Smart Bitcoin Strategies To Accumulate Gold Bullion

I have heard about bitcoin a couple of years back in 2013 and never expected it to grow into a strong cryptocurrency it is today. At the time of writing this article, it is trading on the market at a value higher than gold. This opened a window to many possibilities for me, as I’m already within the market to accumulate this digital currency and gold bullion on a daily basis.

With my experience, I gained knowledge and developed methods to use this cryptocurrency and build a wealth wheel of acquiring gold on a continuous basis using its power.

The following points are methods I use to accumulate bitcoin and gold bullion.

  • Find a company that sells gold bullion
  • Open an online bitcoin wallet
  • Start mining bitcoin online or offline
  • Purchase gold bullion with bitcoin

The above are the basic steps to accomplish the process and it requires specific methods to make it successful. In my opinion this is the best bitcoin strategy to accumulate gold and get it delivered to your doorstep every single month.

Find a company that sells gold bullion

There are many online companies on the internet that sells gold bullion, but there are very few that offers incentive programs once you become their client. You need to look for a company that offers much more than only selling gold bullion. This company needs to offer quality products, such as selling gold bullion in small sizes of 1 gram, 2.5 gram and 5 gram. The gold itself must be 24 karat gold, which is the highest quality you get. The incentive programs needs to allow you to earn commissions once you refer people to the company.

Open an online bitcoin wallet

You will need a place to store your bitcoin once you are ready to get started within the cryptocurrency market. There are many online bitcoin wallets available to the public free of charge. Look for a company that offers a wallet to store bitcoin and an offline vault to protect it. There are many hackers trying to break into the wallets of online users and steal all their bitcoin. If you store your bitcoin offline, you will never be a victim of online hackers.

Start mining bitcoin online or offline

There are two main ways to get bitcoin. Mine bitcoin online or offline. To mine bitcoin online is very easy and much simpler than offline methods. I personally use both methods to test the profitability for each. By joining an online bitcoin mining farm would be a great way to get started.

You need to be very cautious on this option as well, because there are thousands of scammers claiming to have bitcoin farm, but in fact does not. These guys create Ponzi schemes and will only steal from you as much as they possibly can. There are also trusted and real companies that has bitcoin farms operating every single day that I personally use.

You can also mine bitcoin offline by purchasing a bitcoin miner, which is computer hardware that you set up at your home. This hardware then gets connected to the Internet and will start mining bitcoin. This bitcoin will then automatically be sent to your online bitcoin wallet.

Purchase gold bullion with bitcoin

Now that you have bitcoin coming in on a daily basis there are very specific ways that needs to be followed to purchase gold bullion from the company you chose. You need to link your bitcoin wallet to a visa card. This card must also be offered to you from your bitcoin wallet company that you chose. Use this card to purchase gold bullion at any time you have enough bitcoin in your online wallet.

Gold Trading Companies Shared Why Buying Gold Is A Great Investment

Gold plays a major role in the economies of many nations. Though this is not a primary form of currency already, it is still considered a long-term, solid investment.

Why Most People Invest In Gold

Liquidity – It can easily be converted into cash, no matter where you are in the world. Apart from actual cash, the universality as well as liquidity of gold is unparalleled.

Great value – It tends to maintain is great value over time. In fact, most economists say that its price is not indicative of its value. So even when the price decreases, its underlying value doesn’t change.

A great way to diversify – An essential way to diversify as well as lower the overall risk of your investment is by adding different securities to your portfolio. Since fold usually moves inversely to the stock market, it actually provides an efficient way of diversification.

An input in products – Due to the fact that this element is used in producing various products such as electronica and jewelry, there is a great demand that will further stabilize its price. Aside from that, the market can force its price to go higher when there is an increased demand for it.

Universal commodity – Though different countries sell their treasuries, currency futures, and other securities worldwide, as compared to gold, they are subject mostly to political chaos.

Take note also that when inflation takes hold, this element rises in value. Indeed, any deterioration in the dollar will lead to a higher price of gold. So during inflationary times, it actually offers a more stable investment as compared to cash.

Be reminded though that this form of investing also has some drawbacks. First, this element does not earn passive income. The only return you can get from it is when the value increases and you wanted to sell it. Second, it needs physical storage as well as insurance. Aside from putting up a store where you can place it, you also need to insure it. If not, you can’t replace it when it becomes stolen or damaged.

When Is The Best Time To Invest?

The best time for investing in this element is if inflation is expected to take hold and force down the national currency’s value. As early as you can detect such drops, the more room you can actually have to make high profits. Some of the indicators will include political turmoil and stock market declines.

Don’t Give Up Your Gold

Gold is not dead.

Just ask Germany.

Germany’s Bundesbank recently announced that it finished its transfer of $13 billion in gold bars that had been stored in vaults under Lower Manhattan, bringing the metal back home again. The country had started repatriating its gold in 2013 with the goal of storing 50% of its reserves in Frankfurt once again.

When the gold transfer is complete, Germany will have removed all the gold it stored in Paris, left behind only 13% of its reserves in London and approximately one-third of its reserves in New York.

