Excellent discussion with Andy Hoffman, Precious Metal Expert and Marketing Director at Bullion Dealer milesfranklin.com, on the growing importance of Precious metals & Bitcoin as the twin destroyers of the Fiat currency system.
We talk about how Bitcoin can be used as a tool and catalyst to free all markets including Gold and Silver from alleged and admitted manipulation and many other topics listed below.
Introduction: 0:26 – 3:55
Red Pill moments: Getting into Gold Silver & Bitcoin: 4:00 – 7:53
Crypto, hastening the demise of the Fiat Banker system: 7:53 –13:06
Trillions in potential wealth transfer into Bitcoin/ Precious Metals: 13:06 -23:45
Precious metals / Bitcoin & decentralisation; Twin destroyers of the Bankers Fiat regime 23:45 – 34:07
Appealing to Authority is Defence, Bitcoin is Offense! & Anti Establishment Maximalism 34:07 -42:43
Infrastructure Inversion; Re-building the financial system onto the Bitcoin Blockchain 43:36 – 53:45
“Gold hit a three-month high of $1260 at the end of business day on Thursday, Feb. 23, as a steady flow of safe-haven demand from traders and investors continued worldwide while Bitcoin topped $1170 around the same time. Civic CEO Vinny Lingham, gives Bitcoin about a month or less to consolidate its price in the $1300 range”
“There is something seriously wrong taking place in the markets today. This is also true in the paper gold and silver markets as well. For a paper precious metals futures market to function properly, there has to be ample supplies of physical metal. However, the ongoing trend of falling precious metal inventories points to big trouble in the paper gold and silver markets”
“The drain of Registered Silver inventories began in earnest. Now the number of owners per ounce of Registered (Deliverable) is heading towards the 30 figure. .. it has never been this high in more than ten years”
Before we start it’s important to note that on a technical level Bitcoin/Gold price parity is not really a true comparison when you take into account the much larger supply and market cap of Gold; Approx 183,600 tons (6 billion troy oz) & $8tn market cap V Bitcoins 16 million unit supply and $18bn market cap.
But the Bitcoin/Gold price parity event could have huge psychological impact.
It will create yet more MSM coverage adding to the hype cycle and boosting the already mega bullish Bitcoin market tone.
It will add to the conversation that Bitcoin started 8 years ago on the very nature of money and currency and why sound money is so important.
Bitcoin’s safe haven attributes will be taken more seriously than ever as more and more people hit the pivotal cross over.
Precious metal investors already frustrated with admitted manipulation and alleged Gold/Silver price suppression may start to diversify into Bitcoin as FOMO builds. Even a small % capital move out of the Gold market could have a huge impact on the Bitcoin price.
As a result of the Bitcoin/Gold price parity event, more people will become aware of Bitcoins superior monetary attributes that will drive endless use cases, its utility, its value and its market price.
‘Authorities will also be able to seize cash or precious metals carried by suspect individuals entering the EU’
‘People carrying more than 10,000 euros [slightly over $10,450] in cash already have to declare this at customs when entering the EU. The new rules would allow authorities to seize money below that threshold ‘where there are suspicions of criminal activity,’ the EU executive commission said in a note’
Although in the long run, I expect Bitcoin to almost entirely replace Gold as a safe haven asset, before its dismissed in the present, its important to take a look at demographics.
With an ageing populace holding a large amount of capital and unfamiliar with new digital currencies with GUI’s that are not yet ready for main stream adoption. Although we could see increased diversification into Bitcoin , I still expect large capital inflows into precious metals as global debt and currency debasement continues unabated.
But Bitcoin/Gold price parity is now a matter of when not if and looking at the chart below it looks like its going to be very soon.