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Gold prices reined in by risk-on sentiment but geopolitics USD pullback should offer support – City Index’s Razaqzada

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Gold prices reined in by risk-on sentiment, but geopolitics, USD pullback should offer support – City Index's Razaqzada

Today’s uptick in risk appetite is creating some drag on gold prices, but the precious metal’s weekend gap remains open, says Fawad Razaqzada, Market Analyst at City Index.

“In other words, gold is still comfortably higher than Friday’s close,” he observed. “More gains could be on the way for gold for as long as geopolitical risks remain elevated and if the upcoming US macro pointers trigger fresh selling in the dollar, after the greenback ended a run of 11 consecutive weekly gains last week.”

Razaqzada said that even though geopolitical risks such as the ongoing Israel-Hamas conflict haven’t subsided, gold prices have moderated today, due in part to the rebound in bond yields.

“While gold may not be shining so brightly so far today, it could easily find renewed strength as the situation in the Middle East remains intense,” he said, underlining the potential for the conflict to widen. “This is why oil prices have remained elevated. Gold typically rises when there is heightened geopolitical risks.”

He said it’s possible that bond yields have peaked. “The stronger-than-expected US jobs report on Friday failed to deliver any more dollar strength and with the greenback falling further so far this week, the possibility that the dollar may have formed a top is undoubtedly something that many investors are wondering about,” he added. “If we see a similar response to this week’s upcoming data (FOMC minutes, CPI and UoM consumer Sentiment survey, among other things), then this will further fuel speculation that the worst is over [for] gold.”

Razaqzada said gold’s nearly 7% drop from its Sept. 21 high means prices were due to see a short covering rally. “So, some of the bullish price action since Friday could be just that – a short-covering bounce,” he said. “Therefore, one should not get too carried away by the recent bullish price action.”

He remains steadfastly bullish about gold’s long-term outlook, however. “[M]uch of the Fed’s hawkish repricing of interest rates are now done, meaning that the downside for bonds and, by extension, gold should be limited moving forward,” Razaqzada said. “So, be on the lookout for more bullish signals to emerge from here on.”

Razaqzada said that the fact that spot gold has not returned to Friday’s closing prices “must be making it uncomfortable to trade gold, as usually gaps tend to fill in highly liquid assets.” But he cautioned that this is not always the case. “I recall a gap on the EUR/USD a few years ago that remained unfilled for several months,” he said. “While a gap-fill would make things a bit more comfortable, gold can simply grind higher for a while, especially if the dollar selling gathers pace.”

He also offered some short-term strategies that may serve traders well in the current market. “One way to look for new trades while the gap remains open is to zoom in on the smaller time frames like the hourly, wait for a bit of consolidation and then look for long setups once price breaks higher, or about to,” he said, adding that traders can use short-term price structures as their invalidation levels.

“Obviously a much better scenario would be for gold to fill its gap and then create fresh bullish signals to trigger another rally,” Razaqzada said. “That could still happen, and the trigger could be the upcoming US data releases that will undoubtedly move the dollar and bond yields in the direction of the surprise.”

Spot gold continues to hold above $1857 on Tuesday afternoon, which Razaqzada said is the first key short-term resistance level. “While a bit of a move lower from here is understandable, the fact that support in the long-term area around $1805 to $1820 held last week, before the flare up of geopolitical risks, this could be a sign that the metal may have formed a low,” he said.

 

“The next level of potential resistance is seen around $1885, followed by $1900, with the latter being the base of the previous breakdown,” Razaqzada concluded. “On the downside, the next potential support level is Friday’s high at $1835.”

Spot gold last traded at $1858.66, down 0.15% on the session.

By

Ernest Hoffman

For Kitco News

Time to Buy Gold and Silver

Tim Moseley

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Five Ways SEO Can Benefit Your Business

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Ways SEO Can Benefit Your Business: A Clear Guide

Search Engine Optimization (SEO) is an essential aspect of digital marketing that helps businesses to improve their online visibility. SEO involves optimizing a website to rank higher in search engine results pages (SERPs) for specific keywords and phrases. By doing so, businesses can attract more organic traffic to their website, build trust and credibility with their audience, and ultimately increase leads and conversions. In this article, we will explore ways SEO can benefit your business.

Understanding SEO is crucial for businesses to stay competitive in today's digital landscape. By optimizing website content and structure, businesses can improve their search engine rankings and attract more organic traffic. Quality content is key to SEO success, as it helps to establish the website's relevance and authority in the eyes of search engines. Additionally, businesses need to conduct competitor analysis and keyword research to identify the best opportunities for ranking higher in SERPs.

By implementing best practices for SEO, such as building trust and credibility, link building, and improving user experience, businesses can reap the benefits of increased organic traffic, leads, and conversions. Local SEO is also essential for small businesses to attract customers in their local area. In this article, we will explore the various ways SEO can benefit businesses and provide tips for implementing an effective SEO strategy.

Key Takeaways

  • SEO can improve a business's online visibility and attract more organic traffic to their website.
  • Quality content, competitor analysis, and keyword research are crucial for SEO success.
  • By implementing best practices for SEO, businesses can increase leads and conversions, build trust and credibility, and improve user experience.

Understanding SEO

https://www.youtube.com/watch?v=nj-9cdtNaJg&embed=true

Search Engine Optimization (SEO) is the process of optimizing your website to increase its visibility and ranking on search engine results pages (SERPs). SEO involves making changes to your website's design, content, and structure to make it more attractive to search engines and users.

One of the primary goals of SEO is to improve the ranking of your website on search engines like Google. By optimizing your website for specific keywords and phrases, you can increase your chances of appearing on the first page of search results for those keywords, which can lead to more traffic and potential customers.

To achieve this, SEO professionals use a variety of techniques, including keyword research, on-page optimization, link building, and technical SEO. Keyword research involves identifying the keywords and phrases that your target audience is searching for, and then optimizing your website's content to include those keywords.

On-page optimization involves making changes to your website's content and structure to make it more search engine-friendly. This includes optimizing your website's title tags, meta descriptions, headers, and content to include relevant keywords and phrases.

Link building involves acquiring high-quality backlinks from other websites to improve your website's authority and ranking on search engines. Technical SEO involves optimizing your website's technical elements, such as its site speed, mobile-friendliness, and security, to improve its ranking on search engines.

Overall, SEO is an essential part of any digital marketing strategy, and it can provide numerous benefits to your business, including increased visibility, traffic, and revenue. By understanding the basics of SEO and implementing effective strategies, you can improve your website's ranking on search engines and attract more potential customers.

Importance of Quality Content

https://www.youtube.com/watch?v=XVO3XeRIM54&embed=true

In the world of SEO, quality content is king. It is the foundation of a successful SEO strategy. Quality content is not only important for your website visitors, but it is also important for search engines. In this section, we will discuss the importance of quality content and how it can benefit your business.

Content Creation

Creating high-quality content is the first step in any content marketing strategy. Quality content is original, relevant, and valuable to your target audience. It should be well-written, informative, and engaging. When you create quality content, you are establishing your brand as an authority in your industry. This can lead to increased brand awareness, website traffic, and conversions.

Blogging

Blogging is one of the most effective ways to create quality content for your website. By regularly publishing blog posts, you can keep your website fresh and up-to-date. Blogging also provides an opportunity to target long-tail keywords and answer frequently asked questions. This can help improve your website's search engine rankings and drive more organic traffic to your site.

Infographics

Infographics are a powerful visual tool that can help you communicate complex information in a simple and engaging way. They are highly shareable and can help increase your website's visibility and backlink profile. Infographics can also help establish your brand as an authority in your industry and improve your website's search engine rankings.

In summary, quality content is essential for any successful SEO strategy. It can help improve your website's search engine rankings, drive more organic traffic to your site, and establish your brand as an authority in your industry. By focusing on content creation, blogging, and infographics, you can create high-quality content that resonates with your target audience and helps you achieve your business goals.

Boosting Organic Traffic

https://www.youtube.com/watch?v=VGyCeKbI9P0&embed=true

One of the biggest benefits of SEO for a business is the ability to increase organic traffic to its website. Organic traffic refers to the visitors who arrive at a website through search engine results pages (SERPs) without clicking on a paid advertisement.

By improving a website's search engine ranking for relevant keywords, SEO helps to increase organic search traffic. This type of traffic is high-quality because it is made up of people who are actively searching for products or services related to the business.

To boost organic traffic, businesses can use a variety of SEO techniques such as:

  • Conducting keyword research to identify the most relevant and high-traffic keywords for their business
  • Optimizing website content to include these keywords in a natural and meaningful way
  • Creating high-quality content that is valuable and engaging for the target audience
  • Building backlinks from other reputable websites to increase the website's authority and credibility
  • Improving website speed and user experience to reduce bounce rates and keep visitors on the site for longer

By implementing these techniques, businesses can improve their organic search ranking and attract more high-quality traffic to their website. This can lead to increased brand awareness, higher conversion rates, and ultimately, more revenue for the business.

Overall, boosting organic traffic through SEO is a crucial strategy for any business looking to succeed online.

Competitor Analysis

https://www.youtube.com/watch?v=UEpNM5yvyh8&embed=true

One of the most important aspects of SEO is understanding your competition. Competitor analysis is the process of studying your industry's competitive landscape to understand competitor strategies and leverage those insights to improve your own SEO performance. By analyzing your competitors, you can identify their strengths and weaknesses and gain a better understanding of what works and what doesn't in your industry.

One of the main benefits of conducting a competitor analysis is that it allows you to learn from your competitors' success and develop a more effective SEO strategy. By analyzing your competitors' websites, you can identify the keywords they are targeting, the content they are producing, and the backlinks they are earning. This information can help you optimize your own website and content to better target the same keywords and attract the same backlinks.