With the rise of cryptocurrencies – such as bitcoin – and digital cash, such as PayPal, Apple Pay and other apps, there has been a steady drop in the use of physical cash, making the yellow metal feel downright archaic.

But gold holds a special status, stronger than even the couple twenties in your wallet right now. The precious metal offers a blanket of safety and security. It is seen as more trustworthy than any government-issued currency.

Just look at the euro – a currency for a union of countries that is threatening to tear apart. (Germany certainly feels better having its gold home again.)

Or even the U.S. dollar – a currency backed by roughly $20 trillion in debt.

Not only is gold alive and kicking, but it needs to play an important role in your portfolio…

Let me just start with this: I’m not a goldbug.

I’m a trader, first and foremost, and usually with a short time frame as my target. I was raised on the versatility of options and the quick trade for nice profits. I don’t care whether the market is bull, bear, or – shudder to think – range-bound. There’s always a way to make a profit if you know where to look.

But gold is a tricky thing.

It doesn’t pay a dividend, so there’s an opportunity cost associated with the metal.

However, when there is uncertainty in the market, shaky economic growth or geopolitical discord, gold shines as a safe haven in the storm. When stocks are getting hammered, investors will run to gold as a safe way to store some of their greenbacks rather than just converting it to cash and stuffing it under their mattresses.

And going by the way gold has been trading, it looks as if many investors aren’t too sure about this market rally.

The Hedge

In 2016, the price of gold rallied more than 8%, nearly keeping pace with the stock market, as the S&P 500 gained 9.5%.

In fact, the World Gold Council reported that gold demand rose 2% in 2016 to 4,309 tons, tagging a new three-year high.

And less than two months into the new year, we have gold up another 8%, beating the S&P’s gain of approximately 5% – which is noteworthy.

When stocks are strong and investors believe in the market rally, they are happy to abandon gold for high-flying stocks that promise a far better return.

For example, during the dot-com bubble, the S&P 500 rallied from January 1995 through September 2000 by more than 200%. In contrast, gold stumbled 27% during that same time period.

Or look at the market’s rally from October 2012 through January 2016, when the S&P 500 gained 37%, while the yellow metal tumbled 35%.

In short, when times are good, gold is the forgotten child left in time-out until he can learn to play well with the other assets.

And when times are bad, gold is the prodigal son offering security and protection.

So if the stock market is trading at all-time highs and regularly setting new records, why is gold still shining as a favorite?

The financial market has its fair share of potential stumbling blocks that could send everything tumbling sharply lower. Let’s look at a quick list:

  • Stocks are overvalued. We recently explained that, according to traditional measures, stocks are painfully overvalued, and we are setting up for a reversion to the mean.
  • Washington in turmoil. Our new president has promised a series of extreme moves that could have significant repercussions for both the U.S. market and the global market that could start with a sharp earnings slowdown.
  • The next exit in Europe. The EU and U.K. are stumbling their way through Brexit as well as major upcoming elections – Italy, Germany, the Netherlands and France. Furthermore, Europe’s growth has been largely overlooked by many investors and could become the next hot trade as they grow weary of drama in the U.S.
  • The derivatives nightmare. The U.S. is facing a collapse that could rival the fallout from the housing sector debacle as America’s top five banks have loaded up on derivatives tied to interest rates.
  • The Fed wild card. The latest transcripts from the Federal Open Market Committee meeting revealed that the Federal Reserve is looking to lift interest rates “fairly soon.” Higher interest rates will suck money out of the economy as it costs more to service our mounting debt. Higher interest rates also have a tendency to crush stock rallies.

Investors are closely watching these issues, waiting for one or more of them to kick stocks off their current track.

Your Disaster Insurance

Of course, this doesn’t mean that the market is going to fall off a cliff tomorrow.

I think the one quote that every speculator is beaten over the head with is: “The market can remain irrational for longer than you can remain solvent.”

In short, just because a stock or index has risen to all-time highs doesn’t mean it can’t keep going higher, even if it doesn’t make logical sense to you and me.

But it doesn’t hurt to have a hedge in place to protect yourself when it all comes tumbling down.

Gold remains that perfect hedge: your insurance against the Fed, Washington, reckless banks, Europe and even that black swan that hasn’t even hit our radar yet. That’s why gold is still shining as the favorite even during this year’s stock market highs – investors know they need a safe haven, just in case.

Physical gold is your best option rather than investing in “paper gold” such as exchange-traded funds.

No matter how you choose to add physical gold to your portfolio, the important part is that it is there, ready to be your safe haven when it all falls apart.

Important Considerations When Trading Gold

There are plenty of financial tools available to trade. But because gold often maintains its value even it in most crucial economic circumstance, most traders are resorting to gold. In fact, this is considered as safe haven asset.

These days, online gold trading has become popular. It is not considered as among the cheapest and easiest ways of making a profit. Before trading gold though, you must equip yourself with the right knowledge to ensure your success.

Things You Must Know Before Trading Gold

Avoid buying too much – The price of this precious material can be volatile; hence, you must only invest up to 5% of your portfolio. You have to diversify your portfolio so if one investment fails, there are others you can fall back on.

