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A Primer on Bitcoin and Other Cryptocurrencies

Some financial commentators have speculated that bitcoin and other virtual currencies have captured a portion of funds that would have been invested in gold. I find it a bit ironic that people who invest in precious metals would even consider another fiat currency.

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I find it difficult to recall a period when the world has encountered so many simultaneous threats which “should” have driven gold and silver higher, and yet the precious metals markets—so far—have failed to rally to any significant extent.

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The “battle lines” are being clearly drawn. By the time you receive this issue both party conventions will take place within just a few weeks and there will be only four months until the final vote.

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In terms of gold and silver, if this mountain of unbacked debt, now reaching several trillions of dollars, Euros, Yen or other currencies begins to truly collapse into an inflationary spiral, we will witness the onset of the mother of all precious metals bull markets.

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If the costs of financing the national debt increase in a manner described in this study, that should, in our opinion, be regarded as a long-term plus for the precious metals.

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