Gold Stuck in Range / Crypto Update

A mixed bag of financial data is keeping the price of Gold range bound.

Looking at U.S. Ten-Year Treasuries this morning, we see the yield at 2.95 percent. In contrast, we see the German Ten-Year Bond trading at just .44 percent.

Two central banks’ policies are headed in different directions. The Fed is taking an aggressive stance with their policy and over-the-pond rate hikes seem to be years away.

Can our Fed continue to raise rates as the rest of the world stays idle? This is the main reason why many Wall Street Gold traders expect the price of Gold to be well supported at the current levels.

Some Financial advisors I spoke with over the last couple of days have said that taking a dollar cost averaging approach to entering the Gold market is a prudent way to achieve a truly balanced portfolio.

Not everyone sees it their way, as Gold ETFs have experienced redemptions in the last 11 out of 13 days.

My technical geeks see Silver as ready for a breakout as it has been consolidating in a triangle pattern since the first of May. But they can’t say at this time what direction its headed.

Thanks guys. More defined information would be appreciated.

Our feature story:

Three days ago, a story from a company that supports cryptocurrencies revealed that the International Monetary Fund (IMF) released a video tweet explaining how cryptocurrencies could help solve some of the problems the world experiences, especially in finance. While the video did not mention any crypto by name, Bitcoin, Ethereum and Ripple were tagged in the IMF tweet.

This is the kind of potential support from the IMF that should get an investor in any of these three cryptocurrencies excited and for good reason. Because of all of the cryptocurrencies in the market today, the IMF believes these three major players are the ones that have the capacity to change the world.

Remember these are also part of the twenty cryptocurrencies that the NASDAQ singled out as having the potential to increase in value in the future. That’s an indicator that institutional players are seriously looking into these products as part of a cryptocurrency platform that can take center stage in the new decentralized world.

Case in point, in the last few months, Ripple has been adopted by more than 100 banks across the world, and the list is growing. Just recently, Ripple partnered with one of the largest banks in Kuwait, signaling the entry of Ripple into the Middle East. It has grown so fast in the finance sector that the IMF was recently quoted in a publication, calling Ripple one of the solutions that could enhance efficiency in finance. That’s a positive indicator to its future growth in the finance industry, and good for the long-term value of Ripple.

Ethereum has also been growing significantly since its inception. Despite many challenges, especially in speeds
and scalability, the Ethereum user-base is growing by over 30,000 people a month. This gives the Ethereum
a leg-up in the Blockchain platform space. For other platforms to bypass Ethereum they would have to grow at a
faster order of magnitude, and that’s not easy. Besides, Ethereum is way on track to solving most of the issues that its competitor platforms use as a selling point.

Following last week’s political uncertainty in Italy, Bitcoin rose in value while other asset classes were dropping. That’s an indicator that it has the potential to become a fallback secure asset in case of a global financial crisis. This in itself should be a solid reason for someone to be positive about the future growth of Bitcoin.

With all these factors at play, there are many investors that see a future in these three cryptocurrencies, And one cannot ignore the fact that the IMF and major exchanges around the world also want to join in and get involved.

Footnote: Let’s not forget that in the event of a worldwide financial crisis, Gold will still be the product most will turn to. But there will be some investors that would take on cryptocurrencies as a safe haven against other major world currencies.

Which path would you choose?

Have a wonderful Wednesday.

Disclaimer: This editorial has been prepared by Walter Pehowich of Dillon Gage Metals for information and thought-provoking purposes only and does not purport to predict or forecast actual results. This editorial opinion is not to be construed as investment advice or as a recommendation regarding any particular security, commodity or course of action. Opinions expressed herein cannot be attributable to Dillon Gage. Reasonable people may disagree about the events discussed or opinions expressed herein. In the event any of the assumptions used herein do not come to fruition, results are likely to vary substantially. It is not a solicitation or advice to make any exchange in commodities, securities or other financial instruments. No part of this editorial may be reproduced in any manner, in whole or in part, without the prior written permission of Dillon Gage Metals. Dillon Gage Metals shall not have any liability for any damages of any kind whatsoever relating to this editorial. You should consult your advisers with respect to these areas. By posting this editorial, you acknowledge, understand and accept this disclaimer.