The Morgan Report Blog

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

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.

Bitcoins

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 – whether it involves learning about the blockchain or being hesitant to buy precious metals when they’re in boring “wear you out or scare you out” sideways action (another David Morgan homily)… as they’ve been lately.

Dismissing Bitcoin as “just digital”: Kim Iskyan (Stansberry Churchouse Research) addresses the criticisms leveled at bitcoin and the blockchain. Responding to the charge that it’s “purely digital,” he notes that fully 90% of all the money – or as David Morgan refers to it, “paper promises” – that exist around the world today are not physical either!

Doug Casey is always one to see beyond the next investment valley (or country), and he pegs what most people miss when they argue that bitcoin is “bad” for the future of precious metals. As he said,

When people buy these cryptocurrencies, even if they know nothing about hard money, economics, or monetary theory, they inevitably ask themselves, “Hmm, Bitcoin or the dollar?” They’re both currencies. Then they start asking questions about the nature of the dollar…the nature of inflation… and whether the dollar has any real value, what’s going to happen to it, and why.

People start asking themselves these questions – which wouldn’t have occurred to them otherwise… and it’s going to make them very suspicious of the dollar. It’s going to get a lot of people thinking about money and economics in a way they never thought about it before. And this will inevitably lead them to gold…

What I am doing: In addition to staying very active in metals and miners, I have placed “small money” into several coins and tokens having viable business models in hopes of making an asymmetric profit.

Gold Bull Market 1970s vs. 2000 to date

In spite of the current turmoil, I remain steadfast in the belief that the next few years will see gold and silver trading several times higher than their nominal 2011 prices of $1,900 and near $50 respectively. The blockchain is here to stay. As for bitcoin, only time will tell.

We may even see digital coins and tokens backed by precious metal. But these changes in the crypto space will not replace them. Indeed, gold and silver will almost certainly – to the surprise of many bitcoin bulls – markedly increase demand.

I plan to continue holding the majority of my investible funds in gold and silver. How about you?

davidsmithAbout the Author: David Smith is Senior Analyst for TheMorganReport.com and a regular contributor to MoneyMetals.com. For the past 15 years he has investigated precious metals’ mines and exploration sites in Argentina, Chile, Peru, Mexico, Bolivia, China, Canada, and the U.S. He shares his resource sector observations with readers like you.

 

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There is so much information in this report. So be sure to watch the movie, understand the times we are living in, and please share with your friends, family, social media or anyone that you care about. These times are changing rapidly.

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“To teach and empower people to understand the benefits of an honest monetary system.”

Today’s monetary system is based upon a lie. The lie is that you can get something for nothing, or perhaps more simply stated, wealth can be printed. History has shown throughout 5000 years that whenever a country has tried to maintain this illusion (lie), failure has been the result. We invite you to learn more about what The Morgan Report can do for you. Click on the Learn More About The Morgan Report button now!

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Thus was born The Morgan Report – since then we’ve helped 11,000-plus members scattered over the globe in every continent and over 100,000+ e-newsletter subscribers have read our weekly e-newsletter — This Week’s View from The Morgan Report.

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“To teach and empower people to understand the benefits of an honest monetary system.”

Today’s monetary system is based upon a lie. The lie is that you can get something for nothing, or perhaps more simply stated, wealth can be printed. History has shown throughout 5000 years that whenever a country has tried to maintain this illusion (lie), failure has been the result. We invite you to learn more about what The Morgan Report can do for you. Click on the Learn More About The Morgan Report button now!

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Oil/Yuan/Gold Benchmark – Explained

What’s happened is that America, very quickly, a lot more quickly than expected, has actually lost it’s influence in the Middle East. That, to me, is a key part to this story.

And I think now what we have, instead of China turning ’round and saying “we can control the pace at which the change is occurring”. What’s happening is the people in Asia and places like the Middle East, will now be pushing for the change which China was planning to do anyway. ~Alasdair Macleod, The Daily Coin

For those that have been following the Federal Reserve Note since President Nixon closed the gold window in August 1971, you fully understand the implications of a global monetary shift. Not only can such a change be disruptive to economies, it can create unintended consequences, like out of control inflation, oil/gas shortages and shifts in global power.

