Ares
9th November 2015, 08:24 AM
I’ve written at length about the virtues and value of silver and gold, but today I want to speak to another investment that’s getting alot of buzz right now: bitcoin. In the last month alone, bitcoin has blown through short term expectations, showing market participants some serious action in the cryptocurrency space.
It’s been awhile since it had shown signs of life that strong. For those who’ve been wondering, “why has been bitcoin’s price been exploding? Why now?”, this chart underneath holds some clues for us.
http://thewealthwatchman.com/wp-content/uploads/2015/11/Bitcoin-1.jpg
As one can see, as in most other things, when China makes a move, it reverberates for the rest of the world. China has been dabbling in Yuan devaluations over the summer, without producing any kind of pop in the price of bitcoin, but finally, after taking more aggressive stances on capital controls, and trying to prevent capital flight(in Yuan), intense interest in bitcoin rose again for those in China, and spread elsewhere.
In less than 3 months, the price of Bitcoin rose hundreds of dollars, from just under $200, to over $500 per bitcoin. That marks a rise of over 150% in under 90 days. The move showcased in this zerohedge chart is impressive, to say the least!
http://thewealthwatchman.com/wp-content/uploads/2015/11/Bitcoin.jpg
Now, it seems bitcoin’s movement was too far, too fast, and has started a retracement, as it has backed off from $500, to roughly $370 as I type. This is healthy in any market, as the unfolding of time is providing the market an opportunity to pause and digest the gains it made, in order to hopefully establish a new “floor”. If the breakout upward has more room to run(very possible), then this “pause that refreshes” is what’s needed to continue.
There are several important takeaways here for stackers, in bitcoin’s latest price spike, that I want to draw attention to. I’m doing this, because I’ve seen some in our community be rather angry or frustrated about the surge in bitcoin, while silver & gold remain very depressed in price. To my mind, this isn’t the right response…and here’s why…
Takeaways for Silver & Gold Stackers
1) The Pool of Capital:
Firstly, I want to say that though the banking cabal has successfully held the prices of precious metals in check for over 4 years, bitcoin’s sudden surge should be an enormous encouragement to stackers, not a source of frustration. Cryptos are a totally different creature than silver & gold, it’s true. One is a technology that is, and increasingly will be, used for instant transactions, while the other is a sovereign, timeless store of wealth. So comparing the two to each other is beyond comparing apples to oranges, but here’s what stackers must not forget:
This surge in bitcoin was a direct, logical response to heavy-handed government policies. That response resulted in a rush of new capital into a market with a tiny market cap of roughly $3 billion dollars. The bitcoin “pool of capital” was so small, that any newcomer stepping into those waters….displaced that water, and rose the water level for everyone.
This is precisely what WILL happen in silver. It’s true that silver’s annual market cap on the physical side is somewhat bigger than bitcoin’s currently is, but at the current spot price of $14.70 in silver….
The average annual market cap in silver is less than $15 billion. Chicken scratch.
Furthermore, when you realize that 2/3 of silver’s demand is from industry, it really reduces silver’s available investment market cap to an annual $5 billion….or precisely where bitcoin’s total market cap currently lies. Yes, there are differences, in that silver’s market does have several billion more ounces, which are waiting in the wings to be deployed into the market, but most of those ounces are not available at these price levels.
The coming surge of capital(highly elevated from current levels) will provide the same type of price explosion. Which brings me to my next point…
2)The Speed of the Price Turnaround:
Bitcoin had been in the doldrums for many months, after its surge from $100 to $1,300(or the price of a gold ounce) came hot and heavy in 2013. That previous price run was truly one for the books, but many who weren’t believers in bitcoin or the technology, dismissed it as a “one off”, saying that bitcoin was simply a “one hit wonder”and was destined for the dustbin of historical curiosities, like Teletubbies, or “Tickle-me Elmos”…
This latest price move has demonstrated that those people were wrong.
Furthermore, this current spike in bitcoin, had a character wholly unlike 2013’s price spike. For unlike bitcoin’s earlier price spike to its all-time high, this one came directly as a reactionary response to a failed, dangerous government policy. That is key. People in China looked at bitcoin as an alternate currency, which afforded many of the benefits of the Yuan, without the bureaucratic missteps, which were ‘gumming up the works’ on their national currency scene. They turned to bitcoin(and some other cryptos) logically, and not simply to “make a quick buck”.
This point is of paramount importance, because I believe it’s precisely what will cause an identical surge in the price of silver: once the big money(and plain vanilla Western investment sector) sees what governments are truly doing to annihilate wealth and purchasing power in the West, they will logically respond by finding parallel stores of value to the assets they’d been used to owning.
