fix'.  And as the creation of China's Shanghai Gold Exchange physical gold mechanism threatens the authority of the UK to continue in this capacity, the banks are working overtime to try to keep their lock on precious metal pricing, and by directing investors into their schemes of paper etf's it appears to be a last desperate act to hold onto this power.

But all every gold and other precious metal owner needs to remember... if you don't hold it, you don't own it.

Wednesday, August 3, 2016

As European banks continue to collapse following the stress test, gold buying accelerates on the continent for investors seeking safe havens

Another day, another severe decline in European banks stocks.  This has become the norm in Europe ever since the stress test results have shown that a large majority of financial institutions on the continent are either under-capitalized, or flat out insolvent.

And as investors rush to find any type of safe haven asset in the midst of new central bank stimulus threats and negative interest rates, the one place they are turning to en masse is the one asset that protect one's wealth above all others.

Gold.


Gold prices have bounced back from recent dips and are likely to continue to climb as investors seeking haven from market turmoil in Europe pour money into the precious metal. 
James Butterfill, executive director and head of research and investment strategy at ETF Securities, said gold has proven to be resilient since the U.K. voted to leave the European Union in June. 
"Since Brexit, we've seen $1.5 billion of inflows into our gold product. Clearly, gold is popular," he said on CNBC's Squawk Box. - CNBC

Wednesday, June 8, 2016

Bank of Montreal initiates final processes for their gold fund program

Last year, the Bank of Montreal (BMO) announced plans to start a new gold fund which would allow investors to partake in the buying of physical gold, while having greater protections than would normally be seen in a private vaulting company.

But unlike the GLD and SLV ETF metals funds on the American stock exchanges, this fund by BMO would easily allow clients to withdrawal their gold at any time.

And on June 7, BMO filed a prospectus with the SEC to fund the new program with $500 million in physical gold bullion, in preparation for clients and investors to begin changing their currency into precious metals.

A year ago February, Bank of Montreal announced plans to start a physical gold fund -  
http://www.reuters.com/article/us-bank-of-montreal-gold-idUSKBN0L80BQ201… 
— and today the bank filed a prospectus with the U.S. Securities and Exchange Commission signifying intent to stock the fund with $500 million of gold, to denominate the shares in ounces, to vault the metal at the Royal Canadian Mint, and to give investors the option of withdrawing their investment in real metal: 
http://www.sec.gov/Archives/edgar/data/927971/000121465916012033/d63160s… 
The prospectus provides a few interesting and even amusing details: 
— It cautions that the “official sector” is active in the gold market and can affect prices, an acknowledgment that will never make it into any reports by mainstream financial news organizations. 
— The fund will not insure its assets, trusting the Royal Canadian Mint to protect them. 
— The fund is structured separate from the Bank of Montreal so that its assets will not be vulnerable to claims by creditors against the bank. 
The amusing part — the fund seeks to eliminate “derivatives risk (i.e., the use of unallocated gold, gold certificates, exchange-traded products, derivatives, financial instruments, or any product that represents encumbered gold),” as well as “’empty vault risk’ or gold bullion lending risk (i.e., the practice of the gold custodian lending, pledging, hypothecating, re-hypothecating, or otherwise encumbering any of the investors’ underlying gold bullion).” - Gata via Silver Doctors
Interestingly, the Bank of Montreal is going above and beyond to ensure that investors know of the perils within the banking system that currently allows institutions to confiscate customer accounts in the event of insolvency by the bank itself, and that this new gold fund does not fall under the parameters of those bail-in procedures.  In essence, the fund is not only a signal of the importance and need for gold diversity, but that it will appeal greatly to the growing number of citizens realizing that trusting their wealth inside banks is a losing proposition.

Monday, May 16, 2016

Investors jump on gold price pullback as ETF's climb by 25% in past two weeks

While The Daily Economist has never advocated owning paper gold as either an investment or insurance, just the fact that more and more Americans are waking up to the understanding and need for gold in any capacity is a good thing.

And while gold bugs have seen the need for patience over the past month following the cartel's crushing of the gold price once it crossed over $1300 per ounce, this short term pullback has not scared away buyers as interest in the gold ETF's have skyrocketed over the past two weeks, and have increased by 25% in that same time.

