The United Kingdom has unveiled sweeping new regulations for the cryptocurrency industry. Scott Chipolina reports in the Financial Times: The UK has set out a sweeping new regulatory regime for the cryptocurrency industry that aims to bring the rules governing the issuance, trading and lending of crypto tokens closely into line with those for traditional financial assets such as stocks and bonds. The proposals to “robustly” regulate the sector, which are subject to a consultation, are the clearest sign yet that the government is determined to transform the UK into a hub for the crypto … [Read more...]
Gold, Silver, and Currencies
Young Research & Publishing has been providing research and insights on precious metals and currency markets to institutional investors, corporate financial officers, business owners, and individual investors for over four decades. Richard C. Young started Young Research & Publishing in the 70s to publish the authoritative Young's World Money Forecast, a 50-page monthly investment report on the precious metals and currency markets. Today, our research on gold, silver, and currencies is geared toward investors in or nearing retirement who are looking to preserve and protect wealth.
China Reopening Drives Gold Prices Higher
The reopening of the Chinese economy after draconian COVID lockdowns is pushing gold prices higher, report Myra Saefong and Joseph Adinolfi in MarketWatch: Gold futures touched a fresh eight-month high Wednesday as traders bet that China’s decision to drop COVID-19 restrictions on its economy would continue to boost prices of precious and industrial metals. The reopening of China’s economy after the lifting of COVID-related restrictions has helped push demand for industrial metals and precious metals higher. Copper futures traded at their highest levels since June and gold on Wednesday … [Read more...]
How to Invest in Gold
How should you invest in gold? We explain how to invest in gold in seven different ways. We explain how to invest in gold coins or bars. How to invest in gold exchange traded funds (ETFs). How to invest in gold mining stocks and gold royalty stocks, and how to invest in gold futures. At Young Research, we have followed the gold market for over four decades. Young Research’s founder and Chairman, Richard C. Young even owned a small private gold company that specialized in Gold Pandas. To invest in gold back then, it was either gold mining stocks or gold coins for most. Today, … [Read more...]
How Your Survival Guy Feels About Digital Dollars
My client told me yesterday that years ago, he and his wife traveled from Alaska back to his childhood home to accept an award for excellence in dentistry. Home for him was LA—not that LA—Shreveport. The ceremony was in New Orleans. The plan was to borrow one of his sister’s cars in Shreveport and drive to New Orleans. Before they drove off, he asked his buddy if he needed anything. “Would you mind picking up some alligator meat?” he asked. “No problem.” Driving home from New Orleans, they took a left into the swamp, walked into the store, and said he was there to pick up alligator … [Read more...]
SEC Signals Greater Regulation of Crypto “Casinos”
After the catastrophic collapse of the world's second largest cryptocurrency exchange, FTX, the SEC's Chairman, Gary Gensler, has signaled that his commission will be taking a harder line on cryptocurrency exchanges, tokens, hedge funds, and broker-dealers. Gensler made the comments about cryptocurrencies in an interview with Yahoo! Finance. When interviewer Jennifer Schonberger asked Gensler why the SEC didn't enforce the rules on the books regarding the collapse of FTX, Gensler responded: We are enforcing. The Securities and Exchange Commission, I couldn't be prouder. And it started under … [Read more...]
Crypto Owners Dumping Luxury Cars as Industry Suffers
The barrage of mishaps and catastrophes in the cryptocurrency market just keeps on going. Following the collapse of major cryptocurrency exchange FTX, other crypto-related companies have seen their fortunes falter. BlockFi, a crypto lender, has filed for bankruptcy, Bitfront, another crypto exchange, is shutting down, the world's largest cryptocurrency exchange, Binance, has been shoring up its "Secure Asset Fund," and in the last couple weeks, at least three big crypto players have died in mysterious circumstances. It's been a rough month for the industry. Now, crypto owners who spent big … [Read more...]
CRYPTO CHARLATANS: Investors Lulled to Sleep by Celebrities, Influencers
Investors in cryptocurrency on the FTX exchange weren't just taken in by the celebrities they saw pitching it to them during the Super Bowl. There were self-styled "financial influencers" who also pushed crypto onto unsuspecting investors eager to beat the zero-interest rate environment. Despite Tom Brady's endorsement of FTX, investing is supposed to be boring, not run like a fantasy football team. Listen to what crypto buyers interviewed by The Wall Street Journal have to say about their involvement with FTX: “My blood is boiling,” said Matthew Way, a fundraiser for an Illinois orchestra … [Read more...]
Remember This from FTX Bankruptcy and You Can Thank Yourself Later
The fall of crypto exchange FTX is a brutal lesson in fear and greed. Not the fear of losing but the fear of missing out or FOMO. FTX founder Sam Bankman-Fried (SBM) said this on the podcast “Odd Lots” describing how venture capitalists pick investments (highlighted by Jason Zweig in his WSJ column the “Intelligent Investor”): You get a bizarre f—ing process that does not look like the paragon of efficient markets that you might expect. [Venture capitalists] see what all their friends are chattering about, and their friends keep talking about this company…and they start FOMOing [feeling the … [Read more...]
CRYPTO CONTAGION: Will Exchange Troubles Cause a Panic?
Cryptocurrency exchange FTX has been forced to seek a rescue from its rival, Binance, in order to avoid collapse. Joshua Oliver reports in the Financial Times: Contagion fears are sweeping across the crypto industry as market participants race to determine who is exposed to Sam Bankman-Fried’s secretive digital asset trading company Alameda Research. Alameda, a proprietary trader, has been a low-profile part of the entrepreneur’s crypto empire, but is at the centre of the storm that has engulfed his crypto exchange FTX. Market worries over Alameda’s financial health accelerated, … [Read more...]
Is Currency Hedging a Future Systemic Risk?
In the Financial Times, Antonio Foglia makes the case that currency hedging as being done today could pose significant risks to the world's financial system. Foglia concludes: Over the past year, investors have suffered substantial losses as the price of bonds fell worldwide as interest rates have risen. And since the value of their dollar bond portfolios fell, foreign investors had to adjust their hedges down, buying back dollars and selling their home currencies. This is an activity usually carried out by back offices which at least on a quarterly basis adjust the size of their currency … [Read more...]
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