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The Power of Patience: Long-Term Investing Strategies for a Shaky Economy

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The Power of Patience: Long-Term Investing Strategies for a Shaky Economy


The current economic climate is characterized by instability, uncertainty, and volatility, making it challenging for investors to navigate the financial markets. The COVID-19 pandemic has profoundly impacted the global economy, leading to market disruptions, supply chain disruptions, and widespread business closures. In addition, political and economic tensions in many parts of the world have contributed to a volatile and uncertain financial environment.

As a result of these challenges, investors are understandably worried about their investments and financial stability. They are wondering how to protect their portfolios from the effects of a shaky economy and avoid the pitfalls of short-term thinking. In times like these, it's important to remember that long-term investing strategies are more powerful than ever before.

In this post, we will explore the benefits of long-term investing, its principles, and some challenges of investing in a shaky economy. We will also discuss different long-term investing strategies and how to balance long-term and short-term financial goals.

Key Principles of Long-Term Investing

Long-term investing is a strategy that involves holding investments for an extended period, typically over five or more years. However, simply holding investments for a long time is not enough to achieve long-term goals. Instead, investors must follow key principles to help them achieve their financial objectives.

One of the key principles of long-term investing is diversification. Diversification involves spreading investments across asset classes, industries, and geographies to reduce risk. By investing in a variety of assets, investors can avoid putting all their eggs in one basket and can help mitigate the impact of market volatility. For example, if an investor puts all their money into one stock, they risk losing all their money if that stock performs poorly. However, spreading their money across several stocks and other asset classes reduces their risk and potential losses.

Another important principle of long-term investing is asset allocation. Asset allocation involves determining the right mix of asset classes to achieve an investor's long-term goals. This involves considering the investor's risk tolerance, time horizon, and financial goals. For example, an investor with a long time horizon and high-risk tolerance may choose to allocate more of their portfolio to equities, while an investor with a shorter time horizon and lower risk tolerance may choose to allocate more of their portfolio to fixed-income investments.

Finally, risk management is another important principle of long-term investing. Risk management involves identifying potential risks and taking steps to mitigate those risks. This may involve diversifying investments, investing in lower-risk assets, and implementing strategies to protect against market downturns. By managing risk effectively, investors can reduce their exposure to potential losses and help achieve their long-term financial goals.

Benefits of Long-Term Investing

Long-term investing is a strategy that involves holding investments for an extended period, typically over five or more years. One of the key benefits of long-term investing is the power of compounding interest, which is the ability of an investment to generate earnings on its earnings over time. Compounding can be especially powerful over long periods, as small gains can grow into substantial wealth.

Another benefit of long-term investing is the "time in the market" approach. This approach involves buying and holding investments for the long term rather than trying to time the market by buying and selling based on short-term market fluctuations. This can help investors avoid making rash decisions based on emotions or market noise, leading to costly mistakes.

In addition to the power of compounding and the time in the market approach, there are several other benefits to long-term investments that are worth considering:

1. Reduced transaction costs: Long-term investing can help reduce the impact of transaction costs, such as brokerage fees and commissions. By holding investments for an extended period, investors can avoid the need to buy and sell frequently, which can lead to unnecessary costs.

2. Diversification: Long-term investing allows investors to build a diversified portfolio of assets across various asset classes, sectors, and geographies. A diversified portfolio can help reduce risk and volatility by spreading investments across different types of assets that are not highly correlated with each other.

3. Greater potential for higher returns: Long-term investments have historically produced higher returns than short-term investments. While there is always a level of risk involved in investing, the potential for higher returns over the long term can help offset that risk.

4. Peace of mind: Long-term investing can help investors avoid the stress and anxiety of predicting short-term market movements. By focusing on a long-term strategy and staying invested even during market downturns, investors can enjoy greater peace of mind knowing that they are investing long-term and not just trying to chase short-term gains.

Long-term investing has numerous benefits and can help investors weather the storm during a shaky economy. While short-term market fluctuations may be concerning, it's important to stay focused on the long term and remember that patience and discipline can ultimately pay off.

Weathering Market Volatility

Market volatility is one of the biggest challenges of investing in a shaky economy. Market volatility refers to the degree of variation of a stock's price or a market's value. When markets are volatile, prices can swing wildly, and investors can be tempted to make rash decisions.

However, it's important to remember that market volatility is normal in investing. In fact, volatility allows investors to earn higher returns over the long term. By maintaining a long-term perspective and resisting the temptation to make knee-jerk reactions to market fluctuations, investors can help avoid costly mistakes.

There are also several strategies that investors can use to minimize risk and manage emotions during times of market volatility. These include dollar-cost averaging and value investing.

Strategies for Long-Term Investing

Investors can use several different long-term investment strategies to achieve their goals. Some popular strategies include buy and hold, dollar-cost averaging, and value investing.

Buy and hold involves investing and holding investments for the long term, regardless of short-term market fluctuations. This strategy is based on the belief that over the long term, markets tend to rise and that by holding investments for a long time, investors can benefit from the power of compounding.

Dollar-cost averaging involves investing a fixed amount of money regularly, regardless of market conditions. This strategy can help investors avoid the temptation to time the market and help smooth out market volatility's impact.

Value investing involves seeking out undervalued investments and holding them long-term. This strategy is based on the belief that the market sometimes misprices investments and that investors can benefit from their eventual correction by identifying undervalued assets.

Balancing Short-Term and Long-Term Goals

While long-term investing is essential, balancing long-term and short-term financial goals is vital. Short-term goals can include saving for a down payment on a home, paying off debt, or funding a child's education. Long-term goals include retirement savings, investing in a business, or leaving a financial legacy for future generations.

Establishing an emergency fund is one way to balance short-term and long-term goals. An emergency fund is a reserve of cash or liquid assets that can be used to cover unexpected expenses, such as a job loss, medical bills, or a major home repair. By having an emergency fund, investors can avoid selling investments during market volatility or economic uncertainty.

Another way to balance short-term and long-term goals is to establish a savings plan. A savings plan can include the following:

  • Automatic contributions to an investment portfolio.
  • A regular contribution to a 401(k) or IRA.
  • A dedicated savings account for short-term goals.