Live New York Gold Chart [Kitco Inc.]
The great gold rush of 2016 is gathering pace. Holdings in exchange-traded funds have now surged by a quarter, with investors taking advantage of lower prices over the past two weeks to enlarge stakes on rising concern about central bank policy making worldwide. 
The holdings have increased to 1,822.3 metric tons, the most since December 2013, according to data compiled by Bloomberg, after bottoming at a seven-year low in January. In the past two weeks, as prices lost 1.6 percent, ETFs swelled 63.2 tons, rising every day. 
Gold is the best-performing major metal this year after silver amid rising concern over negative rates in Europe and Japan and whether the Federal Reserve will be able to tighten further. Demand jumped to the second-highest level ever in the first quarter, according to the World Gold Council, and billionaire hedge fund manager Paul Singer has said gold’s rally may just be beginning. Investors are being driven to gold on a structural shift in investment demand, according to Bernard Aw, a strategist at IG Asia Pte. - Bloomberg
In fact, not only has the likes of J.P. Morgan and billionaire hedge fund managers publicly called the new Bull Market for gold, but the moves since January have occurred with little more than 1% of Americans actually owning the precious metal.

Sunday, May 8, 2016

Investors moving from Junk to gold

For those who live and breathe in the investing world, they know that the bond markets are much bigger than the stock markets.  And while a decline or even collapse in equities is a bad thing, it doesn't hold a candle to the economic destruction that can come from the same results in the bond market.

For many years following the 2008 credit crisis, and subsequent move by the Fed to zero interest rates, bonds have been a primary safe haven for banks, investors, and even sovereign governments, especially to foreigners looking to eek out a return in a wildly speculative market climate.  And with the search for yield at all costs helping to create a derivative 'weapon of mass economic destruction', the question few in the financial community have asked is, what would we do when the unwinding of bonds and derivatives comes?

Well, it appears one of the answers to this is the rush into gold, and as the unwinding of junk bonds begins in earnest, many are seeing the precious metal a viable safe haven for what is coming next.



As Bloomberg reports, the withdrawals from equity and credit funds highlighted the lack of faith in the rally that helped stocks briefly erase their annual losses last month. Equity traders have remained on the sidelines, with volume down in recent weeks as investors sought safer assets such as gold. 
The S&P 500 just suffered its biggest two-week retreat since February as signs of slowing growth in the world’s largest economy mounted. Worldwide stock ETFs lost $12.6 billion in the four days through May 5, wiping out more than six weeks of inflows, as the MSCI All-Country World Index capped its worst week in three months. 
“The market is becoming more cautious and using ETFs to allocate tactically. We’ll probably continue to see more flows into gold and less into equities.” 
The $5.3 billion pulled from State Street’s SPDR S&P 500 ETF Trust represented more than 40 percent of the total withdrawals recorded in the first days of the month, according to data compiled by Bloomberg tracking funds of more than $100 million. Underscoring the flight from risk assets, BlackRock Inc.’s iShares iBoxx $ High Yield Corporate Bond ETF also saw outflows as traders yanked $2.3 billion from it. 
Instead, they poured more than $1 billion in the SPDR Gold Shares and almost $540 million in the iShares TIPS ETF, which tracks inflation-protected Treasury notes. - Zerohedge

Wednesday, May 4, 2016

Gold buyers still ignorant of physical market as traders pile into S&P; paper gold at record levels

When a paradigm belief is strong, very little will ever change the minds of those held within its thrall.  And a great example of this is how U.S. and Western investors continue to trust in paper assets rather than trading in physical commodities that have real tangible value.

Last month the Shanghai Gold Exchange ushered in a new era for gold by declaring the first new price discovery mechanism in over 100 years.  And while the SGE established itself upon a foundation of physical gold, record numbers of investors in the West continue to buy paper gold through stock market ETF's rather than buying physical gold which they can be sure is in their hands, and not under the authority of known criminals and convicted manipulators.


Investors are piling back into gold, and they're coming in droves. 
Holdings in SPDR Gold Shares, the world's largest exchange-traded fund backed by gold, surged 20.8 metric tons on Monday, the biggest one-day expansion since 2011, data compiled by Bloomberg show. 
About $7.1 billion in new money poured into SPDR Gold this year, the most of any ETF tracked by Bloomberg around the world, as holdings soared to the highest since 2013. - Salt Lake Tribune
Perhaps the most substantial difference between paper gold owners, and those who own physical gold, is that they choose to ignore the incredible manipulation that takes place by the bullion banks in the paper gold market.  In fact, last month Deutsche Bank publicly announced they were guilty of manipulating gold prices through the London Gold Fix, and the U.S. Comex has little actual gold, with more than 500 paper contract demands tied to every individual ounce of gold held in their vaults.

Which means that investors own meaningless paper, and simply a promise to deliver gold, rather than actual gold itself.

Gold: If you don't hold it, you don't own it.

Wednesday, March 9, 2016

Whether it is physical gold or paper gold ETFs, everyone is jumping on the bull market bandwagon

Here in the alternative media, when it comes to gold we try to advocate one important point... if you don't hold it, you don't own it, and thus we always cite the importance of owning physical gold rather than futures contracts or equity based ETF's.

