Gold/Silver vs. Bitcoin Comparisons: A No-Brainer… or Brainless?

By GoldSilverWorlds

For most of the year, as Bitcoin soared, crashed, and soared again, cryptocurrency vs. physical gold-silver talking heads engaged each other in heated rhetoric about which of these venues is here to stay.

Some of the biggest names in finance, government, and the newsletter analyst space have made comments that – to be charitable – appear less-than-fully informed. Comments like “Even though bitcoin could rise to $100,000, it’s still going to zero!” don’t offer much insight. Some other questionable assumptions:

2017 percent price change comparisons: Relating this year’s gold and silver’s price range to that of bitcoin misses an important point. Yes, bitcoin (BTC) has risen by a much greater percent, but it’s also fallen more. I don’t recall gold dropping 40% this year, which bitcoin has… on a couple of occasions.

Please note: Bitcoin has no tangible, physical form.

Trash-talking gold and silver as “antiquated”: Bitcoin is now considered legal tender in Japan, but at this time, its primary function is for use in the purchase and sale of the 900+ “alt coins” currently available.

Most of these exchange entries in the crypto-space are not really “currencies” at all and will never trade as such.

Rather they are “coins” or “tokens” digitally created and circulated to raise seed money, via initial coin offerings (ICOs) in order to solve some business application in a blockchain-connected manner. Many have no trading volume – possibly because the market is skeptical of their business plan – and have become more or less “dead” coins.

At present, a relative few have an actively trading market. Investors have dropped literally millions of dollars into scores, if not hundreds of entrants which have appeared on the scene like dragon’s teeth, in many cases only to see volume dry up soon thereafter.

At present, digital apparitions can be created and marketed by just about anyone. The following example demonstrates how easy it is (for now), and how gullible some people really are.

Can I interest you in a “Useless Ethereum Token”?

Earlier this year, the “Useless Ethereum Token” (UET) was “announced” online. The “Issuer” wrote:

You are literally giving your money to someone on the Internet and getting completely useless tokens in return. There are no ‘whitepapers,’ no ‘products’, and no ‘experts’. It’s just you, me, your hard-earned Ether, and my shopping list.

You would think this blatantly-stated scam would elicit exactly zero response, yet reportedly, the UET ‘Project” was able to raise more than $60,000!

By the same token, it’s a safe bet that many Venezuelans wish they had traded some of their bolivares fuertes (“strong Bolivar”) notes, rendered worthless over the last few years, for a few ounces of silver – or a single ounce of gold – which could now purchase respectively, six months of food, or a house.

Becoming a victim of “default bias”: We all have a tendency to operate through a lens which uses the past as a default setting.

We keep doing what we know, avoid taking new risks, and resist changing the way we think.

Default bias can cause lost opportunities …read more

Source:: Gold Silver Worlds

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Polyus powers on

By analyst

By Frik Els

Russia’s largest gold producer Polyus posted another record-breaking quarter on Thursday, with production rising 16% year-on-year to 642,000 ounces during the third quarter.

Gold output for the first nine months of the year reached 1.58m ounces, an increase of 13%, and CEO Pavel Grachev said the company is confident it will meet its previously announced production guidance for 2017 of 2.075–2.125m ounces.

The company has been working all its mines hard with volumes of ore mined surging 45% to 9.92m tonnes during the quarter. Ore processing was up 12% to 7.3m tonnes over the three months to end-September with throughput capacity expansion either completed or near completion, according to the company.

The company is also unique in the top tier of gold miners with alluvial operations that contributed 116,000 ounces during the first nine months of the year.

The Moscow-based company is set to grow production dramatically over the next two years boosted by its $2.2 billion Natalka mine which was hot commissioned in September.

Polyus predicts gold production of 2.8m ounces in 2019 as Natalka ramps up to capacity of 420–470,000 ounces by the end of next year and at least half-a-dozen brownfield projects come on stream.

Polyus boasts the world’s second largest gold reserves at 71m ounces and in July the company inked an agreement with Russian conglomerate Rostec which over time gives it 100% ownership over the legendary Sukhoi Log deposit. Sukhoi Log in the far east of the country hosts 58m ounces of gold resources and Polyus says a feasibility study should be completed in three to four years.