By establishing a savings plan, investors can progress toward both short-term and long-term financial goals. 

 

Why Markethive Remains Your Best Bet for Long-Term Investment

In today's economic climate, investing in the right opportunities is crucial to achieving long-term financial success. With the current economic uncertainties and market volatility, finding stable and profitable investment opportunities can be challenging. However, one opportunity that has been in development since 1996 is the Markethive project, now gaining attention among entrepreneurs as the best long-term investment in this shaky economy.

Markethive is a blockchain-powered social market network that combines social media, digital marketing tools, and cryptocurrency to create a unique platform for entrepreneurs and small businesses. The platform offers a range of features, including blogging, email marketing, and social media sharing, to help businesses increase their online visibility, reach new customers, and grow their bottom line.

One of the critical reasons why Markethive is the best long-term investment is that it is built on blockchain technology. Blockchain technology provides a secure decentralized network resistant to hacking, fraud, and manipulation. This means that the Markethive platform is protected against cyber-attacks and data breaches, which is a major concern for businesses in today's digital landscape.

Another reason Markethive is a great long-term investment is its use of cryptocurrency. The platform has its cryptocurrency, Hivecoin, to power transactions on the network. Hivecoin has started gaining a significant following among cryptocurrency enthusiasts, and its value is expected to increase after it has been listed on the exchanges and as the platform grows.

Moreover, Markethive has a clear and transparent roadmap for growth and development. The company has a dedicated team of developers, marketers, and entrepreneurs who are focused on expanding the platform's features and user base. The company has also established partnerships with leading companies in the blockchain and digital marketing industries, further boosting its credibility and potential for growth.

Furthermore, Markethive is designed to benefit its users and community, not just its investors. The platform is built on decentralized and community-driven technology principles, and it rewards its users for their contributions through a unique rewards program. This program enables users to earn Hivecoins for various activities on the platform, such as blogging, sharing content, and referring new users. This means that users can benefit from the success of the platform in the long term, not just its investors.

Markethive Entrepreneur One Program (E1)

The E1 program offers subscribers various benefits to help them achieve their business goals faster and more efficiently. From advanced marketing automation tools to blockchain-based security and privacy features, the E1 program has everything you need to take your online business to the next level.

The E1 program offers entrepreneurs and small business owners access to powerful marketing tools, training, and support, as well as the opportunity to participate in the Incentivized Loan Program. Becoming an E1 member will be an excellent long-term investment in your business and future. 

Here are some of the benefits of the E1 program:

1. Advanced Marketing Automation Tools: Markethive's E1 program offers advanced marketing automation tools that can help you streamline your marketing efforts and save time, including email autoresponders, lead capture pages, and more.

2. Incentivized Loan Program (ILP): One of its key benefits is the Incentivized Loan Program (ILP), which allows members to earn equity in Markethive through their ongoing participation and contributions to the community. This provides a long-term incentive to stay engaged with the platform and build a successful business over time. It is achieved through the monthly $100 E1 subscription fees. All ILP holders will receive some percentage of the company's net revenue for 20 years with an option to roll it over or end it on the 20th year.

3. Advertising Impressions: Every month, E1 subscribers receive a certain number of advertising impressions that they can use to promote their business, products, or services on the Markethive platform. These impressions can be used to display banner ads, text ads, or sponsored content and can be targeted to specific audiences based on demographics, interests, and other criteria. The number of advertising impressions allocated to E1 subscribers varies. Because Markethive has a growing and active user base, these impressions can help drive significant traffic and exposure to your business.

4. Unlimited Advertising Co-op: The Markethive E1 program also offers access to an unlimited advertising co-op, which can help you get your business in front of more potential customers and drive more sales. The advertising co-op is a valuable feature of the Markethive E1 program that provides subscribers with an affordable and effective way to promote their businesses and products. E1 subscribers can access high-quality advertising that would otherwise be out of reach and build a community of entrepreneurs who can help each other achieve their goals.

Considering all of these benefits together, it's clear that the E1 program is an investment in your business that is well worth making. And, because Markethive is constantly evolving and improving, now is the perfect time to get on board and start taking advantage of all that the platform has to offer.

But that's not all. It's also worth noting that the E1 program is a long-term investment that can benefit you, your children, and future generations. By subscribing to the E1 program, you're laying the foundation for a successful online business that can provide you with passive income for years to come.

And for those with an E1 program subscription, it's worth considering getting more before the opportunity is gone forever. As the platform continues to grow and evolve, the value of the E1 program will only increase as the sales will close when the Wallet is released. Then you can only get it from the exchange from those willing and ready to sell. It makes sense to lock in your subscription now while you still can.

Conclusion

Long-term investing is a powerful strategy for building wealth, even in a shaky economy. By following fundamental principles of diversification, asset allocation, and risk management, investors can help protect their portfolios and achieve their long-term goals. By weathering market volatility, using different long-term investing strategies, and balancing short-term and long-term financial goals, investors can build a solid financial foundation for the future. With patience and discipline, anyone can become a successful long-term investor.

The Markethive project is the best long-term investment in this shaky economy. With its secure and decentralized blockchain technology, use of cryptocurrency, a clear roadmap for growth and development, and community-driven rewards program, Markethive offers a unique and profitable investment opportunity for subscribers and general users alike. By becoming an E1 Member, you can position yourself for long-term financial success while supporting a platform designed to help small businesses and entrepreneurs thrive in today's digital economy. So why wait? Subscribe today and start taking your online marketing efforts to the next level while building generational wealth!

 

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About: Prince Chinwendu. (Nigeria) Rapid and sustainable human growth is my passion, and getting a life-changing opportunity into the hands of people is my calling. Empowering entrepreneurs provides me with enormous gratification. Find me at my Markethive Profile Page | My Twitter Account | and my LinkedIn Profile.

 

 

 

 

Tim Moseley

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Changing expectations of the Fed’s forward guidance pressure gold lower

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Changing expectations of the Fed's forward guidance pressure gold lower

The Federal Reserve first spoke about its forward guidance at last year’s Jackson Hole Economic Symposium. Specifically, it was Chairman Powell’s keynote speech that delivered the blow to the American public about its intent to raise rates and keep those elevated rates in place until the Fed hits its 2% inflation target.