Another benefit of competitor analysis is that it allows you to capitalize on your competitors' weaknesses. By identifying areas where your competitors are struggling, you can focus on those areas and gain a competitive advantage. For example, if your competitors are not targeting a particular keyword, you can focus on that keyword and potentially rank higher in the search results.

Competitor analysis can also help you understand what SEO tasks to prioritize going forward. By analyzing your competitors' SEO strategies, you can identify which tasks are most important and which can be deprioritized. For example, if your competitors are focusing heavily on content marketing, you may want to prioritize your own content marketing efforts to stay competitive.

Overall, competitor analysis is an essential component of any effective SEO strategy. By analyzing your competitors and understanding the competitive landscape, you can better optimize your own website and content to improve your search engine rankings and gain market share in your industry.

Keyword Research

https://www.youtube.com/watch?v=QagqtYwtqdc&embed=true

Keyword research is a fundamental component of SEO. It involves identifying the words and phrases that people use to search for information, products, or services online. By understanding the keywords that your target audience uses, you can optimize your website content, improve your search engine rankings, and attract more traffic to your site.

Keyword research helps you to identify the search queries that your potential customers use to find your products or services. By analyzing these search queries, you can determine the intent behind them. This information is crucial for creating content that meets the needs of your target audience and aligns with their search intent.

Effective keyword research can also help you to identify new opportunities for content creation. By analyzing the keywords that your competitors are using, you can identify gaps in the market and create content that fills those gaps. This can help you to attract new customers and increase your online visibility.

Keyword research tools can assist you in generating new content ideas. Sometimes it can be challenging to think of new content ideas for your blog. Luckily, most keyword research tools can be used to find new keywords and content ideas. By plugging in your competitor's domain, you can find all of the keywords that they are ranking for, and use this information to create new content ideas.

In conclusion, keyword research is an essential component of SEO. It helps you to understand the search queries that your target audience uses, and the intent behind those queries. By using this information to optimize your website content, you can attract more traffic to your site, and increase your online visibility.

Building Trust and Credibility

https://www.youtube.com/watch?v=6e36bxQsbWY&embed=true

One of the key benefits of SEO is that it helps businesses build trust and credibility with their target audience. When a website appears at the top of search engine results pages, it is seen as a high-quality and trustworthy source of information. This, in turn, can help businesses establish themselves as industry leaders and attract more customers.

To build trust and credibility online, businesses need to focus on a few key areas. One of the most important is reviews. Customer reviews are an essential part of building trust and credibility with potential customers. Positive reviews can help businesses establish themselves as trustworthy and reliable, while negative reviews can damage their reputation. By encouraging customers to leave reviews and responding to them in a timely and professional manner, businesses can demonstrate their commitment to customer satisfaction and build trust with their audience.

Another important factor in building trust and credibility is having a strong online reputation. This means having a website that is well-designed, easy to navigate, and provides valuable information to visitors. It also means having a strong social media presence and actively engaging with customers on platforms like Facebook, Twitter, and Instagram. By demonstrating their expertise and providing helpful information to their audience, businesses can establish themselves as trustworthy and authoritative sources of information.

Finally, businesses can build trust and credibility by being transparent and honest in their marketing efforts. This means avoiding exaggerated or false claims and being upfront about any limitations or drawbacks of their products or services. By being honest and transparent, businesses can establish themselves as trustworthy and build long-term relationships with their customers.

Overall, building trust and credibility is essential for businesses that want to succeed in today's competitive marketplace. By focusing on areas like reviews, online reputation, and transparency, businesses can establish themselves as trustworthy and reliable sources of information and attract more customers to their website.

Link Building

https://www.youtube.com/watch?v=yny5Hq2d85E&embed=true

Link building is a crucial aspect of SEO that involves acquiring hyperlinks from other websites to your own. These links serve as a way for users to navigate between pages on the internet and help search engines crawl the web. In SEO, the main purpose of link building is to boost a webpage's search rankings by acquiring high-quality inbound links.

One of the key benefits of link building is that it helps to increase your website's credibility. A site that ranks high on search engine results pages is typically considered high-quality and trustworthy by search engines. This, in turn, boosts the credibility of your website and can lead to more traffic, leads, and revenue for your business.

There are several popular link building strategies that businesses can use to acquire high-quality inbound links. These include:

  • Content marketing: Creating high-quality content that other websites will want to link to.
  • Guest blogging: Publishing articles on other websites that link back to your own.
  • Broken link building: Finding broken links on other websites and offering to replace them with links to your own content.
  • Influencer outreach: Reaching out to influencers in your industry and asking them to link to your content.

It's important to note that link building should be done ethically and naturally. Google penalizes websites that engage in manipulative link building practices such as buying links or participating in link schemes. Instead, businesses should focus on creating high-quality content and building relationships with other websites in their industry to acquire links naturally.

Overall, link building is an essential component of SEO that can help businesses to increase their website's credibility, search rankings, and traffic. By using ethical and natural link building strategies, businesses can improve their online presence and attract more potential customers to their website.

User Experience

https://www.youtube.com/watch?v=4mpksvyLs68&embed=true

User experience (UX) is a crucial factor in search engine optimization (SEO) and can have a significant impact on the success of a website. Good UX can lead to increased engagement, higher conversion rates, and ultimately, better search engine rankings.

One of the most important aspects of UX is navigation. A well-designed navigation system can make it easy for users to find what they are looking for and can keep them on the site longer. This, in turn, can lead to higher engagement and lower bounce rates. A good navigation system should be intuitive, easy to use, and provide clear labels and categories.

Another important aspect of UX is mobile-friendliness. With more and more people accessing the internet on mobile devices, having a mobile-friendly website is essential. A mobile-friendly site is one that is optimized for smaller screens, loads quickly, and is easy to navigate with a touch screen. Google has even introduced mobile-first indexing, which means that they use the mobile version of a site for indexing and ranking purposes.

Interactivity is also an important aspect of UX. Websites that provide interactive features such as quizzes, polls, and surveys can increase engagement and keep users on the site longer. This can lead to higher conversion rates and better search engine rankings.

Overall, a good user experience is essential for SEO success. Websites that provide a positive user experience are more likely to rank higher in search engine results pages (SERPs) and attract more visitors to their site. By focusing on navigation, mobile-friendliness, and interactivity, businesses can improve their UX and reap the benefits of better search engine rankings and increased engagement.

Increasing Leads and Conversions

https://www.youtube.com/watch?v=qBP0zjopruM&embed=true

One of the most significant benefits of SEO is the ability to increase leads and conversions for your business. By optimizing your website and content for search engines, you can attract more potential customers to your site and increase your chances of converting them into paying customers.

SEO can help improve your close rate by ensuring that the traffic coming to your site is highly targeted and relevant. This means that the visitors who arrive at your site are more likely to be interested in your products or services, and therefore more likely to convert into customers.

In addition to attracting more qualified traffic to your site, SEO can also help improve your conversion rate by optimizing your site for user experience. By ensuring that your site is easy to navigate, loads quickly, and provides a seamless experience for users, you can increase the likelihood that visitors will stay on your site and take the desired action.

Furthermore, SEO can help increase your return on investment (ROI) by providing a cost-effective way to attract high-quality leads and customers. Unlike traditional advertising methods, which can be expensive and difficult to track, SEO provides a measurable and scalable way to drive traffic and conversions to your site.

Overall, if you want to increase leads and conversions for your business, investing in SEO is a smart choice. By optimizing your site and content for search engines, you can attract more qualified traffic to your site, improve your close rate, and increase your ROI.

Local SEO

https://www.youtube.com/watch?v=nqvKiXyUdRY&embed=true

Local SEO is a powerful tool for businesses that want to reach customers in their area. By optimizing your website and online presence for local searches, you can increase your visibility and attract more customers to your business. Local SEO is particularly important for small businesses that rely on local customers to drive sales.

One of the key benefits of local SEO is that it can help you rank higher in local search results. This means that when someone searches for a product or service in your area, your business is more likely to appear at the top of the results. This can lead to more traffic to your website and more customers for your business.

Google My Business is an essential tool for local SEO. By creating a Google My Business profile, you can provide customers with important information about your business, such as your address, phone number, and hours of operation. You can also include photos and reviews to help customers get a better sense of what your business is all about.

Another important aspect of local SEO is optimizing your website for local searches. This includes using location-specific keywords in your content and meta tags, as well as creating location-specific pages on your website. By doing so, you can help ensure that your website appears in local search results when someone searches for a product or service in your area.

In summary, local SEO is a powerful tool for businesses that want to attract more local customers. By optimizing your website and online presence for local searches, you can increase your visibility and attract more customers to your business. With the help of tools like Google My Business, you can ensure that your business is easily found by customers in your area.

Benefits of SEO for Small Businesses

https://www.youtube.com/watch?v=0uUjafNSVFA&embed=true

SEO can provide numerous benefits for small businesses, helping them grow and succeed in the competitive online market. Here are some of the key benefits of SEO for small businesses:

Increased Website Traffic

One of the most significant benefits of SEO for small businesses is increased website traffic. By optimizing your website for search engines, you can improve your website's ranking on search engine results pages (SERPs). This means that your website will be more visible to potential customers who are searching for products or services related to your business.

Improved User Experience

SEO involves optimizing your website's structure, content, and design to make it more user-friendly. This can help improve the overall user experience on your website, making it easier for visitors to navigate and find what they're looking for. A better user experience can lead to increased engagement, more time spent on your website, and ultimately, more conversions.

Cost-Effective Marketing

Compared to other forms of marketing, such as paid advertising, SEO can be a cost-effective way for small businesses to promote their products and services. While SEO requires an initial investment of time and resources, the long-term benefits can be significant, helping small businesses achieve sustainable growth and success.

Increased Credibility

A website that ranks high on SERPs is typically considered high-quality and trustworthy by search engines. This, in turn, can help increase your business's credibility and reputation among potential customers. By investing in SEO, small businesses can establish themselves as credible and trustworthy sources of information, products, and services in their respective industries.

