Cryptocurrencies Could Be Worth $200 Trillion One Day

By James Altucher

This post Cryptocurrencies Could Be Worth $200 Trillion One Day appeared first on Daily Reckoning.

I’m not exaggerating when I say cryptocurrencies are the biggest innovation since the internet. We’re on the ground floor of an enormous trend that’s going to change the world.

Cryptocurrencies are currencies with no government in the middle. No bank in the middle. No organizations in the middle keeping track of all your payments, or taking advantage of your spending so they can invade your privacy, and on and on.

Cryptocurrencies solve trillions of dollars’ worth of problems, which is why they will be worth trillions of dollars one day.

Consider the potential:

There is currently $200 trillion in cash, money and precious metals used as currencies in the world. Meanwhile, there’s only $200 billion in cryptocurrencies. Cryptocurrencies are eventually replacing traditional currencies.

So that $200 billion will eventually rise to the level of currencies. And probably sooner than we can imagine.

Fortunes have been made in cryptocurrencies and many more will be made in the future. But just like the Internet boom in the 90s, there will be a lot of scams. Let me say it right now: 95% of cryptocurrencies are scams.

But with the total number of cryptocurrencies now exceeding 1,000, that means at least 50 legitimate cryptos out there right now. That’s a lot more than one or two or three.

My job is to research, study, and use my connections to avoid the scams. I’m dedicated to finding the tiny portion of cryptocurrencies, that remaining 5% that will turn that $200 billion into $200 trillion.

I hate to use big numbers like that. But those numbers are facts.

If, and only if you avoid the scams, you’ll find the cryptocurrencies that actually solve major problems of prior currencies. Also, avoiding the scams lets you closely follow closely the people who are doing the research and have the credibility in this space.

What qualifies me for this role?

Basically, I’ve been here before. I started one of the first Internet companies back in 1995. I created the first websites for AmericanExpress. com, HBO.com, TimeWarner.com, etc etc.

I was there. I did it. I rode the boom. I also rode the bust. So I’ve been here before and know what to avoid and I trust my ability to predict. The next time I was “here” was when Facebook was getting bigger.

Facebook was private at the time and hard to invest in. So I invested in every Facebook ad agency I could find. Then Microsoft offered to buy Facebook for a billion dollars. I went on CNBC and said Facebook was worth at least $100 billion. I also wrote it in The Financial Times. CNBC laughed at me. Nobody took me seriously. The day Facebook went public they had me on again.

It’s first value after it went public: $101 billion. Now it’s worth well over $400 billion.

I was a seed investor in one of those ad agencies I mentioned, Buddy Media, when it was worth just $4 million. It was later sold to …read more

Source:: Daily Reckoning feed

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Rio Tinto wants out of Grasberg now

By analyst

By Frik Els

While Phoenix-based Freeport McMoRan remains at loggerheads with the Indonesian government over selling a majority stake in its Grasberg mine in the remote Papua province, Rio Tinto is reported to be seeking an out sooner rather than later.

Bloomberg reports Melbourne-based Rio has held talks with a number of Indonesian groups about exiting its interest in the Grasberg mine which this year is on track to produce more than 450,000 tonnes of copper (compared to Rio’s target of around 470,000 tonnes in 2017 across its operations) and a staggering 1.6m ounces of gold.

Rio’s deal with Freeport was struck in 1995 and entitles Rio to a 40% share of production when certain output levels are hit. But as a result of strikes and other disruptions and as the open pit at Grasberg nears the end of its life, Rio hasn’t seen any benefit since 2014.

Last year, Freeport offered a 10.6% stake in its Indonesia subsidiary that valued Grasberg at $16.2 billion. Jakarta’s counter offer was $630 million

Apart from building smelters in the Asian nation, Freeport has committed to spending $1 billion per year for the next five years to move operations underground with block-cave mining set to commence in 2019. After 2021 Rio gets the 40% share on all production, but in an interview with Bloomberg last month Rio CEO Jean-Sebastien Jacques said for the company to commit to any spending in Indonesia “an investment would need to prove more valuable than competing opportunities”.

