HOME

Great reset financial world war coming: This is global elite’s plan to come out on top Carol Roth

Leave a comment

Great reset & financial world war coming: This is global elite's plan to come out on top – Carol Roth

The world is on the brink of a financial reset, with the global elite planning to come out on top, according to Carol Roth, New York Times bestselling author of 'You Will Own Nothing,' who says this threatens to leave the average person losing private property rights, other liberties and being subject to centralized control and draconian oversight.

"There is this change coming," Roth told Michelle Makori, Lead Anchor and Editor-in-Chief at Kitco News. "In many ways, it's not so much that [the elite] intentionally try to keep you down. They are trying to preserve their power and their wealth. And if yours has to go away for that to happen, then that's just okay by them."

Roth warns that a financial world war or major shift in the financial order is coming and adds that it is not as conspiratorial as it sounds.

"If you go to the White House's website and look at remarks that President Biden gave to the business roundtable back in 2021, he talks on a regular basis about things changing in the financial order and says there is going to be a new world order out there," Roth noted

The U.S. is about 80 years into the cycle of being at the center of the global financial system, with the U.S. dollar being the world's reserve currency.

Roth highlights how every “empire” in history has collapsed, losing its financial supremacy, from the Romans to the Portuguese to the British.

"Before us, it was the British; before the British, it was the Dutch. And so I would imagine when you're in that position, you feel very invincible about it," Roth pointed out. "But if we look at the reality of debt loads in the United States and the debt service and all of the printing that's gone around the world, and the fact that the Fed has not done a good job of holding the reserve currency stable, you're seeing some of these shifts happen."

Roth points out that the BRICS Plus countries are actively de-dollarizing and trading in their own currencies, while central banks are selling off U.S. Treasuries and stocking up on gold.

For Roth's take on the decline of the U.S. as a global superpower and the kind of shift that's coming, watch the video above.

"Over the last decade, the amount of U.S. government debt has more than doubled from $16 trillion to over $35 trillion," Roth said. "At the same time, central banks worldwide were net sellers of Treasuries. And the interesting dynamic is that they're not going into another currency per se, but they're going into gold."

World Economic Forum's 2030 agenda

Roth also pointed out that as we see the bifurcation of the global monetary system and the U.S. hegemony wane, there are non-governmental players pushing an agenda that leads to less economic and individual freedoms.

Roth explains why private property ownership is integral to all other rights and how the push to diminish individual ownership is being led by the World Economic Forum (WEF), big technology companies and the United Nations.

“Private property is the guardian of every other right. Property rights are fundamental to wealth creation. Studying wealth creation at the individual level, you can see that the way that individuals create wealth is through ownership,” Roth wrote in ‘You Will Own Nothing.’ “Once you as an individual own nothing, it is easy for the government or similar center of power to gain figurative ownership and control over you. I will say this many times to hit at home, if you own nothing, they own you.”

She highlighted the World Economic Forum's (WEF) 2030 agenda, which lists eight predictions, the top being, 'You will own nothing and be happy.' The post was originally published in 2018 on WEF's Twitter account, now X.

Roth explains that the WEF has made a concerted effort to influence leaders in the public and private sectors to promote its agenda and ideals.

"I encourage everybody to look up the video with Klaus Schwab at the Harvard Kennedy School of Government when he talks about the Young Global Leaders program. And you have people like Canada's Justin Trudeau and Chrystia Freeland, who have been part of these programs, and he cites them — 'I look around, and I know all these people, and they've been part of the WEF's Young Global Leader program.' And so when somebody like Klaus Schwab says, 'We penetrate the cabinets,' I'm not sure what else that might mean other than 'We penetrate the cabinets,'" Roth explained. "So, while this is supposed to be a non-governmental organization, it seems like they're very entrenched in government."

For more background on the WEF and the role Klaus Schwab, the 86-year-old founder of the World Economic Forum, played during the decades he was at the helm, watch the video above.

Since recording this video, the WEF has announced that Schwab will step down as executive chairman and transition to a non-executive role by January 2025.

Central bank digital currencies (CBDCs)

Central bank digital currencies, or CBDCs, are the primary tool in implementing various agendas that threaten freedom, according to Roth.

Roth raises the alarm over the recent progress made around Central Bank Digital Currencies or CBDCs. "A [CBDC] is the number one concern. If you want to do something that's just going to completely destroy the foundation of the United States of America, you bring in a central bank digital currency, and it's just completely over," Roth cautioned. "It is just the absolute most frightening thing for freedom and wealth creation."

What are CBDCs?

Central bank digital currencies are programmable, digital currencies that operate as fiat currency. They are controlled and issued by central banks.

Proponents claim CBDCs can prevent money laundering, deter criminal activities, improve the speed and security of transactions, help fine-tune monetary policy, and allow for financial inclusion.

Critics claim CBDCs are the ultimate tool of control, censorship, and surveillance that can be used to monitor every single payment made and received, obliterating financial privacy and anonymity.

CBDCs continue to see accelerated adoption this year, with 134 countries exploring these options. According to the Atlantic Council, this represents 98% of global GDP.

One of the latest significant developments has been SWIFT – the global bank messaging network – planning a new platform to connect all the CBDCs in development to the existing financial system. The platform is said to launch within the next two years.

Crypto vs. CBDCs

Roth warned that some within the government are manipulating interest in digital currencies and digital assets to mainstream CBDCs and intentionally trying to conflate CBDCs with cryptocurrencies. For more information, watch the video above.

Roth stresses that truly decentralized digital currencies like Bitcoin are the antithesis of CBDCs. "A central bank currency is the exact opposite in terms of purpose and focus and what it stands for than a cryptocurrency where you have something like Bitcoin, which is entirely decentralized," she said.

Roth added that one of the drivers behind the surge in cryptocurrencies, especially Bitcoin, is the growing interest in the decentralized nature of these types of digital currencies.

"That's really what that's about. It's about preserving wealth. It's about having control and freedom," she said. "Every government is exploring a CBDC in some way. [Even] the Fed is running pilot programs and doing research," she noted.

Roth points to gold, silver, Bitcoin, and any other physical metals as hedges against the risks posed by a potential CBDC.

For Roth's take on how to protect your wealth and freedom amid this coming financial shift, watch the video above.

"The idea of ownership has to be viewed through an important lens. If you want to create wealth and have personal sovereignty and freedom, that comes to you through owning things. Through that ownership, assets can retain their value and increase in value. They may want you to own nothing, but I want you to own as much as possible," Roth said.

Kitco Media

Michelle Makori

Time to Buy Gold and Silver

Tim Moseley

HOME

Fed in focus: Asset prices on hold as investors await rate decision and inflation data

Leave a comment

Fed in focus: Asset prices on hold as investors await rate decision and inflation data

Cryptocurrency prices trended lower to start the week as investor attention is focused on the Federal Reserve and its upcoming decision on interest rates and May's Consumer Price Index (CPI) inflation reading, both of which are due on Wednesday.