What we see happening today, beginning in July 2017, is another shift of global power. The U.S. has been involved in a “war of words” with Russia for the past two years and beginning in mid 2016 there was a major shift with the mainstream media, Clinton and Clinton supporters all crying “Russia did it”. What “Russia did” has changed a number of times, but the story has remained the same – “Russia did it”.

What happened in July 2017 when President Trump pulled the CIA out of Syria was to end a secret program began by the Obama regime to over-throw Syrian President Assad.

The program was a central plank of a policy begun by the Obama administration in 2013 to put pressure on Assad to step aside, but even its backers have questioned its efficacy since Russia deployed forces in Syria two years later.

Officials said the phasing out of the secret program reflects Trump’s interest in finding ways to work with Russia, which saw the anti-Assad program as an assault on its interests. The shuttering of the program is also an acknowledgment of Washington’s limited leverage and desire to remove Assad from power. Source

This marked the beginning of the end of American influence in the Middle East and over the oil fields of OPEC.

On October 5 Saudi Arabia’s King Salman met with Russian President Putin in Moscow. The significants of this meeting can not be overstated. The shift in global power will be seen, through the eyes of history, as beginning during this meeting.

Most recently, Russian operations in Syria have put it in direct conflict with Saudi interests. The Saudis remain opposed to Bashar al-Assad, whose regime is being supported by Russian military power. The gulf kingdom, on its part, is also believed to be funding rebel groups opposed to al-Assad.

****

“The Saudis have lost interest and realise that Russia now owns the crisis,” says Yuri Barmin, an expert at the Russian International Affairs Council. “They see how the balance of power is changing in the region: how the US is pulling out and how Russia is now increasing its influence in the Middle East.” Source

The two scenarios above point to the same conclusion – Russia is moving into the Middle East with the blessing of Saudi Arabia as the U.S. is being sidelined.

Oil makes the world go-round. Oil is the life blood of the global economy. Acquiring oil with gold sidesteps the Federal Reserve Note and the U.S. economy. If the U.S. is no longer the “Superpower” over seeing the Middle East and supplying the Middle East with military protection then what good is the U.S. to the OPEC nations? If Russia steps in with the military supplies to support the OPEC nations and Russia’s number one trading partner, China, is the largest importer of oil we begin to see a major shift of all power – economic and military.

Alasdair Macleod, Head of Research, GoldMoney, provides us a fascinating, detailed review of the oil/yuan/gold benchmark story that has been evolving over the past six weeks. Alasdair reviews the two known contracts, – oil futures contract and physical gold futures contract – their origins and the possibilities of that lie ahead for the melding of these two contracts on the global monetary stage. A future that could very well prove to have oil settled in payments made with gold.

 

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Special Report: Silver Price Forecast: How high will the price of silver be this year? How about next year? Grab Your Silver Price Forecast Free Report Right Now! In this report you will discover Silver might surprise everybody by the end of this year.

Is There A Silver Shortage Webinar: Join me in the free webinar where we’ll discuss, Is a silver deficit a silver shortage? What year did the deficit turn to a surplus? Are the above ground silver stocks increasing or decreasing How well does price track supply?

Special Report: Riches In Resources: The RIR report was written by myself. Often I rely on my team to help with research and trips to various companies, annual meetings, quarterly updates, conference calls, investor seminars, and all that we do to keep our members at the cutting edge of the Wealth building/Wealth preservation sector.
There is so much information in this report. So be sure to watch the movie, understand the times we are living in, and please share with your friends, family, social media or anyone that you care about. These times are changing rapidly.

Because there is a 100% failure rate of ALL fiat money throughout history, you will learn what to do by obtaining our Free Reports. Just enter your first name, your primary email address and click the Get Special Report button below.

Are you prepared for what lies ahead? Our Free E-Letter will keep YOU in the top 3% of the Informed, the Awake, and the Aware.