Indonesia has also told Freeport, which under the divestment framework retains operational control until 2014, that it would prefer that the joint venture with Rio be concluded ahead of the stake stale, something Freeport has rejected.

Freeport’s has been mining at Grasberg since the early 1970s and currently owns just over 90% of the local subsidiary PT-FI operating the mine. Freeport has been in negotiations to sell down its stake for the better part of a decade, but talks have repeatedly broken down over valuation.

Last year, Freeport offered a 10.6% stake in PT-FI that valued Grasberg at $16.2 billion. Jakarta’s counter offer was $630 million. The government is arguing that Grasberg’s reserves belong to the state and not the mine operator. Freeport estimates Grasberg’s underground reserves currently being developed at 11.8m tonnes and 24m ounces of gold.

The post Rio Tinto wants out of Grasberg now appeared first on MINING.com.

…read more

Source:: Infomine

The post Rio Tinto wants out of Grasberg now appeared first on Junior Mining Analyst.

Exclusive KE Report Commentary – Fri 20 Oct, 2017

By Cory Jayant Bhandari – Exploration in Japan and Chinese Growth Data

Metals equity analyst Jayant Bhandari joins me today to discuss his recent trip to Japan. We discuss the mining environment in Japan and an exploration company he was visiting. We also look at the better economic numbers out of China. These combined with the continued growth Jayant is expecting should lead to a sustainable run in the metals sector.

Download audio file (2017_10_20-Jayant.mp3)

…read more

Source:: The Korelin Economics Report

The post Exclusive KE Report Commentary – Fri 20 Oct, 2017 appeared first on Junior Mining Analyst.

Company Updates From Management – Fri 20 Oct, 2017

By Cory Novo Resources – Comments on Recent News and Other Companies In The Area

Novo Resources released new on Tuesday updating the drilling at the Purdy’s Reward Project. I had Quinton Hennigh come on the show to answer some of the questions that were emailed to me as well as a topic a newsletter writer wanted me to push them on. Thanks to Novo there is now a lot of interest in the area and the companies holding the land. Quinton comments on this as well.

Click here to visit the Novo website to read the full release from Tuesday.

Download audio file (2017_10_20-Quinton-Hennigh-Novo.mp3)

…read more

Source:: The Korelin Economics Report

The post Company Updates From Management – Fri 20 Oct, 2017 appeared first on Junior Mining Analyst.

The Rich Life Part II: Confessions of a sixth-grade stock picker

By Nilus Mattive

This post The Rich Life Part II: Confessions of a sixth-grade stock picker appeared first on Daily Reckoning.

When your name is Nilus Lawrence Mattive III, people automatically expect you to have a silver spoon in your mouth.

But I never did. Nobody in my family ever started a company, patented an invention, or wrote a movie script.

My odd first name was the ONLY thing handed down from generation to generation in my family. No inheritances or trust funds to speak of here.

As I explained in Part I, I was just a lower-middle-class sixth grader living in northeastern Pennsylvania.

My dad was the first person to go to college on either side of the family. He worked in the human resources department at a state mental health facility. He also had a second gig at the YMCA. And my mom? After spending a few years taking care of me, she got a part-time job at a small credit union.

My parents’ investments were limited to passbook savings accounts and maybe a CD or two.

That’s why they were so surprised when I said I wanted to start investing in stocks on my own.

Sure, I had always been interested in money – coin collecting, piling up cash in my dresser drawer, even looking at stock market quotes in our local newspaper.

But this was a whole new deal!

Luckily, my parents encouraged me. They allowed me to take several hundred dollars from my savings and put it into the market.

I searched under “stock broker” in the yellow pages, and made a few phone calls. When I found one who took me seriously, my dad helped me set up an account.

That was around 1987. The movie Wall Street had just come out. I was watching shows like “Family Ties,” where the young Alex Keaton character was carrying his briefcase to school and talking about investing in blue chips. Meanwhile, I picked up a personal computer from my local Sears, an antique by today’s standards.

I knew what I wanted to do…

I decided to buy five shares of IBM.

I didn’t make a killing but it was great experience. I also ended up with some Disney stock that performed nicely.

Later, in high school, I started putting more money into the market.

And that’s when I learned my first real lesson.

