Category Archive : GSB daily blog

Sorry, But Maybe You’re An Idiot: Bloomberg Says Bitcoin Is Not A Currency

Bloomberg reports today that Bitcoin is not currency. There is nothing wrong with this assertion, other than the reasons submitted where fore are based on the baseless. But, before all that, I’d like to say that, no, Bitcoin is not just a currency. Bitcoin is not merely money. Bitcoin is something totally beyond the scope of monetary history. For 7000 years since the official discovery of silver, man’s monetary exchanges have been on a course for total centralization. Maybe you’ve learned about it in church as “The Great Work.” Maybe you heard about in your history books in school as “progress.” Or, maybe even more recently, you’ve heard about this tendency towards mandated centralization known as the “New World Order” via the “web.” Read More

Cyprus Steals Bank Depositers Money. Not if You Have Gold Silver Bitcoin

Citizens of Cyprus, known as Cypriots, are finding out that their duly elected representatives have now sanctioned theft of their private bank accounts.

President Nicos Anastasiades first proposed the wealth confiscation this last Friday. Under his plan, parliament would levy a 6.75 % tax from all bank deposits of 100,000 Euro or less and 9.9% on bank deposits of more than 100,000 euro.

“The solution taken may be painful, but it was the only one” worth taking said President Anastasiades in regards to his proposal.

This is the first time that the IMF and the Eurozone have actually dipped into people savings accounts. It is the next stage in austerity that is affecting the world as the banking plunder continues.

The purpose of banking holidays is to stop any runs that my occur on a bank by holders that fear the bank will not be able to make good on their deposits or for people getting their money out before it is revalued.

Cypriots are making every attempt to avoid this new tax by going to ATM’s throughout the county to withdrawal as much money as possible. However, with banks in the country being closed, it is unlikely that depositors will be able to get any sizable amount of their money out before it is too late.

Holders of gold, silver, and Bitcoin in Cyprus do not have this problem though as they have hard assets in their possession at any given time and can use those assets to barter and trade with.

For everyone else it seems that they will have a portion of their wealth taken from them because they choose to have their wealth in the wrong currency. With all government in the world facing fiscal crisises like Cyprus sometime in the near future, this brand of wealth confiscation will evolve and continue. Hard physical assets do not have this problem.

Gold Silver Bitcoin “it’s your choice”

Gold, Silver, Stock Market Disinterest Helps Bitcoin

The markets are in the midst of what will be remembered as a renaissance from paper-crack gamblers, especially the variety who only made money when the indexes, like the DOW, were up day-in and day-out. And they have been. If you are a devout paper addict, you’ve been doing great for the past month. Yet, despite the all-time highs and record winning streaks, people aren’t interested in the stock market. Just as everyone knows each politician is compromised or corrupted, so too will the markets give way to dizzying flash crashes or tumult in the Euro zone and eventually North America. All this in the wake of the 2008 banker bailout has driven the retail client out of stocks. Most of the people with money these days are heading out of paper, into real estate again or precious metals and other safehaven plays. Nobody trusts the stock market, for it is rigged and in the favor of the monied. Read More

Global Political Awakening & Bitcoin

 For the first time in human history almost all of humanity is politically activated, politically conscious and politically interactive… The resulting global political activism is generating a surge in the quest for personal dignity, cultural respect and economic opportunity in a world painfully scarred by memories of centuries-long alien colonial or imperial domination… The worldwide yearning for human dignity is the central challenge inherent in the phenomenon of global political awakening… That awakening is socially massive and politically radicalizing… The nearly universal access to radio, television and increasingly the Internet is creating a community of shared perceptions and envy that can be galvanized and channeled by demagogic political or religious passions. These energies transcend sovereign borders and pose a challenge both to existing states as well as to the existing global hierarchy, on top of which America still perches
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Against A Gold, Silver or Whatever Standard

There’s no point in waiting around for an official  gold standard to arise. People can start their own governments in a world of competing currencies. But if their governments are not some of the best and freest institutions that have ever existed, they will fall to the lonesome wayside, no doubt. They will be out of business. Read More

Namecheap Accepts Bitcoin

Yet another website has announced their acceptance of Bitcoin: Namecheap, the webs’ top domain buying service, now accepts the digital files for their services.  The company had been in works to begin accepting the currency for some time. Namecheap has served more than 1 million customers. Their statement went as such:

Bitcoin March 2 Pullback By The Numbers

March 2, the Mt. Gox chart shows a price fall from about $34.80 to $33.15. During this selloff, 22,000 BTC or 6.1 of the BTC supply were sold in one hour. That’s about $748,000 sold off in one hour moved the price 4.75%.  Are these the signs of weakness in the underlying Bitcoin price. While any investor will tell you that what comes up must come down, most mainstream investors, when discussing Bitcoin, cite this as a reason to stay away from BTC. But, BTC is much more than a mere speculative instrument. Rather, it is also a transactional unit. So, weakness in the price should not scary anyone off, unless you are overbought and speculating your life away. This is something that was experienced with silver purchasers in April 2011. Those unfortunate souls were dubbed the “49ers.” Here is what silver blogger Silver Vigilante wrote of the waterfall in silver and the ultimate devastation:

The silver market has been battered by the psychological warfare of command-and-control economics. This economic warfare has been psychologically exhausting for the silver investor as silver remains a no-news market with short-term bearish price movements. Over the last year, however, the silver investor has become hardened or acclimated to a market without new buyers or new sellers and little legitimate price action. Instead, they’ve watched as banks colloquially known as “commercial hedgers” bluff a long, long position in physical silver with shorts exceeding three-times the yearly supply at any given time.  What’s likely is these banks do not own any a position of physical silver anywhere near this amount.

 

For the 49er (those who bought silver in the 40s), who entered into the market in March-April of 2011, the price of silver has been a source of discomfort if not inner-turmoil. Retail bullion shops across the country started to provide services outside their previous jurisdiction of bullion slinging, working for several weeks after the May Drive-By Shooting as therapists and counselors. That price action in the Spring of 2011 was such to entice a whole new breed of silver investors – the 49er  – into the market, only to subsequently discourage them and break their confidence that, perhaps this once, they made the correct investment decision.

While Bitcoiners have experienced similar destruction in their market, with the market metastasizing, there is one phenom that has not fully realized itself in the Bitcoin price – price management. Currently, the mechanisms are not in place for major bankers or individuals or organizations to manipulate the price of Bitcoin, but one can imagine that there is some interest in doing so. Silver Vigilante touched on this this weekend in regards to CoinLabs’ creative innovations:

You think Bitcoin price above silver price has not been acknowledged by High Finance? It’s likely, contrarily, they know what’s going on, and they are not pleased with this new p2p currency stealing headlines, allowing the entire world to ignore fiat in real time, now, today. Nothing short of a 51% attack on the network can allow them to control the price.  The dominant financial system must protect itself from $100 Bitcoin prices as large-scale investors move into the market. Marketing this new advent as a bank, the place to store your Bitcoin, the Bitcoin community has to acknowledge that the Powers That Be will need a mechanism (bank/exchange) to control our beloved BTC price.

But, Bitcoiners scantily need a reminder of The Powers That Be, as based on a demographics survey recently conducted by  Spacedruid, the demographics of Bitcoin look like this:

  • 31.7 year old libertarians/anarcho-capitalist (although 30%
  • top motivations are curiosity, profit and politics

As a savvy bunch, Bitcoiners realize the strengths, and perhaps, the weaknesses of their p2p file. The interesting part is that, while living outside of the dominant financial system, Bitcoin exchanges, where Bitcoiners store their value online in hot wallets, have been victimized by fraud. Those storing their wallets in cold storage mediums have not had so much to worry about. As with any form of freedom, a great deal of responsibility is quite important to the equation.  However, one possibility that many have not swallowed, is the eventually entrance of control mechanisms into the price of Bitcoin. As Murray Rothbard said: “government is powerless to create money for the economy; it can only be developed by the processes of the free market.” But, at the same time:

“Money…is the nerve center of the economic system. If, therefore, the state is able to gain unquestioned control over the unit of all accounts, the state will then be in a position to dominate the entire economic system, and the whole society.”

The Powers That Be cannot come up with cashless payment solutions and brandish them as a safer, mainstream Bitcoin. The Bitcoin community does not like strings attached. So, whatever you Silicon Valley brains are up to, it will likely be rejected by the future as humanity moves towards a more elastic, freer payment model.

The problem with Bitcoin, for power, is that it is a private solution to public transactions – generally, two parties, not kin, enter into an arrangement. Always, unless you use BTC or cash, there is a third party watching over you.  Even if its cash, that cash theoretically has a trail. The current dominant financial system is a public solution to public transactions, and everything is out in the open. States since the turn of the nineteenth century have been doing what they can to break down the barrier between public and private society, to make them one. That is what the credit and debit cards have done. No matter how small or personal your transaction, its noted. Bitcoin is such a strong solution because of its personal nature.

So, it is a threat. And legitimizing this threat would be the emergence of a mechanism to control the price. If the price begins to appear to be managed, like silver, Bitcoiners can take this as a backhanded compliment.

USD to gold price index

Miserable Week for Precious Metals. Bitcoin Breaks Through All Time High and Keeps Gaining

As a long time gold, silver, platinum, and palladium bug I will say that it is a good thing that I caught on to bitcoin $24 ago. It seems that everything has done well recently with the exception of metals. Bitcoin however is another story as its impressive rise continues.

