After Brexit What Drives Gold?

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What's Driving Gold Higher?

Financial-services firm UBS says gold has entered the early stages of a new "bull run." In a note published this morning, analyst Joni Teves flagged three key drivers pushing gold prices higher today: negative real interest rates, a faltering U.S. dollar rally, and "lingering" risks for the global economy.

More important, the firm believes these drivers are unlikely to end anytime soon. "This trend should now deepen, attracting more participants and encouraging those who have been hesitating to get more involved," said Teves. In short, the reasons for owning gold are "more compelling than ever." For centuries gold is considered one of the safest investments and target="_blank">BitGold has made it easy to buy and affordable as small investments are acceptable.
Essentially, payments are made in cash and then are converted into savings of Gold.

BitGold Is Real Gold

Gold is Permanently Yours Over the course of history (5,000 years), gold has been ultimately chosen by every great human civilization, community, nation, and society as the desired currency due to its permanence and its inherent function as the best way to save money. When you save in gold, you are investing in an element that uniquely defies time’s inevitable conquest over all things. As Larry Edelson points out

negative interest rates are not necessarily bullish for gold. Or silver. Why? Because you cannot spend gold and silver as if it’s real money. Hardly a soul will take it except an informed buyer, and in a barter situation. The fact of the matter is this: People are hoarding cash in physical and digital form far more than they are hoarding gold and silver. They are doing so because … A. It’s easier to hoard cash. B. With deflation still ravaging Europe, that cash’s purchasing power is constantly increasing. C. It IS easier to spend cash. And more. So in a very real sense, gold is no longer money. A store of value? Yes, but only when governments’ backs are up against the wall. And that time is coming. But for now, gold and silver are simply commodities.

Own and spend gold online A. With Bitgold it is just as easy to Hold Gold B. With BitGold just sell some gold to have cash work for you. C. With BitGold it is simple to spend your cash converted from gold.

Global gold holdings topped 2,000 metric tons for the first time in three years as the Brexit fallout and speculation that U.S. interest rates won’t rise anytime soon sent investors hunting for a haven. Related Stories

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Russia Boosts Gold Reserves by Most in at Least Five Months Bloomberg Gold Holds Near Lowest Level in Three Weeks Before Fed Meeting Bloomberg Pimco Sees No Fed Rate Move Until ’16 as Treasuries Extend Gains Bloomberg Gold Holds Drop as Lockhart Remarks Strengthen Rate-Rise Outlook Bloomberg The World Was Not Ready For Her Red Carpet Look StyleBistro Sponsored  Holdings in bullion-backed exchange-traded funds rose 4.1 tons to 2,001.4 tons on Wednesday, data compiled by Bloomberg show. That’s larger than gold reserves held by China, the biggest consumer and a consistent central-bank buyer in recent months. The latest increase followed the biggest one-day gain since 2009 in the SPDR Gold Shares, the largest gold ETF.

BitGold As a Gold Currency

No currency has beaten gold in the last 15 years, making it the best way to save money Most national currencies were linked to or redeemable in gold until 1971 when "Fiat Money" was re-introduced by the United States and soon, thereafter, in every other country. Since then, gold has gained over 3,000% against the US Dollar which is arguably the world's strongest fiat currency. Gold may seem to go up, down, or sideways but, in reality, and when viewed over long-timescales such as the average human lifecycle, it always rises. Buying silver because of supply constraints Silver bullion demand online has increased, similar to what was observed in 2011. Currently, the price of silver bullion has fallen back below US$20 an ounce. With this, silver producers are beginning to make the economic decision to simply leave it in the ground, so this creates an issue on the supply side. As can be observed by consulting the charts, silver has found recent support. Analysts are reporting a settling calm in silver relative to gold and the measured industrial metals such as copper. Speculators perceive the silver production cost issue as an indicator of silver bounce in 2016. It is this volatility in silver that places gold as a preferred choice for larger portfolio percentages. Discover a simple way to own and spend gold. Get started with as little as $1 and begin with BitGold today.

Gold and Silver Market

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Gold and Silver Market As of June 15,2016

See the latest thoughts from seeking Alpha on: How will Brexit Impact the Gold and Silver Market?

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Many analysts believe that if Brexit happens, gold and silver prices will soar. Investors will pull their money from the stock markets and banks, seeking safe-haven assets instead. If the euro currency plummets, they will also look to get out of cash and into real money such as gold and silver. These fears are also part of the reason for the sharp rise in crypto-currencies, such as Bitcoin and Ethereum.