Up to that point, my broker had merely followed the instructions I gave him.

But then he told me he had a great investment I should consider – a small mining company his research department said was ready to soar.

As I quickly discovered, it’s possible to have a high IQ and still be a complete idiot…

That trade was a disaster. I lost my shirt.

I also learned that “boring” stocks like IBM and Disney could outperform smaller, more exciting plays.

Of course, that didn’t prevent me from some spectacular wins as the ensuing …read more

Source:: Daily Reckoning feed

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How to Prepare for the Next Market Crash

By Alexander Green This week is the 30-year anniversary of the stock market crash of 1987.

Anniversaries generally mean celebrations. But it’s unlikely that anyone other than the rare short seller reached for the good champagne this week – or savors any particularly fond recollections.

On October 19, 1987 – Black Monday – the Dow plunged 508 points, or 22.6%. As my friend and colleague Mark Skousen pointed out here yesterday, it was the market’s single worst day, before or since.

I was a stockbroker at the time and remember it well.

The market had peaked two months earlier and had since been acting a bit hinky, with wild single-day rides up and down.

Still, no one knew what we were about to experience that fateful Monday morning.

The market averages gapped down at the opening bell. Many stocks didn’t open at all for several minutes, as specialists on the floor struggled to match buyers with the tsunami of sell orders.

My Quotron – there’s a term you don’t hear much anymore – lit up in a sea of red as the downdraft quickly turned into a rout.

Investors and traders treated even the bluest of blue chip stocks like cigarette butts. The phone lines lit up with calls from panicky clients.

Some of the brokers and analysts in my office – first nervous, then spooked and finally horrified – eventually broke into a manic laughter.

This wasn’t supposed to happen. Yet it was.

We stared at our screens transfixed, like motorists passing a gruesome highway collision.

The most unsettling aspect of the ’87 crash is that no particular event sparked it.

Nobody got shot. No currency collapsed. No government failed. Nor were equities particularly overvalued.

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It was just a sudden rush for the exits, compounded by computer-driven program trading.

These programs were supposed to reduce losses through the use of futures and options. Instead they compounded losses, as wave upon wave of selling created a vicious cycle.

Regulators have made changes since then, of course. But so-called flash crashes still occur.

On August 24, 2015, for instance, the Dow plunged nearly 1,100 points during the first five minutes of trading. The sell-off was spurred by a drop in China’s market that echoed in Europe before the U.S. market opened.

Bonds are not immune to flash crashes either. On October 15, 2014, 10-Year Treasurys suddenly skyrocketed, causing yields to plummet 35 basis points in just a few minutes.

The SEC blamed it on automated high-frequency algorithms, the same algorithms that are in place today.

Yet another flash crash on May 6, 2010, caused the SEC to revise its circuit-breaker rules. A drop of as little as 7% in the S&P 500 can now trigger a halt. A tumble of 20% stops trading for the day.

What should we learn from these incidents?

For starters, the preternatural calm we have seen in the markets recently is not the norm. Stock market bolts often come out of the blue.

And, in my experience, the best investors don’t react to bear markets. (Reactions tend to be emotional rather than rational.) They anticipate them.

That means today – while the …read more

Source:: Investment You

The post How to Prepare for the Next Market Crash appeared first on Junior Mining Analyst.

Why Weyerhaeuser Stock Is Rated a “Buy With Caution” Before Earnings

weyerhaeuser stock weyerhaeuser earnings 2

By Rob Otman

Weyerhaeuser (NYSE: WY) is a large cap company that operates within the REIT industry. Its market cap is $27 billion today, and the total one-year return is 15.92% for shareholders.

Weyerhaeuser stock is underperforming the market. It’s beaten down, but it reports earnings next week. So is it a good time to buy? To answer this question, we’ve turned to the Investment U Stock Grader. Our Research Team built this system to diagnose the financial health of a company.

Our system looks at six key metrics…

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✗ Earnings-per-Share (EPS) Growth: Weyerhaeuser reported a recent EPS growth rate of -81.25%. That’s below the REIT industry average of -13.39%. That’s not a good sign. We like to see companies that have higher earnings growth.