Business Growth

Ultimately, the goal of SEO for small businesses is to drive business growth. By increasing website traffic, improving user experience, and establishing credibility, SEO can help small businesses attract new customers, retain existing ones, and ultimately grow their business over time.

SEO Best Practices

https://www.youtube.com/watch?v=MYE6T_gd7H0&embed=true

To achieve the best results from SEO efforts, it is essential to follow best practices. These practices are constantly evolving as search engines update their algorithms, and it is important to stay up to date with the latest developments.

One of the most important best practices is to create high-quality, relevant content that provides value to the user. This can include blog posts, videos, infographics, and more. It is important to use relevant keywords in the content, but not to overdo it, as this can lead to penalties from search engines.

Another best practice is to ensure that the website is optimized for mobile devices. With more and more people accessing the internet on their smartphones and tablets, having a mobile-friendly website is essential. This includes using responsive design, optimizing page load times, and ensuring that all content is accessible on mobile devices.

In addition to these best practices, it is important to stay up to date with algorithm updates from search engines. For example, Google recently introduced core web vitals as a ranking factor, which includes factors such as page load speed, interactivity, and visual stability. Keeping up with these updates and making necessary changes to the website can help improve search engine rankings.

Overall, following SEO best practices can help businesses improve their search engine rankings and attract more traffic to their website. By creating high-quality content, optimizing for mobile devices, and staying up to date with algorithm updates, businesses can achieve long-term success with SEO.

SEO Tools

https://www.youtube.com/watch?v=9ak2bQDq-VU&embed=true

One of the key benefits of SEO is that it provides businesses with a wealth of data and insights into their website's performance. This data can be used to make informed decisions about how to optimize the website further and improve its visibility in search engine results pages (SERPs). There are several SEO tools available that businesses can use to gain these insights and make data-driven decisions.

Google Analytics

Google Analytics is a free tool provided by Google that businesses can use to track website traffic and user behavior. It provides a wealth of data, including the number of visitors, their location, the pages they visit, and how long they stay on each page. This data can be used to identify which pages are performing well and which ones need improvement. Google Analytics also provides insights into the sources of traffic, including organic search, paid search, and social media.

Ahrefs

Ahrefs is a comprehensive SEO tool that provides businesses with a range of features, including keyword research, backlink analysis, and competitor analysis. It allows businesses to track their website's performance over time and identify areas for improvement. Ahrefs provides detailed reports on keyword rankings, search volume, and traffic potential, making it a valuable tool for businesses looking to improve their search engine visibility.

Moz

Moz is another popular SEO tool that provides businesses with a range of features, including keyword research, site audits, and link building. It allows businesses to track their website's performance over time and identify areas for improvement. Moz provides detailed reports on keyword rankings, search volume, and traffic potential, making it a valuable tool for businesses looking to improve their search engine visibility.

SEMrush

SEMrush is a comprehensive SEO tool that provides businesses with a range of features, including keyword research, site audits, and competitor analysis. It allows businesses to track their website's performance over time and identify areas for improvement. SEMrush provides detailed reports on keyword rankings, search volume, and traffic potential, making it a valuable tool for businesses looking to improve their search engine visibility.

In conclusion, SEO tools provide businesses with valuable insights into their website's performance and help them make data-driven decisions to improve their search engine visibility. Google Analytics, Ahrefs, Moz, and SEMrush are just a few of the many SEO tools available that businesses can use to gain these insights.

SEO vs PPC

https://www.youtube.com/watch?v=oxb1Rra5WU4&embed=true

When it comes to digital marketing, businesses have two primary options to increase their visibility in search engine results: Search Engine Optimization (SEO) and Pay-per-click (PPC) advertising. Both methods have their advantages and disadvantages, and it's important to understand the differences to choose the best option for your business.

SEO

SEO is a long-term strategy that involves optimizing your website's content, structure, and code to improve its ranking in organic search engine results. It takes time to see results from SEO, but the benefits can last for years. SEO is also cost-effective compared to PPC campaigns, as it does not require a constant stream of advertising dollars.

SEO is a good option for businesses that want to establish a strong online presence and improve their brand awareness. It's also a good option for businesses that have a limited budget for advertising.

PPC

PPC is a short-term strategy that involves paying for ads to appear at the top of search engine results. Businesses bid on keywords related to their product or service and pay each time someone clicks on their ad. PPC campaigns can be expensive, but they can provide immediate results.

PPC is a good option for businesses that want to generate leads quickly or have a specific promotion or event they want to advertise. It's also a good option for businesses that have a large advertising budget and want to maximize their exposure.

Which is Better?

The answer to this question depends on your business's goals and budget. SEO is a good long-term strategy for businesses that want to establish a strong online presence and improve their brand awareness. PPC is a good short-term strategy for businesses that want to generate leads quickly or have a specific promotion or event they want to advertise.

Ultimately, a combination of both SEO and PPC can be the most effective way to drive traffic to your website and increase your online visibility. By using both strategies, you can maximize your advertising dollars and reach a wider audience.

Long-Term Benefits of SEO

https://www.youtube.com/watch?v=dVg_URgC9qA&embed=true

SEO is not a quick-fix solution for your business, but rather a long-term investment with numerous benefits. In the long run, SEO can help your business achieve its goals and objectives by increasing visibility, traffic, and conversions.

One of the most significant long-term benefits of SEO is increased organic traffic. By optimizing your website for search engines, you can attract more visitors to your site over time. This traffic is more sustainable than paid advertising because it does not require constant investment. Organic traffic also tends to have a lower bounce rate, which means visitors are more likely to engage with your content and convert into customers.

Another long-term benefit of SEO is improved brand awareness and credibility. When your website ranks higher in search engine results, it sends a signal to potential customers that your business is reputable and trustworthy. This can lead to increased brand recognition and customer loyalty over time.

SEO can also help your business achieve its long-term goals by aligning with your overall business strategy. By identifying the right keywords and optimizing your content, you can attract the right audience and increase conversions. This can help you achieve your business objectives, such as increasing sales, expanding your customer base, or improving customer retention.

Overall, SEO is a valuable long-term investment for any business looking to improve its online presence and achieve its business goals. By focusing on sustainable growth and optimization, businesses can reap the benefits of increased visibility, traffic, and conversions over time.

Conclusion

In conclusion, SEO is an essential tool for any business looking to improve its online presence. By optimizing their website for search engines, businesses can increase their visibility, engagement, and revenue. SEO is also a cost-effective way to reach a target audience and improve the user experience on their webpage.

Through the use of relevant text, meta descriptions, and other on-page optimization techniques, businesses can improve their SERP rankings and drive more traffic to their web pages. This increased visibility can result in higher engagement rates and ultimately lead to more conversions and revenue.

In addition, SEO can help businesses stay ahead of their competition by ensuring their website is up-to-date and relevant to their target audience. By monitoring their website's analytics and making necessary adjustments, businesses can continue to improve their online presence and maintain their position in search engine rankings.

Overall, SEO is a powerful tool that can benefit businesses of all sizes and industries. By investing in SEO, businesses can improve their online visibility, engage with their target audience, and ultimately increase their revenue.

Frequently Asked Questions

How does SEO impact your business?

SEO impacts a business in several ways. It helps to increase the visibility of a website on search engines, which leads to more traffic and potential customers. It also helps to establish credibility and trust with customers since businesses that rank higher on search engines are considered more trustworthy. Additionally, SEO can help businesses stay ahead of their competitors and increase their revenue.

What are the top benefits of SEO?

The top benefits of SEO include increased visibility, credibility, and trust with customers, improved user experience, higher website traffic, and increased revenue. SEO can also help businesses stay ahead of their competitors and establish themselves as industry leaders.

What are some effective SEO techniques for businesses?

Some effective SEO techniques for businesses include keyword research, on-page optimization, link building, and content creation. Keyword research helps businesses identify the most relevant keywords for their industry, while on-page optimization involves optimizing website content, meta tags, and images. Link building involves acquiring high-quality links from other websites, and content creation involves creating high-quality, relevant content that engages customers.

What are the advantages and disadvantages of SEO?

The advantages of SEO include increased visibility, credibility, and trust with customers, improved user experience, higher website traffic, and increased revenue. However, the disadvantages of SEO include the time and resources required to implement effective SEO strategies and the constantly changing nature of search engine algorithms.

What are the challenges of implementing SEO for a business?

The challenges of implementing SEO for a business include understanding and keeping up with constantly changing search engine algorithms, identifying and targeting the most relevant keywords, and creating high-quality, relevant content that engages customers. Additionally, businesses may face competition from other businesses and may need to invest significant time and resources to implement effective SEO strategies.

Where should businesses apply SEO?

Businesses should apply SEO on their website, social media platforms, and other online channels to increase visibility and reach more potential customers. Additionally, businesses should focus on creating high-quality, relevant content that engages customers and helps establish credibility and trust with them.

ecosystem for entrepreneurs

Tim Moseley

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Coinbase fears crypto sector could follow semiconductors offshore due to lack of US support

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Coinbase fears crypto sector could follow semiconductors offshore due to lack of US support

At a time of robust crypto and Bitcoin news coverage, widespread investor interest, and a burgeoning array of new businesses competing within the sector, it almost seems implausible to suggest that this industry is somehow at risk.

And yet, that's exactly what Coinbase Chief Legal Officer Paul Grewal fears will happen if the US doesn't step up its support and commitment to lead the digital asset economy, in what he feels could be a case of history repeating itself if the country drops the ball on nurturing a new technology.

"We know exactly how this will look because we've seen it time and again when this country has ceded its traditional leadership role when it comes to new technologies and other countries have grabbed the mantle,” Grewal told Kitco News correspondent Matt Nesto in the attached video interview.