James Butterfill, head of research and investment strategy at ETF Securities, echoes this sentiment: "Brexit would be very beneficial for shorting sterling and we will probably see a big pick up in gold. In that scenario we think gold could hit $1,400 [an ounce]," he said on the sidelines of the Inside ETFs Europe conference in Amsterdam. "We've looked at previous risk events and for instance when Greece nearly left the Eurozone [in the summer of 2015] we saw really elevated futures positioning. We are making the assumption that we would see net longs for quite an extended period of time in gold in a Brexit scenario," he said. Butterfill said ETF Securities has seen an inflow of $2.6 billion into gold this year, boosting the metal's share of the company's asset under management to 14%. "I think it has happened for various reasons. One is Brexit, another is a non-establishment presidential candidate in the U.S.," he said, referring to the presumptive Republican presidential nominee, Donald Trump. He said the other concern is the Federal Reserve's interest-rate policy, which appears to be on track to remain unchanged for the near term, a fact that would be supportive to gold prices. "These are three quite significant risk events, so that's why we are seeing popularity with gold," Butterfill said. "That also means a rally to $1,400 an ounce would have legs and not just translate into a short-term shaven trade." "I was actually surprised when [Fed Chairwoman Janet Yellen] mentioned Brexit for the first time in her speech last Monday. It's clear they are thinking about how much instability it creates. The implications could have a domino effect with other fringe parties around Europe pushing for a referendum. It's not a nice investment environment," he said. TD Securities looks for gold to surge higher if the U.K. voters decide on June 23 to leave the European Union. If there is a Brexit,

TD Securities expects: "…gold to trend past the recent highs and move toward $1,392/oz, with the more volatile silver testing the $20/oz mark," the firm says in a research note just ahead of the weekend. "However, should the vote be to remain in the European Union, a swift correction but no rout would ensue." Even if the U.K. stays in the EU, any pullback in gold may be limited as the Fed rate hike trajectory has slowed considerably. CME's FedWatch tool puts the odds of a June rate hike at just 2% and a July hike at 21%. The odds go up when asking if the Fed will hike by year end, but even then the odds are only 59%. This is down considerably from a few months ago when everyone was sure the Fed would hike rates at least once and likely two or more times in 2016. Furthermore, even if the Fed decided to raise rates by 25 basis points, this does not necessarily point to lower gold and silver prices. In fact, the current rally in precious metals started just after the Fed hiked rates in December. And history shows repeated patterns of gold and silver price climbing along with interest rates. So the market has been a bit irrational with high expectations that the Fed would follow through on its rate hike talks. And even more irrational to assume that a slow climb in interest rates is negative for precious metals. After the four-year correction to lows at or below the cost of production, this rally off deeply oversold levels was long overdue.

Gold and Silver Market Future

Investors can take advantage of this irrationality via buying the dip in gold and silver every time that Yellen yaps about raising interest rates. People keep falling for this Fed trick by panicking out of their PM positions, and you can step up and purchase their metals or shares at a nice discount. We do this with the conviction that precious metals are in the early phases of a multi-year bull run after the long correction. I expect the gold price to climb towards $1,500 and silver to $20 even if the U.K. votes to remain in the EU and the Fed raises rates. But if there is a Brexit, contagion and/or failure to raise rates, the sky is truly the limit for gold and silver. Under these conditions, I would not be surprised to see gold climb above $1,600 and silver above $27 by year end. While I expect the gains in gold and silver over the next 12 to 24 months to be very powerful, quality mining stocks are going to be where the real money is made. So far in 2016, mining stocks have been offering leverage of more than 4X the underlying move of the metals. Some of our favorite mining stocks are up 200% or more year to date. For example, our top silver stock pick is up 270% this year. While many investors are hesitant to buy after such a big move, mining stocks are bouncing off drastically oversold lows. This particular silver stock would still need to climb another 540% to reach 2012 highs and it has more than doubled its silver resource since then. In my view, the upside potential dwarfs the downside risk, even after the huge move this year.

Run On the Bank

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Possible Solution to Bank Run - Invest In BitGold

For centuries gold is considered one of the safest investments and BitGold has made it easy to buy and affordable as small investments are acceptable.
Essentially, payments are made in cash and then are converted into savings of Gold.

