cryptos AND gold

The most entertaining billionaire troll — Elon Musk — is at it again. 

He’s been called a lot of names but boring isn’t usually a word thrown around when talking about the Dogefather.

I’ve joked for months that if you’re bored with the value that gold producers and junior stocks present... and entertainment is what you seek... then you should buy something like Dogecoin.

After a 40% plus crash in Dogecoin... a 30% crash in bitcoin... and hundreds of billions of dollars slashed from the crypto market in hours this week... 

Musk tweeted that he had diamond hands and Tesla was HODling — holding on for dear life. It’s what the cool trader bros and gals say when they aren’t selling. 

That was enough to take bitcoin from the $30,000 level back to the $40,0000 level this morning.

Cool headline, but Musk wasn’t the reason cryptos were crashing.

It was news that China had banned financial institutions and payment firms from providing cryptocurrency-related services, which served as a reminder to everyone that the government never takes kindly to being cut out of the action.

This morning, the Treasury department called for crypto transfers over $10,000 to be reported to the IRS.

If you were all-in on crypto, yesterday was not a pleasant experience but it was a timely reminder that the entire space is one giant speculation. 

Are some coins better than others? Yes.

Is there real value in the technology driving some of these coins? Of course. 

I’m not smart enough to tell you what that value is but at the end of the day does it matter?  

Were you not entertained yesterday? 

I was, but for different reasons. 

Gold held its own among the multiple stock sell-offs recently and the crypto bloodbath yesterday. It did so while rates trickled higher.

I still see a risk of a pullback to the high $1,700 level, but I’m impressed with the recent strength the boring, shiny yellow metal has shown.

For all the bickering that goes on between goldbugs and fans of crypto as the next great alternative asset class, yesterday’s announcement by the Chinese government — and this morning’s announcement by the Treasury department — should lead reasonable speculators and investors to consider that maybe there is room for cryptos AND gold in a portfolio.

It should also serve as a reminder as to why each attracts the types of speculators and investors it does: as a hedge against corrupt and incompetent government. 

Corrupt and incompetent government that’s not going away anytime soon, which is not bullish for us as citizens but very bullish for both bitcoin and gold.
 

Let's get it!

Gerardo Del Real

Gerardo Del Real
Editor, Daily Profit Cycle


For the past decade, Gerardo Del Real has worked behind-the-scenes providing research, due diligence and advice to large institutional players, fund managers, newsletter writers and some of the most active high net worth investors in the resource space. Now, he is bringing his extensive experience to the public through Daily Profit Cycle, Junior Resource Monthly, and Junior Resource Trader. For more about Gerardo, check out his editor page.

*Follow Gerardo on Twitter.


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