As many of you are aware gold was at around $1050 US Dollars (USD) in January and is now at $1320 USD while silver in January was around $14 USD while now it is at $18.30 USD.
What is driving gold higher?
You could say instability in the world, a changing of trade agreements between the United Kingdom (UK) and the European Union (EU) and maybe a disintegration of the European Union. This is contributing to a risk off attitude in the markets which is leading to further lowering of interest rates and a negative interest rate environment. Gold shines brightest when interest rates are lower than inflation which is referred to as negative real interest rates.
Furthermore, companies with junk commodity company status are finding it harder to borrow because of this risk off attitude leading to higher borrowing costs for commodity projects causing lessening of supply of commodities on the market at the margin.
Inflation in the developed world is not there other than asset inflation. This lack of "generally accepted statistics" ie inflation rate is allowing countries to flirt with zero interest rates policy (ZIRP). Now as you may know inflation rates are calculated with hedonics. To sum it up in the last 20 years a can of coke at a coke machine has went from $1 USD dollar to $1.25 USD dollar. A hot dog at Costco is still around $1.50 the same it has been for 30 years. These hedonics calculations allow the central bankers to massage the inflation numbers because of hedonics, substitutes and other ideas.
Where to invest at the moment?
Gold is good to invest in as it will become as good as money because of bitGold and DigixDAO (Digi Gold).
What is hot now is not physical gold or crypto gold but Leveraged to gold typed equities (stocks). Even though First Majestic Silver (NYSE:AG, TSE:FR) is up from $3.80 to $17 dollars there is probably room to grow but yes a big move has already happened. If you believe in gold in China there is always Silvercorp (SVM). I understand I have given silver companies which follow a more erratic commodity (ie silver), ill get to gold right now.
For gold companies there is First Mining Finance (FF), Barrick Gold (TSE:ABX). FF is a very unique company as it has 30 gold mines that it will partner up with other bigger gold companies to develop a few and make a royalty. It is just $0.75 CDN cents and is up from $0.25 CDN cents.
As George Soros is buying Barrick Gold (TSE:ABX) it is probably a good time to get into this sector and that stock.
Furthermore, if you want to really leverage yourself to gold and maybe later silver there is DigixDAO. It will be a royalty on the trading of gold making 0.13% on traded gold. They are investigating charging people for storage at a minscule rate.
It would be very interesting if Bitshares was able to pull off the ground a crowdfunding of a gold/silver storage and trading company. Just an idea.
Silver is going to go on another runup. Circa 35-50, like it did last time. If it goes further, all bets are off.
Personally, I prefer the gains in cryptotokens ...
I agree. When looking at crypto DigixDAO could be good. Best if bitshares does something like that especially if in the next few months we get to $50M to $100M market cap.
complexring have you looked into DigixDAO and if so what is your opinion of it?
I have. It is an interesting solution for anyone who wants to participate in the market of the precious metals industry.
Interesting blog. Thanks for bringing this to our attention. You read this stories about people selling their cars to buy cryptos and I think to myself: Don't invest money you don't have. We really need more insights in the market and previous investment results (even though they don't deliver any guarantee for the future). An interesting website I found: https://www.coincheckup.com Every single coin can be analysed here based on: the team, the product, advisors, community, the business and the business model and much more. Check: https://www.coincheckup.com/coins/DigixDAO#analysis For the DigixDAO Report