The only reason the government would tie the dollar to gold again would be to immediately re-establish the credibility of the currency and stop a global "run on the bank." But how could the dollar possibly fail? Our economy is immense and resilient. We control the world's most powerful military – which is distributed across more than 100 different countries. Why would anyone want to sell the dollar? It's true that the dollar is by far the strongest of all the world's paper currencies. But this strength is also a tremendous weakness. The ubiquitous status of the dollar is a kind of Achilles heel. You see, the vast majority of U.S. dollars are held overseas. According to the Federal Reserve, roughly half of all $100 bills are held overseas – almost $500 billion worth. Foreign demand for $100 bills since the fall of the Berlin Wall has caused production of $100 bills to soar. Far more $100 bills have been printed than any other denomination. Of course, it isn't only cash that is being held overseas. Foreign banks hold trillions in dollar-denominated bonds. The top five foreign holders of U.S. Treasury bonds (China, Japan, Ireland, Brazil, and the combined members of the Organization of the Petroleum Exporting Countries) have $3.1 trillion in dollar-dominated bonds. And those are just the major holders. The U.S. dollar is the currency of choice for banking reserves in almost every nation in the world. And then there are the big foreign accounts of U.S. corporations, which hold more than $2 trillion overseas. Adding up only these big numbers... you can see a huge amount of dollar currency and debt ($6 trillion-$10 trillion) is held overseas. And that's not to mention foreign-held U.S. real property, like real estate, stocks, and corporate bonds – all of which are denominated in U.S. dollars. Unlike, say, Japan, where almost all of the currency and government debt is held locally, the U.S. dollar is the de facto global currency. In the event of a bona fide global bank run, it won't be possible for the U.S. government to simply shut down the banks and halt the panic. Almost all of the "banks" are overseas, and almost all of the currency is held overseas. That's the huge difference between today and the last time our government defaulted on its obligations (back in 1933). This is the Achilles heel of our currency that most people don't understand... and that many of our policymakers won't see coming. In the event of a real run on paper currencies, the U.S. government won't be able to stop the panic by simply closing domestic banks and stock exchanges. It doesn't have an easy way to stop the panic because so many of the dollars are held overseas. Meanwhile... it should be pretty obvious to any rational person that sooner or later, millions of people around the world who hold dollars are going to begin to doubt the safety of their savings. After all, when just about every major bank in the U.S. was at the point of insolvency, the Fed simply printed almost 4 trillion new dollars to bail out the system. Wouldn't that make you wonder about the future purchasing power of those dollars? And besides, who in his right mind would own any government bonds that charged investors to own them, guaranteeing losses? Who would pay for the "right" to own a bond that pays no interest and is denominated in a currency whose value can't be controlled and isn't backed by any fungible commodity? Someday, historians will look back on today's negative interest rates and be amazed that such conditions could have existed. This sovereign bond bubble is truly the greatest mania in the history of finance. But we might not even need negative interest rates to spark the panic... Just imagine what might happen if a major presidential candidate began telling global media outlets that America was heading for a massive economic crisis and that now was a terrible time to buy American companies or other U.S. assets. Imagine if this candidate began calling himself the "Lone Ranger." Imagine if he promised to eliminate all U.S. government debt, most of which is owned by foreign investors. Actually, you don't have to imagine. That's exactly what Donald Trump recently told the Washington Post. You can bet millions of Americans – who don't understand anything about our currency's dangerous dependence on foreign investors – will cheer these promises. But what will the world's largest banks, the biggest insurance companies, and the wealthiest families think about these promises? How will the world's black markets for drugs, guns, and money-laundering – all of which use $100 bills – react? It's a safe bet that all of these hard-nosed foreign holders of our currency would rather own gold than a U.S. dollar that's subject to negative interest rates, new trade restrictions, capital controls... or outright repudiation from the "Lone Ranger." Believe me... these folks won't wait for a panic to move out of the dollar. They're selling as fast as they can, which explains the huge move in gold we've seen so far this year. But this is only the beginning...

Before A Bank Run Why Own BitGold?

I don’t believe the government is going to let the banks collapse. I think they’re going to print enough money to make sure that it’s the value of the dollar that collapses instead of the banks. So what does that mean? That means that you don’t lose your deposits. When you go to the ATM machine, the money is going to come out. The problem is, you’re not going to be able to buy very much with it – and that is a bigger problem. I would rather lose some of my money, but have the money retain most of its value, than retain all of my money that’s lost most of its value. Imagine how bad the 2008 financial crisis would have been had there been no bailouts – had the government allowed more banks to fail. It would have been worse, but then the problems would have been solved and we would have enjoyed a real recovery. One that’s sustainable. Instead we’ve just gone into another bubble, and we’ve made all of the problems that caused the last financial crisis infinitely worse. And now the government has put itself in a position where it won’t be able to bail us out the next time because it’s the government itself that’s going to have the crisis. It’s the government that’s going to be insolvent because the crisis is going to be in the dollar and – by extension – into the Treasury bond market.