Gold tried to make a rally this week making its way up to $1617 before being taken down and finishing off the week at $1575.00. Oddly enough silver did not have as miserable a time as gold did, starting and finishing the week within cents.

Platinum like gold tried to make some headway but fell along the same lines starting off the week at around $1590 and finishing at $1573.

Palladium, although being the best performing metal in the last six months, also came up short losing around 2% to take a much needed weekend break at $723.

Ah but then there is bitcoin, which the central planners cannot manipulate. Bitcoin started off the week at $34.40 and finished at 35 showing a 4% increase. This week turned out to be pretty extraordinary for bitcoin as, not only did it continue its bullish rise despite other hard assets being taken down but, it also took out its all time high.

Again the talking heads will claim that gold’s recent demise was the product of a strong dollar and yen. How anyone can say that the dollar is strong in our present currency war is too much to bare. That being said, the best way to take advantage of this artificially strong dollar is to buy those hard assets that are blatantly suppressed. The chart below outlines this beautifully by showing the half-life of the U.S dollar since 2001, which shows that USD is currently 17% overvalued.

USD to gold price index

As for bitcoin, that it is going higher is not even a question but what better way to take some profit now by changing it into precious metals? Since August of 2012 bitcoin has gained over 240%! For those that have bitcoin it would be wise to take a look at silver’s performance in the first half of 2011 where the devil’s metal gained upwards of 60% before its manipulated take down.

An argument can be made that there are no “regulators” that can bring down the price of bitcoin like they could with silver. The real value of bitcoin is being discovered naturally as it should be but, trading a portion in now for clearly undervalued metal on an overvalued dollar is a wise choice.

Rick Rule of Sprott Assets Discusses Bitcoin as an Alternative Currency

Rick Rule On Bitcoin, Brought to you buy Gold Silver Bitcoin & Sinn Hooper:

Strange Markets: Comedian Bloggers, Bitcoin & Precious Metals

Strange times are upon us. In Italy, a famous comedian blogger who was found guilty of manslaughter in a car accident, killing three people, has led his party, The Five Star Movement, to international headlines as the underdog in Italy. Where fore?  In a nation where Communism was once bred in the 1950s by The Agency, people are just sick of seeing the same damned faces. Sound familiar? Read More

gold silver bitcoin

Get Your Gold Out of Dodge With Bitcoin

Get Your Gold Out of Dodge With Bitcoin

From my time working at a walk in precious metals dealer one of the questions that I remember coming up with relative frequency is what do I do with the metals? How do I store it? Should I keep it at home or in a safety deposit box? These questions were, for the most part, easy to answer as you could present the customer with three quick options for their storage and let them decide which would be the best. On the other hand, the question that never came with a quick simple answer was always, “how do I get my gold out of the country?”

The presumably intentional vague regulation put out by U.S Customs reads like this;

“There is no duty on gold coins, medals or bullion but these items must be declared to a Customs and Border Protection (CBP) Officer. Please note a FinCEN 105 form must be completed at the time of entry for monetary instruments over $10,000. This includes currency, ie. gold coins, valued over $10,000. The FINCEN definition of currency: The coin and paper money of the United States or any other country that is (1) designated as legal tender and that (2) circulates and (3) is customarily accepted as a medium of exchange in the country of issuance.”

As mentioned before, the regulation is conveniently vague because it does not say whether the $10,000 value will be assessed by the face value of the coin, in the case of the American Gold Eagle this would mean that every ounce of gold has the value of $50 USD, or the market value of the gold, being around $1565.00 currently. Either way it is not a value that you want to be assessed by the U.S’s elite and respected TSA force.

People even come up with rather ingenious ways to circumvent the system. I can remember one of my customers devising a plan to take a cruise ship down to a location that he was expatriating to because he said that customs inspections on cruise ships were not as thorough as they were by flight. Still other customers would talk about taking the gold out of the country in increments or to make the gold into jewelry so as to avoid the customs declaration.

All of these ideas are viable options but they remind me of various scenes from the movie Deer Hunter as all these options, if done enough, will lead to the same disastrous wealth confiscation by the proper authorities.

Ah but what about Bitcoin? The great thing about Bitcoin is, as of now, there are no foolish laws that tell you that you must declare them. More importantly there is no way of knowing that you had moved your mathematically encrypted digital files to another country or, were in the process of doing so.

There are large Bitcoin exchangers that you can sell your Bitcoin to and they will deposit money into your checking account or you may even receive a wire from a money sending company. The problem with services like these is there is a record of the payment. Money transactions should always only be between two parties. It is only in our mixed up, central banking, fiat money dominated world, that this reality has been skewed to the public.