In likening crypto and digital assets to the present plight of the semiconductor industry, Grewal says there are multiple reasons to ensure the domestic digital asset incubator stays warm.

"For example, there's recently been a tremendous debate in the United States about semiconductors and how over the last 30 years, the industry that we developed, that we grew, has somehow found its way to countries far from the United States and countries that may not always have the United States interest,” he said.

So, while some may argue that this alarmism is unwarranted, this lawyer and former U.S. magistrate judge can't help citing precedent.

"I don't want, and Coinbase doesn't want, to find ourselves 30 years from now asking the same kinds of questions that we're asking about (semis),” he said. "We don't want to be asking in 30 years, ‘Who lost crypto?’”

You Only Get One Chance

Baseball fans often point to big opportunities and at-bats to change the course of a game and history, and from Grewal's purview, the present state of the domestic crypto industry is not all that different, with the country and its 50 million digital assets investors facing a put up or shut up moment of sorts.

"So this is an important technology and Americans have made it clear that they want this as part of their future,” he said, while calling on the country's investors to share their views and send a message to their elected representatives.

"Unless these 52 million Americans and others share their views with their representatives and make it clear to their elected representatives that they want to see sensible, fair, balanced regulation as applied to digital assets, the United States is going to lose this opportunity. We're going to lose this moment,” he said.

This call to action, so to speak, is all part of a broader Coinbase effort to ensure that digital assets are part of the campaign conversation and new standwithcrypto.org website.

"Call your congressman, send an email to your senator, let them know that we all want sensible digital asset legislation passed,” Grewal said. "Not in 5 years, not in 10 years, but now. This is too important an industry, too important a part of our economy.”

More Than Just Tech at Stake

Grewal's argument in support of the domestic crypto industry is not only based on nurturing the new tech and building a strategic geopolitical moat of sorts but it's also tied to keeping millions of good-paying jobs from moving offshore.

pic

"Do we really want to hand over a million developer jobs and 3 million other high-paying jobs to overseas jurisdictions simply because we can't get our act together in the US?” Grewal said in a recent post on X, the platform formerly known as Twitter.

In short, Grewal said that the Crypto, Blockchain, Web3 as Job Growth Engine story is not some out-there concept.

"It is happening,” he said. "The best research we see right now is that this industry will generate millions of jobs looking ahead,” he added.

"If these jobs are coming, and we know they are, Wouldn't we want to have at least a fair share of those here in the United States? I think the answer to that is an obvious one; Yes.”

That Enforcement Problem

In addition to industry support, national security and job creation, Grewal also took aim at the current regulatory environment.

"We think (enforcement) is appropriate, indeed, laudable that the Department of Justice has gone after the scammers, the fraudsters that target our industry, but that's no reason to throw out the entire baby with the bathwater,” he said.

In pointing to the fact that over 80% of the G-20 countries have already adopted cryptocurrency regulations or frameworks or are on their way to doing so, Grewal said it is imperative for the US to do more in order to be at the forefront of guiding the industry.

"The United States is falling behind. That's the bad news,” he said. ”The good news is there's still plenty of time to catch up,” he added, noting a number of bills that are currently pending in Congress. "The U. S. can still get this right, but it's time for us to act.

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Matt Nesto

For Kitco News

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The Dark Secrets Behind Crypto Market Manipulation

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The Dark Secrets Behind Crypto Market Manipulation

Cryptocurrencies have been at the center of extensive debates in recent years, with much of the discussion revolving around their value and regulatory aspects. However, there is a pressing need to delve into the issue of market manipulation, with a particular focus on the behavior of cryptocurrency exchanges.

The spotlight on crypto and market abuse intensified in late 2022 following the collapse of FTX. This exchange, which had, at one point, held the position of the world's third-largest cryptocurrency exchange by trading volume during its three-year existence, experienced a dramatic downfall. Its founder and CEO, Sam Bankman-Fried, now faces a series of serious charges, including conspiracy to commit commodities and securities fraud and conspiracy to defraud the United States and engage in campaign finance violations. These charges stem from allegations that Bankman-Fried defrauded investors about $1.8 billion. FTX has been entangled in Chapter 11 bankruptcy proceedings in the United States since November of last year.

The high-profile and large-scale nature of FTX's collapse has triggered a wave of inquiries into the functioning of cryptocurrency exchanges and the risks associated with market manipulation. It's important to note that market manipulation is not a phenomenon exclusive to crypto exchanges; it's an illicit practice in the financial markets with a historical presence dating back centuries.

In the ever-evolving world of cryptocurrency, a question that looms large in the minds of new investors and enthusiasts alike is whether the crypto markets are manipulated. The topic has been the subject of intense debate and speculation, with proponents on both sides presenting their arguments. In this article, we aim to shed light on this intriguing issue, examining the various factors and evidence that contribute to the perception that the crypto markets are indeed manipulated.


Source: Solidus Labs

Insights from the Solidus Labs Report

Before delving into the specifics of market manipulation, it's essential to understand the context in which the crypto markets operate. Cryptocurrency, most notably Bitcoin, has gained unprecedented popularity and attention in recent years. Its decentralized nature and the potential for substantial financial gains have attracted investors from all walks of life. With the total market capitalization of cryptocurrencies reaching astronomical heights, it's no wonder that questions about manipulation have arisen.

It's important to understand the key findings of a recent report by Solidus Labs, a crypto research firm. The report, aptly titled "The 2023 Crypto Market Manipulation Report," was published by Solidus Labs in June. Although some time has passed since its publication, the facts and figures remain largely relevant.

The report is divided into two main sections: insider trading and wash trading. Insider trading involves individuals with privileged information trading to their advantage. The report highlights the significance of addressing market manipulation to foster crypto adoption, especially considering the ongoing discussions about exchange-traded funds (ETFs) in the crypto space. The Securities and Exchange Commission (SEC) has been hesitant to approve crypto ETFs due to concerns about market manipulation. While the report acknowledges that the issue may be up for debate when it comes to Bitcoin (BTC), it suggests that most altcoins are susceptible to manipulation.

The report identifies a startling statistic: 56% of ERC-20 tokens listed on crypto exchanges in 2021 showed evidence of insider trading, even on major exchanges. The authors of the report discovered a network of 51 interconnected wallets believed to be responsible for a significant portion of this insider trading activity. Unfortunately, the report does not specify which exchanges were analyzed, leaving some details unclear.

Insider trading, as defined by the report, includes any wallet that consistently buys a token shortly before it is listed on a major exchange. Surprisingly, the subsequent insider trading often occurred on decentralized exchanges (DEXs) rather than centralized exchanges (CEXs). However, only a few cases involved insiders selling their tokens on the exchanges where the tokens were listed. This might be attributed to fears of detection by insider trading detection mechanisms on these exchanges.

A case study in the report highlights one individual or entity involved in insider trading who conducted 14 listings using DEXs and 22 more using CEXs. Interestingly, the gains from this insider trading activity were not as substantial as one might expect, with an estimated profit of $300,000 against an investment of $2.7 million. This suggests that the individual or entity involved likely possessed substantial financial resources, potentially indicating an institution or a seasoned actor in the crypto space.

Another noteworthy discovery in the report was the identification of 54 additional wallets created specifically for insider trading. These wallets were found to be associated with transactions related to tokens about to be listed or newly listed tokens. The entities behind these wallets used various methods to obscure their activities, including privacy protocols like Tornado Cash, smart contract-enabled privacy coins like Secret Network, and crypto exchanges with lax Know Your Customer (KYC) requirements.


Source: Solidus Labs

The report also raises the possibility that crypto exchanges themselves might be involved in insider trading, a serious allegation that has been made against some exchanges in the past. The authors acknowledge that some of the wallets identified may have been purely coincidental, but the overall pattern suggests insider trading. They speculate that token issuers, market makers, and investment firms could be the entities behind these wallets.

Moving on to the section of the report focusing on wash trading, it reveals some eye-opening statistics. Since 2020, liquidity providers on Ethereum have engaged in wash trading involving over $2 billion worth of cryptocurrencies. This behavior was identified in 20,000 tokens, taking place in 67% of the over 30,000 liquidity pools analyzed. Wash trades accounted for an average of nearly 15% of trading activity in these pools.

Wash trading is a form of market manipulation where an entity simultaneously buys and sells the same asset, creating a deceptive impression of market activity while no actual change in ownership occurs. Notably, the authors believe that the extent of wash trading on DEXs on Ethereum is even higher, but the reported data only covers 1% of the analyzed information.

The report further suggests that wash trading is detectable and preventable in the decentralized finance (DeFi) space. It argues that DeFi protocols could implement similar regulatory measures as centralized exchanges to combat wash trading. Additionally, on-chain analysis can help identify suspicious liquidity providers.


Source: Wash trading in centralized crypto exchanges – Cepr.org

So, what does all of this mean for the crypto industry? The short answer is that these revelations are not good news for DEXs. However, it's worth noting that the report appears to focus exclusively on insider trading and wash trading on DEXs, whereas similar issues have been found on CEXs, with fake trading volumes being a significant concern.

Transparency is a critical factor in regulating market manipulation, and DEXs, with their publicly viewable and traceable transactions, have the potential to be more transparent and less prone to manipulation than centralized exchanges. DeFi protocols are also exploring ways to implement regulatory measures at the smart contract level.

While market manipulation is a challenge that the crypto industry must address, it is a problem that can be tackled with the right tools and regulations. DEXs are gradually working towards mitigating this issue, and their transparency can serve as a model for the broader crypto ecosystem. However, the crypto industry must also confront larger issues, including centralization, privacy concerns, and censorship resistance. As blockchain analytics companies like Solidus Labs lead the way in addressing market manipulation, the industry can move forward with greater transparency and accountability.

Ultimately, market manipulation is one of the more solvable issues in the crypto space, and once it is effectively addressed, attention can be directed towards other critical challenges facing the industry.