Polyus, spun out of Russia’s top miner Norilsk Nickel in 2006, returned to the London Stock Market in June raising $879m with the offer valuing the company at $9 billion.

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…read more

Source:: Infomine

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Crypto Is a MAJOR Bubble Right Now

By James Altucher

This post Crypto Is a MAJOR Bubble Right Now appeared first on Daily Reckoning.

Yes, cryptocurrencies are in a major bubble.

But don’t let that word scare you away.

Crypto opportunities are NEVER going away, and generational wealth WILL be made.

I’m telling you the opportunity here is immense. Think, “internet 1994” — a lot of people got very rich before that bubble burst.

One day soon, “B.C.” will stand for “before crypto” and “A.C.” will stand for “after crypto.”

Right now we’re living in early years of “A.C.”

It’s time to get ready… the world is about to change.

Cryptos ARE The Natural Evolution of Currency

First it was the land you owned and the resources you developed on that land (wheat, grains, etc.).

Then it was metals. Gold, silver, etc. You traveled with it by fashioning it into jewelry. Too much gold equals harder to travel.

Paper currency. Backed first by gold but then… by faith in God (“in God we trust”) or government. (Or a pyramid… with an eye in it???)

Electronic currency. Easily transportable. But transaction fees all over the system. Zero privacy.

Now we have cryptocurrencies. Easily transportable, zero transaction fees, no human intervention between payer and payee, high anonymity and strong functionality.

Money evolves like anything else and the natural evolution of money is always as a store of value that is easier to move, more secure and more private.

Cryptos also make transactions easier. Transactions have the same history and the same issues. How can you transact across a large geographic area with fewer fees, fewer costs, less chance for human error, higher security and privacy?

Cryptocurrencies ARE the natural evolution of money.

Here’s the BAD Part

With bitcoin, for example, a list of transactions is sent out to the network in the form of a “block.” Miners, who are slowly paid in more bitcoin up to a maximum of 21 million, validate a transaction.

Problem 1: If a transaction doesn’t make it into a block (on bitcoin), it waits a certain period of time to get into the next block. This means it might take more time.

Problem 2: Another problem is that everyone can “see” the transaction on what is called the blockchain. They can’t see who made it, but they can see the size and other details.

The good news is these are problems that can be eliminated.

But until then, many cryptocurrencies are a big risk and can lead to a lot of overvalued coins.

That’s setting the stage for a perfect bubble situation.

Surviving The Burst

Uncertainty breeds volatility. Cryptocurrencies are going to be volatile for a while.

But why does volatility create opportunity?

Because it’s rare that intrinsic value changes much day to day.

If you can identify the cryptocurrencies that are legitimate (have strong intrinsic value), then you can make a lot of money playing off the volatile situation in crypto.

And that’s where I come in…

I want to help the many people who have been scammed by all sorts of schemes duping people into buying or trading “bad” crypto.

My solution is simple.

Research, diversification and building a network of intelligence …read more

Source:: Daily Reckoning feed

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Craig Hemke from TF Metals Report – Thu 19 Oct, 2017

By Cory

Let’s Take A Look At Copper To The USD

We have been looking at the relationship between gold and the USD but in this segment we shift focus and compare the movements in copper to the USD. Craig Hemke and I look at the charts below back 3 years when copper broke down and the USD made a major bull move. If we are seeing the inverse of this with copper moving up then the thoughts of any sustained bounce in the dollar should be reconsidered.

Click here to visit Craig’s site for more metals focused commentary.

Download audio file (2017_10_19-Craig-Hemke.mp3)

Short Term USD – Head and Shoulders

Long Term Copper

Long Term USD

…read more

Source:: The Korelin Economics Report

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The Rich Life Part I: What does it mean to be rich? And are you?

By Nilus Mattive

This post The Rich Life Part I: What does it mean to be rich? And are you? appeared first on Daily Reckoning.

Nilus Mattive here. I’m the editor of The Rich Life Roadmap.