After the December FOMC meeting the Federal Reserve released its economic projections for 2023 – 2025 including the most recent dot plot. The dot plot is the Fed’s mechanism for predicting future rates by calling on 17 Fed officials to vote on future monetary policy. In the case of the December dot plot, it revealed an overwhelming consensus that the Fed would raise rates to a target of just over 5%, and keep rates elevated for the entire calendar year of 2023.

Although the Federal Reserve has maintained its policy, it was market participants' expectations that have recently shifted from disbelief to an acceptance that the Fed will not likely back off its extremely hawkish monetary policy. This includes continued rate hikes and maintaining those elevated rates throughout the year.

During February market sentiment regarding the forward guidance of the Federal Reserve shifted from uncertainty to acceptance. That resulted in gold trading under pressure for the last three consecutive weeks. On the first full trading day of the week (due to shortened trading hours yesterday on Presidents’ Day) gold is once again trading under pressure. As of 3:25 PM EST, the most active April futures contract is down $5.30 or 0.29% and fixed at $1844.80.

While it is true that inflation has been declining since the Federal Reserve began raising rates in March of last year, recent data suggests that inflation is not diminishing as quickly as the Federal Reserve had hoped. The jobs report for January coming in well over the forecast of 188,000 versus 517,000 combined with the most recent inflation reports suggests that inflation remains elevated and persistent in certain sectors.

The most recent data has cemented the idea that the Federal Reserve will maintain its hawkish monetary policy with a real possibility of two more rate hikes and most importantly maintain the new elevated rates throughout 2023.

By Gary Wagner

Contributing to kitco.com

Time to Buy Gold and Silver

Tim Moseley

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Gold prices can go lower but now is the time to build a strategic position – Incrementum’ Ronald-Peter Stferle

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Gold prices can go lower, but now is the time to build a strategic position – Incrementum' Ronald-Peter Stöferle

Now is the time for investors to look at building a strategic position in the gold market, according to one market strategist, as prices are expected to struggle in the near term due to rising bond yields on the short end of the curve.

In an interview with Kitco News, Ronald-Peter Stöferle, managing partner and fund manager at Incrementum AG and one of the authors of the annual In Gold We Trust report, said that he is expecting to see lower gold prices in the near term as markets begin to price in further aggressive monetary policy action from the Federal Reserve.

Persistently higher inflation has prompted markets to price in a 21% chance that the Federal Reserve will raise interest rates by 50 basis points next month. These shifting expectations have pushed the yield on U.S. two-year notes above 4.6%, its highest level since 2007.

At the same time, the yield on one-year notes is above 5%. Stöferle noted that when looking at inflation expectations, real bond yields are currently seeing positive returns.

"This is a tough environment for gold and I expect to see further downside risks in the next couple of weeks," he said.

The comments come after April gold futures ended last week in neutral territory at around $1,850 an ounce. Markets are closed Monday for the Presidents' Day long weekend.

However, Stöferle added that the gold market continues to show relative strength despite the selling pressure. He explained that he sees the price action and resilient strength in gold as the market calling out central bankers' hawkish rhetoric.

The rise in shorter-term bond yields has pushed the inverted yield curve to its widest level in 40 years. Stöferle said that this market trend indicates that it's only a matter of time before the U.S. falls into a recession and the Federal Reserve is forced to unwind its aggressive tightening.

Stöferle said that he expects that as soon as unemployment starts to rise, the Fed will quickly loosen interest rates.

"In the 2022 In Gold We Trust, we said that central bankers are doves in hawkish clothing and nothing we have seen has changed this view," he said. "As soon as credit markets tighten, there's no way the Fed or any central banker will stay hawkish."

While there is growing optimism in the marketplace that the U.S. can avoid a recession, Stöferle said that many investors have underestimated the time lag in monetary policy. He added that the Federal Reserve has already made its policy mistake and it's only a matter of time before something breaks.

 Commerzbank lowers mid-year gold price forecast to $1,800 due to shifting interest rate expectations

Not only has the Federal Reserve raised interest rates by 450 basis points this tightening cycle, but it has also reduced its balance sheet by $500 billion. Stöferle said that it's only a matter of time before the economy feels the effects of reduced liquidity in the marketplace.

"It's like being in a room that is losing oxygen. At first, you might not notice anything, but then it gets harder to breathe. Soon, you are rushing to the exits, hoping to get out before it's too late," he said. "Not only is the risk of a recession rising, but I think we could see a major fiscal crisis."

In this environment, Stöferle said that now is the time to take advantage of lower gold prices and build a strategic position ahead of the second half of the year. He added that one strategy investors should look at is building a position through cost averaging, where you look to buy at successively lower prices.

Despite lower prices in the near term, Stöferle said that gold prices are still on track to end the year above $2,000 an ounce.

By Neils Christensen

For Kitco News

Time to Buy Gold and Silver

Tim Moseley

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GoldSilver – Now is the time to dollar cost average

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Gold/Silver – Now is the time to dollar cost average

It was just seventeen days ago (February 1) when Gold went on a two-day rally looking as though it was going to punch back through $2000/oz (Silver $25/oz), and if you were not already on board, you thought you missed it for good. Since then, Gold and other Precious Metals seem to have hit the "pain train" as economic data continues to support an aggressive Fed policy stance leading to a stronger U.S. Dollar and rising Treasury Yields. While the Fed may want to keep its hawkish narrative alive, the reality is that the wheels are already starting to fall off the economy, and no matter what cards they hold up their sleeves, they will ultimately have to pivot dovish to save face.

Even though the Fed aims to stay "apolitical" and is laser-focused on getting back down to a 2% inflation target, the probability of reaching that goal in this new global environment is nil. The heightened geopolitical tensions and unpredictable weather patterns leave basic commodity prices at elevated levels that are here to stay. Those rising input costs will ultimately lift the prices of all goods and services, and those costs will drive the consumer to take on more debt. The rising borrowing costs will spear the economy into a recession where political leaders will pressure the Fed into reversing policy action. That is why I believe getting on board assets like Gold and Silver on this decline makes sense to "dollar cost average" to try and take advantage of the recent declines.