Silver & gold will then fulfill that need seamlessly and instantly.
At that point, just like bitcoin, when interest(and likewise, available supply) was lowest in ages, is when the surge in demand into these tiny pools of international capital will prove too great for even the Money Masters to control. This will happen very suddenly, and without warning.
Like bitcoin’s latest rally, it will happen so fast, that you may not have time to even trade it. It may happen in weeks or even days…and by the time many are done denying that the move is for real, much of the move will have passed them by.
The lesson that many in bitcoin discovered, and that silver investors will soon learn too: don’t get too smart for your own good. It pays to be positioned, correctly and patiently, which brings me to my final point today…
3)Pent Up Energy Must be Unleashed:
For 2 years, bitcoin’s price has decreased from its all-time high(of one ounce of gold), coming back down roughly 85% at its lowest point of about $150….at that point, only the “true believers” were left. All the ‘fast money’ folks were gone, CNBC had stopped talking about “virtual gold”, and Wall Street wasn’t giving bitcoin even a casual mention(at least openly).
All at once, that was over with. Bitcoin surged over 200% from the very bottom it hit in January of this year…and now seems poised to continue building on this surge after the gains are digested.
Just think: if a similar price explosion played out in silver(in percentage terms), it would see the spot price of silver reach $45 within just a few months’ time.
This happened after bitcoin’s plunge from top to bottom had taken over 1 year to play out.
Silver’s plunge, from top to bottom, has taken over 4 years(and still may not be over with yet)…while inflows of cash into silver and gold have exhibited, to all those paying attention, that silver investment demand isn’t going away. Quite the contrary, in fact. It is exploding, even without the price appreciating in dollar terms.
Now, y’all know me: I don’t make silver price predictions, nor do I attempt to divine when the price will break out, I just stick to the eventuality that silver WILL break out. This is merely an exercise in comparing the patterns, to see what is possible. Though I’m not making a prediction, I believe that a similar move in silver becomes more likely with time, the longer that the banksters keep the lid on it.
Conclusion
Silver is my key play to what the banksters are doing. Though I do own a few bitcoins, most of them are simply the result of donations made to me at this site(in the donation tab). I’ve never sold them, and don’t intend to for a good, long time. I’m going to hold onto them, because I believe that the technology is promising, and has great potential. I’m not currently buying bitcoins, because the price has moved so much in such a short space. I believe in buying the most undervalued assets, and silver remains the most undervalued asset I can think of.
As a silver stacker, I realize how frustrating it can be to watch others(who’ve waited only a fraction of the time you and I have) reap the rewards of their patience once, or even several times.
The thing to remember though, is that silver is easier to control and manipulate than bitcoin, because so many layers of fraud have been laid against it by the banking powers. This is because silver remains the greater threat to the global ponzi/debt apparatus they’ve spent centuries building.
Bitcoin, I believe, does represent a threat to physical banking establishments, if it wasn’t, then this lass wouldn’t be up to her eyeballs on the crypto/blockchain scene.
http://thewealthwatchman.com/wp-content/uploads/2015/11/Bitcoin-4.jpg
However, that threat is still somewhat distant, while silver’s threat, to my mind, is much closer at hand….hence the reason why the cabal literally spends trillions of dollars capping it each year.
Nevertheless, despite the manipulation, one old truth makes it doubly hard to be a stacker sometimes: a watched pot never boils!
Right? A process that takes a greater length of time to complete, is sometimes best left unwatched.
It’s easy to walk away from the pot you aim to boil, because, scientifically, one understands, that a pot of water placed over a roaring fire, will result in a boiling kettle 100% of the time.
Stackers need to exude this same confidence about silver and gold, because it would remove a great deal of the angst many are feeling. In times of great turmoil and trouble, silver has always done its job of protecting(and growing) the wealth of those who held onto it patiently, throughout the entire rigged price ride. Silver does “an accounting”, as Mike Maloney would say, for all the newly created government currencies, 100% of the time.
Silver, and gold are “Old Faithful”, and react, in the end, as predictably as that boiling pot will. Though the riggers have bought their precious system some time, they cannot and will not stop the pot from boiling over, due to the incessant heat placed under it by global pressures(natural and unnatural) for many decades.