The Rich Life Roadmap e-letter has one mission: to steer you towards greater health, wealth and happiness.

After all, it’s not enough to have wealth alone if your health or personal life suffer.

But right now you might be wondering who I am, and what qualifies me to give you advice on anything, much less how to lead the Rich Life.

It’s a perfectly legitimate question, and you’re right to ask it.

So I’d like to introduce myself to you, and explain how I can help you achieve your income and retirement goals…

My journey to the Rich Life started with three words:

Surfing. Sushi. Stocks.

Most kids in my elementary school didn’t care about any of these things.

Who could blame them?

We lived in a drab, worn-out coal-mining town under the shadow of Pennsylvania’s Pocono Mountains.

The ocean was 150 miles away. Japan was on the other side of the world. Wall Street might as well have been on the moon!

But for whatever reason – and it certainly wasn’t due to any type of family interest or background – those were the kind of ideas that grabbed my attention.

By sixth grade, I was investing on my own.

Straight-A report cards were celebrated at the sushi joint 20 miles away from our house.

Later, when I could drive, I went to the beach and bought an old board to paddle out on.

Looking back, I always had my own definition of what it meant to be “rich” – it was as much about unique experiences and a quality life as it was about money.

That worldview is what originally took me to New York City to work on Wall Street. It’s also what eventually compelled me to move back out of there.

Today, I live in Santa Barbara, California.

I still follow the investment markets each and every day. I still eat lots of sushi. And I spend my weekends surfing up and down the California coast with my 10-year-old daughter.

It’s safe to say I have a very rich life.

Of course, your journey has begun at its own unique coordinates. Your hopes and dreams are almost certainly different than mine.

That doesn’t really matter.

My goal with this new e-letter is to help you get closer to your own “rich life” wherever (or whatever) it is.

So take a second to think about what that looks like.

It doesn’t have to be anything exotic.

Maybe it’s simply getting out of debt …

Generating another $10,000 a year in retirement income …

Or finding five extra hours a week to spend with family.

Whatever it is, the first step is defining it.

From there, things will actually get much easier!

But let’s agree that living a …read more

Source:: Daily Reckoning feed

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David Erfle – Gold Market Commentary – Thu 19 Oct, 2017

By Cory A Position in DUST And Levels to Watch For PM Stocks

David Erfle, Editor of the Junior Miner Junky joins me today to share the reasons why he is taking a short term position in DUST. We discuss the movements in the USD and US markets plus the upcoming Fed meeting in December. While the DUST position carries a negative outlook for the sector there are regions that we are look for in certain metals charts that could be great buying opportunities. We also take a look a the Auryn chart as the sell off today is taking the stock to some interesting levels.

Click here to visit David’s site and please consider signing up for his newsletter.

Download audio file (2017_10_19-David-Erfle.mp3)

…read more

Source:: The Korelin Economics Report

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Company News – Thu 19 Oct, 2017

By Cory

Auryn expands mineralized system at the Inuk prospect by 400 meters and provides portfolio update

Here are the latest round of drill results from Auryn Resources. The stock is getting hit today and dropping to levels where I am planning on picking up some shares shortly. The Company has been hitting mineralization throughout the large drill program this year but still has yet to hit that massive hole that investors are clearly waiting for. There are a lot of drill results to come still this year out of Committee Bay (31% of drilling in the assay labs), Homestake (14,811 meters in 37 drill holes), drilling upcoming in Peru, and follow up work at Committee Bay in March of next year.

Click here to visit the Auryn Resources website.

Also if you have any questions for the team at Auryn please comment or email me and I will get those answered.

Vancouver, British Columbia – October 19th, 2017 – Auryn Resources Inc. (TSX: AUG, NYSE American: AUG, “Auryn” or the “Company”) is pleased to announce new mineralization discovered at the Inuk prospect at its Committee Bay Gold Project located in Nunavut, Canada. Auryn intercepted 25 meters of 1.15g/t Au (including 3.05 meters of 4.13g/t Au) 400 meters away from the historic intercept of 12.6 meters of 16.04 g/t Au in hole INR003 within sulphidized banded iron formation. This hole extends the mineralized system considerably and demonstrates significant widths of mineralization under barren intrusive rocks that were not previously tested (Figure 1). This is the third area drilled at Committee Bay during 2017 to yield positive results and warrant further exploration.