Stocks fell under pressure in early trading but managed to climb back into the green in the afternoon despite rising expectations that the Fed will keep interest rates at a two-decade high for longer. The CME FedWatch tool now shows that anticipation for a September rate cut has fallen to 49%, down from 60% a week ago.

Geopolitical developments in Europe also have investors on edge after France's President Macron and German Chancellor Olaf Scholz suffered lopsided losses to far-right parties in European elections on Sunday. The euro fell to its lowest level in a month after the results were released, while the Paris stock index sank around 2% in the wake of Macron announcing snap elections.

At the market close on Monday, the S&P, Dow, and Nasdaq were all in the green, up 0.26%, 0.18%, and 0.35%, respectively.

Data provided by TradingView shows that Bitcoin (BTC) briefly spiked back above $70,000 in early trading to hit a high of $70,195, but gave back the gains in the afternoon and returned to support near $69,600.

BTC/USD Chart by TradingView

At the time of writing, Bitcoin trades at $69,640, an increase of 0.05% on the 24-hour chart.

Short-term leverage flush

“Highly positive ETF flows for the last 20 trading days have helped to offset pressure on BTC, however, the fact that this was unable to move the price further, and push BTC above its range high is a negative in the short-term,” said analysts at Bitfinex. “The counter-argument is that traders are executing a basis arbitrage trade, where they have long spot exposure and short perpetual futures to collect funding payments.”

“However, it is important to note that this is highly speculative,” they added. “As per the chart below, there has been high open interest (OI) on BTC, as well as on altcoins.”

“Coinglass data shows that BTC OI across major exchanges reached an all-time high of $36.8 billion on June 6th,” they said. “And despite [Friday’s] correction in price, OI is currently sustained above $36 billion levels.”

“We believe the drop on Friday was more of a ‘leverage flush’ where an extreme amount of leveraged longs on altcoins (as well as majors to some extent) is wiped out and funding rates neutralised,” the analysts suggested. “However, we do not expect a major decline to follow immediately, even though the leverage wipeout/liquidations were quite significant on altcoins.”

“This is mainly because the amount of BTC liquidations was relatively small,” they said. “While we had more than $360 million in long liquidations and over $410 million total liquidations on June 7th – the highest since April 14th and more than when BTC went sub $57,000 – this time around only $50 million of the long liquidations came from BTC.”

“Most were on altcoins, which explains the severity of the decline in altcoins last week relative to majors,” the analysts said. “Such liquidation events are usually not followed by further severe drops and hence the next week will be pivotal, given the forthcoming Consumer Price Index inflation report on June 12th is expected to be a major market catalyst, with the price expected to continue to range in a tight environment as derivatives positions get built up again.”

“In the current environment, holding the local lows around $68,000-$68,500 would be pivotal for bulls, whereas failure to move past range highs remains a cause for concern,” the analysts said.

Addressing the tough situation the Fed finds itself in regarding interest rates, Bitfinex analysts said keeping rates higher for longer is a double-edged sword that will need to be navigated with deftness.
 

“On one hand, the strength and adaptability of the US economy could enable it to thrive even in a high-interest-rate environment driven by robust labour demand and rising wages,” they said. “This scenario would support continued economic growth, solid consumer spending, and overall economic resilience.”
 

“However, there is also a significant risk that maintaining elevated interest rates for too long could stifle economic activity, leading to reduced investment, slower job creation, and a potential downturn,” they warned. “The Fed faces the delicate task of balancing these opposing outcomes.”

They also suggested that the recent rate cuts by the European Central Bank and the Bank of Canada, done to “shift towards more accommodative monetary policies to boost economic growth, suggest that the Fed may need to re-evaluate its own monetary policy.”

“With the Fed adopting a cautious approach, the actions of its global counterparts may influence its decisions in the coming months, particularly if inflation trends and economic conditions warrant a shift,” they said.

Kitco Media

Jordan Finneseth

Time to Buy Gold and Silver

Tim Moseley

HOME

Wall Street throws in the towel on gold after Friday’s rout Main Street optimism likely a pre-selloff snapshot

Leave a comment

Wall Street throws in the towel on gold after Friday’s rout, Main Street optimism likely a pre-selloff snapshot

This week, precious metals markets saved all their drama for the grand finale. Spot gold opened the week trading at $2,325.26, and spent much of the first four days trading in a relatively narrow $25 range.

The expected 25 basis point rate cuts from the ECB and the Bank of Canada came and went, with spot gold eventually setting its weekly high of $2,386.75 just after midnight on Friday.

North American traders went to bed Thursday night expecting Friday morning’s nonfarm payrolls (NFP) report to be the week's highlight for gold. But the People's Bank of China (PBoC) stole the spotlight in the early hours, announcing at 4 am EDT that they had broken their 18 months streak of sovereign gold purchases in May and sending metals prices crashing through multiple levels of support as algorithmic stop loss orders were filled in rapid succession.

Spot gold sank like a stone, falling from $2,373.85 just before 4 am to $2,343.68 only one hour later, with much of the move taking place in a matter of minutes.

Then, the yellow metal was trading at $2,333.42 in the moments before the 8:30 am release of the surprisingly strong U.S. jobs report, which drove gold down even further as markets recognized that the Fed would have even less reason to cut in the near term. As gold was already down over $40 at that point, the NFP took the yellow metal all the way down to support near $2,300 per ounce.

Gold saw multiple bounces off the $2,300 level throughout Friday trading, but finally broke through support shortly after 2:40 pm EDT.

The latest Kitco News Weekly Gold Survey has the majority of industry experts throwing in the towel on gold’s near-term prospects, while most retail traders saw gains for gold in the coming week, though most voted before Friday morning’s fireworks.

“Two forces drove gold to new one-month lows ahead of the weekend,” said Marc Chandler, Managing Director at Bannockburn Global Forex. “The first, and which got the ball rolling, was news that although the dollar value of China’s reserve grew last month, it did not add to its gold holdings for the first time in 18 months. The second, which added insult to injury was the jump in US rates and the dollar in response to the stronger than expected US jobs data.”

“A break of $2300 in the spot market targets the May lows near $2277,” Chandler added. “A break of the $2270 area could send the yellow metal down to the $2220 area.”

“China rugging the gold bulls like GME today,” said Adam Button, head of currency strategy at Forexlive.com. Button thinks gold has further to fall. “This China news is bad,” he added.

Darin Newsom, Senior Market Analyst at Barchart.com, said gold prices are likely to move lower in the days ahead.

“While I’m not reading anything into Friday morning’s spike move, a knee-jerk reaction to the comic relief known as monthly US employment numbers, August gold remains in an intermediate-term downtrend on its weekly chart,” Newsom said. “The contract’s short-term daily chart is also showing a downtrend that didn’t quite complete itself this past week. Much will depend on Friday’s close, though the initial reaction Friday saw August take out its previous 4-day low of $2,334.80. Now we’ll see if there were any sell orders waiting below that mark."

