About The Author

Phil Flynn

Phil Flynn is writer of The Energy Report, a daily market commentary discussing oil, the Middle East, American government, economics, and their effects on the world's energies markets, as well as other commodity markets. Contact Mr. Flynn at (888) 264-5665

Have you taken a bight of bitcoin yet! It may be your best haven play or do you go back to that old reliable and more steady gold.

Yesterday, Bitcoin outperformed gold again, strengthening its role as an alternative investment.

Despite concerns over Bitcoin’s volatility compared to gold’s long-standing status as a haven, growing interest in digital currency indicates a shift in market sentiment. Central banks still hold 38,000 tons of gold—the most since the 1970s—with China and Russia increasing their reserves by 15% and 12%, respectively, last year.

Yet if you look at Bitcoin as a digital gold its advantages are that it can be moved much more quickly than a bar of gold and the storage cost to hold physical gold requires added costs gold of course offers steady returns with an average increase of 7 to 9% annually but the upside of bitcoin’s potential could be unlimited. Bitcoin has a limited supply that will never grow and unlike gold cannot be discovered.

So, in other words, gold is going to be a steadier haven investment but if you’re a speculator and you were looking for much larger returns Bitcoin is going to offer that potential.

Trading Bitcoin futures requires additional regulatory steps, but it is possible, and mini-Bitcoin futures are becoming increasingly popular. The manic metals report of course has had a long-term bullish outlook on both gold and Bitcoin and we do not believe that the moves to the upside are over yet..

And of course, major banks including JP Morgan that was anti Bitcoin is offering Bitcoin services and there are even countries now that are accepting Bitcoin as currency, Luxury stores such as Gucci, Hublot, Tag Heuer are accepting Bitcoin and if you want to buy a Ferrari you can pay for it in Bitcoin as well.

As of now I don’t think that they are accepting gold bars, but you could try it.

Some Toyota dealers accept Bitcoin as payment for purchasing a vehicle, although this practice is not universal. Additionally, companies such as Virgin Voyages, along with certain cafes like Note Coffee in Spain, also accept Bitcoin. Considering the value of one Bitcoin, it would be intriguing to determine how many cups of coffee that could buy—though it’s unlikely that anyone could consume that much coffee in one sitting.  At least not without a few potty breaks.

Kitco News reports that analysts at the World Gold Council (WGC) expect gold prices to be influenced by rising U.S. deficits and fiscal uncertainty, regardless of whether a near-term crisis develops.

According to their comments on Tuesday, recent legislation is projected to add approximately US$3.4 trillion in debt over the next decade and increase the debt ceiling by about US$5 trillion unless the current administration achieves its growth goals. The analysts also note that recent political developments and ongoing fiscal challenges are increasing both fiscal and political risks.

The World Gold Council complained that recent fiscal changes could affect the gold market.

They cited Trump’s initial tariff announcement, which triggered a major sell-off in US Treasuries, and noted ongoing market uncertainty as the Congressional Budget Office projects his new bill will add $3.4 trillion to the $36.2 trillion US debt.

Maybe the World Gold council may want to join Elon Musk’s third party, but the reality is that the fear mongering from the WGC is overstated when it comes to the trade deficits.

While deficits are an issue, lower taxes and improved regulations may help reduce the trade deficit and offer more optimism compared to the alternative with President Biden.

Copper prices are surging due to President Trump’s announcement of a 50% tariff on copper imports starting August 1 and came in higher-than-anticipated levy was initially indicated by President Trump during remarks to reporters on Tuesday.

Both palladium and platinum have exhibited significant volatility, with the platinum market continuing its record surge due to ongoing shortages and concerns that additional sanctions on major producers could exacerbate the already constrained supply situation.

Copper today is attempting to retrace to the all-time high that it hit on July 8th of $5.69 a pound which of course after president trump talked about tariffs at its biggest gain if not in history at least since 1989.

Platinum futures have been in a squeeze for a while and it’s up a whopping 57% this year here today and compared to last year we’re 37.07% higher.

Platinum production in South Africa has experienced challenges, including electricity blackouts, mine shutdowns, and reduced output. Additionally, platinum may be impacted by the potential imposition of a 30% tariff in South Africa announced by President Trump.

The demand for physical metals is strong and we’re seeing the futures market being a place where deliveries are being made more frequently.

In fact, many traders forget that they can take physical delivery for many of the metal’s contracts traded at the CME Group.

Which is something of course could be very popular for many of our investors but we’re also seeing the dynamic increase of the use of micro contracts when it comes to gold and silver which would become extremely popular especially with the high volatility and the ability to manage a position by quickly adding or subtracting contracts to a core position whether it be Bullish or bearish. And we think it’s very clear that Bella will still have the capacity to go a lot higher pretty much across the board aluminum was one that seems to be lagging a bit but the extreme volatility can also add to terrific day trades if you were on top of the support and resistance levels.

Make sure you sign up for all of our daily reports and call me if you have any questions on how to handle the metals markets at 888-264-5665 or you can e-mail me at pflynn@pricegroup.com. You can also open your trading account with us and if you need to be kept up to date on the latest breaking metals making news stay tuned to the Fox Business Network because they are the only network anywhere that is truly invested in you.

Thanks,

Phil Flynn

Senior Market Analyst & Author of The Energy Report and Manic Metals Report

Contributor to FOX Business Network

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Please do not leave any instructions for orders in your message, as we cannot execute instructions left through email or voicemail. Orders must be entered via direct verbal communication with a representative of our firm. We cannot be held responsible for orders left in any other manner.  PAST RESULTS ARE NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. Investing in futures can involve substantial risk & is not for everyone. Trading foreign exchange also involves a high degree of risk. The leverage created by trading on margin can work against you as well as for you, and losses can exceed your entire investment. Before opening an account and trading, you should seek advice from your advisors as appropriate to ensure that you understand the risks and can withstand the losses. Member NIBA, NFA.

 

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