News release Highlights:

Intercepted 25 meters of 1.15g/t Au (including 3.05 meters of 4.13g/t Au) 400 meters along strike from the historic intercept of 12.6 meters of 16.04 g/t Au at the Inuk prospect.
31% of holes stillto be reported from the Committee Bay drilling, including results from Kinng Gold, Kinng Mountain, Mist, Koffy targets in the northeast portion of the belt.
Results are pending from 37 holes (14,811 meters) drilled at the Company’s Homestake Ridge Project in the Golden Triangle, British Columbia. Targets tested included South Reef and the Homestake Main zone extension.
Committee Bay follow-up drilling to resume in March at the Aiviq discovery and the Three Bluffs deposit.

Michael Henrichsen, Chief Geologist and COO commented, “We are very pleased to have hit the broad intervals of consistent mineralization at our Inuk target. We have extended the mineralized system by 400 meters to the northeast under an intrusive cover rock sequence and glacial till. Our understanding of the geology of the Inuk prospect is at an early stage but we are highly encouraged at the strength of sulphidation and gold mineralization within banded iron formations over 10’s of meters.”

Inuk Results

The mineralization encountered from the recent drilling at Inuk is believed to be associated with the interaction of a regional fold and a fault zone that truncates it (Figure 1). Historical core drilling at Inuk was confined to an area 150 meters by 100 meters with intercepts up to 12.6 meters of 16.04 g/t Au. Similarly, …read more

Source:: The Korelin Economics Report

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Vale’s iron ore output hits another record

By analyst

By Cecilia Jamasmie

Brazil’s Vale (NYSE:VALE), the world’s No.1 iron ore miner, said output of the steelmaking material hit a fresh record high in the third quarter as its massive S11D mine in the Amazon continued to ramp up towards achieving full production in 2018.

The Rio de Janeiro-based company said iron ore production rose 3.3% compared with the same period last year to hit a fresh quarterly record of 95.1 million tonnes.

Sales volumes in the three months ended in October were lower than production volumes, implying a slight inventory build-up as a result of operational needs and market strategies. However, the sales/production volume ratio was higher than in in the previous quarter of the year, it said.

Vale reiterated its output guidance for the year of between 360 million and 380 million tonnes of ore.

The mining giant, which is currently looking to sell a few of its loss-making operations, also saw nickel output climb to 72,700 tonnes, or 10.2% higher than in the previous quarter.

The post Vale’s iron ore output hits another record appeared first on

…read more

Source:: Infomine

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Wall Street Is Crash-Proof (Almost)

black monday 1

By Mark Skousen

“Never underestimate the size of a panic, nor the power of the politician.”

-Harry D. Schultz
Today, October 19, is the 30th anniversary of Black Monday. That day in 1987, the Dow Jones Industrial Average fell more than 500 points, or 22.6%. It was the worst one-day decline in stock market history, before or since.

I was lucky enough to anticipate this “first-class catastrophe,” as one historian calls it. Six weeks before, I sent out a special alert to my Forecasts & Strategies subscribers with the headline “Sell all stocks.”

October 19 also happened to be my 40th birthday. But few of my friends on Wall Street were smiling at the party my wife put together. One broker friend had a $5 million margin call and wasn’t sure if his customer was going to make it. (He eventually did.)

It was a day that made grown men cry. Imagine if the Dow fell more than 5,000 points in a day, wiping out trillions in stock values. You’d cry too.

Can it happen again?

In 1954, the free market economist (who went on to win a Nobel prize) Milton Friedman presented a paper in Stockholm, Sweden, titled “Why the American Economy Is Depression-Proof.” He rejected the Cassandras of the day who were predicting another Great Depression.

He argued they were wrong for three reasons: the adoption of federal bank deposit insurance, the growth of the welfare state and the Federal Reserve’s willingness to bail out the banking system with easy money.