Daily Silver Chart

Since their October 2022 lows, Gold and Silver saw substantial gains, which peaked in January. The short-term traders and investors involved in those markets then began liquidating those holdings and going back to chasing "profitless tech and cryptocurrencies." Now that those asset classes have once again peaked, a rotation back into hard assets will become underway in anticipation of a "Fed pivot." I anticipate this occurrence happening in the second quarter. To further help you develop a trading plan, I went back through 20 years of my trading strategies to create a Free New "5-Step Technical Analysis Guide to Gold that can easily apply to Silver." The guide will provide you with all the Technical analysis steps to create an actionable plan used as a foundation for entering and exiting the market. You can request yours here: 5-Step Technical Analysis Guide to Silver.

Daily Gold Cha

Strategy

By systematically purchasing regular intervals of the 10-ounce Gold contract or 1000-ounce Silver contract, you can layer in over time and preposition for the next rally. One example with a $25,000 account size would be to focus on the December 2023 10-ounce Gold contract and use a dollar-cost average approach by purchasing 10 ounces of Gold at 1850/oz, 10 oz at 1800, and 10 oz at 1750 with a year-end target of $2100/oz. If filled on all three contracts, your average price will be $1800/oz; therefore, every dollar move Gold makes on the three contracts will be $30 since you control 30 ounces. If the $2100/oz price objective is achieved by year-end, this will result in a gain of approximately $9,000 (30 oz times $300 rise). Traders should also consider proper risk management while using a dollar-cost averaging approach, such as a hard stop on three contracts at $1700. If that were to occur under this scenario, it would likely result in a loss of $3,000. If you have never traded futures or commodities or would like to learn more about taking delivery of Silver, I just completed a new educational guide that answers all your questions on transferring your current investing skills into trading "real assets," such as the 1000 oz Silver futures contract. You can request yours here: Trade Metals, Transition your Experience Book.

By Phillip Streible

Contributing to kitco.com

Time to Buy Gold and Silver

Tim Moseley

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Central banks are replacing dollars with gold

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Central banks are replacing dollars with gold
 

The economy started the year on a strong note, and the gold market is taking a hit. The Federal Reserve might need to raise rates more than expected since inflation is not coming down fast enough.

Here's a look at Kitco's top 3 stories of the week:

3. Macro data: Gold price drops below $1,850 as U.S. retail sales surprise on the upside in January

2. Frank Giustra warns that the dollar will be dethroned in 'bifurcated' global monetary system

1. Billionaire John Paulson: central banks are replacing dollars with gold, you are better off investing in precious metal than USD

By Anna Golubova

For Kitco News

Time to Buy Gold and Silver

Tim Moseley

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Cryptocurrency: A Beginner’s Guide

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Cryptocurrency: A Beginner's Guide

crypto

Introduction

Cryptocurrencies are a form of digital currency, which means they're stored on the internet and can be used to purchase or sell goods and services. Like normal currencies, cryptocurrencies can be exchanged for other forms of money, products and services. There are many different types of cryptocurrency available today with Bitcoin being the most popular one.

What is cryptocurrency?

Cryptocurrency is a digital currency that can be used to buy and sell goods and services. It is not backed by any government or central bank, but instead uses encryption techniques to regulate the generation of units of currency and verify the transfer of funds.

Cryptocurrency transactions are recorded on a public ledger called a blockchain, which can be accessed by anyone at any time. Because cryptocurrencies are decentralized, meaning they're not controlled by one central bank (like dollars), no single entity has direct control over how much money there is in circulation or its price–but this also means there's less oversight about who's buying what with your coins!

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How do you get involved in cryptocurrency?

You can get involved in cryptocurrency by:

  • Getting a cryptocurrency wallet. This is basically like an online bank account, where you can store and transfer your digital currency. There are many different types of wallets available for different purposes; some are more secure than others. You'll also need to decide whether you want to use an exchange or download a wallet on your computer or phone (or both). If you have no idea what any of this means and just want to get started using Bitcoin as quickly as possible, we recommend Coinbase because it has both mobile apps and web interfaces that make buying/selling easy even if all the technical details confuse you–but there are plenty of other options out there too!

  • Buying cryptocurrency from an exchange such as Binance or Kraken (which we discuss below). This involves transferring money into the site's payment system so that they can process your order (a process known as "funding"). Some exchanges allow credit card payments while others require bank transfers; some only deal with Bitcoin while others handle multiple currencies including Ethereum or Litecoin; some require ID verification before allowing users access while others don't require any personal information at all! Go figure…

If none of these options sound appealing then maybe try mining instead? Mining refers specifically  to using computer hardware like GPUs (graphics processing units) which solve complex mathematical problems–called hashes–in order to release new blocks onto blockchain networks where people transact with each other without needing intermediaries such as banks involved at every step along their journey through life's journey together."

What is blockchain technology?

Blockchain technology is a decentralized digital ledger that records transactions. It's the technology behind cryptocurrencies like bitcoin, which made headlines in 2017 when it hit $20,000 per coin and then lost more than half its value in 2018.

It's not just a buzzword: blockchain has been around since 2008 and has been used by companies like IBM and Microsoft as well as governments such as Dubai to track everything from loans to real estate contracts. The most important thing about blockchain is that it provides an immutable record of all transactions ever made on the network where it resides–that means no one can change or remove these records without everyone else knowing about it!

Cryptocurrency exchanges and wallet

Cryptocurrency wallets are digital storage spaces for your cryptocurrency. They can be an app, or a website; they can also be physical devices that you can carry around with you.

The main function of a cryptocurrency wallet is to store and hold your private keys, which are used to sign transactions.

The cryptocurrency market is growing fast and it's very important to learn all you can.

The cryptocurrency market is growing fast, and it's important to learn all you can about cryptocurrencies. Cryptocurrencies are a new technology that is not regulated by the government. They have a lot of potential.

