Tumblelog by Soup.io
Newer posts are loading.
You are at the newest post.
Click here to check if anything new just came in.

October 09 2017

moneymetals

Frank Holmes Exclusive: Bitcoin Needs Electricity, Gold CONDUCTS Electricity

Well now, without further delay, let’s get right to this week’s exclusive interview.

Frank holmes

Mike Gleason: It is my privilege now to welcome in Frank Holmes, CEO and Chief Investment Officer at US Globala Investors. Mr. Holmes has received various honors over the years, including being named America's Best Fund Manager for 2016 by the Mining Journal. He is also the co-author of the book The Goldwatcher: Demystifying Gold Investing and is a regular guest on CNBC, Bloomberg, Fox Business as well as right here on the Money Metals podcast. Frank, welcome back and thanks for joining us again. How are you today?

Frank Holmes: Excellent. Thank you, my friend. Thank you.

Mike Gleason: Well, to start out here, Frank, I know you recently attended and spoke at the Denver Gold Show and I always like to talk to insiders like yourself following those sorts of events because you can always glean some good insights on the mood of the industry and how things are really going in the precious metals community. Now the mining industry has taken a pretty good beating over the last few years and it continues to struggle a bit even as we seem to be in a new bull cycle that began in late 2015. You've got your new gold fund now, GOAU, so you've got lots on insights into the mining industry and know lots of gold bugs. So, what did you glean from the conference Frank? What was the mood in general? Give us some highlights there if you would.

Frank Holmes: Well I think my presentation was well received when I explained how the quant world and data mining, and these other what they call alternative investment research companies, are providing new insight the way investing is taking place. Understanding the paradigm shift on that data collection and that analysts love their old reports on mid asset value, are irrelevant. They're not relevant to picking stocks today. And you have to go with the forces of physics either as electromagnetic rebounding to the mean is a cheap stock and math says it will rebound or has strong momentum. And you can take a universe of 88 gold stocks and take it down to 28 and far outperform the GDX or GDXJ.

Using data that was foreign to a lot of these analysts and recognizing ... the other thing I think worth commenting on was gold and this whole thing on Bitcoin, is it a competition for bullion? It is not. First of all, without electricity Bitcoin is not worth any money. It needs electricity. Gold is always gold. It conducts electricity and it will always have its materiality for currency in addition to being jewelry. But I think that's really important is to recognize that it's so much easier, this idea of crowdfunding, to go and open up an exchange and trade 24/7 all these different currencies all around the world than it is to open a brokerage account. And I think that this excessive regulations is basically seeing people migrate over to angel investing, crowdfunding such as into cryptocurrencies, et cetera. And I think that's the bigger danger is to overall investing in trading in the capital markets. So they're the comments that I made and that seem to have come back with many written messages to me regarding the quants and how they're changing the landscape.

But I think the other part that's important for your listeners is that there were 1,100 people there. Now they don't allow investment bankers in. Research analysts, traders, CEOs, gold analysts from the buy and sell side, they're allowed to participate and there were 1,100. The week before there was a big event for the juniors (junior miners) but this event is the premiere event of the world. And I was impressed with it. The conversations looking for companies that are going to be taken over. What's the probability. Because the seniors are desperate for future production and where is that growth going to come from because they're just not finding the gold as fast as they're mining. So, the Newmonts of the world have to go and strike deals like they did with Continental in Columbia to get a foothold into high grade big geographic footprints. So I thought that was interesting. I think that in the next 12 months there's going to be lots of M&A work. And the other part was the royalty companies seem to get a new sort of respect for how their positioned in the capital markets in that gold space.

Mike Gleason: Yeah definitely. Sounds like there is a wave of optimism there and some good things ahead. Now I wanted to get back to some of the cryptocurrency conversation here. Your firm, Frank, US Global Investors, recently made an investment in HIVE Blockchain Technologies and you have been appointed chairman of the board there. Given you are heavily involved in the cryptocurrency space now, we'd like to get your take on a topic of growing interest in the metals community. You alluded to this a moment ago but cryptocurrencies, Bitcoin in particular, have been seen by many as another form of honest money. You've obviously maybe shot a little bit of a hole in what it is that is needed in order to continue the cryptocurrency world, that being electricity. But since you’re a fan at least in part of both metals and blockchains. What are your thoughts on how metals might fit in with this emerging technology, Frank?

Read/Listen to the full podcast interview (source)

July 11 2017

moneymetals

Answering Your Questions on Bitcoin, Lower Silver Premiums, and Pre-1933 Gold Coins

Questions and answers

One of the core tenets of our business is educating people who have never owned physical gold or silver. We introduce them to the metals markets and put the spotlight on dishonest money as the foundation for unrestrained government. We get lots of great questions and we like to publish our responses to the most common of them.

Reader Question: What is your take on Bitcoin?

Answer: We believe in honest money. Although flawed, Bitcoin represents a remarkable innovation on that front. That is why Money Metals was among the first bullion dealers to accept Bitcoin payments for precious metals.

If decentralized cryptocurrency proves to be beyond the ability of central bankers and bureaucrats to manipulate or control, it will be a meaningful step forward for personal liberty and a blow to corrupt governments, banks, and markets. It has that potential in common with gold, which imposed restraint on Wall Street and Washington DC right up until Richard Nixon slammed the gold window shut and removed the last bit of integrity from the fiat U.S. dollar.

While Bitcoin and bullion share the potential to work as alternative money, they are not substitutes for one another. The differences are quite important to consider.

The first distinction is that gold and silver rounds, coins, and bars are tangible assets that will never become worthless. Precious metals are beautiful and serve a useful purpose in goods ranging from jewelry to electronics. They have thousands of years of history serving as money and as a reliable store of value.

Bitcoin, on the other hand, is a very recent phenomenon and a purely digital asset. It may ultimately change the world, but it hasn’t yet stood the test of time. Bitcoin itself must still clear some hurdles.

We accept bitcoin

It needs to become far easier to acquire, safeguard, and use. There are many alternative cryptocurrencies and there is no guarantee Bitcoin will prove itself to be the best mousetrap and survive.

Some technological problems still need to be solved in order for Bitcoin to scale and serve as a replacement for existing monetary systems. It will need to weather regulatory attacks by bankers and bureaucrats seeking to protect their fiat monetary systems.

While Bitcoin itself has not yet been hacked, several exchanges holding bitcoin have been.

Lastly, it is important to note that physical bullion is truly “off the grid,” while Bitcoin depends upon the network. Metals don’t need electricity and an internet connection to work. The exact whereabouts of a gold coin cannot be tracked electronically and it will leave no digital fingerprints when used in a discreet transaction. This cannot be said for Bitcoin.

You can find the rest of the Q&A here.


Older posts are this way If this message doesn't go away, click anywhere on the page to continue loading posts.
Could not load more posts
Maybe Soup is currently being updated? I'll try again automatically in a few seconds...
Just a second, loading more posts...
You've reached the end.

Don't be the product, buy the product!

Schweinderl