The biggest inevitables that we have as investors are that inflation is guaranteed and fiat currencies are ultimately doomed. It could justifiably be added as an added third prong to the infamous Benjamin Franklin quote of two things being for certain: death and taxes.
It’s important to ask a question periodically: when assets rise, are they rising just in nominal terms, or is the value of the paper it’s being measured in simply falling?
This is true of the historical bull run we’ve seen in the stock market, true about the re-inflated real estate market, and across any asset priced against dollars.
Jim Rickards, who is popular for his analysis on the economy and his price projections for gold, has made the justification for why gold should conservatively be $10,000. Of course, gold is currently around $1,300 and being handled quite aggressively by bullion banks that are artificially suppressing the prices of it and silver.
Without getting too deep into the math, he gets to this $10,000 figure like this. The combined M1 money supply in the world is about 24 trillion dollars. That includes the United States, China, the Eurozone, and Japan, who comprise over 70% of global GDP. Official gold holdings are around 33,000 tons, which does not include private gold.
Using a 40% backing of the money supply, which was what the U.S. used for the majority of the 20th century, gold would have to be revalued upwards of $10,000.
I believe gold will, in fact, have its day at $10,000. There is, however, no denying the massive effort to delegitimize gold’s function as real money, and for now, there is no telling how long this manipulation will last. What I can tell you is that trying to contain the free market is like trying to hold water in your hand: it’s bound to leak.
Look at this madness:
The trend for more global debt is exhausting itself. Fully take in what is happening and that global debt-to-GDP is at 327% and climbing.
Do I dare suggest that cryptocurrencies are reflecting the collapse of fiat?
Do I dare suggest that cryptos are fulfilling the role of gold for the time being?
After all, some have gone as far as to suggest that Bitcoin is better than gold, saying that Bitcoin embodies the best properties of both gold and fiat, without their negatives.
The cryptos are one of the only asset classes that are out of the hands of artificial suppression and censorship, and I think their surge in growth is a testament to that:
In my opinion, 2017 alone has brought momentum into cryptocurrencies that has even gone above and beyond the collapsing of fiat, but sheer demand for digital assets as the world continues deeper into the Internet of Things.
We are talking about blockchain in our money, data storage, content creation, business contracts, titles and deeds, cyber security, and more.
This is an ecosystem that goes above and beyond even what the Jetsons could have anticipated. Beyond money, there are a whole slew of problems cryptocurrencies are attempting to solve, and the free market is accurately valuing the solutions.
It is for all of these reasons I have made HIVE Blockchain Technologies (TSXV: HIVE & OTC: PRELF) my number one blockchain sector pick. In fact, it’s my one and only equity position in the crypto space.
Trading out of the gate at $0.74, HIVE has gone on to trade for as high as $3.74, reflecting the pent-up demand that is certainly wanting to enter the cryptocurrencies and has simply been on the sidelines.
The company has just released dynamic news that my readers who are positioned in HIVE should be aware of. Learn more here.
I’ve said it before, and I’ll say it again: if you are like me and you believe in the future of cryptocurrencies, you should consider owning shares in HIVE and partnering with some of the greatest minds in FinTech.
There are massive distortions in the global financial markets, and as we proceed forward in these unprecedented times, you have to ask yourself where you want your wealth stored as pressure begins to release.
Chief Editor, CrushTheStreet.com
Projections relating to gross mining margins outlined above are subject to the assumptions set out therein, including future cryptocurrency prices, which are based upon management’s best estimates but are inherently speculative and there is no guarantee that such assumptions or estimates will prove to be correct.
This work is based on SEC filings, current events, interviews, corporate press releases and what we’ve learned as financial journalists. It may contain errors and you shouldn’t make any investment decision based solely on what you read here. It’s your money and your responsibility. The information herein is not intended to be personal legal or investment advice and may not be appropriate or applicable for all readers. If personal advice is needed, the services of a qualified legal, investment or tax professional should be sought.
Never base any decision off of our advertorials. Crush The Street stock profiles are intended to be stock ideas, NOT recommendations. The ideas we present are high risk and you can lose your entire investment, we are not stock pickers, market timers, investment advisers, and you should not base any investment decision off our website, emails, videos, or anything we publish. Please do your own research before investing. It is crucial that you at least look at current SEC filings and read the latest press releases. Information contained in this profile was extracted from current documents filed with the SEC, the company web site and other publicly available sources deemed reliable. Never base any investment decision from information contained in our website or emails or any or our publications. Our report is not intended to be, nor should it be construed as an offer to buy or sell, or a solicitation of an offer to buy or sell securities, or as a recommendation to purchase anything. This publication may provide the addresses or contain hyperlinks to websites; we disclaim any responsibility for the content of any such other websites. We are long HIVE Blockchain Technologies and have received options directly from the company and have been paid two hundred and fifty thousand Canadian dollars for three years of digital marketing paid for directly by the company. Please use our site as a place to get ideas. Enjoy our videos and news analysis, but never make an investment decision off of anything we say. Please review our entire disclaimer at CrushTheStreet.com/disclaimer