How do you buy and sell cryptocurrency?

  • You can buy and sell cryptocurrency on an exchange, such as Coinbase or Binance.

  • You can buy and sell cryptocurrency on a peer-to-peer exchange like LocalBitcoins, which acts as an intermediary between buyers and sellers.

  • You can buy and sell cryptocurrency with your wallet provider (e.g., if you have a Bitcoin wallet). These services may charge fees for their services or make money off of interest earned from holding funds in their accounts.

  • Cryptocurrency exchanges have become popular options for acquiring digital assets because they allow users to purchase coins with fiat currencies like USD or EUR, rather than having to go through all the steps involved with purchasing them directly from miners or ICOs (initial coin offerings). They also provide users with more security than peer-to-peer trading platforms do; however, these centralized exchanges still carry risks due to their centralized nature: if one is hacked then all customer funds could potentially be stolen at once!

What do you need to start trading in cryptocurrency?

To start trading in cryptocurrency, you need:

  • A computer or smartphone

  • An internet connection

  • A cryptocurrency wallet (to store your coins)

  • An account with a cryptocurrency exchange (to buy/sell coins)

Why are cryptocurrencies so popular?

Cryptocurrency is a digital currency that is designed to work as a medium of exchange. It uses cryptography to secure transactions, verify them and prevent double spending. Cryptocurrency can be used to buy goods and services, or traded for other currencies (both fiat and cryptocurrency).

Cryptocurrency is not controlled by any central authority or bank: instead it depends on an internet-based peer-to-peer network. Transactions are verified by network nodes through the use of blockchain technology, which records them publicly in a data structure known as a ledger. Each node (a computer connected to the network) gets a copy of this ledger, which means that there's no centralized version of this ledger anywhere – it exists entirely on computers all over the world at once!

ecosystem for entrepreneurs

What is blockchain technology and how does it work?

Blockchain technology is a decentralized ledger that records transactions across a network of computers. Each computer has a copy of the blockchain, which means no one person or company owns it. Instead, many different people around the world keep track of all transactions made on blockchain networks and verify them through complex mathematical algorithms.

Each block in a blockchain contains data about who made the transaction (for example: "Alice sent 5 bitcoins to Bob"), as well as other information that's necessary for verifying whether or not Alice had enough bitcoins available at that time to send them to Bob. When someone wants to make sure their own transaction went through properly and wasn't tampered with by others along its journey from sender to recipient, they'll have their computer check with other computers running similar verification software until they get an answer confirming everything looks good – essentially forming consensus among peers who agree upon what constitutes true ownership over digital assets like currencies or contracts between two parties

Knowing the basics of crypto may help you understand why it's become so popular.

Cryptocurrency is more popular than ever. In fact, the cryptocurrency market has grown by over 1000% since 2017 and continues to rise. The popularity of cryptocurrencies is largely due to their ability to be used as an alternative currency, which means you can buy goods and services with them without having to convert your money into another form of payment (like cash). This makes it easier for people from all over the world who don't have access to traditional financial institutions or banks because they live in countries where these types of institutions don't exist (or are too expensive).

You might be wondering why all this matters? Well if you're interested in investing in cryptocurrency then understanding its history will help give context as well as give insight into what makes it so unique compared other forms investment vehicles like stocks or bonds; this way when something happens with regard…

Conclusion

In conclusion, cryptocurrency is an exciting new world that can be difficult to navigate. In this guide, we've tried to simplify things and give you a basic understanding of what it means to trade in crypto. We hope that by learning about the different types of exchanges, wallets and how they work together with blockchain technology you will be able to make better informed decisions when buying or selling cryptocurrency!

Tim Moseley

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Gold market cautious as investors spooked by risk of Fed hiking 50 bps in March

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Gold market cautious as investors spooked by risk of Fed hiking 50 bps in March

Gold is down for the fourth week in a row as markets are worried about how aggressive the Federal Reserve will have to be to bring inflation down to 2%.

Markets were hit with stronger-than-expected economic data and stubborn inflation numbers this week.

In response, gold struggled, with April Comex gold futures down 1.3% on the week and last at $1,851 an ounce.

"Inflation will be more sticky than many anticipated. And we got confirmation that economic data is firm," TD Securities global head of commodity strategy Bart Melek told Kitco News. "The next Fed move could be 50 basis points. And the central bank might not be able to stop there. And that means higher rates for longer."

The problem for gold is that the U.S. dollar has been climbing. "The hypothesis that the U.S. dollar will weaken in a big hurry is being questioned," Melek said.

For those playing the long game, OANDA senior market analyst Edward Moya told Kitco News that there are two drivers to keep an eye on.

The first is the new expectations for additional Fed tightening. "The Fed is clearly going to remain aggressive in tightening. The 50 bps startled a lot of traders," Moya said. "Even though half a point rate increase might not play out, the Fed will be hiking in March, May, and probably in June."

The CME FedWatch Tool currently sees an 18% chance of a 50 bps hike in March.

The second thing to watch is recession risks, which will start climbing as the Fed continues to raise rates. "It seems we are recession bound. This is an economy that will need a recession to bring down inflation. And markets will start to believe that," Moya noted.

And all the recession talk is good for gold, he added.

 

Gold price levels to watch

Analysts remain largely neutral on gold in the short-term as they see the $1,800 an ounce level as likely holding. "I don't think $1,800 will break. That is a huge support level," Moya said.

Next week, analysts will look at FOMC minutes from the February meeting, PMI data, the Fed's preferred inflation measure – core PCE, and more Fed speakers.

Longer-term, Melek is optimistic that the precious metal could still hit $2,000 an ounce towards the end of the year or in early 2024.

"The market will react to the actual pivot happening. The question is whether it will be later in 2023 or early 2024," Melek said. "As the economy slows, the Fed will decide that slower economic activity will do more harm than bringing inflation down to 2%."

 

Data next week

Tuesday: U.S. existing home sales, manufacturing PMI

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By Anna Golubova

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Tim Moseley

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What Have The Bureaucrats Planned To Save Banks In The Next Financial Crisis?

