Precious Metals

Inaugural Interview with Hard Assets Alliance – India’s War on Gold, Bitcoin in China and More…

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This past week I sat down with Andy Duncan of the Hard Assets Alliance for an inaugural podcast and we discussed a variety of timely topics. From India’s “war on gold,” the emergence of new political parties around the world and, of course, Bitcoin. This is the first interview in which I discuss my view … Read more

GoldMoney Adds Bitcoin to its Suite of Services

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The explosion in the price and popularity of Bitcoin over the past six months has caused a major rift within the precious metals community. It is quite clear which side I am on, and quite frankly, I am having a hard time understanding the outright hostility toward Bitcoin from many gold and silver stackers. The disdain toward Bitcoin borders on dogmatic religious type hostility characterized by a “gold and silver or nothing” mentality, while the attitude from folks in my camp consists of a “let’s support this experiment and see how it works” mentality, while still maintaining a very positive stance on the precious metals as a store of value. As I have said many times before, gold is a store of value, while Bitcoin is primarily a disruptive technology and innovative payment system that is now in direct competition with the traditional financial system. Seeing value in one, doesn’t preclude seeing value in the other.

It appears that the folks at GoldMoney understand this, and have just announced Bitcoin cold storage as a new service.

From the the UK’s Independent: 

One of the UK’s leading precious metals storage firms is adding an altogether more unusual commodity to its vaults – Bitcoin.

GoldMoney Group, which holds $1.4 billion worth of precious metals for customers, is setting up a new business specializing in “cold” storage of Bitcoin, an increasingly popular digital currency. Netagio will encrypt Bitcoins and store them on offline storage devices in secure vaults.

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Inaugural Interview with Miles Franklin – Gold, Bitcoin and Oligarch Theft

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Last week, I sat down for a chat with my fellow Coloradan and friend Andy Hoffman, Media Director for precious metals dealer Miles Franklin. Many precious metals focused people have taken a very aggressive, and in my opinion ignorant and short-sighted negative perspective on Bitcoin as of late. I personally feel that this is rooted … Read more

Video of the Day: Greenspan Calls Bitcoin a Bubble

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I have to admit I was starting to get a little worried in recent days as certain folks who’s opinions I hold in very low regard started to rethink their prior clearly poorly researched opinions on Bitcoin. Personally, I would prefer small thinkers and professional media trolls to continue to mock and bash Bitcoin at … Read more

Gold Smuggling Increases 7x in India and Surpasses Illegal Drug Trade

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The absurd “War on Gold” that India has launched this year has been covered many times on this site. From the moment I read about it, it was obvious that if Indians want their gold, the Indians will have their gold. You can’t break thousands of years of tradition and culture because of the ignorant whims of a few bureaucrats.

Earlier today, Reuters published an article detailing the extent to which Indian smugglers will go in order to bring the money of kings into the country. This includes hiding it in underwear, swallowing it whole and even painting gold staples gray. What is most disturbing is the lengths authorities are willing to go to in order to stop a supposedly free people from buying a brick of metal. From Reuters:

(Reuters) – Indian gold smugglers are adopting the methods of drug couriers to sidestep a government crackdown on imports of the precious metal, stashing gold in imported vehicles and even using mules who swallow nuggets to try to get them past airport security.

Stung by rules imposed this year to cut a high trade deficit and a record duty on imports, dealers and individual customers are fanning out across Asia to buy gold and sneak it back into the country.

Sri Lanka, Thailand and Singapore are the latest hotspots as authorities crack down on travelers from Dubai, the traditional source of smuggled gold.

Stop one and another will rise. As always.

In a sign of the times, whistleblowers who help bust illegal gold shipments can get a bigger reward in India than those who help catch cocaine and heroin smugglers.

Because that makes a so much sense.

“There has been a several-fold increase in gold smuggling this year after restrictions from the government, which has left narcotics behind.” 

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Gold Supplies in India Disappear Despite Continued Record Premiums

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I first reported on record high gold premiums in India a couple of weeks ago. Since then, the story has become even more interesting as Reuters reports that gold supplies have completely dried up just ahead of major gold buying festivals and despite continued record premiums. While it is clear that Indians are finding a way … Read more

Gold Price Premiums Hit Record in India – 8% Above London Spot

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This story is just further proof of the complete and total mess that has been made of the Indian gold market over of the course of this year due to government intervention. The other part of the problem is that when you are dealing in physical supplies you can’t just deliver paper contracts. Somehow I don’t think that would cut it for Indians on festival days or their daughters’ weddings.