Summary

The debate over whether the cryptocurrency markets are susceptible to manipulation continues to persist, and while no definitive consensus has been reached, there are indeed compelling reasons to consider the possibility of manipulation within these markets. Several factors contribute to this perception, shedding light on why investors remain cautious when participating in the crypto space.

First and foremost, the absence of comprehensive regulatory oversight is a fundamental concern. Unlike traditional financial markets that operate under strict regulatory frameworks enforced by government authorities, cryptocurrency markets exist in an unclear regulatory landscape. This regulatory void creates an environment in which individuals or entities may exploit loopholes and engage in illicit practices without fear of legal repercussions. This lack of oversight can significantly contribute to the perception of vulnerability to manipulation.

Another prominent factor that reinforces the perception of market manipulation is the prevalence of "pump and dump" schemes. These schemes involve artificially inflating the price of a cryptocurrency through coordinated buying, often based on misleading or exaggerated information. Once the price reaches its zenith, those orchestrating the scheme sell their holdings at a profit, resulting in a swift and severe decline in price. These schemes not only deceive investors but also erode trust in the integrity of the market.

The influence of crypto whales, individuals or entities holding substantial amounts of a specific cryptocurrency, is another element contributing to the perception of manipulation. These whales possess the capacity to sway market sentiment and price movements through their significant trades. A single large sell order from a whale can trigger panic selling among smaller investors, leading to rapid price fluctuations. This unequal distribution of power can lead to a sense of vulnerability among market participants.

Furthermore, the lack of transparency on many cryptocurrency exchanges adds to the perception of potential manipulation. Some exchanges do not provide adequate information about their operations, trading volumes, or even the identity of their owners. This opacity can raise suspicions about the fairness and integrity of these platforms, further fueling concerns about market manipulation.

In light of these factors, it is prudent for investors in the cryptocurrency space to exercise caution and diligence. Conducting thorough research and due diligence before participating in any cryptocurrency investment is essential. Being aware of the risks associated with market manipulation and staying informed about the latest developments in the industry can help investors make more informed decisions and protect their interests.

While the cryptocurrency market offers exciting opportunities, it is not without its challenges. Acknowledging the existence of potential manipulation and taking proactive measures to mitigate these risks is a crucial step for investors looking to navigate this dynamic and evolving landscape successfully.

This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

 

 

About: Prince Ibenne. (Nigeria) Prince is passionate about helping people understand the crypto-verse through his easily digestible articles. He is an enthusiastic supporter of blockchain technology and cryptocurrency. Find me at my Markethive Profile Page | My Twitter Account | and my LinkedIn Profile.

 

 

 

 

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Waterfall decline in gold induces miner capitulation

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Waterfall decline in gold induces miner capitulation

The headwinds from persistent strength in the U.S. dollar and 10-year bond yields moving closer to 5% have proved too much for the gold market as prices have fallen to their lowest level since March. Gold lost key support at $1900 in September, when the month and quarter ended last Friday. With the Chinese market being closed during "Golden Week," Western bullion banks were primed to continue covering short positions into October during a waterfall decline in Gold Futures down towards its rising 200-week moving average at $1820.

Yet, once you step back to look at the bigger macro picture that is currently unfolding, it is not hard to see that the stars are aligning for gold. Although the bears have been able to break through the six-month gold floor at $1900, rising energy prices coupled with slower economic growth are creating a stagflationary environment which will eventually push Gold Futures back above $2000 an ounce.

As we transition through the final quarter of 2023, the list of known risk factors is expanding as an unrelenting selloff in government bonds has sent global treasury yields to levels last seen prior to the Global Financial Crisis in 2008. Government borrowing costs influence everything from mortgage rates for homeowners to loan rates for companies.

Rising debt and geopolitical instability could also make U.S. bonds less attractive to foreign investors. The risk now is that the Federal Reserve loses control of yields and is forced to be a buyer of last resort. If yields continue to climb, the world's most powerful central bank may be forced to increase its balance sheet with new quantitative easing measures before cutting rates. Not to mention the Fed publicly giving up on its fantasy of getting back to 2% inflation, which would be a major positive for the gold price.

The speed of the bond rout has spooked stock investors as well, with all major equity indexes wiping out their gains for the year. The S&P 500 erased all its gains for 2023 and tumbled into correction territory this week. Some analysts have compared the strong run-up in stocks in 2023 to the price action leading up to the 1987 crash.

In 1987, the S&P 500 rallied about 39%, peaked in August, the crashed in October to erase all its gains in just two weeks. The current rally that started in October 2022 gained about 31% into July, and is now setting up a potential panic move lower. If the S&P 500 closes below critical support at 4200 later today, the odds of a waterfall decline during crash season would increase significantly.

The gold price has been incredibly resilient in the face of skyrocketing bond yields. The 10-year bond rate was around 2.5% a year ago, and gold was trading around $1820. Now, after rates have nearly doubled up to 4.8%, gold is still trading at $1820 as Eastern central banks continue to add more bullion to their reserves.

According to the latest data from the World Gold Council this week, central banks bought 77 tonnes of gold in August, a 38% increase compared to buying in July. Over the last three months, central banks have bought 219 tonnes of gold. This comes after record purchases during the first half of the year.

The continued buying shows central bank gold demand is far from being saturated. The U.S. dollar's persistent strength means that nations with U.S. dollar-denominated debt continue to face high financing costs. The only way to reduce those costs is to diversify away from the U.S. dollar and gold remains the most attractive global monetary asset.

As 10-year bond yields move closer to 5%, Western investors may be close to waking up to the growing debt risks in the U.S. Once Western investors begin to become more defensive as recession fears grow, we will start to see investment demand for gold pick up.

Most economists have felt over the past several months that the Federal Reserve has gone one rate hike too far. And with the odds increasing of another rate hike coming next month, the biggest risk is that the Fed may commit yet another policy error after insisting inflation was "transitory" for a year before beginning to hike rates in March 2022.

By waiting far too long before hiking rates as inflation raged, the Fed has boxed itself into a corner after raising rates at its fastest pace in over 40 years – while government eliminated the debt ceiling. The further the central bank goes into restrictive territory, the more likely it becomes that we begin to see black swan events – just like we saw recently with the second, third and fourth largest bank failures in U.S. history.

If the Fed pushes too hard on rates, the 10-year could spike above 5% and this would raise the odds of breaking something in the financial system. The regional banking crisis in March sparked an over $250 move higher in the gold price from levels it has come back to test this week. But if the central bank stands pat, back-to-back pauses would support an end to the tightening cycle, which would also be bullish for gold.

The U,S, ADP report this week revealed a twelfth straight weekly decline in wages on a debt-saddled population. We should expect to see further volatility and uncertainty in the U.S. dollar as the country's government debt continues to grow along with its citizenry.

Consumer credit card balances and personal interest payments are soaring. U.S. credit card balances crossed the $1 trillion mark this summer as more Americans turned to debt to fund their everyday needs. With interest on credit cards now over 22% the average debt-laden consumer is getting crushed, resulting in delinquencies also climbing as that strategy becomes increasingly untenable.

U.S. debt is approaching $33.5 trillion. At the same time, the deficit is on pace to increase by $2 trillion this year. The eventual economic consequences of the burgeoning government debt include slower growth as more resources get used and allocated by the government.

A likely monetary consequence is that regardless of what senior members of the Fed currently say and think (they naturally insist that the Fed is independent), there is a high probability that the Fed eventually will yet again be called upon to help finance the government.

Historically, the biggest positive for the gold price has been loss of confidence in Fed policy and government. The looming U.S. government shutdown may still be a catalyst for gold even after the current crisis has been pushed out for 45 days.

A split Congress is at loggerheads yet again over government funding just as U.S. bond markets are pricing the most expensive Treasury borrowing in 16 years – while also rethinking the long-term trajectory for interest rates and fiscal policy.

A near-miss on a debt ceiling showdown in the Spring led to the loss of another Triple-A sovereign credit rating, followed by further brinkmanship over next year's spending bills. According to a recent warning from Moody's, the dysfunction in public financing and potential for debt servicing disruption may threaten the last remaining AAA credit rating of the main three agencies.

Furthermore, the U.S. House of Representatives for the first time in its history has booted its speaker out of the job, as infighting in the narrow and bitterly divided Republican majority toppled Kevin McCarthy from the position. This unprecedented action now creates a political crisis, plunging the House of Representatives into inevitable confusion and uncertainty, not to mention a highly contentious battle over the speaker position.

Until a House speaker is installed, it is unlikely that further action will be taken on bills to fund the government, with lawmakers facing a Nov. 17 deadline to provide more money or face a partial government shutdown. Republican lawmakers said they would need at least a week to choose a new speaker, which will eat into the time necessary to pass that needed legislation.

This dilemma coincides with Republicans simultaneously battling the calendar to complete the appropriations process and continues its impeachment investigation into President Joe Biden.

Meanwhile, gold stocks are presenting the best risk/reward situation we have seen since late 2015 after Gold Futures have now printed nine consecutive daily red candles to become deeply oversold. Both GDX and GDXJ are testing the lower boundary of their respective downtrend channels as a final capitulation by worn out gold stock investors takes place.

A similar correction pattern amid sector capitulation occurred into the second week of 2016. The exact low back then came in the form of an intra-day bear-trap reversal to the upside, which took many bottom-fishers accumulating quality juniors since early Q4 2015 quickly out of position.

There was no major news to trigger the event, it was just the algorithm switch being flipped after a similar capitulation had run its course. And those investors who sold were left to watch many of the juniors they capitulated go 5-10x higher in just six months, while refusing to buy them back at higher prices along the way after being burned.

In anticipation of the incredible gains the junior sector should begin to experience once the gold price prints a technical breakout above $2100, the Junior Miner Junky (JMJ) newsletter has accumulated a basket of quality juniors with 3x-10x upside potential into 2025-26.

