by Andy Hoffman, Miles Franklin:
I have watched every tick of the Precious Metals market for 14½ years, since the fateful day in May 2002 when I bought my first 100 shares of Newmont Mining, en route to putting essentially all of my liquid assets into the sector. Frankly, the 1% position I have taken in Bitcoin is as exciting as any development in my investment career – as until Bitcoin, I have not come across any asset class since 2002 worth investing in. And by investing, I mean the classical definition of such, not today’s bastardized concept of speculating in overvalued assets based on the expectation of what Central banks and government manipulation operatives might do. To borrow from Richard Russell’s lingo, I take big positions in primary trends I deem to have extremely high return/risk profiles. And the more confident I am in such a trend, the more I invest. Hence, my 1% position in Bitcoin, versus 90% in physical Precious Metals.
To that end, while I am highly confident that cryptocurrency will dominate the monetary future, the road to that end will be very rocky. In other words, I’m not sure Bitcoin itself, in its current form, will dominate the future monetary landscape – although at the least, its unique characteristics, and dominant first mover advantage, make it highly likely to serve as a store of value. Conversely, 5,000 years of history – versus seven for Bitcoin; including the world’s biggest money aggressively accumulating now, tells me the risk/reward profile of physical Precious Metals is as powerful as anything I’ve experienced in my career. That, and the fact that prices have been blatantly suppressed below their true values – by governments so desperate to maintain the dying status quo, they will sacrifice the future of the human race in the quest of kicking the can a few more inches, down a road in which the “monetary wall,” stronger and more unyielding than any in history, stands right in front of them.
To that end, my 14½ years of PM experience – during which, I have inarguably become one of the world’s leading “Cartel experts” – tells me the end game is not just “coming,” but right in front of our eyes. For most of the world’s 7.4 billion denizens, the end game has already arrived – in the form of collapsing currencies, as history’s largest, most destructive fiat Ponzi scheme implodes. The world’s “reserve currency,” due to the superior power of its Central bank’s printing press, has not collapsed as rapidly, or dramatically. Not yet, that is. However, the price of this (historically infinitesimal) resistance has been the largest debts in global history, the greatest wealth disparity since feudal times, and a guaranteed violent end.
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