Last October, the most powerful cycles in the financial universe converged for the first time since they triggered the Great Depression. Now, these same cycles are predicting a massive, sweeping, global debt collapse — a “roller-coaster ride through hell” that will destroy stock markets, economies and entire nations over the next four years. Since then, economic growth in Europe has ground to a near-standstill. What little growth seen there comes largely from massive government spending on the refugee crisis. Meanwhile, the economy is growing at a tiny fraction of a percent and analysts are cutting their forecasts for future growth. Industrial output is plunging. Consumer spending is slowing and consumer I What’s Better than Gold? 8 Go for a $1 million windfall (or much more) in 2016-2020 confidence is cratering. The official jobless rate is over 10%, nearly double that of the United States. And of course, Great Britain — the European Union’s second largest economy — may decide to leave the Union on June 23 — an event that would be devastating to the EU economy. All this, despite a massive new round of money printing and bond-buying, the 5th spate of quantitative easing since 2008. Japan is also a basket case. It is the world’s most heavily indebted nation, with a national debt of more than 1 quadrillion yen. Its economy is shrinking by more than 1% per year and last month, the government lowered its projections yet again. Exports are plunging. Consumer confidence is virtually non-existent. Consumers are spending less, saving more with each passing month. As has always happened in times of crisis, millions of investors world-wide are turning to mankind’s greatest “safe harbor” investment: Gold. But make no mistake: This is not just “the beginning.” I am firmly convinced that it is the beginning of the beginning of the greatest bull market in gold any of us will ever see. In a way, it’s one of the world’s worst-kept secrets. Millions of investors world-wide are already buying gold like crazy. Gold bullion companies are doing a land-office business. You see their ads in almost every commercial break on every cable news channel.

Small Investments are Allowed in BitGold

After a Bank Run BitGold or BitCoin?

A Great Alternative to Bitcoin If you are holding a significant amount of digital currency in the form of bitcoin and want to sell, there are a number of things to keep in mind. Selling bitcoin can often be more complicated than buying it, but there are good reasons to do so, especially if you are considering moving those assets into gold bullion using our bitcoin exchange. The mere fact that selling this cryptocurrency is such a complicated process may be a good reason to sell bitcoin. Even the best known digital exchanges for cryptocurrencies like bitcoin have been plagued with difficulties in recent years. These issues might be potential precursors to bigger issues for the currency as a whole. The lack of tangible assets backing the currency, the lack of a central governing body ensuring consistency in mining operations and distribution of the currency, and the fact that the biggest names in the bitcoin exchange markets have suffered such difficulties could be signs that the bitcoin bubble is bursting, if it has not already done so. Have your gold, and spend it too. The PrepaidCard is available for request to customers with at least 1 gram of Gold in their accounts. BitGold is an online platform that makes gold accessible for payments and savings. It’s like any other bank account in that you can deposit your local currency but your money is denominated in gold. Your Gold is stored in insured Brink’s depositories located in Zurich, Hong Kong, London, Singapore, Toronto, Dubai, or New York City. Think of BitGold as PayPal but denominated in grams of Gold. Discover a simple way to own and spend gold.  Get started with as little as $1 and build over time, with or without a bank run with bitgold.

Three Reasons To Own BitGold

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Simple To Invest In BitGold

For centuries gold is considered one of the safest investments and BitGold has made it easy to buy and affordable as small investments are acceptable.

Essentially, payments are made in cash and then are converted into savings of Gold.

BitGold's mission is to provide global access to gold for secure savings and transactions, making an extraordinary element useful and empowering again. Technology and progress are essentially a history of experiments with elements, and of experiments in cooperation. At BitGold we believe that cooperation and saving in gold as a unit of elemental-measurement promotes a more equitable distribution of wealth and opportunity, and aligns prosperity within the natural limits of our planet. In an age of rapid change and limited opportunities for secure savings, we contend that saving in gold can empower individuals and foster cooperation. By reexamining the elemental properties of gold, it becomes clear that gold provides a globally neutral, natural unit of account in relation to all other elements required by humans. The scientific properties of gold in our natural and human systems reconciled independently over thousands of years. We ask you to consider an alternative view of gold's usefulness, one absent the emotive politics of money, fear and greed.