“Positioned in inverse Gold and Silver ETFs as a hedge here, as the market has temporarily turned South,” said Mark Leibovit, publisher of the VR Metals/Resource Letter.

“I’m sticking with up, as support structure is still in place from the weekly chart,” said James Stanley, senior market strategist at Forex.com. “And for the first four days of the week gold held in a fairly strong position until finding resistance at 2378.”

“I think the driver around Chinese gold reserves could possibly be a trap door, and I don’t think the Fed is going to come off as overly hawkish next week,” Stanley added.

Colin Cieszynski, Chief Market Strategist at SIA Wealth Management, was weighing the implications of the jobs report ahead of next week’s Fed rate decision.

“The U.S. employment numbers mean it's less likely that the Fed's going to cut rates,” he said. “It's less likely they'll cut rates next week, and they're really under pressure to not cut rates. And that's been propping up the U.S. dollar, particularly in a week where Canada and Europe did cut rates.”

Cieszynski said this will also have a significant impact on the U. S. dollar, and on gold prices.

“That puts a tailwind behind the U.S. dollar and a headwind in front of gold in the near term, and other commodities as well,” Cieszynski said. “Anything that's priced in U.S. dollars has a headwind in front of it now, because this could boost the U.S. dollar a little bit in the short term.”

Looking past the surprising headline number, Cieszynski said that the most significant thing about the jobs report was its inflation data.

“The most important part was actually that wage inflation is going up again,” Cieszynski said. “I think a lot of people were hoping that maybe the Fed would signal a rate cut in July, but yeah… maybe September. You could still do two rate cuts this year, in September and December, one before the election and one afterwards.”

Cieszynski said that the downward price action from gold could be fairly dramatic, as its run-up provided few obvious areas of support. “It broke out over $2,160, and then it very quickly went to $2400, so the support is in at around $2,280ish, $2,285, and if that gets taken out, then back to $2,125, $2,150.”

This week, 18 Wall Street analysts participated in the Kitco News Gold Survey, and after Friday’s precipitous slide, few were optimistic about the near term. Only two experts, representing 11%, expect to see gold prices climb higher next week. Eleven analysts, fully 61%, predicted a price decline, and the remaining five, or 28% of the total, see gold trending sideways during the coming week.

Meanwhile, 184 votes were cast in Kitco’s online poll, with Main Street investors representing the ‘before’ picture of a relatively optimistic market. 107 retail traders, or 58%, look for gold prices to rise next week, the same proportion as last week. Another 33, or 18%, expected they would be lower, while 44 respondents, representing the remaining 24%, saw prices chopping sideways during the week ahead.

Next week will revolve around the Wednesday morning release of U.S. CPI for May, followed by the Federal Reserve’s monetary policy decision in the afternoon.

Then on Thursday, markets will be watching U.S. PPI for May and weekly jobless claims, with the Bank of Japan set to announce their monetary policy decision in the evening. And Friday morning will see the release of Preliminary University of Michigan Consumer Sentiment.

Adrian Day, President of Adrian Day Asset Management, was among the minority who believe gold could stage a comeback next week.

“Friday’s drop after the U.S. payroll report is overdone, and suggests some holders were nervous weak hands,” Day said. “The concern is that the payrolls report pushes back the prospects of a rate cut by the Federal Reserve, but no-one was expecting it at next week’s meeting; September was the earliest when a Fed rate cut was broadly expected. A lot can happen twixt now and then.”

“Moreover, the U.S. and the Fed are not the only game in town,” he added. “Both the European Central Bank and the Bank of Canada have cut rates in the last weeks, with a few other small central banks. The global trend is definitely to lower rates.”

Day said that while gold might see some follow-through from today’s selloff, he thinks it will only be for a day or two, and only shallow. “By the end of the week, I would expect gold to be moving up again.”

Kevin Grady, president of Phoenix Futures and Options, was looking at the market dynamics on Friday after the sharp overnight selloff.

“When the market dumps like that, the rest of the day is no longer about the news,” he said. “The rest of the day is people hitting stops, and in that market, it gets into a rhythm of the day where people are liquidating. So when you enter a day as a trader, and you see people are liquidating positions, it just changes the day. People are thinking, are there more stops under the market? Did we hit all the stops? Where's the buying coming in?”

“As a trader, that's what I look for,” Grady said. “I remember standing in the trading pit for years and years, and that's what I would watch for. Where are the stops? The market sells off… are they continuing? When you see another dip in the market and it doesn't continue, and strong buying comes in, who's doing that strong buying? Where's it coming from?”

Grady said that the payrolls report just exacerbated an already declining market, but soon all eyes will move to next week’s data.

“Let's see what the CPI looks like,” he said. “I think that's going to be the key for us. We have to wait and see.”

He’s also very interested in what Federal Reserve chair Jerome Powell will say at next week’s post-FOMC press conference.

“No one's anticipating any rate movements, but it's all about the verbiage, and the dot plot,” Grady said. “Everybody wants to know, where do these guys all stand as far as their projections and how many rate cuts are coming in, or will there be [cuts]? You saw the ECB cut rates this week. I still say that inflation is hot. Everything that touches, every single person, food, rent, education, insurance, any of those prices. Inflation is 15 percent at least on most of those metrics and I think that these guys see it.”

Grady said he thinks it’s increasingly likely that the Federal Reserve will decide to bite the bullet and raise the inflation target above 2%.

“I don't know if these guys at some point are going to start raising their target a little higher and say, our number is no longer 2 percent that we're going to target, we're going to try to say maybe it's 3%. I think that discussion is being kicked around, and I think that discussion has to be had, because right now, I don't think it's prudent to cut rates. I just don't think it's warranted, but they're in a really tight spot because on all the servicing debt that they have, they're paying exorbitant interest rates, and especially if the ECB is cutting rates, the entire world is flooding into U.S. Treasuries at 5.2%.”

Grady said that the Fed will need to do something at some point. “We're holding up the world, and we're going to continue to pay an exorbitant amount for our debt to service our economy?” he asked. “That's why I think these guys are in a real pickle.”

“I think they'd like to [cut], but I think the only way they're going to be able to lower rates is if they say, our target’s raised a little, we're going to go to maybe 3%,” Grady concluded.

“Gold's chart looks really weak, which is not surprising,” said Phillip Streible, Head of Market Strategy at Blue Line Futures. “If you are looking for metals exposure, copper and silver have better fundamentals. Gold investors should take a bit of a break for now.”

“We are likely in higher timeframe bearish correction against the move up from 19001,” said Michael Moor, Founder of Moor Analytics. “The trade below 24343 (+1.3 tics per/hour) has brought in $122.3 of pressure. The trade below 24216 (+4 tics per/hour) projects this downward $60 (+)—we have attained $109.6. On 5/22 we left the minor bearish reversal warned about, and on 5/23 left another bearish reversal above. These rolled into the (Q) and are OFF HOLD. Decent trade below 23642 (-1.2 tics per/hour starting at 6:00am) should bring in decent pressure, likely for days.”

