This morning we find price of Gold under Dollar’s pressure. The U.S. Dollar continues to rise against most major currencies today hitting a fresh 52 week high of 96.18 in light trading activity, as investors focus on global trade tensions and a strong U.S. economy.
Higher interest rates along with a strong economy will continue to pressure the yellow metal in the coming weeks.
Overnight selling pressure got spot Gold close to its first level of support at the $1,205 area. If that level is violated, many traders expect the market to test the $1,200 level.
I found some good news in the Gold market. A fair number of dealers are reporting that secondary market buy backs are drying up, supporting higher premiums on some products. This is good news for the Sovereign Mints as well as some refineries who were finding it difficult to move product in the last year or so.
Over that period of time, investors were excited about equities and were converting everything they could into cash to join the equity frenzy. It seems now that some are cashing in their chips and are buying U.S. Treasuries. The question on the minds of many investors is, due to higher interest rates and a potential trade war with China, has the equity market run out of gas?
Bitcoin, Blockchain Technology and Investing
With the birth of Bitcoin, both the terms, “Bitcoin cryptocurrency” and “Blockchain” were inseparable. As both platforms developed together and independently, the market soon understood that both platforms had different uses. Over time, people started to understand that Blockchain programs were not just for pure “money transactions.”
What separates Bitcoins from hard cash is that there is no financial system justifying Bitcoins’ existence or value. Bitcoins are managed online by users who track them using Blockchain technology. This technology had been originally developed as a digital ledger for Bitcoin and now Blockchain applications are independently being used by large corporations and banks and is also being used by major exchanges around the globe.
Now let’s compare Cryptocurrencies and Blockchains and how they complement each other.
Blockchain is the platform which brings cryptocurrencies into play. Blockchain is the technology that serves as the distributed ledger that forms the network. This network creates the means for transactions and enables transferring value and information.
Cryptocurrencies are the “tokens” used within these networks to send value and pay for transactions. They are used to digitize the value of an asset.
Blockchains serve as the base technology, in which cryptocurrencies are a part of the platform. They go hand in hand, with cryptocurrencies often being necessary to transact on a Blockchain. But without the Blockchain, we would not have a means for these transactions to be recorded and transferred.
So attractive, practicable applications in our world such as Precious Metals Blockchain platforms are being developed using “tokens backed by hard assets,” (such as Gold and Silver) to handle inventory holdings, trading and back office transactions. Dillon Gage is on the forefront of this technology.
With a Cryptocurrency application and Blockchain technology you can display holdings for the world to see. In an instant, a client can act on your bid or offer, exchange funds and make releases all in one transaction. Reducing the need for traders and back office interaction.
Currently, there are major banks looking at Cryptocurrencies, backed by either the U.S. Dollar or the Euro on a Blockchain network, to ultimately replace wire transfers. Using both “asset class” currencies and Blockchain technology, banks and brokerage firms will be eliminating the need for human interactions for many types of transactions.
Back to Cryptocurrencies.
Cryptocurrencies are popping up all over the globe with many variations. Some have done well, some not so well. But in the end this is one product where “LET THE BUYER BEWARE” should be your guiding motto before making a decision to get involved with any Cryptocurrency investment. Because if it bombs out, there will be no one to turn to, to get your investment dollars back.
You can see now that Blockchain applications can used alone or together with Cryptocurrencies. And now you can see that its apparent that the Blockchain platforms have infinite application possibilities.
Have a wonderful Friday.
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.