Nasdaq Slammed As Japanese Media Signals North Korea “Preparing Toward Ballistic Missile Launch”

Japanese government detecting signal from #NorthKorea on preparation towards a ballistic missile launch according to local media
— michiyo ishida (@MichiyoCNA) November 27, 2017

Update: While the initial reaction to the headlinews were muted, once the story hit Bloomberg wires, USDJPY snapped lower and gold jumped…
And as USDJPY fades, so stocks drop (S&P and Nasdaq now red)…

This post was published at Zero Hedge on Nov 27, 2017.


There’s something important you should know about Bitcoin

After spending the last few days in the Philippines scouting new factory locations for one of my businesses, I flew back to Singapore this morning to conclude negotiations with a large, publicly-listed conglomerate that’s made an offer to buy one of our assets.
It’s been a hectic trip so far. But while in town, I had a chance to see my friend Gregor again – the entrepreneur I interviewed in last week’s podcast discussion about precious metals vs. cryptocurrency.
In the podcast, Gregor and I talked about Bitcoin security – specifically the fact that very few people properly (i.e. securely) store their cryptocurrency.
And the more valuable these cryptocurrencies become, the higher the likelihood of theft.

This post was published at Sovereign Man on November 27, 2017.


The Hyperinflation That Was Not

Last week, we made a very controversial statement. We are happy to write the truth, and let the chips fall where they may (e.g. our thoughtful disagreement with Ted Butler about price manipulation). We can accept the flak that we get for this, so long as our position is understood. Some criticized our approach as mere technical analysis, and therefore insufficient to the task of explaining the dynamics of the gold and silver markets. But whether we quibble with this characterization of our work or not, we believe that the points we made and the unique data we published stand. No one, including Mr. Butler, responded substantively to our data or logic. People can read and choose sides, and we’re OK with that.
But last week, we said something that we feel was not well understood. And it is one of the most important ideas in monetary economics, and the key to understanding banking.
The Federal Reserve, of course, is a key participant in this monetary inflation scheme. Does the Fed have a printing press? Does the Fed print?
Like any bank, the Fed borrows to fund its purchases of interest-paying assets. It earns a spread between what it pays (currently about 1.25%) and what its asset portfolio pays (over 2%)… Unlike any commercial bank, there is a law that obligates us to treat the Fed’s liabilities as if they were money.
Borrowing is pretty close to the opposite of printing. So how is it possible that there is so much contention on this issue? Perhaps it would be more accurate to say that, in Austrian circles, there is little contention: Monetary Metals are just heretics!

This post was published at GoldSeek on Monday, 27 November 2017.


Satoshi Secrets & Why Nearly 4 Million Bitcoins Are “Lost” Forever

Authored by Jeff John Roberts and Nicolas Rapp via Fortune.com,
Just as gold bars are lost at sea or $100 bills can burn, bitcoins can disappear from the Internet forever.
***
When all 21 million bitcoins are mined by the year 2040, the actual amount available to trade or spend will be significantly lower.
According to new research from Chainalysis, a digital forensics firm that studies the bitcoin blockchain, 3.79 million bitcoins are already gone for good based on a high estimate – and 2.78 million based on a low one. Those numbers imply 17% to 23% of existing bitcoins, which are today worth around $9,000 each, are lost.

This post was published at Zero Hedge on Nov 26, 2017.


Store Gold in Minced Meat? 26 Ways to Store Gold

Gold is a highly valuable asset. When your buy gold, It is critical to store your gold bars and gold coins in a location that is secure but at the same time accessible.
Inside a Home There are many places to store gold and other precious metals in your home, with some places more secure and covert than others. Luckily, since physical gold has a high value-to-weight ratio, for most people, storing their gold bars and gold coins won’t take up too much space.

This post was published at Bullion Star on 26 Nov 2017.


Commodities: The Big Three

Tonight I would like to show you some long term charts for the big three, Copper, Oil and Gold. There are a lot of similarities between them which is strongly suggesting all three should be in new bull markets. The laggard is gold which has still not confirmed its new bull market but is getting closer as you will see. The key will be what the US dollar has up its sleeves so lets start with a daily chart for the US dollar.
The US dollar still hasn’t totally broken down yet, but it did have a failed inverse H&S bottom. It was a very beautiful and symmetrical H&S bottom that looked like it was going to reverse the downtrend that is right at a year old now. It had a nice clean breakout above the neckline with a clean backtest from above. All looked good. After a brief rally the US dollar declined once more to the neckline, but this time the neckline failed to hold support, strongly suggesting the H&S bottom was failing.
As we’ve discussed in the past when you see a failed H&S pattern you often times see a strong move in the opposite direction. The rule of thumb is that when the price action breaks below the right shoulder low the failure is complete. The US dollar is still trading slightly above the right shoulder low, but is now getting close to breaking that important low. Note how the neckline reversed its role to what had been resistance during the formation of the H&S bottom, to support once broken to the upside, and then reversed its role one more time to resistance on the last backtest from below.