“Neutral,” said Naeem Aslam, Chief Investment Officer at Zaye Capital Markets. “Consolidation with a grind to the downside.”

And Kitco Senior Analyst Jim Wyckoff sees further declines for gold next week. “Steady-lower as chart damage inflicted recently,” he said.

Spot gold last traded at $2,294.01 per ounce at the time of writing, down 3.45% on the day and down 1.43% on the week.

Kitco Media

Ernest Hoffman

Time to Buy Gold and Silver

Tim Moseley

HOME

The Top Ten Cryptocurrency Blunders: A Must-Read Guide for All Investors

Leave a comment

The Top Ten Cryptocurrency Blunders: A Must-Read Guide for All Investors

Are you eager to maximize your returns in the cryptocurrency market? If so, it's crucial to avoid common pitfalls that could lead to significant financial losses. This comprehensive guide will delve into the ten most critical errors crypto investors often make, which can result in substantial monetary losses. By understanding and avoiding these mistakes, you can ensure that your investments not only avoid unexpected setbacks but also thrive, leading to significant profits that can potentially change your financial future.

#1. Not Doing Your Own Research (DYOR)

One of the most common blunders for investors is the lack of thorough research before diving into an investment opportunity. It's easy to get excited, especially when a friend boasts about a lucrative altcoin investment that promises astronomical returns. However, it's essential to avoid getting caught up in the frenzy and instead take a step back to educate yourself. 

This includes learning about reputable exchanges, secure cryptocurrency storage, and tax implications, as well as delving deeper into the specifics of individual crypto projects. By conducting your own research, you are taking control of your investments and empowering yourself with knowledge.

When evaluating research and projects, two crucial factors come into play. Firstly, verifying the project's authenticity and examining the token distribution is essential. To accomplish this, CoinmarketCap or CoinGecko can be used to analyze the coin or token. Delve into the data, focusing specifically on the price movement and trading activity. The trading volume should be substantial, indicating genuine interest and market participation. Additionally, the token should be listed on at least one reputable exchange.


Source: CoinGecko

With the basics covered, it's time to delve into more in-depth information from secondary sources. Explore cryptocurrencies on websites such as Messari, Binance Research, and CoinBureau, which provide comprehensive introductions to projects, their core teams, and objectives. Be sure to examine the profile section on Messari, which offers valuable insights into a project's background, token distribution, and other essential details.

It is essential to consider how tokens are allocated. It is favorable when tokens are distributed broadly among the community, indicating a healthy sign. Conversely, it raises concerns if a small group, often the founders, possesses most of the tokens. Additionally, it's essential to investigate the backgrounds and credentials of the founder, CEO, and other key team members. Videos featuring these individuals can provide valuable insight into their expertise and vision.


Source: Markethive.com

Previous interviews offer valuable insights into their progress in realizing their goals. Also, if they conduct regular meetings or webinars open to the public, it indicates transparency. Another key indicator of their credibility is their ability to follow through on their road map. At this stage, you should have gathered sufficient information to assess the project's authenticity and potential for long-term success.

#2. Opting For Inadequate Crypto Exchanges

Choosing the right exchange is a make-or-break decision. Many beginners and experienced cryptocurrency users fall into the trap of selecting the wrong exchange platform. The severity of this mistake can vary greatly, but it's crucial to start by verifying the exchange's authenticity. Unfortunately, many individuals are deceived by fraudulent crypto exchanges, underlining the need for vigilance in this crucial step.

Exercise caution when encountering sponsored advertisements for cryptocurrency exchanges, even when they appear on trusted news websites. Conduct thorough due diligence. Look into online discussions on Reddit, X, Bitcointalk, and other forums to see what users say about their experiences with these exchanges. 

Additionally, investigate the exchange's leadership, including the founders' backgrounds and the company's history. Just as you would carefully vet individual cryptocurrency projects, it's crucial to apply the same level of scrutiny when evaluating exchanges, particularly those that are less well-known.

Next, ensure the exchange aligns with your investment approach. This involves checking if the exchange provides the specific tokens you want to purchase. Most exchanges will meet your needs if you focus on investing in well-established large-cap tokens. However, if you're interested in smaller-cap tokens with greater risk but the potential for high returns, you'll need to be more discerning in choosing exchanges.

While specific cryptocurrency exchanges boast an extensive catalog of digital assets, others, like Coinbase, have a more limited selection, comprising only a few hundred options. Nevertheless, Coinbase's strict adherence to regulatory standards as a publicly traded company in the US ensures the implementation of rigorous security protocols. This sets it apart from many other exchanges, which lack similar oversight and may not inspire the same confidence level.

Beyond security and coin allocation, consider whether the exchange's features align with your trading style. As a beginner, you may prefer an exchange with a user-friendly interface. If you're more seasoned, verify that the exchange offers the advanced trading features you need. Many exchanges cater to diverse skill levels by providing basic and advanced platforms, but exploring your options is essential to finding the best fit.

Finally, ensure the platform you consider using accepts your currency and does not charge excessive trading fees. High fees can ruin a successful trading day, especially when more affordable options are available.

#3. Impulsive Decisionmaking With No Strategy

The third mistake to avoid is entering the crypto market without a strategic approach. As the saying goes, 'Failing to plan is planning to fail.' This adage holds particularly true in crypto, where impulsive decisions often lead to regret. By establishing a well-thought-out strategy, you can confidently navigate the market, making informed investment choices rather than relying on chance. With a solid strategy in place, you can feel secure in your decisions and confident in your ability to navigate the market. 

A solid strategy serves as a guiding framework, protecting you from making rash, emotional decisions and keeping you on track despite the influences of fear, uncertainty, and doubt (FUD) and the fear of missing out (FOMO). With a robust strategy and the discipline to stick to it, you can progress steadily without getting derailed.

Crafting a winning approach requires a tailored plan that suits your unique needs. Some general principles can serve as a guide. Start by setting clear and measurable goals rather than vague aspirations. Consider your comfort level with risk when setting these goals. For instance, someone in their early years without family responsibilities may be more inclined to invest heavily in cryptocurrency, whereas someone older with dependents may take a more cautious approach.

Regarding your cryptocurrency investments, you need to determine your comfort level with risk. Will you diversify your portfolio with smaller, more volatile altcoins, offering more significant growth opportunities but with higher uncertainty, or play it safer with established large-cap coins that provide more stability but limited upside? Additionally, should you hold onto your investments for the long term (HODL) or engage in active trading? This decision ultimately hinges on your personal risk tolerance and the trade-offs you're willing to make between security and potential returns.

Regardless of your investment approach, remember this crucial rule: never put in more money than you can comfortably part with, and refrain from taking on debt to fund your investments—it's simply not a risk worth taking. New investors, in particular, should resist the urge to amplify their bets with excessive borrowing, such as crypto leverage trading. Additionally, be sure to cash in on your gains periodically. Failing to do so is a common pitfall, so make it a deliberate part of your strategy, and you'll be grateful for it in the long run.

