Gold is Forever, Not All Crypto Currencies Will Survive

Gold is Forever, Not All Crypto Currencies Will Survive

$GLD, $BTCUSD. $AMZN, $GOOGL, $JPM

Not all of the Crypto currencies will survive, it is still early in this game. As in the .Com era there were winners and losers then, will there be winners and losers now.

Bitcoin and Ethereum are the front-runners now, recall that 20 years ago AOL and Yahoo! were thought to dominate the Internet. That did not happen.

It will be interesting to see which of the Cryptos emerge as the Amazon and Google digital currencies.

For now, Ethereum has some huge backers.

The Enterprise Ethereum Alliance (EEA), according to its website, seeks to “learn from and build upon the only smart contract supporting blockchain currently running in real-world production—Ethereum.”

The EEA includes several big-name financial and tech firms such as Credit Suisse, Intel, Microsoft and JPMorgan’s CEO, Jamie Dimon, declared cryptos a fraud 2 weeks ago.

To learn more about the blockchain and cryptocurrencies, watch this 2-min video.

Recently I have seen pundits asking, Will Cryptos killing Gold?

And would the Gold price be higher today if massive amounts of money were not flowing to Bitcoin?

  • Both assets are favored as safe havens.
  • They are decentralized and accepted all over the world, 24/7.
  • Transactions are anonymous.
  • Supply is limited.

 

I do not believe that digital currencies will ever replace Gold, here is why:

  1. The Cryptos are strictly forms of currency
  2. Gold has many other time-tested applications, from jewelry to dentistry to electronics.
  3. Gold does not require electricity to trade.
  4. Gold jewelry or coins, they can be converted into cash, without electricity or WiFi.
  5. Gold is 1 of the most liquid assets, traded daily in well-established exchanges all around the globe.
  6. Every day $18-B, worth of physical Gold are traded in London alone.
  7. The Crypto market, though expanding rapidly, is not really big.

Sure, Bitcoin is energizing some investors, especially Millennials, in ways that Gold might have a hard time doing.

The proof is all over the Internet.

Look and you will find a number of TED Talks and UTube’s on Bitcoin, Cryptocurrencies and the Blockchain, but I have not seen 1 on investing in Gold

Bitcoin is trading at 5,800+, up 355% on the year, Ethereum is +3,600% YRD.

Gold is up around 10%. Producers measured by the NYSEArca Gold Miners Index have gained 11.5% in Y 2017, 23% since its 52-week low in December 2016.

Looking past the negative headlines in the mainstream media on the accomplishments of The Trump Administration after it 38th week.

There is lots of support for this stronger and growing US economy, as follows:

  1. The Manufacturing ISM Purchasing Managers’ Index (PMI) rose to a 13-year high in September, indicating rapid expansion in the manufacturing industry.
  2. Factory orders were up during the month.
  3. Auto sales were up.
  4. Crude Oil has stayed in the relatively low 50 bbl range, which is good for transportation and industrials, especially airlines.
  5. Small-cap stocks, as measured by the Russell 2000 Index, continue to climb above their 50 and 200-Day MA’s.
  6. The US 3 major stock market indexes are at all time high, DJIA 25% + since Donald Trump was elected President on 8 November 2016.
  7. Excitement over tax reform intensifies

So, I am Bullish America, it is not a speculation.

Have a terrific weekend.

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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