Like bitcoin, silver and gold, the “Old Faithful” of the monetary world, WILL surge again, and this time, when that unbelievably enormous pressure is released, the resulting spike will have the bobbleheads at CNBC frowning for a very long time…
http://thewealthwatchman.com/bitcoin-explodes-again-the-encouraging-takeaways-for-stackers/
It’s been awhile since it had shown signs of life that strong. For those who’ve been wondering, “why has been bitcoin’s price been exploding? Why now?”, this chart underneath holds some clues for us.
http://thewealthwatchman.com/wp-content/uploads/2015/11/Bitcoin-1.jpg
As one can see, as in most other things, when China makes a move, it reverberates for the rest of the world. China has been dabbling in Yuan devaluations over the summer, without producing any kind of pop in the price of bitcoin, but finally, after taking more aggressive stances on capital controls, and trying to prevent capital flight(in Yuan), intense interest in bitcoin rose again for those in China, and spread elsewhere.
In less than 3 months, the price of Bitcoin rose hundreds of dollars, from just under $200, to over $500 per bitcoin. That marks a rise of over 150% in under 90 days. The move showcased in this zerohedge chart is impressive, to say the least!
http://thewealthwatchman.com/wp-content/uploads/2015/11/Bitcoin.jpg
Now, it seems bitcoin’s movement was too far, too fast, and has started a retracement, as it has backed off from $500, to roughly $370 as I type. This is healthy in any market, as the unfolding of time is providing the market an opportunity to pause and digest the gains it made, in order to hopefully establish a new “floor”. If the breakout upward has more room to run(very possible), then this “pause that refreshes” is what’s needed to continue.
There are several important takeaways here for stackers, in bitcoin’s latest price spike, that I want to draw attention to. I’m doing this, because I’ve seen some in our community be rather angry or frustrated about the surge in bitcoin, while silver & gold remain very depressed in price. To my mind, this isn’t the right response…and here’s why…
Takeaways for Silver & Gold Stackers
1) The Pool of Capital:
Firstly, I want to say that though the banking cabal has successfully held the prices of precious metals in check for over 4 years, bitcoin’s sudden surge should be an enormous encouragement to stackers, not a source of frustration. Cryptos are a totally different creature than silver & gold, it’s true. One is a technology that is, and increasingly will be, used for instant transactions, while the other is a sovereign, timeless store of wealth. So comparing the two to each other is beyond comparing apples to oranges, but here’s what stackers must not forget:
This surge in bitcoin was a direct, logical response to heavy-handed government policies. That response resulted in a rush of new capital into a market with a tiny market cap of roughly $3 billion dollars. The bitcoin “pool of capital” was so small, that any newcomer stepping into those waters….displaced that water, and rose the water level for everyone.
This is precisely what WILL happen in silver. It’s true that silver’s annual market cap on the physical side is somewhat bigger than bitcoin’s currently is, but at the current spot price of $14.70 in silver….
The average annual market cap in silver is less than $15 billion. Chicken scratch.
Furthermore, when you realize that 2/3 of silver’s demand is from industry, it really reduces silver’s available investment market cap to an annual $5 billion….or precisely where bitcoin’s total market cap currently lies. Yes, there are differences, in that silver’s market does have several billion more ounces, which are waiting in the wings to be deployed into the market, but most of those ounces are not available at these price levels.
The coming surge of capital(highly elevated from current levels) will provide the same type of price explosion. Which brings me to my next point…
2)The Speed of the Price Turnaround:
Bitcoin had been in the doldrums for many months, after its surge from $100 to $1,300(or the price of a gold ounce) came hot and heavy in 2013. That previous price run was truly one for the books, but many who weren’t believers in bitcoin or the technology, dismissed it as a “one off”, saying that bitcoin was simply a “one hit wonder”and was destined for the dustbin of historical curiosities, like Teletubbies, or “Tickle-me Elmos”…
This latest price move has demonstrated that those people were wrong.
Furthermore, this current spike in bitcoin, had a character wholly unlike 2013’s price spike. For unlike bitcoin’s earlier price spike to its all-time high, this one came directly as a reactionary response to a failed, dangerous government policy. That is key. People in China looked at bitcoin as an alternate currency, which afforded many of the benefits of the Yuan, without the bureaucratic missteps, which were ‘gumming up the works’ on their national currency scene. They turned to bitcoin(and some other cryptos) logically, and not simply to “make a quick buck”.
This point is of paramount importance, because I believe it’s precisely what will cause an identical surge in the price of silver: once the big money(and plain vanilla Western investment sector) sees what governments are truly doing to annihilate wealth and purchasing power in the West, they will logically respond by finding parallel stores of value to the assets they’d been used to owning.