Our mission statement reads…

“To teach and empower people to understand the benefits of an honest monetary system.”

Today’s monetary system is based upon a lie. The lie is that you can get something for nothing, or perhaps more simply stated, wealth can be printed. History has shown throughout 5000 years that whenever a country has tried to maintain this illusion (lie), failure has been the result. We invite you to learn more about what The Morgan Report can do for you. Click on the Learn More About The Morgan Report button now!

Learn More About The Morgan Report *

  

The Morgan Report’s Weekly Perspective with David Morgan

The Morgan Report’s Weekly Perspective | http://www.themorganreport.com

The Morgan Report’s Weekly Perspective is our free e-newsletter. Our free e-newsletter will keep YOU in the top 3% of the Informed, the Awake, and the Aware.

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I’ve Been Helping My Subscribers Weather the Current Economic Mess. Now I Invite You to Join My Growing Circle of Successful Investors.

The Morgan Report is all about YOU and how you can build and preserve Wealth for generations to come. We know it can sometimes seem a daunting task to protect your assets and preserve or grow your wealth. Over 15 years ago, a small group of us started The Morgan Report and formed an exclusive membership organization to promote personal freedom, an honest money system, free market wealth accumulation and asset protection.

Thus was born The Morgan Report – since then we’ve helped 11,000-plus members scattered over the globe in every continent and over 100,000+ e-newsletter subscribers have read our weekly e-newsletter — This Week’s View from The Morgan Report.

Through our publication, The Morgan Report, we provide you with ways to achieve greater financial security and wealth in all sorts of environments.

Learn more and become an insider for The Morgan Report, click link below…
http://www.themorganreport.com/join

 

Special Riches In Resources Free Report

Because there is a 100% failure rate of ALL fiat money throughout history, you will learn what to do by obtaining your Free Report. Just enter your first name, your primary email address and click the Get Special Report button below.

Our mission statement reads…

“To teach and empower people to understand the benefits of an honest monetary system.”

Today’s monetary system is based upon a lie. The lie is that you can get something for nothing, or perhaps more simply stated, wealth can be printed. History has shown throughout 5000 years that whenever a country has tried to maintain this illusion (lie), failure has been the result. We invite you to learn more about what The Morgan Report can do for you. Click on the Learn More About The Morgan Report button now!

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David Morgan: There is Nothing More Powerful Than the Truth

Well it’s all about control and I think it’s keeping them in control. I have to quote one the better thinkers in our peer group, long deceased, Michael Ruppert. “Unless you change the way money works, you’ve changed nothing.” So, if you change it to an SDR then you haven’t changed the way it works. ~David Morgan, The Daily Coin

I sat down with David Morgan, The Morgan Report, to get his take on this forever changing oil/yuan/gold contract story that seems to have taken on life of it’s own. We have reported, on multiple occasions, that we can not find anything of substance to support this idea/concept/contract. The implications of this contract being a reality would change the monetary world over night. The implications of this contract coming to fruition could possibly spark World War III – it’s that serious. For this reason, we at The Daily Coin, are steadfast in our insistence of source links, names of Chinese officials supporting this idea and a copy of the contract that specifically states gold is part of the contract. Even Hugo Salinas Price in his latest note to Eric King at King World News agrees the implications are enormous.

This fact will surely not be un-recognized by the Pentagon, who are the moving force of the Empire. Thus, I fear that the Chinese move – IF IT BECOMES A REALITY – may ignite WW III, as the desperate attempt by the US military to retain the role of US as World Empire. Which would mean the utter devastation of the US by Russia and China combined. We shall soon see what takes place – gold for oil, Yes or No? – King World News

The Morgan Report, not only covers the precious metals but Mr. Morgan also covers the base metals as well. Two of the base metals David really likes right now are zinc and cobalt. We, at The Daily Coin, have discussed these metals with a number of mining executives over the past year and Davids analysis is right in line with everything we have been discussing. The Morgan Report offers insights on the companies that David and his team see as being an intricate part of a persons portfolio.