But if I take my Bitcoin to another country how will I use it? Well Bitcoin is quickly becoming a form of payment all and in and of itself. More and more vendors are taking Bitcoin as a payment directly but for those that need to still have local currency for day to day living a simple search on localbitcoins.com will reveal where you my meet a local dealer in the country that you reside and sell your Bitcoin directly.

Of course Gold Silver Bitcoin recommends always having physical precious metals along with having Bitcoin. This allows for the maximum security in the preservation of your wealth.

The problem in answering the question a few years ago of “how do I get my gold out to the country?” is that there was not a good answer. That was when Bitcoin was still in its infancy and its potential was not clearly understood. Today however, it is the best option that one has for moving wealth out of whatever collapsing economy one may find they need to escape from without any form of declaration.

Bitcoin: Silver = 1:1: Trace Mayer & Silver Vigilante Discuss

[heading]Bitcoin: Silver = 1:1: Trace Mayer & Silver Vigilante Discuss[/heading]

RTG: Hello and welcome to the Run to Gold Podcast. I’ve got with us special guest Silver Vigilante of Gold Silver Bitcoin. One Thing I admire about you is you’ve got an open mind. We’ve got some people in the gold and silver niches who don’t have open minds, whether it is Chris Duane who has been bad-mouthing Bitcoin for two years and continues to badmouth it or people who think they can just ignore it like James Turk at GoldMoney. What do you think is driving BTC?

SV: Well, I think first and foremost it’s the internet. Everyone believes in the Internet. Bitcoin is a microchasm of the Internet that can actually lead it in new directions. Google is going to try to shutdown websites that provide links for users to copyrighted material. They are going to do this the same way they did with WikiLeaks, through a “financial blockade.”  WikiLeaks got around that with BTC, and The Pirate Bays will do the same. Read More

Where Does Bitcoin Fit in the Historic Ratio of Gold and Silver?

gold silver bitcoin

Where Does Bitcoin Fit in the Historic Ratio of Gold and Silver?

 

Long time investors in gold, silver, platinum and palladium as a means to protect themselves against the debilitating effects of inflation, brought on by the central bankers and their failed monetary policy, are all to aware of the fundamentals of the precious metals market and how ratios are crucial to wealth building during our current dissent into economic collapse. After all the ratios are the simplest ways to analyze the blatant manipulation (suppression) of the fair market value of metals in general.

Take the easiest and most suppressed monetary metals as a primary example. Silver and gold comes from the ground historically at a ratio of around 15:1. This means that for every 15 ounces of silver you have acquired through your labor you should be able to exchange it for an ounce of gold. Insiders in the silver market will even say that the ratio of silver to gold is closer to 10:1 do to industrial demand for silver but that is for another date and time.

A helpful website to look at for the current market rigged ratio of gold to silver is metalratios.com. Through this website one can find what the current ratio is which is around 53:1 meaning it takes 53 ounces of silver to be able to obtain an ounce of gold. Can I get an SEC witness? Probably not, but for those with the slightest bit of intelligence and who are willing to let their minds work on logic rather than rely on all thoughts and beliefs to be fed to them by the Main Stream Media (MSM), they already know the markets are rigged and as of right now are doubling down on their purchases of silver or, for the extra savoy sound monetarist , trading their gold for silver.

One can do quite well by taking advantage of the paper suppression of these assets. For instance, during the run up of precious metals from January 2011-May 2011 the silver/gold ratio went from 53:1, roughly what it is now, to 31:1 by May before the central planners had to intervene in the markets and artificially collapse the value of the metals. For those that traded gold to silver in January of 2011 and were able to trade back before the take down they were able to stack a considerable about of gold.

During that time Bitcoin was having its own remarkable climb moving from 5 dollars a coin to 10. A 100% return is never a bad thing and Bitcoin had its own disastrous downturn about a month later but remember that we are looking at the ratios.

Back in May of 2011 it would’ve taken you 4 bitcoin to be able to get one ounce of silver. Even recently the best that you could hope for was 2 bitcoins in order to get on ounce of silver. That was however before bitcoins recent rise of nearly 40% for the beginning of 2013. Click here for more on that rise.

The point is that, for the first time in bitcoin history, holders of the digital silver (bitcoin), will be able to exchange their digital tangible assets for physical tangible assets! This one to one ratio coincides perfectly with a bullion company that takes bitcoin for precious metals. Through www.goldsilverbitcoin.com you can move your bitcoin to silver without having to cash out of the bitcoin and find a dealer that will sell the metals to you in USD.

No one knows what the rate of climb will be for bitcoin. Could it overtake silver? Of course but taking a portion of your bitcoin now and buying some hard metal is never a bad idea. Especially for the first time that you can do it on a 1 bitcoin to 1 ounce of silver basis.