Silver & gold will then fulfill that need seamlessly and instantly.
At that point, just like bitcoin, when interest(and likewise, available supply) was lowest in ages, is when the surge in demand into these tiny pools of international capital will prove too great for even the Money Masters to control. This will happen very suddenly, and without warning.
Like bitcoin’s latest rally, it will happen so fast, that you may not have time to even trade it. It may happen in weeks or even days…and by the time many are done denying that the move is for real, much of the move will have passed them by.
The lesson that many in bitcoin discovered, and that silver investors will soon learn too: don’t get too smart for your own good. It pays to be positioned, correctly and patiently, which brings me to my final point today…
3)Pent Up Energy Must be Unleashed:
For 2 years, bitcoin’s price has decreased from its all-time high(of one ounce of gold), coming back down roughly 85% at its lowest point of about $150….at that point, only the “true believers” were left. All the ‘fast money’ folks were gone, CNBC had stopped talking about “virtual gold”, and Wall Street wasn’t giving bitcoin even a casual mention(at least openly).
All at once, that was over with. Bitcoin surged over 200% from the very bottom it hit in January of this year…and now seems poised to continue building on this surge after the gains are digested.
Just think: if a similar price explosion played out in silver(in percentage terms), it would see the spot price of silver reach $45 within just a few months’ time.
This happened after bitcoin’s plunge from top to bottom had taken over 1 year to play out.
Silver’s plunge, from top to bottom, has taken over 4 years(and still may not be over with yet)…while inflows of cash into silver and gold have exhibited, to all those paying attention, that silver investment demand isn’t going away. Quite the contrary, in fact. It is exploding, even without the price appreciating in dollar terms.
Now, y’all know me: I don’t make silver price predictions, nor do I attempt to divine when the price will break out, I just stick to the eventuality that silver WILL break out. This is merely an exercise in comparing the patterns, to see what is possible. Though I’m not making a prediction, I believe that a similar move in silver becomes more likely with time, the longer that the banksters keep the lid on it.
Conclusion
Silver is my key play to what the banksters are doing. Though I do own a few bitcoins, most of them are simply the result of donations made to me at this site(in the donation tab). I’ve never sold them, and don’t intend to for a good, long time. I’m going to hold onto them, because I believe that the technology is promising, and has great potential. I’m not currently buying bitcoins, because the price has moved so much in such a short space. I believe in buying the most undervalued assets, and silver remains the most undervalued asset I can think of.
As a silver stacker, I realize how frustrating it can be to watch others(who’ve waited only a fraction of the time you and I have) reap the rewards of their patience once, or even several times.
The thing to remember though, is that silver is easier to control and manipulate than bitcoin, because so many layers of fraud have been laid against it by the banking powers. This is because silver remains the greater threat to the global ponzi/debt apparatus they’ve spent centuries building.
Bitcoin, I believe, does represent a threat to physical banking establishments, if it wasn’t, then this lass wouldn’t be up to her eyeballs on the crypto/blockchain scene.
http://thewealthwatchman.com/wp-content/uploads/2015/11/Bitcoin-4.jpg
However, that threat is still somewhat distant, while silver’s threat, to my mind, is much closer at hand….hence the reason why the cabal literally spends trillions of dollars capping it each year.
Nevertheless, despite the manipulation, one old truth makes it doubly hard to be a stacker sometimes: a watched pot never boils!
Right? A process that takes a greater length of time to complete, is sometimes best left unwatched.
It’s easy to walk away from the pot you aim to boil, because, scientifically, one understands, that a pot of water placed over a roaring fire, will result in a boiling kettle 100% of the time.
Stackers need to exude this same confidence about silver and gold, because it would remove a great deal of the angst many are feeling. In times of great turmoil and trouble, silver has always done its job of protecting(and growing) the wealth of those who held onto it patiently, throughout the entire rigged price ride. Silver does “an accounting”, as Mike Maloney would say, for all the newly created government currencies, 100% of the time.
Silver, and gold are “Old Faithful”, and react, in the end, as predictably as that boiling pot will. Though the riggers have bought their precious system some time, they cannot and will not stop the pot from boiling over, due to the incessant heat placed under it by global pressures(natural and unnatural) for many decades.
Like bitcoin, silver and gold, the “Old Faithful” of the monetary world, WILL surge again, and this time, when that unbelievably enormous pressure is released, the resulting spike will have the bobbleheads at CNBC frowning for a very long time…
http://thewealthwatchman.com/bitcoin-explodes-again-the-encouraging-takeaways-for-stackers/