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What Have The Bureaucrats Planned To Save Banks In The Next Financial Crisis? 

The government bailed them out…Now you will bail them in

Financial freedom is often misunderstood as meaning that you have lots of money. In actuality, financial freedom means that you own your assets, and you decide how, where, and when they are spent. Another misconception is that your money in the bank belongs to you, but in truth, the banks own your money and can use it to bail them out during the next economic crisis. 

The first time I heard the term “bailout” was in 2008 when the global economy was hit hard by a financial catastrophe caused by the bursting of the housing bubble. More accurately, big banks invested in bundles of bad mortgages, which crashed in value when the housing bubble burst. Initially, the big banks thought everything was fine. That was until the collapse of Lehman Brothers in September 2008.

The Lehman Brothers institution was well-respected and the fourth-largest investment bank in the United States. As such, the news of its bankruptcy sent Wall Street into a frenzy that eventually threatened the entire financial system. Ultimately, the US government had to step in to bail out Wall Street. 

According to CNN, the US Treasury gave over $200 billion in loans to hundreds of financial institutions. This is less than a third of the total cost of bailing out the entire financial system, estimated to be $700 billion. Meanwhile, the regular people affected by the economic collapse got essentially nothing. Everyone knew that Wall Street speculation was to blame, but only one person went to jail; Kareem Serageldin, a former executive at Credit Suisse; however, all the other big bank executives were given bonuses.

The Securities and Exchange Commission (SEC) was supposed to investigate just how much the big banks were to blame for the 2008 GFC. However, the SEC allegedly destroyed the evidence it had been given as part of the investigation instead of exploring.


Image source: Satoshi Nakamoto Institute

Not surprisingly, the average person was not happy about how the GFC of 2008 was managed, even manipulated. And as many will know, the bank bailouts are why Satoshi Nakamoto created Bitcoin, which surfaced in 2008. However, the politicians had a different solution: passing a long list of new regulations. 

One of these was the Dodd-Frank Act in the United States, passed in July 2010 and infamous for being long and vaguely worded. It contains some questionable provisions, with the Act's primary focus being the enormous derivatives market.

For those unfamiliar, a derivative is an investment that derives its value from some underlying asset. One example is Futures; when you buy a Futures Contract, you're effectively betting that the price of some asset will be higher or lower at a future date without actually buying the asset itself. 

The total value of the derivative market is estimated to be as high as $1 quadrillion, or $1,000 trillion. The actual value is unknown because of poor accounting, but what is known is the 25 largest banks hold roughly $250 trillion of derivatives.


Image source: goldbroker.com 

There’s no doubt that this is a substantial financial risk. That's why the Dodd-Frank Act included a provision that states that in the event of an economic collapse, derivatives claims come first. In other words, if 2008 happens again, derivatives debt owed by big banks will be paid off before anything else. The difference is that bailouts won't pay off these debts; they’ll be paid off by bail-ins. 

Bailouts, Bail-ins; What’s the difference?

Whereas a bailout is when a big bank receives money from the government or institution to pay back its debts, a bail-in is when it uses its clients' money to pay back its debts. This includes people who lent money to the bank and people who have money in accounts with the bank, such as you and me. 

The Dodd-Frank Act opened the door to allowing big banks to use their client funds to bail themselves ‘in’ the next time there is a financial crisis. It's assumed that an issue in the derivatives market will cause the next financial crisis. And derivatives debt will, again, take precedence in the payouts. 

So, who came up with this crazy idea? Two now-former key executives at Credit Suisse, Paul Calello and Wilson Ervin coined the term bail-in in an article for The Economist in January 2010. Paul died a few months later, reportedly from cancer; however, in a presentation about bail-ins, Wilson revealed that the people in power had been working on alternatives to bailouts since 2008. He explained that the desire to develop an alternative to bailouts increased after the financial crisis started to affect Europe. 

In mid-2012, the International Monetary Fund (IMF) published a paper advocating bail-ins as the ideal alternative to bailouts. All the IMF needed was somewhere to test this new bail-in method.

Enter Cyprus

Cyprus was one of the European countries that were hit the hardest when the 2008 contagion spread. By the end of 2012, Cyprus was on the brink of default and begging for a bailout. In early 2013, the IMF and the European Union bailed Cyprus out for €10 billion. As with all IMF loans, the bailout came with multiple conditions.

One of the conditions was for Cypress's largest bank to execute the first-ever bail-in. Almost 50% of all bank account balances worth more than €100,000 were seized. Cyprus was also required to take 6.9% of all bank balances lower than €100 thousand and 9.9% of all bank balances higher than €100,000, regardless of the bank. 

Despite the social chaos and capital controls that ensued, the IMF and its allies declared the first-ever bank bail-in a success. In 2014, the G20 countries agreed to pass bail-in laws per the Financial Stability Board’s (FSB) bail-in guidelines. The FSB's policies include issuing bail-in bonds, which should be sold to pension funds. This means your pension money could also be used to bail out banks. 

The United States was the first to legalize bail-ins in 2010, with the Dodd-Frank Act mentioned above. The UK followed suit in 2013 with the Financial Services Act, and the EU legalized bail-ins in 2016 with the Bank Recovery and Resolution Directive. In my country, Australia, the Australian government's new bank bail-in laws were sneakily pushed through parliament in February 2018 with only seven senators present. So be sure to check when your country legalized bail-ins. 

The specifics of bank bail-in laws vary from country to country; however, all these laws follow the same three rules, likely because of their collective conformity with the FSB. 

The First Rule

The first rule is that bank bail-ins are only allowed for banks that are deemed to be domestically or globally important. It could be more precise which banks fall into the domestically important category, but it's safe to assume that this rule pertains to those with the most assets under management. 

As for globally essential banks, the FSB publishes a list of them yearly, along with their de facto risk of default due to derivatives debt. There are currently 30 globally systemically important banks, with JPMorgan being noted as the highest risk. JPMorgan reportedly has $60 to $70 trillion of derivatives debt.


Image source: FSB.org

What happens when a non-systemically important bank goes under? The answer is that they are acquired by a domestically or globally important bank. 