✓ Price-to-Earnings (P/E): The average price-to-earnings ratio of the REIT industry is 42.09. And Weyerhaeuser’s ratio comes in at 40.8. It’s trading at a better value than many of its competitors.

✓ Debt-to-Equity: The debt-to-equity ratio for Weyerhaeuser stock is 78.27%. That’s below the REIT industry average of 92.04%. The company is less leveraged.

✓ Free Cash Flow per Share Growth: Weyerhaeuser’s FCF has been higher than that of its competitors over the last year. That’s good for investors. In general, if a company is growing its FCF, it will be able to pay down debt, buy back stock, pay out more in dividends and/or invest money back into the business to help boost growth. It’s one of our most important fundamental factors.

✗ Profit Margins: The profit margin of Weyerhaeuser comes in at 1.33% today. And generally, the higher, the better. We also like to see this margin above that of its competitors. Weyerhaeuser’s profit margin is below the REIT average of 63.32%. So that’s a negative indicator for investors.

✓ Return on Equity: Return on equity gives us a look at the amount of net income returned to shareholders. The ROE for Weyerhaeuser is 10.75%, and that’s above its industry average ROE of 10.36%.

Weyerhaeuser stock passes four of our six key metrics today. That’s why our Investment U Stock Grader rates it as a Buy With Caution.

Please note that our fundamental factor checklist is just the first step in performing your own due diligence. There are many other factors you should consider before investing. That’s why The Oxford Club offers more than a dozen newsletters and trading advisories all aimed at helping investors grow and maintain their wealth.

If you’re interested in finding Strong Buy stocks yourself, check out 3 Powerful Technical Indicators for Smarter Investing. We’ll show you how to eliminate emotional bias from your trading process with three powerful technical tools you can start using to boost your trading profits immediately. Click here to learn more. …read more

Source:: Investment You

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Interview with Korelin Economics Report: Q4 Outlook

By Jordan Roy-Byrne CMT, MFTA

Jordan Roy-Byrne, Founder and Editor of The Daily Gold addresses the recent comments on the potential of tax loss selling this year. We also discuss his outlook for the metals and strategy for buying stocks in the slow market.

Click Here to Learn More About & Subscribe to our Premium Service

…read more

Source:: The Daily Gold

The post Interview with Korelin Economics Report: Q4 Outlook appeared first on Junior Mining Analyst.

Palladium and Rhodium Are on Fire, Is Platinum Next?

By GoldSilverWorlds

1 oz rhodium bars run about $1,455 each.

Which one is the correct assessment will depend on whether the current optimism for economic growth in both developed economies and emerging markets has been well placed. Either way, investors inclined to speculate on the PGM metals have some interesting market action upon which to trade.

Platinum does look remarkably underappreciated. It is hard to imagine it trading at a significant discount for too long.

Auto makers should bid for whichever metal offers the lowest cost as all three are somewhat interchangeable.

Platinum offers the largest and most liquid market of the group. It is widely available in a variety of coins and bars. For investors, platinum’s liquidity is a consideration.

However, momentum traders may want to take a look at rhodium. It is traded in relatively tiny quantities and has a history of making big moves. Rhodium saw a top near $4,000 in the early 1990s and it made a run north of $2,000 about 10 years later. It peaked at $10,000 per ounce in 2008.

Although rhodium has doubled in the past year, it currently trades just over $1,300.

The metal’s pattern of having a sharp spike roughly once every 10 years is interesting. It is possible we are in the middle of another of those massive moves now.

Rhodium is available primarily in 1 ounce bars. While the quantity of rhodium traded is by far the lowest among precious metals, market liquidity for that metal has seen a boost since 2008. There are now a couple of ETFs focused on the metal. Those ETFs may in fact be driving a good portion of the recent demand.

Clint Siegner is a Director at Money Metals Exchange, the national precious metals company named 2015 “Dealer of the Year” in the United States by an independent global ratings group. A graduate of Linfield College in Oregon, Siegner puts his experience in business management along with his passion for personal liberty, limited government, and honest money into the development of Money Metals’ brand and reach. This includes writing extensively on the bullion markets and their intersection with policy and world affairs.

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