#4. Relying on a Centralized Exchange Instead of a Personal Wallet

Fourth on the list is a crucial security oversight: neglecting to self-custody one's crypto. To clarify, self-custody means having complete autonomy over your cryptocurrency by storing it in a personal wallet that only you can access and control. This approach is akin to keeping your physical cash in a personal safe rather than relying on a bank. For optimal security, self-custodial wallets are the recommended choice. Newcomers to the crypto world may wonder why they shouldn't simply store their funds on a centralized platform like Coinbase, Kraken, or KuCoin, but there are important reasons to avoid this approach.

Keeping some of your assets on these platforms for easy trading might be practical. However, there are risks when entrusting your assets to third parties online. Trusting the entity you are dealing with is essential, as some dishonest individuals are in the industry. A recent example is Sam Bankman Fried, who was once highly regarded in the crypto world but ended up causing significant financial losses to many. As a result, it's imperative to exercise extreme caution when dealing with online asset storage.

A second drawback of centralized exchanges is that, regardless of their trustworthy nature and rigorous security measures, they can never provide a guarantee against cyber-attacks. The cryptocurrency industry has witnessed a staggering $2.85 billion in losses due to theft from various exchanges and custodial services since 2012, demonstrating that no platform is entirely immune to breaches. Not even significant exchanges like Binance are immune, as evidenced by a hack they experienced in 2019 despite their robust security measures.

Cryptocurrency exchanges are attractive targets for cybercriminals due to the potential for substantial financial gains if their security measures are compromised. Malicious individuals seeking to take advantage of vulnerabilities in these platforms constantly threaten them. Additionally, regulatory uncertainties pose a risk for exchanges, as they may be subject to sudden closure or asset seizure by government authorities. An example occurred in 2021 when South Korea closed down 11 exchanges allegedly engaged in fraudulent activities.

Finally, there is a perpetual threat of financial collapse and insolvency. In such a scenario, users' assets could be at risk. The likelihood of this increases if an exchange fails to perform regular proof of reserve audits. Therefore, it is not advisable to keep assets on exchanges. Due to these concerns, the risks associated with storing assets on exchanges outweigh any potential benefits. As Benjamin Cowen, CEO of Intothecryptoverse.com, aptly puts it, "Treat exchanges like public toilets. Get in, do your business, and get out.”

So what should you do instead? You need to self custody your crypto by holding a non-custodial or self-custodial wallet. Non-custodial wallets are a broader category encompassing various wallets where users control their private keys. A non-custodial wallet can be browser-based or software-based, like Trust, Solflare, or Exodus, where users control their private keys. Although the wallet provider still bears some responsibility for safeguarding your assets, you have ultimate authority over your cryptocurrency.

Self-custodial wallets are a type of non-custodial wallet in which the user has complete control over their private keys and is responsible for managing their funds. They are hardware wallets like Ledger or Trezor in which the user has complete control over their private keys and is solely responsible for securing their assets. In both cases, the user controls their private keys and manages their funds. Still, the level of control and responsibility can vary depending on the type of wallet.

#5. Neglecting To Back Up Seed Phrases and Passwords

Another common security mistake is neglecting to create backups of seed phrases and passwords. A seed phrase is a set of words your cryptocurrency wallet generates and serves as the master key for managing and retrieving your funds. In the event of device failure, loss, or theft, your seed phrase is the only way to regain access to your assets stored in the wallet. 

Storing physical copies of your seed phrases and passwords may seem inconvenient to some people. However, considering the importance of safeguarding your finances, it is essential to prioritize security over convenience. It is crucial that these backups are kept in a tangible format. Avoid saving seed words digitally on your device at all costs, as this dramatically increases the risk of your cryptocurrency being stolen by malware or cyber criminals.

Consider choosing between a paper backup method or engraving the information on a steel card for added security. Ensure that you store this vital information in a secure location. Additionally, take into account the security measures for your cryptocurrency exchange accounts. Implement two-factor authentication, and remember to store the backup codes needed for account recovery securely. Losing access to your phone can lead to being locked out of your account, resulting in a cumbersome verification process to regain entry. Prevent this potential hassle by documenting and safeguarding the codes along with your seed phrases in a secure container or safe.

#6. No Risk Management Plan

Effective risk management is essential for achieving long-term success in the crypto market. It is commonplace to become impulsive and deviate from your initial investment strategy. Staying composed during a bullish market is crucial to avoid making hasty decisions. Therefore, having a risk management plan tailored to your investment approach is vital.

A crucial rule of thumb for all investors is investing only money you are comfortable potentially losing.  If you're an active trader, consider implementing risk management strategies such as stop-loss orders and profit-taking limits. These tools enable you to lock in gains when the market is favorable and limit potential losses when it turns sour. By doing so, you can avoid the need for constant market surveillance, providing peace of mind and a more hands-off approach to investing.

When managing risk, adopting a cautious mindset that extends beyond trading to include withdrawing your assets, also known as off-ramping, is essential. Many fall prey to a common mistake: sending funds to the wrong blockchain via an exchange. This mistake is easily preventable, but it can have irreversible consequences, and even with the help of wallet providers or exchanges, rectifying the situation is not always possible and can be highly stressful. To avoid this, take the precautionary step of sending a small test transaction to confirm the successful funds transfer. While this will incur some gas fees, it's a minor cost compared to the potential risks involved.

#7. Falling For Scams

Be cautious of fraudulent schemes, which are a significant concern in cryptocurrency and are closely related to managing risks. Conducting thorough research and remaining vigilant are essential to avoid falling prey to such schemes. Adopt a skeptical mindset and stay alert to potential red flags. Empowering yourself with knowledge of common fraudulent tactics is key to protecting your investments.

Some typical fraudulent schemes include Ponzi schemes, which rely on flimsy foundations and promise high returns but fail when new investments dwindle. Scammers may also attempt to attract victims to questionable investment platforms where funds are deposited but never returned. Another tactic is phishing attacks, where fraudsters create fake websites or emails to deceive individuals into revealing confidential information like private keys or wallet passwords.

Another insidious practice is pig butchering, a deceitful scheme in which individuals build a fake online connection with their targets and then manipulate them into divulging sensitive financial details or transferring funds. This deceptive tactic, akin to the tactics of the "Tinder Swindler," is prevalent in financial fraud. Moreover, cryptocurrency scams frequently exploit the influence of celebrities, using their images and names to deceive unsuspecting followers. Falling prey to such scams can have devastating consequences, not only draining your finances but also taking a heavy emotional toll on your well-being.

#8. Falling For FOMO 

The following three mistakes are rooted in emotional biases. Although intuition has its place in some regions of life, it's essential to separate emotions from rational thinking when making investment decisions. The fear of missing out (FOMO) is a common psychological trap, and it can cleverly manipulate investors into making impulsive choices.