If you require assistance in accumulating the best in breed precious metals related juniors, and would like to receive my research, newsletter, portfolio, watch list, and trade alerts, please click here for instant access.

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David Erfle

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Gold price down after much stronger US jobs growth in Sept

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Gold price down after much stronger U.S. jobs growth in Sept.

Gold prices are modestly lower in the immediate aftermath of a U.S. employment report for September that showed much-stronger-than-expected non-farm payrolls jobs gains that suggest the Federal Reserve will maintain its hawkish stance on U.S. monetary policy. December gold hit a 10-month low and was last down $5.40 at $1,825.90 and December silver was up $0.006 at $21.00.

Friday morning's September U.S. employment situation report from the Labor Department showed the key non-farm payrolls number come in at up 336,000, which is way above expectations for a rise of 170,000 and compares to the August report showing a gain of 187,000 non-farm jobs. However, some of the internals of the jobs report were a bit weaker, such as the overall unemployment rate staying at 3.8% versus expectations of a 3.7% reading. Wednesday's big downside miss in the ADP jobs report had many thinking the jobs report Friday morning would also be a miss to the downside. Not the case. The new marketplace narrative of the Federal Reserve's interest rate policy that is "much higher for much longer" appears to be still intact.

Asian and European stocks were mixed but mostly higher overnight. U.S. stock indexes are pointed to lower openings when the New York day session begins, following the stronger jobs report. The U.S. stock indexes were firmer overnight.

  Bond yields can't keep gold down forever as ING sees higher prices in 2024

The key outside markets today see the U.S. dollar index solidly higher after the jobs report and after being slightly down overnight. Nymex crude oil prices are weaker and trading around $81.50 a barrel. Just last week Nymex crude prices poked just above $95.00 a barrel. Meantime, the benchmark U.S. Treasury 10-year note yield is presently fetching 4.84% and is up more after the jobs report.

Other U.S. economic data due for release Friday includes the consumer credit report.

Technically, the gold futures bears have the solid overall near-term technical advantage. Prices are in an accelerating four-month-old downtrend on the daily bar chart. Bulls' next upside price objective is to produce a close in December futures above solid resistance at $1,900.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,800.00. First resistance is seen at the overnight high of $1,848.80 and then at $1,850.00. First support is seen at $1,815.00 and then at $1,800.00. Wyckoff's Market Rating: 1.0

The silver bears have the solid overall near-term technical advantage. Prices are trending lower on the daily bar chart. Silver bulls' next upside price objective is closing December futures prices above solid technical resistance at $23.00. The next downside price objective for the bears is closing prices below solid support at $20.00. First resistance is seen at Tuesday's high of $21.595 and then at $22.00. Next support is seen at this week's low of $20.85 and then at $20.50. Wyckoff's Market Rating: 2.0.

If you have not done so, I encourage you to try out my new "Markets Front Burner" email report. I think it's one of my best products yet (free!) in my 40-year quest to help you become a better trader and investor. It's a weekly email report that highlights the latest developments in the marketplace, and how you can better manage those developments in your own trading/investing. Just try it for one week—I guarantee you will want to keep it coming. Sign up to my new, free weekly Markets Front Burner newsletter, at https://www.kitco.com/services/markets-front-burner.html .

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Gold silver see mild pressure ahead of US jobs data Friday

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Gold, silver see mild pressure ahead of U.S. jobs data Friday

Gold and silver prices are modestly weaker in midday U.S. trading Thursday. The precious metals traders are tentative ahead of Friday's important U.S. employment report. December gold was last down $3.50 at $1,831.10 and December silver was down $0.201 at $20.945.

Traders are looking ahead to Friday morning's September employment situation report from the Labor Department. The key non-farm payrolls number is expected to come in at up 170,000 compared to a rise of 187,000 in the September report. Wednesday's big downside miss in the ADP jobs report has many now thinking the more important jobs report Friday will also be a miss to the downside. A weakening U.S. economy would actually be a good thing of sorts for the marketplace, in that it would likely cool the ascent in bond yields.

Asian and European stocks were mixed overnight. U.S. stock indexes are lower at midday. Risk aversion is still present late this week. The recent rise in U.S. Treasury yields and other interest rates have soured the global economic outlook, evidenced by the big drop in crude oil prices this week. Reads a Barrons headline today: "8% mortgage rates are on the horizon—and may stick around."

  Central banks buy 77 tonnes of gold, helping the precious metal resist rising bond yields

`The key outside markets today see the U.S. dollar index down after hitting a 10-month high Tuesday. Nymex crude oil prices are lower again and trading around $83.00 a barrel. Just last week Nymex crude prices poked just above $95.00 a barrel. Meantime, the benchmark U.S. Treasury 10-year note yield is presently fetching 4.712%.

Technically, December gold futures prices hit another 10-month low today. Bears have the solid overall near-term technical advantage. An accelerating five-month-old price downtrend is in place on the daily bar chart. However, the market is still well short-term oversold and due for a decent corrective bounce very soon. Bulls' next upside price objective is to produce a close above solid resistance at $1,900.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,800.00. First resistance is seen at today's high of $1,843.50 and then at $1,850.00. First support is seen at today's low of $1,826.20 and then at $1,815.00. Wyckoff's Market Rating: 1.0.

December silver futures prices were poised to close at a 6.5-month low close today. The silver bears have the solid overall near-term technical advantage. A nine-week-old downtrend is in place on the daily bar chart. However, the market is short-term oversold and due for a corrective bounce very soon. Silver bulls' next upside price objective is closing prices above solid technical resistance at $23.00. The next downside price objective for the bears is closing prices below solid support at the March low of $20.615. First resistance is seen at today's high of $21.455 and then at $22.00. Next support is seen at this week's low of $20.85 and then at $20.50. Wyckoff's Market Rating: 2.0.

December N.Y. copper closed down 285 points at 356.05 cents today. Prices closed nearer the session low and closed at a 10-month low close today. The copper bears have the solid overall near-term technical advantage. Prices are in a choppy, two-month-old downtrend on the daily bar chart. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at last week's high of 378.60 cents. The next downside price objective for the bears is closing prices below solid technical support at 350.00 cents. First resistance is seen at today's high of 360.30 cents and then at Tuesday's high of 364.80 cents. First support is seen at this week's low of 354.90 cents and then at 350.00 cents. Wyckoff's Market Rating: 2.0.

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Jim Wyckoff

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Gold silver down even as USDX bond yields see corrective pullbacks

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Gold, silver down even as USDX, bond yields see corrective pullbacks

Gold and silver prices are modestly lower in midday U.S. trading Wednesday and not far above this week's multi-month lows. Technical selling is featured amid fully bearish near-term charts. Downside corrections in the U.S. dollar index and in U.S. Treasury yields today did not help out the precious metals bulls. December gold was last down $3.00 at $1,838.30 and December silver was down $0.242 at $21.14.

Today's big downside miss for the ADP National Employment Report—at up 89,000 jobs versus the consensus forecast of up 160,000—gave the bond market bulls some hope Friday morning's more important U.S. jobs report shows a cooling U.S. economy. Traders are indeed starting to look ahead to Friday's September employment situation report from the Labor Department. The key non-farm payrolls number is expected to come in at up 170,000 compared to a rise of 187,000 in the September report.

Risk appetite is not keen at mid-week, following the ouster of the U.S. Speaker of the House of Representatives Tuesday afternoon. The AP said "it was a stunning moment for Speaker Kevin McCarthy, a punishment fueled by growing grievances but sparked by his decision to work with Democrats to keep the federal government open rather than risk a shutdown. Removing the speaker launches House Republicans into chaos heading into a busy fall when Congress will need to fund the U.S. government again or risk a mid-November shutdown."

And then there's the U.S. Treasury sell off that has the marketplace spooked. A Barron's headline today reads: "The bond and stock sell off has momentum. Here's how it could end." The story goes on to say "markets have decided to pay attention to the prospect of the Federal Reserve keeping interest rates higher for longer. And now that's all they can see." The story said the ways the bond market rout can end would be if the Fed stops or reduces its bond selling. Or, "something breaks." The article added weakening U.S. economic data may be needed to help turn the tide of the higher rates narrative. "Friday's September jobs report could be the place for that to begin."

  Nervous crypto investors gain comfort via total return approach instead of only chasing price gains

Asian and European stocks were mixed overnight. U.S. stock indexes are higher at midday on corrective bounces after hitting four-month lows earlier this week.

The key outside markets today see the U.S. dollar index weaker on a corrective pullback after hitting a 10-month high Tuesday. Nymex crude oil prices are sharply lower and trading around $85.25 a barrel. Meantime, the benchmark U.S. Treasury 10-year note yield is presently fetching 4.868% and has hit a 16-year high this week.

Technically, December gold futures prices were poised to close at a 10-month low close today. Bears have the solid overall near-term technical advantage. An accelerating five-month-old downtrend is in place on the daily bar chart. However, the market is well short-term oversold and due for a decent corrective bounce very soon. Bulls' next upside price objective is to produce a close above solid resistance at $1,900.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,800.00. First resistance is seen at $1,850.00 and then at this week's high of $1,864.70. First support is seen at this week's low of $1,830.90 and then at $1,825.00. Wyckoff's Market Rating: 1.0.

December silver futures prices hit another 6.5-month low today. The silver bears have the solid overall near-term technical advantage. A nine-week-old downtrend is in place on the daily bar chart. However, the market is short-term oversold and due for a corrective bounce very soon. Silver bulls' next upside price objective is closing prices above solid technical resistance at $23.00. The next downside price objective for the bears is closing prices below solid support at the March low of $20.615. First resistance is seen at today's high of $21.57 and then at $22.00. Next support is seen at today's low of $20.85 and then at $20.50. Wyckoff's Market Rating: 2.0.