The Second Rule

The second rule of bank bail-ins is that they do not apply to bank balances below the deposit insurance threshold. In the US, the FDIC covers $250 thousand in deposits. In the UK, the FSCS covers £85,000; in the EU, it's €100,000 with various insurers involved. If you think this means your money is safe, think again. 

As pointed out by The Huffington Post, “deposit insurance funds in both the US and Europe are woefully underfunded, particularly when derivative claims are factored in." In short, insurers don't have enough money to cover all bank deposits. 

In the case of the FDIC, its 2021 annual report suggests that it only has around $120 billion in its Insurance Fund. This is chicken feed compared to the $19 trillion of bank deposits in the US and a drop in the ocean of the derivatives market, which could be in the $quadrillions. 

The Third Rule

However, a third rule of bank bail-ins states that you will be given some alternative asset in exchange for your lost deposits. Believe it or not, these alternative assets are typically shares in the bank you bailed out. I don’t think I would favor the bank taking my money and replacing it with its worthless stock in return. 

To compound matters, if governments passed laws to make Central Bank Digital Currencies (CBDCs) legal tender, you could be paid back in CBDC instead of cash. Incidentally, bank bail-ins would be the perfect way to force people to adopt CBDCs; perhaps that's the plan. 

Speculation aside, it's important to note that we could temporarily lose access to our funds during a bank bail-in. As we've seen with Cypress, banks could put limits on their hours of operations, limits on payments, transfers, and limitations on cash withdrawals until the bail-in process is complete. Can you imagine the social turmoil it would trigger if banks worldwide simultaneously imposed these bail-in restrictions on their depositors?   


Image source: Federal Deposit Insurance Corp.

Bail-In Simulation Phase

The ‘powers that be’ are hyper-aware of the looming unrest of ‘we the people’ because they've been coordinating bank bail-in simulations for years. The FDIC held the most recent high-profile bank simulation in November 2022. Several panelists from prominent financial institutions and regulators participated in the session, including Wilson Ervin, Chief Architect of the bank bail-in process. 

It was a tedious, lengthy discourse containing much financial jargon; the most exciting stuff began around the 1-hour mark, and snippets from this section went viral. At around 1:18 minutes into the video, one of the panelists speculates how the FDIC and its secret allies should maintain the public's confidence in the financial system when the bail-ins inevitably happen. She argues that transparency is the answer but that some entities should get more transparency than others.

This panelist also commented on ensuring the public understands that “prior compensation could be clawed back.” That sounds very much like the banks can take your money long after the bail-in process has been completed. She even asked the other panelists how they could “address excess cash use in such a crisis.” 

This suggests governments are planning on introducing a CBDC using bank bail-ins. Then again, it could reference the freeze on cash withdrawals mentioned above. The panelists also said they should “make the announcement on a Friday, ideally a Friday night.” For context, Fridays are famous for being one of the days when nobody pays attention to the news. Hence why bad news often comes out on Fridays.

The second panelist agreed with the first about being selective with transparency about the bail-in and specified that they should tell the banks and big investors first. He said they shouldn't tell the public until later because they would panic. The third panelist agreed with the second and said something sinister, akin to the public having more faith in the banking system than we do, let's keep it that way. The other panelists laughed. 

He continued to repeat that only institutional investors should know what's going on, and they should “be careful with what we tell the public.” But wait, there's more; a fourth panelist then said something even more sinister. The timestamp is around 1:27 minutes. She literally says, “the information should go out once we're moving out of the recession.” 

This fourth panelist explained that non-bank entities, including cryptocurrency exchanges, should be included in the bail-in process. This statement could mean that she wants them to be subject to acquisition by big banks or that she wants to use the crypto you hold on exchanges to bail them in. 

A little later, Wilson said they must ensure that disinformation about bank bail-ins doesn't get out before the fact-check-approved version of events. He even suggested that this online censorship should happen in advance so that people don't talk about their money being taken. Governments worldwide are rolling out precisely these kinds of online censorship laws, most of which will be going into force later this year or next year, as documented in this article.  

If you’re interested, the video of the entire simulation can be found on the FDIC website, but they haven't made it easy to find. Click on Archive, as shown in the image below, and scroll down to the video dated 2022-11-09, Systemic Resolution Advisory Committee.

Image sourced at: https://fdic.windrosemedia.com/

 

What Can We Do To Protect Our Money?

So the big question is what we can do to protect our money from being taken by the big banks when the next financial crisis hits us. You can do many things, and they all fall under one umbrella: keep your money out of globally and domestically important banks. Check the details of bank bail-in laws in your country or region first. 

The first hedge against bank bail-ins is to move your money to smaller banks that are not globally or domestically important and have minimal exposure. Or even diversify savings across banks and in different countries. Monitor banks’ and institutions’ financial stability and avoid banks with large derivative and mortgage books.

Financial institutions should be chosen based on the strength of the institution. Jurisdictions should be selected based on political and economic stability. Culture and tradition of respecting private property and property rights are also significant.

The second hedge is to keep enough cash on hand to pay for at least a few months of expenses, depending on your personal circumstances, although this may be challenging or even possible. However, remember that fiat currencies are losing value by the day due to inflation and will continue to do.

The third hedge against bank bail-ins is to have physical gold in allocated accounts with outright legal ownership. Have some physical gold and silver in denominations that could be used for payment if necessary. If you are in the United States, gold and silver eagles are technically legal; however, there’s a catch. Their face value is much lower than their actual value. You can thank the government for that. 

The fourth hedge against bank bail-ins, and one which is increasingly becoming more popular, is to hold cryptocurrency. To be clear, this means decentralized cryptocurrencies, not centralized ones like stablecoins. Ideally, these cryptos will be kept in your own personal crypto wallet. 

In Closing

If the deliberations at the FDIC simulation are anything to go by, the people in power will start doing bank bail-ins after the next recession. It’s all speculation about when the next recession will be official. Still, it doesn't seem to matter because they don't plan on telling us that our money has been used to bail in the bank until all the institutional investors have gotten out. 

