Gold and Silver backed crypto

[sixgun]

http://www.goldvu.com/bullioncoin.html

There will be two coins, a gold and a silver one. 

There are several features that point to this having a significant impact on the precious metal market. That it will result in physical being sucked out of the market and result in prices rising and ultimately a price reset as the paper market disintegrates. 

[Mariner1961]

I'm afraid Im still not convinced by crypto at all and especially any backed by gold.

I've bought some crypto and watched it double in value and then fall to just over what I invested and tbh I can see no reason why they went up and down.

I bought some gold backed crypto that is now apparently worth 4 times what I paid for it yet my actual gold in hand has stayed at roughly the same price.

To me it just doesn't make sense. I think Im going to stick with physical metals.

[breaktwister]

Which gold backed crypto did u buy?

[KDave]

Finally a crypto that isn't just a ledger of who owns what thin air. If this or something like this gets enough backing and trust, it could have a significant effect on the bullion market. 

I like the look of it, especially in regards to the share of transaction fees going to the owner of the coins and the merchants, but it would need to become an actual currency for this to work, as opposed to the speculative bubble vehicles that the existing crypto coins currently are. There is also the problem of how much those transaction fees will be and if such a fee structure would be a hindrance to people using it as a currency in the first place. Why pay more to buy something?

Then we have the usual and not insignificant third party risk here and if the aim if just to own gold and silver, physical is better. If you don't hold it is true. 

Problems aside this is an interesting development in both markets. I hope it goes well. Perhaps it will not be one physical backed crypto but many (there are many coming out) that provides the push to keep the metals rising in the coming higher interest rate environment?

 

[sixgun]

i have been aware of this gold and silver backed crypto for a little while. It had been kept under wraps whilst preparations were being made but since i see it on a web page of its own and it is being launched next week i feel it is ok to mention it.

Some of you will be aware Andrew Maguire made a 26 days prediction for the price of precious metals.

http://kingworldnews.com/andrew-maguire-major-event-to-create-massive-gold-price-surge-in-26-days/ 

This was widely noticed but it was not known why there would be a rise in precious metals and especially not in the 26 days. This was to do with the launch of 'Bullion Coin Gold' and 'Bullion Coin Silver'. 

These cryptos BCG and BCS will be fully backed by gold and silver. Backers of the coins buy metal which is vaulted with the Allocated Bullion Exchange. The ABX has vaults outside the LBMA system and in several places around the world. 

Backers will buy gold which backs the coins. There is no limit to the coins other than the amount of gold and silver in the vaults. The coins are then released onto the secondary market where they are traded through the Deutsche Börse. This automatically links the coins in with a large number of institutions. It is only the involvement of the big players that will have sufficient weight to break the LBMA cartel and the COMEX. The trading of the coins involves a small transaction fee. Those backing the coins get a cut of this. i have seen estimates of between 10 -15% yield. This is off the scale when compared with bonds, many of which are yielding negative rates. This makes involvement in backing the BCG and BCS a go to.

The company is registered on the Isle of Man and with the FSA. This might be a red light to many - it goes against the ethos of cryptos - traded on a stock exchange, registered on the Isle of Man, registered with the FSA. The thing is these regulations and 'safeguards' attract the big players. The pension, hedge and insurance firms - they will gravitate to the regulated arena. 

As far as i am aware there are $billions in the sidelines. When you consider the size of these financials, the appalling bond yields and the shortfall of pension companies desperate for yield, there is potential for $100's of billions. This will then be used to buy gold and silver. At current prices this gold and silver does not exist.

There has been a 17 year deficit in silver - this could not go on forever. Gold has been rehypothecated so many times it is stupid. Claim upon claim upon claim on gold that might not exist in the first place. If you are an entity hold gold in an unallocated account costing you storage and insurance fees the no brainer will be to have gold and silver backing BCG and BCS. The problem for the banks is the gold in unallocated account does not exist in most of these unallocated accounts. It never existed. We have seen glimpses of this with Deutsche Bank. They will have to cash settle. The cash then goes into the Bullion Coin system to buy gold and silver. This will force prices up. More will see the advantages of Bullion Coin and will move to redeem their gold. Gold which was allegedly bought at say $600/oz [but was never bought in the first place] and is now redeemed at $2000/oz. The process will snowball. The losses will mount. At the same time the price on the COMEX rises. The paper market will be unable to fight this. Traders will increasingly stand for delivery. The bearish contracts and other derivative bets come under pressure. Stop losses trigger.

This has the potential to break the COMEX, break the LBMA and the whole fiat currency system in a massive default and precious metal reset.

We will have to see what happens. For years gold and silver bulls have been theorising the reset but as far as i can see this has the makings of causing this to occur.   

i am not entirely clear about the transition from the primary market of the gold and silver backers to the secondary market or users and traders.

There is the concern that if this would have sufficient momentum to break the fiat currency scam then there would be action taken to shut it down. Death threats, assassinations, storming the vaults and stealing the metal. This is something that has me wondering. Wars have been started over less. 

Whatever these are interesting times and even if you do not get involved, it is certainly an interesting time for precious metal holders, especially in silver which will be the one to ignite first. 

[sixgun]

4 hours ago, breaktwister said:

Which gold backed crypto did u buy?

These cryptos are not available right now, they are about to kick off. i am going to stand back. i am fully invested in metals and miners. There will come a point when i will leave the paper arena completely. i hope i do not leave this too late and end up losing. 

[KDave]

An interesting theory, I imagine what actually happens will lie somewhere in between complete reset and much higher gold prices, but it depends on the success of these backed crypto currencies. If they are successful, then anyone who holds metal will benefit whether they own the crypto version or not. Thanks for posting this. 

[breaktwister]

I am all for sticking the two fingers up at the criminals at the COMEX.  I've signed up to the Bullioncoin mailing list and will be making a founders purchase.

[Mariner1961]

Which gold backed crypto did u buy?

Sorry for delay in replying.

Something called Ozgld, it's s starter and not yet trading on exchanges yet it's value went up 300% according to the cost per coin against the $. I still think it's all bs tbh.