But most Americans still don't have a true understanding of the power of physical gold, and instead trust in their brokers to provide them good information for both investing, and wealth protection.  And as the price of gold has moved into bull market territory, even brokers who have dissuaded their clients in the past to refrain from buying gold are now changing their tune to recommend gold as an asset in the paper markets.
Yesterday marked the 40th day in a row that total known holdings of Gold in ETFs rose. Not since January 6th has the precious metal seen a reduction in holdings. This is the longest streak of increased holdings since ETFs were born...

The expectations that gold will once again become a recognized form of money are growing, but this time when it does it will no longer be restricted to a price determined by governments, but instead by the market which will use it as a checks and balance against paper fiat currencies.
(GB) Do you think that gold and silver are actual money? 
(PS) They are not actual money now. Right now we have pieces of paper that used to be redeemable in gold and silver but are now not redeemable in anything as money. I think gold and silver would be used as money if we had a free market, but unfortunately we don’t. I think that when the collapse in the dollar occurs, there will be a widespread return to using gold and silver as money, or at least having other currencies backed by gold and silver as money again. With today’s technology the transition will be much easier than if we had tried to do this in the 80’s or 90’s. 
(GB) That said, do you recommend people to buy physical precious metals? 
(PS) Absolutely. If anyone has been following me for any time they should know that I do not put a lot of faith in fiat currencies. While there are some currencies that are relatively better than others, the reality is that all currencies are fiat at the end of the day and therefore subject to fall all the way to zero. I personally think the dollar is the most dangerous currency of all because of what the Federal Reserve has been doing for years at unprecedented levels. Gold and silver offer the only protection from outright currency collapse and bank failure. What we saw in 2007-2008 was just small taste of what is to come. Gold and silver are the only assets which can offer you protection from such an event and actually increase your wealth. I recommend putting anywhere from 5- 20% of your liquid net worth in gold and silver. - Peter Schiff interview via Silver Doctors

Tuesday, September 17, 2013

Former Facebook founders want to make Bitcoin the ‘internet of money’

Since its inception, Bitcoin and the concept of Bitcoin, has been a refreshing alternative to global central bank control, and the constant devaluation of money.  Relegated to the activist and alternative communities at the beginning of its inception, the currency has since grown to be recognized by a wide range of consumers and investors.
So when a New York district court declared Bitcoin as a currency, and open to regulation, two former Facebook founders saw the opportunity to capitalize on the digital money, and plan a way to expand its exposure through an electronically traded fund (ETF).  And on Sept. 17 in a conference with potential investors, the Winklevoss twins declared that they foresee Bitcoin as the ‘internet of money’, and a new wave of the future.
 
Read more on this here....

Tuesday, July 2, 2013

Former Facebook associates seek to turn bitcoin into an ETF and make it a tradable commodity

The Winklevoss Twins, known famously for being associated with the creation of Facebook at one time, are beginning their next capital venture in the markets.  On July 1, a filing was made with the Securities and Exchange commission to form a new public IPO, which would function as an ETF and facilitate the buying and selling of bitcoins via equity shares.

To make it simple, the Winklevoss's wish to turn the electronic currency known as Bitcoin into a commodity, trade it as an equity in the public stock exchanges, and do this under an ETF the same way gold (GLD) and silver (SLV) is traded through JP Morgan.


Logo courtesy of Forex Minute

Winklevoss Bitcoin Trust, which is designed to operate like an exchange-traded fund, will initially sell $20 million worth of shares, with each share worth a fraction of a Bitcoin, a filing with the Securities and Exchange Commission showed on Monday.

Cameron and Tyler Winklevoss, whose feud with Zuckerberg was portrayed in the fictionalized 2010 film "The Social Network," have amassed nearly $11 million worth of Bitcoins, according to a report in the New York Times in April. - Reuters

There are many pros and cons to this attempted financial scheme, but few that would benefit the true users and recipients who hail bitcoin as an alternative currency to the fiat global system.  On one hand, by legitimizing Bitcoin as a commodity, and having it recognized by the SEC on a public stock exchange, the ability for the Treasury Department, Secret Service, or other government agency to seize bitcoin operations would be hampered.  However, it also means that the original foundation of bitcoin, an electronic currency exchange with a limited production capacity, can now be suspect to government price controls the same way the futures markets control paper spot prices rather than the market price of the physical commodity.

In the world of finance, it is said that if bankers could leverage their mothers teeth to make a profit they will.  And although the Winklevoss Twins have a strong belief in the power and mission of the bitcoin currency, they also see the potential to exploit it for greater profits made in U.S. dollars, at the expense of the thousands of bitcoin owners who seek a different avenue for bitcoin's future.