Commodities Dealer Accepting Bitcoin for Gold

The revelations by Edward Snowden about the illegal wiretapping being carried out by the U.S government have made it clear that privacy is becoming a rare commodity. One company is taking that “commodity” notion literally. Agora Commodities is the first gold, silver, platinum, and palladium dealer accepting Bitcoin for bullion. We already know that you can buy Reddit Gold with it. This is the real thing.

Bitcoin, if you recall, is an untraceable digital “currency” based on increasingly complex mathematical formulas. The currency is extremely volatile, subject to even daily wild swings in value. It is not regulated by any official government organization. And can be used for all manner of illicit trafficking, especially on underground site like the Silk Road, a popular place to score illegal goods.

By taking Bitcoin as payment for a physical commodity, Agora is giving high-risk speculative traders one more way to play the market. And the added bonus is that the transaction can be 100% anonymous. The risk of using such a currency, especially now that it can be transferred to precious metals, raises all sorts of questions about money laundering, organized crime, theft by hackers, and whether terrorists will see this opportunity before regulators get their hands on it.

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But the company is going even deeper into anti-spying territory than that. They are offering their customers encrypted service for all their digital correspondence.

Joseph Castillo, President of Agora Commodities commented, “In today’s world, privacy is quickly turning into one of the people’s most precious commodities. I was inspired by an ISP provider in Utah that refused to give his customers data over to authorities when it was not properly requested with a warrant. Agora Commodities first and foremost respects its customers’ privacy. This was the best way to show that respect”.

Questions about Bitcoin are already being asked in earnest in the halls of government around the world. But for now, we find ourselves in one of those heady days where something is loose in the world that has not yet been clamped down on and regulated. There are millions to be made, and someone sitting in a basement somewhere is hacking out the way to do it.

Source: http://www.webpronews.com/commodities-dealer-accepting-bitcoin-for-gold-2013-07

The Savage Gold War Behind The Scenes

With global stocks, the US dollar, and gold all surging, today one of the savviest and well connected hedge fund managers in the world sent King World News the most amazing chart concerning what is happening in the gold market.  Outspoken Hong Kong hedge fund manager William Kaye also spoke with KWN about what is really going on behind the scenes in the gold war.  Kaye, who 25 years ago worked for Goldman Sachs in mergers and acquisitions, had this to say in part II of his remarkable interview.

Kaye:  “As you and I are talking now, we’re a little bit below $1,250 on gold which is ridiculously low.  On the numbers we are looking at that would mean that roughly half of the production of the mining community of the world is unprofitable, which is stunning when you think about it.

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What is going on is unprecedented….

“It’s unsustainable, and like anything that is unsustainable it won’t be sustained.  So this is a great opportunity for people who do have an interest in possibly adding to or initiating new positions in gold or precious metals.  We are at levels that I think are extremely attractive, Eric.”

Eric King:  “Bill, what about this chart that you sent me going over the various entities out there that hold gold for retail and institutional investors?  Can you talk about that?”

Kaye:  “Yes, I’m happy to.  Pick up the Wall Street Journal, the Financial Times, watch CNBC if you want to have your brain damaged, you’ll get the same narrative (regarding gold).

And it’s a scary narrative, which is that people are panicked — there is a bear market in gold.  And they (the mainstream media) never make a distinction between the paper market in gold and the physical bullion market.  That is a very important distinction for your listeners (and readers) to make.

But the narrative is that people are panicked, and because they are panicked they are selling into the market to whoever will buy.  And this is why the gold inventories, the Spyder Gold Trust and the other major exchange traded funds (gold holdings) have been so rapidly reduced.

Source: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/7/9_William_Kaye_-_The_Savage_Gold_War_Behind_The_Scenes.html

$10,000 Gold

I interviewed Nick Barisheff, who is calling for $10,000 gold. Normally, I shy away from these “sky-high” predictions but after seeing him interviewed more than once, I felt he presented a realistic and legitimate case.

Nick Barisheff is President and CEO of Bullion Management Group Inc., a bullion investment company that provides investors with a secure, cost-effective and transparent way to purchase and store individual Good Delivery gold, silver and platinum bullion bars. Recognized worldwide as a bullion expert, Barisheff is the author of $10,000 Gold: Why Gold’s Inevitable Rise is the Investor’s Safe Haven. He is a speaker and financial commentator on bullion and current market trends.

Here’s the interview:

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Is the gold bull over or, as you contend in your new book, is it headed to $10,000 an ounce?