Theodore Roosevelt once pointed out the negative impact of comparing oneself to others on happiness, quoting, “Comparison is the thief of joy.” “This concept can also be applied to investing. During times of positive market trends and when your peers are succeeding, it can be tempting to abandon one's investment strategy and lose focus.

The proliferation of social media has exacerbated the problem, as overnight successes and compelling forecasts of price surges create unrealistic expectations. For instance, many individuals were convinced that Bitcoin would soar to $100,000 during the previous market upswing despite falling short. The allure of this narrative led people to hold onto their investments for too long, neglecting to cash in when they should have. 

This reinforces the importance of developing a strategy tailored to one's risk tolerance and grounded in thorough research rather than following the crowd. Tuning out the noise and focusing on your approach is essential, a lesson closely tied to the following common pitfall: having inflated expectations, particularly among those new to the market.

#9. Inflated Economics

High hopes can sometimes result in significant letdowns. Viewing cryptocurrency investments as a means to rapid wealth can result in severe financial setbacks when reality fails to match these lofty expectations, particularly in the short term; investors often make ill-advised choices. Such mistakes include impulsively selling during market downturns or investing in high-stakes assets without adequately evaluating the risks.

It is crucial to have a solid strategy and adhere to it in order to succeed. By remaining patient and disciplined, your chances of success are higher. Should you experience good fortune in cryptocurrency, you must exercise humility and discretion. Boasting about your wealth can attract unwanted attention, and there have been disturbing instances where individuals who publicly flaunted their crypto gains online became targets of criminal activity. It's wise to keep your accomplishments private and avoid drawing unnecessary attention to yourself.

#10. Quitting Prematurely

Lastly, a common pitfall is surrendering too soon, which can cause investors to forfeit potential profits. The market's tendency to experience significant fluctuations can be intimidating, and those not prepared for such instability might quickly sell their assets during downturns, putting themselves at risk of losses. Exiting too early could result in missing opportunities for potential gains.

Successful investors are resilient and endure challenges, adapting their strategies and gaining knowledge along the way. Having a long-term perspective is key. While prices may experience significant fluctuations in the short run, it is essential to maintain a broader view. Viewing a bear market from a longer-term standpoint can offer a more positive outlook. 

Patience and holding onto investments can eventually lead to significant gains. Sometimes, you just have to “hold on for dear life” and wait for your fortunes to moon. Finding a balance and following the profit-taking strategy mentioned earlier is prudent. It is crucial not to let short-term market trends distract you from your crypto journey and to keep the perspective of how far the cryptocurrency industry has come since its inception. 

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.

 


 

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

HOME

Gold Price News: Gold Climbs to Two-Week High Above 2370 An Ounce

Leave a comment

Gold Price News: Gold Climbs to Two-Week High Above $2,370 An Ounce

Gold prices rose for a second day on Thursday to reach their highest since May 23, taking support from data showing a higher-than-expected rise in US jobless figures.

Gold climbed as high as $2,378 an ounce on Thursday, and prices were quoted at around $2,370 to $2,375 an ounce by late afternoon. That compared with around $2,355 an ounce in late deals on Wednesday.

KAU/USD 1-hourly Kinesis Exchange

Thursday’s move represented a second straight day of gains for the yellow metal, after a lacklustre first half of the week, taking prices to a two-week high.

S initial jobless claims figures released Thursday showed a larger-than-expected increase in the number of Americans seeking unemployment benefits, coming in at 229,000 in the week to June 1, compared with market expectations of 220,000. Any signs of a weaker economy suggest increased pressure on the US Fed to cut interest rates – a bullish factor for non-yielding gold.

US 10-year treasury bond yields were broadly steady on Thursday, hovering at a two-month low, and this downward move has provided an additional supportive element for gold prices.

Elsewhere, the European Central Bank cut interest rates by 25 basis points to 4.25% as expected on Thursday, after nine months of steady rates. While the move is less significant for gold than a US Fed rate cut, it nevertheless highlights that recent expectations over the start of an interest rate-cutting cycle have started to materialise among major central banks.

Looking ahead, all eyes will be on the monthly US non-farm payrolls figures for May on Friday as well as the US unemployment rate for May, for further signals on possible interest rate changes in the coming months. ECB President Christine Lagarde is also set to give a speech on Friday afternoon, following Thursday’s decision to cut interest rates to 4.25%.

Kitco Media

Frank Watson

Time to Buy Gold and Silver

Tim Moseley

HOME

Gold prices will set new record highs in the second half of 2024 – Metals Focus

Leave a comment

Gold prices will set new record highs in the second half of 2024 – Metals Focus

Gold prices will set new record highs in the second half of 2024 – Metals Focus teaser image

Gold prices are once again flirting with resistance near $2,400 an ounce, and one research firm expects that it's only a matter of time before the precious metal sets fresh all-time highs.

In their weekly note published Thursday, analysts at Metals Focus said that the eventual monetary policy easing from the Federal Reserve will drive gold prices higher in the second half of the year.

“Later this year, we expect prices will rise again, with a new all-time high likely,” said Neil Meader, Director of Gold and Silver at Metals Focus. “After all, the recent $2,450 peak is lower, in real terms, than the 1980 one, which would have been around $3,000 in today’s prices.”

With a new record peak in sight, Metals Focus expects gold prices to average around $2,250 an ounce for the year, a 16% increase from last year’s record average price.

The comments come as disappointing economic data and growing slack in the U.S. labor market have raised market expectations for the U.S. central bank to start the new easing cycle in September.

Even if the Federal Reserve maintains its aggressive monetary policy stance, Metals Focus does not see much downside for gold through the rest of the year.

The analysts at the UK-based precious metals research firm noted several factors supporting gold’s breakout rally this year, even as the Federal Reserve has hesitated to lower interest rates.

Insatiable appetite from global central banks, a dire global fiscal outlook, geopolitical uncertainty, and China’s weakening economy have all boosted gold prices, helping them to weather headwinds generated by persistent strength in the U.S. dollar and higher bond yields.

“Whether they start this year or next, US rate cuts are coming,” Meader said. “It’s also hard to see the Middle East and Ukraine conflicts being resolved any time soon, and US/China tensions remain high. Lastly, as physical markets become more accustomed to higher prices, gold’s fundamentals should improve.”

Kitco Media

Neils Christensen

Time to Buy Gold and Silver

Tim Moseley

HOME

Franklin Templeton Eyes Altcoin-Focused Crypto Fund

Leave a comment

$1.5 Trillion Asset Manager Franklin Templeton Explores New Crypto Fund For Solana, XRP, Shiba Inu

By Brenda Ngari – June 6, 2024

$1.64 trillion Wall Street asset manager Franklin Templeton is mulling the launch of a new private fund that would invest in tokens other than Bitcoin (BTC) and Ethereum (ETH).