From Reuters:

(Reuters) – Gold premiums in India, the world’s biggest buyer of the precious metal, hit a record $100 an ounce, about 8 percent over London prices, on a shortage of supplies to meet festival demand, traders said on Tuesday.

“There are no supplies in the domestic market, and there is a little demand due to festivals… what little supplies that come, go to exporters,” Bachhraj Bamalwa, director at the All India Gems and Jewellery Trade Federation (GJF) told Reuters.

Most suppliers in Mumbai and Kolkata have started quoting premiums in excess of $100 an ounce above London prices, more than double the $40 charged last week, Bamalwa said.

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Indian Temples Fight Back Against Government Gold Grabbing Plot

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The following article from Reuters is a follow up to a topic I have explored on various occasions in the past. Namely, how an inept Indian government is attempting to use the age old tactic of scapegoating in order to deflect attention away from its widespread policy failures. In the case of India, the target is gold. It’s a logical target for any crony Indian bureaucrat or Central Banker to go after. Wealth confiscation is a tried and true method historically used by corrupt elites to stay in power, and there is plenty of gold floating around the subcontinent. Easy pickings…or so they thought.

It appears some of the temples are now drawing a line in the sand, and are in fact refusing to provide details about their holdings. Other temples are a bit more compliant. From Reuters:

The central bank, which has already taken steps that have slowed to a trickle the incoming supplies that have exacerbated India’s current account deficit, has sent letters to some of the country’s richest temples asking for details of their gold.

It says the inquiries are simply data collection, but Hindu groups are up in arms.

“The gold stored in temples was contributed by devotees over thousands of years and we will not allow anyone to usurp it,” said V Mohanan, secretary of the Hindu nationalist Vishwa Hindu Parishad organisation in Kerala state, in a statement.

Guruvayur temple, in Kerala, one of the most sacred in India and boasting a 33.5-metre (110-ft) gold-plated flagstaff, has already told the Reserve Bank of India (RBI) it won’t divulge any details.

“The gold we have is mostly offered by the devotees. They would not like the details to be shared with anybody,” said V M Gopala Menon, commissioner of the temple’s administrative board.

The head of the Hindu nationalist main opposition Bharatiya Janata Party (BJP) in Kerala state, V Muralidharan, said the RBI wanted to “take possession” of the gold and maybe sell it for dollars.

Sounds like a brilliant plan. Take wealth that was accumulated over thousands of years and sell it for an electronic unit of exchange that Ben Bernanke can create in infinite quantities with a single keyboard stroke.  Can people possibly be this stupid?

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Peter Schiff Was Right Part Deux: The “Taper” Edition

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For those of you who remember the months following the 2008 financial crisis, one of the most viral videos out there (it has over 2 million views) was the “Peter Schiff Was Right” compilation. It consists of various clips of Mr. Schiff being prescient about the financial condition of the U.S., as talking heads on … Read more

Introducing 2 Liberty Focused Businesses: Perpetual Assets and Second Arrow Silver

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As I mentioned at the time, one of the most rewarding parts of being a presenter at the Liberty Mastermind Conference was the opportunity to meet all the interesting people that attended. Some of those folks are the guys behind the newly launched Perpetual Assets as well as Second Arrow Silver. The products they offer are in line with my financial as well as social and political philosophy, and so I’m very excited to introduce them to you. Let’s start with Perpetual Assets.

From their site:

Founded in 2013 Perpetual Assets was started with the mission of getting a client to “trust yourself”. In these uncertain times of counterparty risk derived from monetary policy, fiscal policy, geopolitics, war, energy, sovereign debt, and malinvestment it is Perpetual Assets goal to assist clients in mitigating risk.

Our goal isn’t to predict inflation, deflation, taxation, margin increases, regulation, or any other economic or financial event. Our goal is to acknowledge any and all possible scenarios and to advise our clients on how to prepare for them. We firmly believe that no one is better suited to preserve your wealth better then you are. Our backgrounds in economics, finance, metals, IRAs, and consulting simply assist in analyzing and quantifying all the variables.

One of their main retirement strategies has to do with the concept of an LLC IRA, which provides you with more control and options within your IRA. For more, click on the banner below:

Now for Second Arrow Silver. Simply put, they create kick-ass artistic silver coins, and I have not seen designs anywhere else that I like nearly as much as these. Below are three of their current designs. The Bradley Manning, the Game of Drones and the Creature from Jekyl Island coin. It’s a bit pricey for one coin, but if you buy 25 or more, the price drops down to a comparable level to other metals dealers. The coins are perfect for gifts and to spread the message of liberty.

I also sat down a did a couple of interviews with these folks. First with Gus Demos of Perpetual Assets and also with Trey Stinnett of Second Arrow Silver. Enjoy!

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