The first thing people have to realize is that no fiat currency, ever, has resulted in anything except decline followed by default, while gold has always maintained its value in mankind’s history of money exchange. Today we have a coordinated, and in terms of fiat currency creation epic, decline orchestrated by the world’s largest central banks. Debt-fueled fiat currency creation is among several long-term irreversible trends I spell out in $10,000 Gold. All of these trends have been in place since the late 1990s, when gold was trading below $300 an ounce.

2. What evidence can you put forward to support the case for gold in light of recent events?

There is no question gold is going to resume its bull market trend after blatant market interference in April and Fed jawboning in June about tapering bond purchases.

If you examine the April gold price decline, sales estimates for the COMEX on Friday April 12 and Monday April 15 were between 125 and 400 tonnes. It was, purely and simply, a deliberate paper gold attack as indicated by the size and speed of the sales that then triggered sell stops and margin calls. There are only a few large global institutions that could have flooded the market in that manner.

In June, this price raid on gold was reinforced by the idea that the U.S. Fed Chairman, Ben Bernanke, is somehow going to end his crescendo of computer-generated currency creation based on a mending economy. From German car sales being at a 20-year low to the slowdown in China’s GDP growth to Japan’s failing stock market to the U.S. record in food stamp usage, there is dominant evidence that the global economy is coming undone.

What people seem to have overlooked is the Fed Chairman’s admission that, should the economy worsen, he will expand, not taper or discontinue, quantitative easing. Observers such as John Williams at ShadowStats point to U.S. household income that’s flatlined since 2009. Williams has also stated that any talk of tapering is pure propaganda to placate global markets on the U.S. dollar while trying to suppress gold. [1]

3. If one supports the fact that the paper market has been manipulated and/or jawboned into temporary submission, what is the physical market signaling?

In India, one of the world’s most robust markets for physical gold, the government has tried to curb gold imports through a series of warnings, and now actual restrictions.  Yet India’s national body of jewellers, the All India Gems & Jewellery Trade Federation, says reports of gold smuggling at different airports in India rose by 2,200 percent last year. The GJF also stated that despite an increase in the import duty from 1 percent to 8 percent in January last year, gold consumption has gone up, not down. [2]

In the United States, even after the April gold price shock, the following month we noted that the 40 percent premium U.S. consumers were willing to pay for one-tenth ounce coins from the U.S. Mint priced gold at $1,932 an ounce, a physical price that is higher than the $1,900 an ounce record for paper gold set in 2011.

In China, the premium that gold buyers paid to take immediate delivery of bullion jumped four-fold in the six weeks following the gold price “crash.”[3]

If this were truly a natural correction or actual bear market, then physical gold market participants would be panic selling, not panic buying. Over the long term, these artificial declines in the price of paper gold are good for gold, because they allow a lot of big, smart, long-term investors to enter the markets. Allowing for what often is a slow summer season, I would not be surprised to see gold hit new highs before year end.
4. Let’s talk about more of the long-term irreversible trends in $10,000 Gold. What is the link that oil, population growth and the aging population have with the price of gold?

As I state in my book, the world’s rising population, aging population and outsourcing all create the need for more government debt to compensate for slowing growth, and increased government debt equals more currency, lower purchasing power and a higher gold price.

When natural economic growth does not come through productivity, or the manufacturing and production of natural resources, then the government must fuel growth through debt creation. In 2012, it cost the U.S. government $2.47 to grow its GDP by $1.00.

Despite the claims of energy independence because of shale oil in the United States, the world’s growth has been fueled by cheap land-based oil, located mainly in the Middle East. Oil sands and shale oil are extremely expensive to produce by comparison, and are therefore inflationary. Apart from currency printing creating inflation, the rising price of oil will also be inflationary because it is used for virtually everything.

These irreversible trends all impact growth negatively, reduce taxation revenues, cause inflation and require ever greater government expenditure, which lead to ever-increasing government debt. Therefore, the world’s citizens will suffer through increasing waves of currency debasement, which naturally causes the value of gold to appear stronger against currencies.
5. Is $10,000 gold a price limit in your mind?

We are in uncharted financial territory. If you look back over the history of fiat currencies it’s actually extraordinary. Several reputable analysts are calling for $10,000 gold, such as Société Générale’s Edward Alberts. Jim Sinclair, the man Barron’s labeled “Mr. Gold” because of his proven understanding of the gold market, has stated he expects gold to eventually trade at $50,000 an ounce.

Given systematic global currency debasement, people need to understand that it is not necessarily gold that will rise in value, but currencies that will lose value against gold. Yet due to the temporary manipulation of the paper gold price, I would suggest that those with foresight have a historic opportunity to acquire uncompromised physical gold.