Franklin Templeton Eyes Altcoin-Focused Crypto Fund

According to a June 6 report from The Information citing anonymous individuals with knowledge of the plans, the private fund will target institutional investors and will be dedicated to altcoins like Solana, XRP, Shiba Inu, Cardano, and the like.

Franklin Templeton is no stranger to the crypto ecosystem. The Wall Street titan forayed into the digital assets world in 2018. It introduced a spot Bitcoin exchange-traded fund (ETF) in mid-January and has also applied to offer a similar offering for the industry’s second-largest cryptocurrency, Ethereum. In fact, Franklin Templeton was recently the first issuer to announce its sponsor fees for its spot ETH ETF in its updated S-1 statement.

“We are excited about ETH and its ecosystem. Despite the midlife crisis it’s recently experienced, we see a bright future with many strong tailwinds to push the Ethereum ecosystem forward,” the company previously stated in an X post.

By venturing beyond the top two major crypto assets, the asset management firm is signaling comfort with the class of tokens that the SEC has long deemed unregistered securities.

While the report does not indicate which altcoins in particular would be included in the new crypto fund’s basket, Franklin Templeton has publicly hailed the growth of the Solana network in 2024, commending Anatoly Yakovenko’s vision of “a single atomic state machine as a powerful use case of decentralized blockchains.”

Staking Rewards And Global Expansion

Franklin’s Thursday announcement comes after the U.S. Securities and Exchange Commission’s shocking approval of key regulatory filings related to the spot Ether ETF applications in late May — despite the top financial cop having reportedly classed Ethereum internally as an unregistered security for more than a year.

Notably, staking rewards were not included in the proposed Ether funds when the SEC gave its regulatory blessing to the first stage of applications last month. However, Franklin Templeton is considering offering investors staking rewards with the new altcoin fund.

Although Franklin Templeton’s spot BTC ETF has not been as successful as the financial instruments offered by peers BlackRock and Fidelity, the report noted that the company is keen to grow its crypto assets business outside the US.

DISCLAIMER The views expressed in the article are wholly those of the author and do not represent those of, nor should they be attributed to, ZyCrypto. This article is not meant to give financial advice. Please carry out your own research before investing in any of the various cryptocurrencies available.

The original article written by Brenda Ngari and posted on Zycrypto.com.

Article reposted on Markethive by Jeffrey Sloe

** Loans, secure funding for business projects in the USA and around the world. Learn more about USA & International Financing at Commercial Funding International. **

Tim Moseley

HOME

Have You Lost Touch With Reality? Get Going on Creating a Better Future for Yourself

Leave a comment

Have You Lost Touch With Reality? Get Going on Creating a Better Future for Yourself

Have you lost touch with reality
 

Have You Lost Touch With Reality? Has someone ever advised you to move on from the past? When others want to encourage you to move on with your life, they often say things like this. Is it really as simple as it sounds?

It may not be as easy as it seems, particularly if there are strong motivations to hold on to the past. You may find it difficult to go on with life because of significant memories and experiences from your past, such as a tragic upbringing, a sad breakup, the loss of a loved one, etc.
 

But it's also possible that you're clinging to items that have lost all relevance to your life.
 

To truly enjoy the splendor of the here and now, you must release attachment to the past. Just deciding to do it and getting going is the hardest part of changing anything.
A little, healthy introspection is a good place to start.
Take some time out to compare your present situation and the emotions it evokes with what it could be. Things might get better, but very slowly, if you don't do anything. A better, more fulfilling existence can become your reality if you just do anything.

 

Here is the way to proceed.
 

Methods for Releasing the Past
Stay completely focused on the here and now.
Let go of the past and go on. No matter how much you try, the past will always remain fixed in place. Actually, all you can do is strive to live each day to the fullest. Act as though today were your final. Paying close attention in the here and now will leave you with less mental space for dwelling on the past.
 

There can be no place for optimism if you dwell too much on the past. Whether you want to keep injuring yourself or welcome the new day, which may be full of joy, is totally up to you.
Make a firm decision to stop worrying and start living your best life.
You must resolve to "let it go" and "move on" if you want it to succeed. Things will keep going in circles unless you do this, and you risk being trapped in the past once more. Take action after making a decision that will benefit you and your future.
 

ecosystem for entrepreneurs

Allow space for mercy.
 

It could be challenging to put behind you the wrongdoings of those who have gone before you. An important first step is to forgive others and get over your anger. The healing that comes from forgiving another person is more important.
Just because you can forgive someone doesn't mean you condone their actions. Even when you know they messed up, you can still choose to forgive them. Doing so is most assuredly not an indication of fragility. What this means is that you are ready to accept the present moment for what it is and go forward with your life.
Keep your distance from the person.
Stay detached from people and places that bind you to your present situation and frame of mind. Removing yourself from a toxic environment or toxic people can help alleviate depression. To aid with the "letting go" process, it can be helpful to put some mental or physical distance between yourself and the things that are holding you back.
 

The secret is to accept.
 

To go on, you must accept your history, including the individuals who were a part of it. No one of these things has to constitute the crux of your identity. Remake yourself, learn to accept yourself, and then break free.
It is up to you to ensure your own pleasure.
You have no right to hold another person responsible for how you feel. In doing so, you risk letting another person emotionally control you to an unhealthy degree. When you accept full responsibility for your emotional state, you'll experience an overwhelming surge of joy and strength. Regardless of the circumstances, your attitude is the most important factor.
 

Consider your feelings.
 

You need to be aware of the value that your emotions provide in order to evaluate them. Think back on it if you have any pleasant, upbeat memories. Stay away from the past if it's bringing you nothing but negativity and misery in the present. Swap it out for a more reasonable one.
 

Contribute in some way.
Helping other people and going above and beyond for them might make you feel good about yourself. Getting in touch with your authentic self is facilitated by this method. Smiling, greeting someone, or donating to a good cause are all great ways to brighten someone's (and your own) day. You may change your outlook for the better and make a lasting difference in the lives of those around you by performing these small acts of kindness.
Have You Lost Touch With Reality?
I hope this might assist you throughout the time when you are trying to move on. It will all be worthwhile if you put in the work. It is within your reach; here's to a better today and tomorrow.
 

Tim Moseley

HOME

Gold Price News: Gold Falls Back Below 2330 An Ounce

Leave a comment

Gold Price News: Gold Falls Back Below $2,330 An Ounce

Gold News

Market Analysis

Gold prices fell back on Tuesday, giving up Monday’s gains, as the US dollar rebounded from a two-month low seen the previous day.

Gold prices fell as low as $2,317 an ounce on Tuesday, before edging back up to $2,325 an ounce later in the session. That was down sharply compared with around $2,351 in late deals on Monday.

KAU/USD 1-hourly Kinesis Exchange

The sharp downward reversal came as the US dollar rebounded against other major currencies on Tuesday, making gold more expensive for buyers in other currencies, and weighing on demand. The US dollar had hit more than a two-month low against the euro on Monday, but found a firmer footing on Tuesday.