Why You Need To Own Gold Before It's Too Late from The Sovereign Investor

Why Own BitGold?

It all boils down to this one quote by Peter Schiff

I don’t believe the government is going to let the banks collapse. I think they’re going to print enough money to make sure that it’s the value of the dollar that collapses instead of the banks. So what does that mean? That means that you don’t lose your deposits. When you go to the ATM machine, the money is going to come out. The problem is, you’re not going to be able to buy very much with it – and that is a bigger problem. I would rather lose some of my money, but have the money retain most of its value, than retain all of my money that’s lost most of its value. Imagine how bad the 2008 financial crisis would have been had there been no bailouts – had the government allowed more banks to fail. It would have been worse, but then the problems would have been solved and we would have enjoyed a real recovery. One that’s sustainable. Instead we’ve just gone into another bubble, and we’ve made all of the problems that caused the last financial crisis infinitely worse. And now the government has put itself in a position where it won’t be able to bail us out the next time because it’s the government itself that’s going to have the crisis. It’s the government that’s going to be insolvent because the crisis is going to be in the dollar and – by extension – into the Treasury bond market.

Small Investments are Allowed in BitGold

BitGold accounts are free and can be opened in minutes.A new customer has 15 minutes upon signup to make his or her first deposit and receive a 5% deposit bonus up to $100.

Invest Yourself In Spendable BitGold

We provide users with a secure vault account to purchase and hold gold, the ability to make and receive instant gold payments, and a prepaid card for spending gold at traditional points of sale. Through our network of ATM's customers can fund their accounts with local-currency. All gold bullion is fully redeemable as 1kg gold bullion bars or 10g GoldCubes®

My Total investment was $2 to test the system. I added another $10 purchase today(11/30/15), another $15 on 12/11/15, another $15 on 12/27/15 into BitGold.  Gold Prices have been moving down, but have recently been surging. If you dollar cost average into BitGold you can buy more grams when the prices are low and less when the prices move higher. I started on 11/24/15 and this post is written on 1/30/16 as my BitGold account $37 Invested is now worth $46.95. This is one of the easiest ways to own and spend gold that I've ever seen.

The Halving of BitCoin

BitGold Can Transform BitCoin

A Great Alternative to Bitcoin If you are holding a significant amount of digital currency in the form of bitcoin and want to sell, there are a number of things to keep in mind. Selling bitcoin can often be more complicated than buying it, but there are good reasons to do so, especially if you are considering moving those assets into gold bullion using our bitcoin exchange. The mere fact that selling this cryptocurrency is such a complicated process may be a good reason to sell bitcoin. Even the best known digital exchanges for cryptocurrencies like bitcoin have been plagued with difficulties in recent years. These issues might be potential precursors to bigger issues for the currency as a whole. The lack of tangible assets backing the currency, the lack of a central governing body ensuring consistency in mining operations and distribution of the currency, and the fact that the biggest names in the bitcoin exchange markets have suffered such difficulties could be signs that the bitcoin bubble is bursting, if it has not already done so.

Have your gold, and spend it too. The PrepaidCard is available for request to customers with at least 1 gram of Gold in their accounts. BitGold is an online platform that makes gold accessible for payments and savings. It’s like any other bank account in that you can deposit your local currency but your money is denominated in gold. Your Gold is stored in insured Brink’s depositories located in Zurich, Hong Kong, London, Singapore, Toronto, Dubai, or New York City. Think of BitGold as PayPal but denominated in grams of Gold.

 GoldMoney Inc. (XAU.V)

GoldMoney Inc. operates as a precious metals dealer primarily in Canada. The company operates GoldMoney, a platform that offers precious metals custody and wealth services, trading and execution services, and research services to individual investors and institutions. It also operates BitGold, a gold savings platform and a gold payments network that allows individuals and businesses to make or receive online, in-store, and mobile payments. The company was formerly known as BitGold Inc. and changed its name to GoldMoney Inc. in July 2015. GoldMoney Inc. is based in Toronto, Canada.

You can transfer or receive BitGold for free with any other BitGold user (except US users), and you can spend it anywhere at any point-of-sale with your BitGold Prepaid Card. BitGold account holders may deposit money into their account via Bank Wire Transfers, Credit Card, Debit Card, China Union Pay, Interac for Canadian users and ACH from selected US Banks.
Discover a simple way to own and spend gold.  Get started with as little as $1 and build over time with bitgold.