This brought us to my current favorite topic – the long string of new articles discussing physical gold with several high-profile executives, including the Secretary of the Treasury, Steve Mnuchin, all discussing the virtues of physical gold. It seems I am not the only person that believes these are “trial balloons” intended to prepare the masses for the coming changes to the monetary system.

David wraps up the interview with some of the most powerful words one will hear anywhere.

 

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E-Newsletter Today!
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Special Report: Silver Price Forecast: How high will the price of silver be this year? How about next year? Grab Your Silver Price Forecast Free Report Right Now! In this report you will discover Silver might surprise everybody by the end of this year.

Is There A Silver Shortage Webinar: Join me in the free webinar where we’ll discuss, Is a silver deficit a silver shortage? What year did the deficit turn to a surplus? Are the above ground silver stocks increasing or decreasing How well does price track supply?

Special Report: Riches In Resources: The RIR report was written by myself. Often I rely on my team to help with research and trips to various companies, annual meetings, quarterly updates, conference calls, investor seminars, and all that we do to keep our members at the cutting edge of the Wealth building/Wealth preservation sector.
There is so much information in this report. So be sure to watch the movie, understand the times we are living in, and please share with your friends, family, social media or anyone that you care about. These times are changing rapidly.

Because there is a 100% failure rate of ALL fiat money throughout history, you will learn what to do by obtaining our Free Reports. Just enter your first name, your primary email address and click the Get Special Report button below.

Are you prepared for what lies ahead? Our Free E-Letter will keep YOU in the top 3% of the Informed, the Awake, and the Aware.

Our mission statement reads…

“To teach and empower people to understand the benefits of an honest monetary system.”

Today’s monetary system is based upon a lie. The lie is that you can get something for nothing, or perhaps more simply stated, wealth can be printed. History has shown throughout 5000 years that whenever a country has tried to maintain this illusion (lie), failure has been the result. We invite you to learn more about what The Morgan Report can do for you. Click on the Learn More About The Morgan Report button now!

Learn More About The Morgan Report *

  

The Morgan Report’s Weekly Perspective with David Morgan

The Morgan Report’s Weekly Perspective | http://www.themorganreport.com

The Morgan Report’s Weekly Perspective is our free e-newsletter. Our free e-newsletter will keep YOU in the top 3% of the Informed, the Awake, and the Aware.

Join our Free weekly e-letter…
http://www.themorganreport.com/joinfreelist




I’ve Been Helping My Subscribers Weather the Current Economic Mess. Now I Invite You to Join My Growing Circle of Successful Investors.

The Morgan Report is all about YOU and how you can build and preserve Wealth for generations to come. We know it can sometimes seem a daunting task to protect your assets and preserve or grow your wealth. Over 15 years ago, a small group of us started The Morgan Report and formed an exclusive membership organization to promote personal freedom, an honest money system, free market wealth accumulation and asset protection.

Thus was born The Morgan Report – since then we’ve helped 11,000-plus members scattered over the globe in every continent and over 100,000+ e-newsletter subscribers have read our weekly e-newsletter — This Week’s View from The Morgan Report.

Through our publication, The Morgan Report, we provide you with ways to achieve greater financial security and wealth in all sorts of environments.

Learn more and become an insider for The Morgan Report, click link below…
http://www.themorganreport.com/join

 

Special Riches In Resources Free Report

Because there is a 100% failure rate of ALL fiat money throughout history, you will learn what to do by obtaining your Free Report. Just enter your first name, your primary email address and click the Get Special Report button below.

Our mission statement reads…

“To teach and empower people to understand the benefits of an honest monetary system.”

Today’s monetary system is based upon a lie. The lie is that you can get something for nothing, or perhaps more simply stated, wealth can be printed. History has shown throughout 5000 years that whenever a country has tried to maintain this illusion (lie), failure has been the result. We invite you to learn more about what The Morgan Report can do for you. Click on the Learn More About The Morgan Report button now!

Learn More About The Morgan Report *

  

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