 

In addition, US factory orders figures for April came in on Tuesday showing a 0.7% increase compared with March, and slightly above market expectations of a 0.6% gain. Any signs of a stronge-than-expected economy suggest the need for central banks to maintain higher interest rates, which tends to be bearish for non-yield-bearing assets like precious metals.

On the geopolitical front, the US expects that Israel will accept a ceasefire deal with Palestinian militant group Hamas if it too approves the agreement, a White House official was quoted as saying this week. The deal, which would start with a six-week halt to hostilities, would help pave the way for a permanent end to the conflict, which has injected a risk premium into precious metals markets.

Looking ahead, the markets will be watching out for Wednesday’s US ISM Services PMI figures for May, for the latest reading on the state of the economy. Also of interest will be the European Central Bank’s expected interest rate decision on Thursday, which is widely expected to be a 25-basis point cut to 4.25%. The ECB in April maintained interest rates at record-high levels of 4.5% for a fifth consecutive time.

Frank Watson

Time to Buy Gold and Silver

Tim Moseley

HOME

Gold’s attractiveness to criminals forces market participants to shoulder the AML-KYC burden

Leave a comment

Gold’s attractiveness to criminals forces market participants to shoulder the AML-KYC burden

Gold's attractiveness to criminals forces market participants to shoulder the AML-KYC burden teaser image

The biggest gold-smuggling bust in Hong Kong’s history has brought the challenges of detecting illegal movements and transactions of precious metals into sharp relief, according to a June 2 report from consulting firm Alvarez and Marshall.

“On 27 March 2024, the Hong Kong Customs and Excise Department made its largest ever gold-smuggling bust — approximately 146kg, with an estimated market value of HKD 84 million — at the Hong Kong International Airport,” the report stated. “The gold was not smuggled as ingots or jewelry with serial numbers as one might expect, but was disguised as parts for air compressors.”

Authors Henry Chambers and Benjamin Teo wrote in ‘Following the Midas Trail – Laundering Money Through Gold and Precious Metals’ that cases such as this one raise an important question: “Can forensic practitioners trace the movement of luxury items, such as physical gold, and how are these valuable items controlled?”

“Money laundering is the process of making illegally obtained gains appear “clean,” and typically follows a three-stage process — placement, layering, and integration,” they said. “Because of the scrutiny given to bank transactions, criminals may turn to gold or other precious metals when they need to launder money.”

Chambers and Teo argue that precious metals are attractive assets for criminals who wish to conceal the origins of any illegally obtained money, using the process outlined in the following diagram:

The authors ask whether it is possible for forensic investigators such as themselves to trace the movement of illicit funds through the movement of gold.

“The international Financial Action Task Force (FATF) designates dealers in precious metals and precious stones, amongst others, as Designated Non-Financial Business Professionals (DNFBPs) and recommends implementing a risk-based anti-money laundering (AML) approach in these industries,” they wrote. “In this light, since 1 April 2023, the Hong Kong Customs and Excise Department has commenced a registration regime for dealers in precious metals and stones.”

The regime applies to businesses involved in “trading […] exporting or importing precious metals, precious stones or precious products; Manufacturing, refining or carrying out any value-adding work on precious metals, precious stones or precious products; Issuing, redeeming or trading in precious-asset-backed-instruments; or Acting as an intermediary in any of the above.”

The first step in the use of gold for money laundering is placement, they said.

“Essentially, in Hong Kong the use of cash to purchase gold valued above HKD 120,000 in a single transaction or several seemingly linked transactions triggers customer due diligence requirements,”the authors said. “The dealer is then obliged to obtain and verify information such as the beneficial owner’s identity. Based on the assessed risk, the dealer may also need to understand the customer’s source of wealth/funds or other additional information.”

“On gold bars, generally, details of its owner can be verified through engravings that detail its weight, purity and manufacturer, along with an accompanying certificate of authenticity,” Chambers and Teo note. “If the gold bar is sold by an intermediate dealer and not the manufacturer, the intermediate dealer will be subject to local AML requirements and will likely have records of its customers.”

Gold bars can also be “embossed with kinegrams or security holograms” similar to those found on modern banknotes. “These security devices provide an additional layer of comfort with regard to the authenticity of a gold bar’s declared weight, purity and serial number,” they said. “This, in turn, provides comfort as to the true identity of the buyer.”

The next step in the laundering process is layering, where the gold is moved through multiple transactions and jurisdictions to cover up the trail.

“If gold is purchased or sold from or to a non-reputable dealer, or over-the-counter from or to another individual, its subsequent movement may be difficult to track, especially if its serial number, security features and certificate of authenticity have been tampered with,” the authors wrote. “Tracking can be further complicated as large amounts of gold and other precious metals can easily travel between jurisdictions undetected in suitcases or pockets or openly in the form of jewelry.”

Once the gold has been moved through these steps and locations, the criminals will attempt different ways of fulfilling the final stage of the money-laundering process, integration, where the value is merged with other legitimate assets or funds.   from location to location,

“[C]riminals may try to liquidate the gold at other dealerships,” Chambers and Teo said. “Reputable dealers will care about the authenticity of the gold, and criminals may find liquidizing gold bars with no serial numbers to be relatively difficult. However, less scrupulous dealers in other countries may take the opportunity to undercut the seller, allowing the criminals to cash out their criminal proceeds as clean money.”

They said that these jurisdictions “may not have effective AML regulations, and less scrupulous dealers will not keep records of their buyers and sellers,” which makes tracking the flow of assets far more difficult.

“Alternatively, as in the Hong Kong Customs and Excise Department’s case, gold can also be easily melted by money launderers and remolded into other items or jewelry to sell,” the authors wrote. “This process necessarily removes the serial numbers, hence hiding the gold’s origins, and may allow for easier integration due to the lower absolute value of each item. This jewelry can subsequently be sold to customers directly or to other intermediaries.”

Chambers and Teo note that a large part of the AML-KYC burden in the present-day precious metals market system falls to the DNFBPs.

“As mentioned above, the FATF and the Hong Kong Customs and Excise Department issue guidelines on how gold dealers, manufacturers and intermediaries should adopt a risk-based approach and implement customer due diligence, ongoing monitoring, screening and staff training processes, as well as file suspicious transaction reports when necessary,” they said. “This is not unlike measures that the Hong Kong Monetary Authority requires financial institutions to carry out when dealing with customers. Therefore, as in banking, this puts the emphasis of maintaining a clean industry on its gatekeepers.”

“The attractiveness of gold as both an asset and as a vessel for money laundering not only requires its gatekeepers to remain vigilant, but also protect the market’s reputation by understanding its patterns and trends,” they concluded. “It is in these stakeholders’ interests to engage with the regulators and enforce relevant requirements, to avoid prosecution and pecuniary penalties, to maintain their status as a reputable business, and to prevent criminals from laundering gold.”

 Ernest Hoffman

Time to Buy Gold and Silver

Tim Moseley

The Artist that came out of the Winter