This post was published at GoldSeek on 26 November 2017.


Bitcoin Tops $9,300 Amid “Extinction-Level Event For Banks.. And Maybe Governments Too”

Update: Bitcoin has continued to soar intraday – now topping $9,300 – with a total market cap over $156 billion, leaving the cryptocurrency worth more than Merck, Disney, and GE.

Coinivore notes that the digital currency, once a toy for computer nerds, is now soaring in price, triggering a new gold rush. Is it just another bubble, or a glimpse into a radically different financial future?
As Rick Falkvinge, CEO of BitCoin Cash and founder of the Swedish Pirate Party, warns ‘bitcoin is an extinction-level event for banks’ and probably governments too…

This post was published at Zero Hedge on Nov 26, 2017.


Bitcoin’s Inconvenient Truths: The Silence Is Deafening

Gold is instantly and optically recognizable as money. You don’t have to explain it. Bitcoin and Special Drawing Rights (SDR), like a bad joke, have to be explained. Many ‘cryptologitsts’ from the start gave up trying to explain Bitcoin and just sell it as virtual gold, which is de facto fake gold. – Dan Popescu, investment consultant
Numerous inconvenient truths are conveniently ignored by Bitcoin/crypto-currency promoters. Not the least of which is that the fact that the original concept for cryptographic currency was envisioned by the NSA. I guess it’s convenient to assume the NSA developed this concept and then put it out there for the private sector to develop. Sure, that makes sense.
A rapid rise in price does not validate an investment concept. Dozens of dot.com stocks went from simple websites to multi-billion dollar market caps and back to zero in the late 1990’s. Until proven otherwise by the long test of time, Bitcoin could be another product of a fiat money printing bubble that is 100x the size of the money bubble that fueled the dot.com bubble. Gold and silver have withstood the test of 5,000 years. Bitcoin has less than 3,000 days of time-testing.

This post was published at Investment Research Dynamics on November 26, 2017.


China Busts Gang That Smuggled $3 Billion Out Of The Country

China’s crackdown on capital outflows has been a boon for organized crime in the region, with Chinese triad gangs and even Japanese Yakuza organizations partaking in the smuggling bonanza. Over the summer, we reported on a case of Yakuza gangsters teaming up with wealthy Chinese to smuggle thousands of tons of gold out of the country, using Japanese regional airlines as unwitting mules while taking advantage of a loophole that allows them to circumvent customs.
But the Yakuza isn’t the only criminal group that’s capitalized on the desperation of wealthy Chinese to preserve their wealth by moving it offshore: Local triad gangs have helped smuggle tens of billions of Chinese yuan offshore, reaping enormous profits in the process.
To wit, Chinese police say they have broken up a gang that smuggled 20 billion yuan ($3 billion) out of the country. According to the Associated Press, which cited reports from China’s Xinhua News Service, seven suspects were detained in the case centered in the southern city Shaoguan near Hong Kong but as many as 10,000 people might have been involved, the official Xinhua News Agency reported.

This post was published at Zero Hedge on Nov 26, 2017.


BRICS Gold Trade Settlement To Begin in 2018?

My guess is it will take Russia and China and the other BRICS nations most of 2018 to get all the nuances worked out and the gold trade settlement contracts will not actually come to the table until 2019 or possibly even 2020. We say this in light of what happened with the Shanghai Gold Exchange (SGE) bringing their gold settlement mechanism online back in April 2016. The SGE was suppose to bring this online in October 2015 but was unable to make it happen as they wished to avoid any major mishaps when launching. Anyone that has dealt with the launch of a new computer system or an ‘upgrade’ to a computer system understands there are usually massive problems to begin with as going from a virtual world to real world can sometimes be quiet different than originally anticipated.
We have been reluctantly reporting on the ‘gold backed oil contract’ supposedly coming out of China sometime in the future. We can say with 100% certainty there will be a yuan backed oil contract launched in the very near future, as that has been officially announced and an actual contract exist. The gold backed portion is still a little sketchy at this point as there has been no official announcement, no Chinese official discussing nor does any contract exist that is tied to the yuan backed oil contract.
What we just learned ‘First Deputy Chairman of Russia’s Central Bank Sergey Shvetsov said Friday’, Russia and China are discussing a ‘single (system of) gold trade both within BRICS and at the level of bilateral contacts,’
Is this the reason for the two recent attempts at beating gold down the line? Neither attempt, in my opinion, was very successful except in the very, very short term as both attempts were greeted with equal amount of contracts on the acquiring side of the trade. The gold bugs were waiting to pull the trigger on these smashes and as soon as the gold chart dropped it reversed and most of the ‘losses’ were regained within 48 hours or less.


This post was published at GoldSeek on Sunday, 26 November 2017.