December N.Y. copper closed down 350 points at 358.60 cents today. Prices closed near mid-range and hit another 10-month low today. The copper bears have the solid overall near-term technical advantage. Prices are in a choppy, two-month-old downtrend on the daily bar chart. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at last week's high of 378.60 cents. The next downside price objective for the bears is closing prices below solid technical support at 350.00 cents. First resistance is seen at Tuesday's high of 364.80 cents and then at 370.00 cents. First support is seen at today's low of 354.90 cents and then at 350.00 cents. Wyckoff's Market Rating: 2.0.

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Jim Wyckoff

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Tim Moseley

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Relentless rise in USDX bond yields keep stranglehold on metals bulls

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Relentless rise in USDX, bond yields keep stranglehold on metals bulls

Gold and silver prices are lower again at midday Tuesday, with December gold futures hitting another 10-month low and December silver futures another 6.5-month low. A very strong U.S. dollar and rising U.S. Treasury yields that are at 16-year highs, with both showing no signs of backing down, are keeping precious metals in a tailspin. December gold was last down $7.90 at $1,839.10 and December silver was down $0.031 at $21.40.

The metals market bears are pouncing on the “higher for longer” U.S. interest rate scenario. The benchmark 10-year Treasury note yield is at its highest level since 2007. A Barron’s headline today reads: “The bond sell off is gathering pace. Why the Fed isn’t intervening.” The story suggests the Federal Reserve is content with rising Treasury yields as it helps in the inflation battle the central bank is presently waging.

U.S. stock indexes are solidly lower and are at or near their for-the-move lows, on worries about rising interest rates choking economic growth. The sell off in the stock market is likely limiting losses in the gold and silver markets, as it appears some safe-haven demand is surfacing.

  The Fed to hike rates again in November, rate cuts coming only in 2025, here's why – Pat LaVecchia

The key outside markets today see the U.S. dollar index higher and hitting another 10-month high. Nymex crude oil prices are higher and trading around $90.00 a barrel. Meantime, the benchmark U.S. Treasury 10-year note yield is presently fetching 4.754% and hit a 16-year high.

Technically, December gold futures prices hit another 10-month low today. Bears have the solid overall near-term technical advantage. An accelerating five-month-old downtrend is in place on the daily bar chart. However, the market is well short-term oversold and due for a decent corrective bounce very soon. Bulls’ next upside price objective is to produce a close above solid resistance at $1,900.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,800.00. First resistance is seen at $1,850.00 and then at this week’s high of $1,864.70. First support is seen at today’s low of $1,830.90 and then at $1,825.00. Wyckoff's Market Rating: 1.0.

December silver futures prices hit another 6.5-month low today. The silver bears have the solid overall near-term technical advantage. A nine-week-old downtrend is in place on the daily bar chart. However, the market is short-term oversold and due for a corrective bounce very soon. Silver bulls' next upside price objective is closing prices above solid technical resistance at $23.00. The next downside price objective for the bears is closing prices below solid support at the March low of $20.615. First resistance is seen at today’s high of $21.595 and then at $22.00. Next support is seen at $21.00 and then at today’s low of $20.87. Wyckoff's Market Rating: 2.0.

December N.Y. copper closed down 225 points at 361.90 cents today. Prices closed near mid-range and hit a 10-month low today. The copper bears have the solid overall near-term technical advantage. Prices are in a choppy, two-month-old downtrend on the daily bar chart. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at last week’s high of 378.60 cents. The next downside price objective for the bears is closing prices below solid technical support at 350.00 cents. First resistance is seen at today’s high of 364.80 cents and then at 370.00 cents. First support is seen at today’s low of 358.15 cents and then at 355.00 cents. Wyckoff's Market Rating: 2.0.

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Jim Wyckoff

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Tim Moseley

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Central Banks Concerns About Rising Crypto Adoption Report Paradoxically Depicts Bullish Outcome For Crypto

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Central Banks Concerns About Rising Crypto Adoption. Report Paradoxically Depicts Bullish Outcome For Crypto

Crypto adoption is on the rise, and it may well be argued that the central banks don't like that fact. Recently, the BIS, monikered as the so-called ‘Bank for Central Banks,’ published a report claiming that crypto adoption causes financial instability in developing countries, where adoption is happening the most. 

Central banks of the United States, Mexico, Brazil, and other major Latin American countries conducted the report. Their concerns about crypto adoption paint a surprisingly bullish picture. This article provides an overview of this report, explains the significance of what's being said, and tells you what it could mean for the crypto market.

The report summarized here is titled “Financial Stability Risks from Crypto Assets in Emerging Market Economies.” It was published by the Bank for International Settlements (BIS) in August 2023. The report begins with a foreword that analyzes crypto adoption in developing countries. It includes recommendations on how to keep crypto under control. 


Source: Cointelegraph

BIS member central banks of Argentina, Brazil, Canada, Chile, Colombia, Mexico, Peru, and the United States wrote the report. The representatives set up a task force led by the BIS Americas Office as the secretariat. It seems to claim that crypto adoption in developing countries is high because these countries generally have low financial literacy. This starkly contrasts with a recent study by a U.S. university, which found that crypto adoption actually increases financial literacy. This makes sense, considering that you must understand crypto before adopting it. 

About The Report

The report's first section provides a summary of the key findings. The authors are hyper-focused on the rise and fall of the crypto market. They don't seem to care about why people are adopting crypto but simultaneously acknowledge the reasons why. For example, As quoted, “Proponents of crypto assets claim that they offer lower transaction costs, faster payments, no intermediation, anonymity, and potentially high returns on investment. Whether they deliver on these claims is another matter.” 

The second part is surprising, as they refuse to argue against it. Moreover, it states, “For some users, crypto assets provide an alternative to limited investments and savings instruments, while for others, they offer a seemingly safe haven against volatile domestic currencies.” 

Now, this conflicts with what the authors implied in the forward. They know those adopting crypto are informed. In other words, they know exactly why people in developing countries embrace crypto; because their fiat currencies suck. Instead of addressing these shortcomings, the authors essentially conclude that something must be done to keep crypto under control because of supposed financial stability risks. 

The authors then highlight several risks, in particular, market risks due to volatility, liquidity risks due to a lack of transparency, credit risks due to a lack of governance, AKA control, operational risks due to cyberattacks, currency substitution risks, and capital flow risks, due to crypto’s use in cross-border payments. 

The irony is that many assets are more volatile than crypto. The existing financial system is even less transparent than the crypto industry, traditional finance (TradFi) has exponentially more credit risk than decentralized finance (DeFi), and cryptos are more resilient to cyber-attacks because they're more exposed; they are literally tested every day. This underscores the fact that the only risks the authors are concerned about are currency substitution and capital flows. 

To address these risks, they claim that “Authorities can consider selective bans, containment, and regulation,” a classic starting point for these BIS reports. For those interested, here is a summary of another crazy BIS report from last year.

The report begins with an introduction where the authors explain cryptos and how they work. They then divide crypto into two categories for their analysis: stablecoins and unbacked crypto assets, which means everything else: Bitcoin, Ethereum, et al. For context, central banks hate stablecoins, probably because they’re direct competitors to Central Bank Digital Currencies (CBDCs). Interestingly, governments seem to like stablecoins because they're backed by government debt. This means they can use stablecoins to subsidize their spending. 

The authors explain that this report builds on recent work by the Financial Stability Board (FSB), a subsidiary of the BIS. Notably, the FSB’s crypto recommendations become regulations in its member countries, namely the G20. The work the BIS is building on is a crypto framework put together by the FSB, which can be seen in the image below. This infographic is ironic because it notes that stability risks only flow from crypto to TradFi. As we've seen with the banking crisis, the stability risks come from TradFi, not crypto.


Source: BIS Papers: Financial stability risks from crypto assets in emerging market economies.pdf

Before breaking down the alleged risks crypto poses to TradFi, the authors make another eye-opening claim, 

“The crypto universe was built on the promise of an efficient, decentralized, low-cost, inclusive, safe and open monetary system, but structural vulnerabilities in the design and operation of crypto asset markets make them unsuitable as the basis for a monetary system.” 

The key word here is ‘monetary’; the central banks oversee the monetary side of the financial system. In practical terms, this means raising or lowering interest rates through various mechanisms to affect the amount of currency in circulation. It's clear that they do not want to lose control of this ability. 

The Alleged Risks

Market Risk
As stated above, the first crypto risk is market risk. Firstly, the authors implied that publicly traded crypto companies are inherently risky. They also take issue with the fact that some cryptos are held mainly by a handful of wallets. They provide some fascinating statistics to back up their claims, 

“In 2020, an estimated 10,000 individuals owned about a quarter of all outstanding Bitcoin. Satoshi Nakamoto, the anonymous creator of Bitcoin, is the largest holder, with more than 1 million stored in different wallets (around 5% of the total). Other tokens show similar concentration. For example, fewer than 100 participants control over 51% of the value in Dogecoin, ZCash, and Ethereum Classic.”

So, at first glance, these statistics are concerning, but it's easy to forget that there's even more extreme wealth concentration in other asset classes. It exemplifies the top 1% reportedly earned more than the rest of the world combined over the last two years. Why isn't the BIS raising this point? 

The second thing worth noting is that most of the authors' concerns around market stability are directed at stablecoins, which should come as no surprise, given that they are competitors to CBDCs, as mentioned earlier. 


Source: Bitcoin Treasuries 

What is surprising is that the authors also target spot Bitcoin ETFs, quoting, “Bitcoin ETFs could potentially pose a market risk in emerging market economies (EMEs) by lowering the barriers to entry for less sophisticated investors and increasing investors' direct and indirect exposure to crypto assets.” 