For decades, he was right. But then came the financial crisis of 2008, when the economy came within a week or two of total collapse. Another Great Depression was averted, but just barely. Instead we got the Great Recession and a long, painful recovery, as well as Dodd-Frank and Obamacare.

In sum, the American economy may be Depression-resistant, but it’s not Depression-proof. It’s always possible for the American people to lose faith in its highly leveraged fiat monetary system.
Obstacles to a Full-Blown Crash
Is the stock market crash-proof? The 1987 crash was largely the result of newly created institutional financial instruments such as portfolio insurance that mindlessly sold stocks short.

The quick action of the Fed under Chairman Alan Greenspan stopped the bleeding the day after the crash. The stock market has prospered ever since, although it has suffered several severe bear markets since (especially 2000-2002 and 2008-2009).

In some ways, the institutional leveraged factors are still at work. At the Dallas MoneyShow, I learned that 90% of all trades are computer-generated. Only 10% are made by individual stock pickers.

Once the market turns, the sell-off could be severe. A bear market can easily get out of control in a global laissez-faire market economy with few capital controls between nations.

However, investors should not discount the power of government to intervene to keep a full-scale rout from happening. After the 1987 crash, the Securities and Exchange Commission imposed circuit breakers that stop trading when the market drops by a certain percentage.


Under rules in place since 2013, marketwide circuit breakers kick in when the S&P 500 …read more

Source:: Investment You

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“Kill the Bulls”

By Greg Guenthner

This post “Kill the Bulls” appeared first on Daily Reckoning.

Some bearish investors were looking for excuses to “kill the bulls”.

That’s what strategist Kenny Wen told Bloomberg in the wee hours of the morning as stocks in Hong Kong experienced their biggest one-day drop of 2017.

Hong Kong’s Hang Seng dropped 2% overnight. Leading the drop were some of the year’s biggest winners from the red-hot index, which was up more than 30% year-to-date before today’s slide.

It’s safe to say that the Hang Seng’s drop was an eerie way to kick off the 30th anniversary of Black Monday. And while a 2% slide isn’t anything close to a trend-breaker, we’re seeing a wave of red overtake the futures market in the western world right now. Heck, we might even see a legitimate pullback!

You see, Americans aren’t the only investors who have enjoyed historically calm market conditions this year. Emerging markets like China have also basked in a steady rally that has effectively lulled many investors to sleep.

Sure, U.S. stocks have been a great place for your trading dollars this year. But emerging markets are running laps around America’s major averages. That’s right – the same stocks that couldn’t attract any attention since the financial crisis are decimating U.S. stocks so far this year.

The iShares MSCI Emerging Markets ETF (NYSE:EEM) has rocketed to gains of more than 33% year-to-date. This performance puts all the U.S. major indexes to shame – even the red-hot Nasdaq Composite, which is up about 23% in 2017.

As we’ve mentioned many times recently, we’re experiencing a global economic rebound right now. But most of us are too fixated on what’s happening in the U.S. to see it unfold.

A quick peek overseas shows the strength of these emerging market rallies. India’s Nifty 50 Index is up 25% in 2017. Polish stocks are up more than 50%. Argentina is up a whopping 55% year-to-date. The list goes on and on…

While some investors are dipping their toes in emerging market funds, most folks are content to stay parked in U.S. stocks.

“U.S.-based stock investors may have pumped fresh funds into emerging markets after their recent outperformance, but they remain under-allocated by a key measure, as a combination of ‘home bias’ and lingering concern about volatility have restrained client interest,” Reuters notes.

That’s why we were so eager to jump into the iShares MSCI Emerging Markets ETF (NYSE:EEM) over the summer. EEM has doubled up the performance of the S&P 500 so far this year. This is a trend that has continued since we hopped onboard back in July. While the herd remains focused on the formidable FANNGs here in the states, the rest of the world is humming along at a pace we’ve not seen in a decade.

Up until the second quarter, U.S. money managers only had about 5% of assets allocated to emerging market stocks. Despite the incredible first-half performance of more than a handful of emerging markets, we didn’t see a big rush into these stocks like we …read more

Source:: Daily Reckoning feed

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