At least we know the announcement will be made on a Friday when nobody's paying attention, as per the FDIC panelist. The unpredictable factor is what happens after the bank bail-ins are announced. Again, the social unrest will be unprecedented. This could create another crisis that the people in power could use as an excuse to exercise even more control and bear in mind the possibility of CBDC-based insurance payouts. 

The silver lining to this situation is that people are becoming increasingly aware of what's happening and what the elites are planning. With all this upheaval society worldwide is experiencing, many are preparing to protect themselves and participating in parallel communities and economies to counter bureaucrats and their inept, self-serving policies. 

By the Grace of God, we will prevail while the powers that be fall on their swords. Our increasing knowledge made available to us via decentralized media gives us the wisdom to remain calm and optimistic that the ignorant and arrogant decision-makers are very close to their complete demise in this time of tribulation. May God bless us all.  

This information is provided for informational purposes only. Nothing herein shall be construed as financial, legal, or tax 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

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Gold rallies as bulls brush off hot US inflation report

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Gold rallies as bulls brush off hot U.S. inflation report

Gold prices are moderately up and silver slightly higher in midday U.S. trading Thursday, in the aftermath of a U.S. inflation report that came in hot. Gold and silver traders may reckon that recent sell offs have already factored into the metals’ prices the fact the Federal Reserve will have to remain hawkish for longer on U.S. monetary policy. April gold was up $6.50 at $1,851.70 and March silver was up $0.118 at $21.69.

Today’s U.S. producer price index report for January came in at up 0.7% month-on-month, which was well above the PPI forecast of up 0.4% from December, following a decline of 0.5% in December from November. The hotter PPI report falls into the camp of the U.S. monetary policy hawks, who want to see the Fed continue to raise U.S. interest rates to choke off problematic price inflation.

Global stock markets were mostly higher. U.S. stock indexes are pointed toward lower openings when the New York day session begins. The fact the U.S. dollar index could not rally on today’s hot PPI number also suggests the market place has dialed in the Fed’s future intentions on keeping interest rates higher for longer.

 Frank Giustra warns that the dollar will be dethroned in 'bifurcated' global monetary system, CBDCs and AI could usher in a 'terrifying' world with mass joblessness and digital 'control'

The key outside markets see the U.S. dollar index a bit weaker on a corrective pullback from recent good gains that saw the index hit a five-week high Wednesday. Nymex crude oil futures prices are slightly up and trading around $78.75 a barrel. The yield on the benchmark U.S. 10-year Treasury note is presently fetching 3.836%.

Technically, April gold futures prices hit a six-week low early on today. Bulls have the very slight overall near-term technical advantage. A fledgling downtrend is in place on the daily chart. 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 Wednesday’s high of $1,870.90 and then at this week’s high of $1,881.60. First support is seen at today’s low of $1,836.60 and then at $1,825.00. Wyckoff's Market Rating: 5.5

March silver futures were prices Wednesday hit a 2.5-month low. The silver bears have the slight overall near-term technical advantage. 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 $21.00. First resistance is seen at Wednesday’s high of $21.875 and then at this week’s high of $22.085. Next support is seen at this week’s low of $21.385 and then at $21.00. Wyckoff's Market Rating: 4.5.

March N.Y. copper closed up 1,205 points at 413.05 cents today. Prices closed near the session high on short covering after hitting a five-week low on Wednesday. The copper bulls have the overall near-term technical advantage. A fledgling price downtrend on the daily bar chart was negated today. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the January high of 435.50 cents. The next downside price objective for the bears is closing prices below solid technical support at 380.00 cents. First resistance is seen at 420.00 cents and then at 425.00 cents. First support is seen at 405.00 cents and then at 400.00 cents. Wyckoff's Market Rating: 6.5.

By Jim Wyckoff

For Kitco News

Time to Buy Gold and Silver

Tim Moseley

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Hawkish Fed forward guidance pressure gold lower

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Hawkish Fed forward guidance pressure gold lower

Gold continues to trade under pressure moving to lower prices after yesterday’s CPI report for January indicated that inflation declined to 6.4% year-over-year. January’s CPI report came in lower by 6.4% year-over-year, than the prior month of December. However, analysts were expecting a larger decline with expectations that yesterday’s report would come in between 6.2% and 6.3%. When combined with last week’s unexpected jobs report the collective information will allow the Federal Reserve to maintain its aggressive stance which means more interest rate hikes, and that rates will remain elevated longer.

Chairman Powell has been resolute in his commitment to keeping higher rates elevated throughout the entire calendar year. Market participants are beginning to accept the high probability that the Fed will take rates to between 5.1% and 5.2% and keep them elevated with no rate cuts in 2023.

Bullish factors are outweighed by immediate concerns about inflation and rate hikes

While gold has traded under pressure there are bullish undertones that at some point could come into play. The dollar has been gaining strength when compared to other currencies, but for Americans, the dollar's purchasing power continues to be diminished, a byproduct of higher levels of inflation. The national debt continues to grow and the United States has reached its debt limit which means that the government will have to raise the debt ceiling which means that the United States will grow its national debt to a higher level.

Gold futures basis the most active April 2023 contract is currently down $18.80 or 1.01% and fixed at $1846.60. Dollar strength was responsible for a little over half of today’s decline with the dollar gaining 63 points (+0.61%) and the dollar index is currently fixed at 103.76.

Another factor pressuring gold lower is that recent data has suggested that the Federal Reserve could modify its current rate target of 5.1% to closer to 6% to accelerate the process of reducing inflation.

Gold intrinsically benefits from higher levels of inflation and higher interest rates are detrimental. This is because gold does not generate a yield which makes US treasuries and other interest-bearing assets more favorable.

Although this is a headline-driven market and current headlines have had a hard impact that took gold prices lower technical indicators will come into play at the point in which investors believe that gold is becoming oversold and more valuable than current pricing.

Our technical studies indicate that it is highly probable that gold will trade to $1815 before finding technical support. This is based upon a Fibonacci retracement of 61.8%. The data set used for this retracement begins at $1719 and concludes at $1980.

By Gary Wagner

Contributing to kitco.com

Time to Buy Gold and Silver

Tim Moseley

The Artist that came out of the Winter