Oddly enough, the authors are concerned about the wealth concentration Bitcoin ETFs could cause. Here are a few more statistics; “As of end-March 2023, ETFs owned a combined 819,125 BTC, 3.9% of the total bitcoins to be issued (21 million). The largest Bitcoin ETF is Grayscale Bitcoin Trust (GBTC), which owns 643,572 BTC, or nearly 3% of the total supply. In total, ETFs, governments, and public and private companies own more than 1.6 million BTC, approximately 7.8% of the total supply.”


Source: Bitcoin Treasuries 

Liquidity risk
The second crypto risk is liquidity risk. The authors note that most of crypto’s trading volume occurs on offshore exchanges such as Binance. What's odd is that they include Huobi Global as one of the top crypto exchanges and a potential point of concern when it's no longer that large.

 


Source: Coinmarketcap.com

Oddities aside, the authors also aim for Tether and allege that its USDT stablecoin is still insufficiently backed. They missed the memo that USDT is now backed almost entirely by US Government debt, like all the other major stablecoins. It appears that the BIS is making arguments using outdated data. 

Anyhow, there’s something else that the authors point out, which is quite essential: money market funds were a significant source of market instability in 2008 and 2020. For those unfamiliar, money market funds are kind of like TradFi stablecoins. The difference is that you earn a yield on them. 

Naturally, the authors note that stablecoins are similar and that if they were to experience a run, this could create problems for the assets that back these stablecoins, namely government debt. The thing is that most money market funds are significantly more extensive than most stablecoins and, therefore, riskier. 

Credit Risk
In any case, the third is credit risk. The authors define credit risk in the context of crypto as “The potential that a counterparty in crypto-asset markets or directly exposed to crypto assets could fail to meet its obligations in accordance with agreed terms.”

Areas of concern include interconnectedness between crypto companies, citing FTX and Alameda Research. Also, lack of governance and disclosures, quoting DAOs and leverage, citing DeFi. They also included crypto exchanges having access to bank accounts, citing Chilean authorities, who forced banks to bank crypto exchanges. 

Despite favorable crypto regulations, crypto companies and projects in pro-crypto jurisdictions still have difficulty opening bank accounts. This is likely due to the Financial Action Task Force (FATF), but this pressure could be from the central banks.

Operational Risk
Regardless, the fourth crypto risk is operational risk. The authors take issue with the fact that cryptos use blockchains, quoting, “One of the key features of blockchain technology is its irreversibility. Once a transaction is recorded on the blockchain, it cannot be undone. This feature can be problematic in situations where transactions need to be reversed, such as in the case of a hack or fraud.” 

News flash: If crypto transactions could be reversed, then there would be no point in having crypto because governments, central banks, and Wall Street could manipulate it. Just like they do with money and other assets. In case it wasn't clear enough, they want to be able to do this with crypto, too. 

Disintermediation Risk
The fifth crypto risk is bank disintermediation risk. This includes both currency substitution and reserve currency substitution, which are significant concerns for the central banks. The authors admit that crypto could “..reduce the monetary authority’s control over liquidity in the economy, thus weakening the effectiveness of monetary policy…” 

The authors reiterate why people would substitute their fiat currencies with crypto. These reasons included not trusting the fiat currency, crypto being more efficient than fiat, and crypto being more private than fiat, which isn't accurate, at least in the case of cash. 

The reserve currency substitution section is where things get seriously bullish for crypto. They quote, “…if crypto assets become mainstream, they could also replace the global reserve currency as a perceived store of value…” The report denotes this substitution process as cryptoization 2.0. Put simply, the authors speculate that crypto could compete with reserve currencies, like the US dollar, if they see enough adoption.

The caveat is that they're saying this in the context of developing countries, where they think crypto will be used to evade capital controls. Even so, this pertains to something speculated about in a previous article about the BRICS countries.  It’s possible they could adopt a cryptocurrency as their common currency. The fact that BRICS’s current and future members fit the profile of the countries described in this BIS report underscores this possibility. 

Capital Flow Risk
The final crypto risk is capital flow risk, another big concern for the central banks. That's because crypto allows people to move their money around without asking for permission from Big Brother; that's not allowed in the modern financial system. The report’s authors are frustrated about the fact, quoting, 

“Crypto assets can operate offshore and hence beyond regulatory oversight. Crypto assets can be traded and stored on a global network of computers, often offshore servers and digital wallets, making it possible for them to operate beyond the jurisdiction of any one country.”

They're also upset that, quote, “…a person can create a digital wallet on a computer or mobile device and store crypto assets in it, without having to go through any formal registration process or identity verification.” Note that they want to connect all crypto wallets to digital IDs eventually. 

To drive the point home about crypto capital flows being a risk, the authors provide another statistic, saying: “One of the biggest Mexican crypto exchanges claimed that in the first half of 2022, it processed remittances for $1 billion in crypto assets, approximately 3.6% of the total flow in that period.” This is bullish for crypto.

Crypto Risk Connection To TradFi

This begs the question of how these crypto risks could spill into the traditional financial system. The third part of the report has all the answers from the perspective of the BIS. These are summarized in a single infographic (below) that shows the connection between crypto and TradFi. These include crypto to fiat, on and off ramps, stablecoins backed by government debt, etc. 


Source: BIS Papers: Financial stability risks from crypto assets in emerging market economies.pdf

What's crazy is that the authors suggest that even if crypto risks don't spill over into TradFi directly, they could spill over indirectly. The report states, 

“Disruptions in the cryptoasset market can potentially spill over to other financial markets through confidence effects. For example, a sharp drop in the value of crypto assets could erode investor risk appetite. This could lead to outflows from the traditional financial system and tighten financial conditions.”

Put differently, if the crypto markets crash, this could spook investors in TradFi, and that would cause issues; therefore, crypto must be regulated, contained, banned, etc.; it’s madness. It also makes no sense because the opposite is true; stocks influence crypto’s price action, not vice versa. 

Crypto Adoption In Developing Countries

All of these allegations about crypto risks could be intended to prime the reader for the fourth section, which is crypto adoption in developing countries. After all, if they believe crypto is so risky and harmful, they will need to ensure those unfortunate folks in the global South are extra protected. Quips aside, the authors detail four so-called risk catalysts for developing countries regarding crypto. 

  1. Crypto adoption
  2. Inflation and a lack of central bank credibility
  3. Lack of payment infrastructure and financial literacy (Arguably not true)
  4. A lack of crypto regulation (or rather, the lack of anti-crypto regulation that central banks want to see)

Recommendations For Controlling Crypto

Following a lengthy overview of all the crypto regulations in select North and South American countries, the authors provide recommendations about controlling crypto in the fifth part of the report. They start by saying that there are three approaches to managing crypto: bans, containment, and regulation. 

They say that many authorities have argued that crypto should not be regulated because regulations would give the industry a seal of approval that could lead to more adoption. Regulations mean institutions and institutions represent lobbying for better regulations. Believe it or not, the authors aren't in favor of a crypto ban because it would mean no oversight of crypto. They also do not favor containment, i.e., keeping crypto separate from the financial system, because they know secret connections would inevitably manifest. 

So, the one option remaining is to regulate crypto, specifically with the same risk and regulation principle. If you've read this article about crypto regulations, you'll know that this principle could turn crypto into another arm of the existing financial system, which would defeat its purpose. One of the entities pushing this principle the hardest has been the World Economic Forum (WEF), which the authors cite many times in this report. 

For developing countries specifically, the authors recommend they get their monetary business in order so that there's no incentive for crypto adoption. Indeed, if the central banks and governments manage their currencies properly, crypto probably wouldn't exist because it wouldn't need to exist. They only have themselves to blame at the end of the day, and with a bit of luck, crypto will force them to be somewhat more responsible going forward. 

What Does It Mean For Crypto?

What does all of this mean for the crypto market? In short, it's very bullish. The central banks are aware that crypto adoption is growing fast and is ultimately due to deficiencies in the existing financial system, which they know they probably can't fix. These deficiencies are especially acute in developing countries, and for good reason. 

The US dollar is the world's reserve currency, and it's used in up to 96% of international trade in some regions. Unless a country has many resources, it has difficulty getting its hands on US dollars. These countries can only get US dollars by requesting an IMF or World Bank loan. These loans come with many conditions, which are typically in favor of the US and US-based corporations. 

Now, the consequence of this is that these indebted developing countries just can't get ahead. As pointed out by macro analyst Lyn Alden, only a handful of developing countries have managed to become developed over the last 50 years. For the ones that manage, it was due to their natural resources, especially oil. Some of the only exceptions are South Korea and Taiwan,  both of which have received significant support from the US over the decades, probably for geo-political purposes. 

The rest of the developing world has been stuck in the same place, sometimes worse, and they're starting to understand why. Consider that even the BIS referred to "The global reserve currency in their cryptoization 2.0 prediction.” The keyword is ‘The’一it's singular. Logically, it's a reference to the US Dollar.  Assuming it is and probably is, the BIS’s cryptoization quote reads: "If cryptocurrencies achieve mainstream adoption, they could replace the US dollar as the world's reserve currency.” 

Now consider that this is something that many central banks could be interested in; remember that the BRICS are a thing. This would explain the somewhat paradoxical conclusions of the BIS report, which is to regulate crypto even though they know that it will inevitably result in more crypto adoption. 

When you combine this conclusion with the fact that the BIS will allow central banks to hold up to 2% of their balance sheets in crypto starting in 2025, you begin to realize that some central banks might be breaking ranks. In fact, it's possible they're all breaking ranks except the Federal Reserve. That would be truly something, wouldn't it? 

 

 

 

Editor and Chief Markethive: Deb Williams. (Australia) I thrive on progress and champion freedom of speech. I embrace "Change" with a passion, and my purpose in life is to enlighten people to accept and move forward with enthusiasm. Find me at my Markethive Profile Page | My Twitter Account | and my LinkedIn Profile.

 

 

 

 

Tim Moseley

The Artist that came out of the Winter