Yet Another Major Reason To Buy Gold…

Investing in gold is a wise decision and I have been advising you to invest in gold since last year.

And, if you have made your decision not to invest in Gold, then you are missing huge potentiality.

Humans take a few years to mine or extract gold, but it takes millions-of-years for minerals to formulate gold in the deep of the earth’s crust.

It is the continuous process for mining companies, they need to discover for new deposits. Therefore, the number of mining businesses hasn’t been increasing.

Large mining organizations cutting their investigation budgets for a considerable length of time and the investigation budget hit an 11-year low, by the end of 2016.

As a result, the gold price remains almost the same as the previous years, and this is the main reason behind disinterest of investors towards the gold investing sector.

The chart of the Gold Miners ETF (GDX) reflects the same thing what I was trying to explain, the price has been almost the same for five years.

chart of the Gold Miners ETF (GDX)

Also, the gold price was going down by 30% compared to the price in 2011.

To survive in the bad times, gold mining companies had reduced their investigation budgets.

This scenario indicated that the demand for gold will pick up again and there will be insufficient gold supply.

Surprised? Ok. Don’t believe my words!

Major reasons to invest in gold

Pierre Lassonde, the billionaire founder of gold royalty giant Franco-Nevada and former head of Newmont Mining –

“If you look back to the 70s, 80s, and 90s, in every one of those decades, the industry found at least one 50+ million-ounce gold deposit, at least ten 30+ million ounce deposits, and countless 5 to 10 million ounce deposits.

But if you look at the last 15 years, we found no 50-million-ounce deposit, no 30 million ounce deposit, and only very few 15 million ounce deposits.

So where are those great big deposits we found in the past? How are they going to be replaced? We don’t know.”

Ian Telfer, chairman of Goldcorp, who told the Financial Post:

 “If I could give one sentence about the gold mining business … it’s that in my life, gold produced from mines has gone up pretty steadily for 40 years. Well, either this year it starts to go down, or next year it starts to go down, or it’s already going down… We’re right at peak gold here.”

Let’s think! Gold production is peaking, and the large companies are not spending to explore new deposits, these indicate there will be a drastic change in the gold industry when the demand picks.

As a result, all miners will begin to overtake one another to accelerate their production in order to meet the rising demand for gold.

These are already happening – Telfer’s Goldcorp ($8.5 billion) company was acquired by Newmont Mining for $10 billion.

That isn’t a coincidence! Barrick Gold bought Rand Gold in $6 billion.

This is closely what we are expecting where large miners acquiring one another to fix the gold production issue. And If I am not wrong, it should be beneficial for long-term by means of gold prices.

Now, some of the biggest gold mining companies spending $16 Billion (combined) to increase their gold assets. This indicates that there is a big shortage of GOLD – It’s just started!!

gold

How Cryptocurrency Plans Entice Investors Back to Gold

Gold is best-known for its universal value. Time and again, various nations sought the help of gold when times were tough. For instance, if there is currency devaluation in a particular country, the government would turn to gold for their alternative IOU for the time being.

For many years, people had considered gold as one of the most desired investment assets in their portfolios due to its relatively high intrinsic value. However, since the emergence of cryptocurrencies, gold had been held in the hot seat.

Since then, people had been questioning whether gold is still the best form of investment in the market. For quite some time, metal enthusiasts had stayed loyal to their path, but ever since the price of gold has stagnated, many people started to cling to cryptocurrencies.

The demand for precious metals may have risen, but so did the supply. In that sense, when the supply is up, the value of the asset can potentially go down or stagnate.

Meanwhile, Bitcoin as a cryptocurrency with limited supply can potentially increase in value in the next five years or so.

The year 2017 ended with many people thinking that gold and cryptocurrencies can only become rivals. But now, we see that these two assets can potentially work together to create a better investment opportunity for everyone.

Perth Mint to Utilize Cryptocurrency to Put the Spotlight Back to Gold

Perth Mint, Australia’s biggest refiner, has decided to develop its cryptocurrency that is backed by gold.

This genius plan is directed at giving customers ease in buying gold by integrating blockchain technology into its system.

As you are aware, Bitcoin technology focuses on creating a public ledger for its users. Perth Mint had stated that it intends to use the same technique. However,  this time the strategy will focus on gold purchases.

Since the inception of the blockchain technology, people had used Bitcoin as a channel to enhance and broaden the usage of various sectors such as agriculture and land registration.

With that, Perth Mint Chief Executive Richard Hayes is convinced that it can take advantage of Bitcoin and use it to bring back investors’ attention to gold and other precious metals.

Hayes believes that the primary reason more and more people are clinging to Bitcoin, and other cryptocurrencies are that in this time of modern technology, individuals are looking for alternative offerings outside the traditional methods.

However, Hayes saw a flaw in the cryptocurrency system. Despite the new and secure method of transactions, digital coins remain to be a volatile investment.

Meanwhile, by creating a new cryptocurrency that can work hand in hand with gold, people may just find the solution to their worries.

Cryptocurrencies may be producing a lot of money for some people. But many people will still see it as a risky business.

By creating a cryptocurrency that precious metal can back, people won’t see cryptocurrency as an obscure investment. What they will see is the gold that is supporting it. In that sense, cryptocurrency and gold work for each other, instead of against each other.