Be updated with Forex news – Always find time to watch Forex news so you can be updated with the most recent market movement. Consider different factors to gain a better understanding of its shifting price. This will indeed help you in refining your trades as well as in making more strategic trading decisions.

Technical analysis is important – This will help you analyse the gold trading market. You need to know the different Forex indicators and signals for a much better market analysis.

Leverage – To use leverage is probably the best way of augmenting the value of your gold trades. This will provide you with the opportunity to generate huge profits without the need to deposit huge amounts of money from the offset.

Factors That Influence Gold Prices

Global Crisis – World events usually have a huge impact on the price of gold since this precious metal is viewed as a great source of safety amid economic or political tumult.

Inflation – The value of currency fluctuates but for gold, its stays more stable in the long term. Consider engaging into gold trading when the value of paper money declines.

Jewelry and Industry – More than half gold demand is from jewelry. There are also some countries that regard this metal as a type of currency, an important gift, a hedge against bad times, and a display of wealth. And this demand drives the price of gold. Industrial applications also have great demand for this metal. Most manufacturers are using this in all types of electronic devices and medical equipment.

Gold Production – Production costs will have a huge influence on that cost of all gold in the world. If production costs rise, this metal becomes expensive.

Infallible Strategies To Confirm The Authenticity Of Gold Bars

In fact, it is an old, old story that there is counterfeit of almost everything under the globe, gold, ingots, coins, bars and precious metals generally are not exempted. It is an open secret of fake coins emanating from Asia and gold bar drilled and filled with Tungsten.

In view of the above, you need to exercise due care and diligence when investing in gold bullion so that you don’t throw your money in river Tame (London). The highlighted strategies will go a long way to ensure you are buying a real gold if you strictly adhere to same.

1. Reputable and knowledgeable dealers. Actually, your first and best precaution and security is to buy gold from core professionals in this business. The leading exponents in this business has high quality standard and internal control/screening mechanisms back-up by time-tested customer oriented service delivery.

In the USA and Europe, there are many gold bullion merchants with clean track records, some are BBB certified. To mention but few, we have merchants like American Bullion, Money Metals, Regal Asset, Capital Gold Group, Gold Direct etc.

2. Magnet test (gold and silver). These are non-magnetic substance, coin and gold easily slides-off on strong magnet whereas counterfeit coin and gold sticks to strong magnet. It should be noted that this test must be used in confluence with others, because the base metal used in some counterfeit are non-magnetic.

3. Acidic test. Inexpensive acid test kits can be used on gold and silver. Just apply drop of this acid on sample of gold, if the colour changes that means it is not authentic.

The bullion value of the metal content is most important and not beauty, that been said, you still need to exercise extra care in applying the acid otherwise discolouration can drastically reduce the value (price).

4. The weight and size. Actually, gold and silver are super dense metals, much denser than base metal. Therefore, all fakes that weighs accurately will have thicker diameter or under-weight to have the right diameter.

Alternatively, inexpensive caliper or jeweler’s scale can be used to affirm the weight, diameter and thickness of these precious metals to ensure that they conform to specified standard.

5. Ping or sound test. Real gold and silver coins chime when struck with another. The fact remains that base metal coins sound duller and the ringing is shorter, you can balance the coin on your fingertip and strike with another to hear the sound.

Investors using iPhone can install Coin Trust application while android users can likewise install Bullion Test application. The iPhone can be used to test most common gold and silver coins, switch-on the speaker. Put the phone close-by and easily spinning the coins on hard surface. In same vein, after installing the bullion test application choose coins from the list and press microphone button, balance the coins on your fingertips and strike with another coin, your result will be instant and accurate.

6. Thermal conductivity (silver). Silver is one of the best conductors of heat energy. You can test silver bullion by using an ice cube, apply heat when you place the ice cube on top of coin or bar, instantly will see that the silver is melting and cool speedily when removed from heat.

Should You Invest in Gold or Silver?

Gold prices-the price per ounce of bullion or of coins, such as Kruggerand or American Eagle gold coins-have shot up in the past several years. Silver prices have followed suit (see the current price of silver, for example). If you listen to commercials or read advertisements, prices can only go up.

That means 2017 is a great time for investing in silver or gold, right? Not necessarily.

Investing in Silver; Investing in Gold

People invest in gold and silver for two primary reasons. First, they might hope that prices will continue to increase (desire to gain money). Otherwise, they believe that other investments will decrease in value (desire not to lose money). Yet how do you know when either will happen?

Gold and silver both have practical uses. A lump of precious metal is often pretty. You can admire it. You can make it into jewelry. You can use it as a component in certain industrial processes.

Beyond that, a gold coin sits on your shelf and collects dust. Any value it gains is independent of its existence. It’s just a coin. Due to circumstances outside of your control it could be gaining value now-or it could be losing value.

Compare that to a business. Any good business worth owning will make you money. Even a lemonade stand that costs you $100 to start and makes you $125 every summer produces $25 in profit the first year. Every year you keep running the business, it produces more money. Remember that the money a business produces is the most important metric of success.

At any point you can take your profit, as the owner of that lemonade stand. You can pay yourself a dividend. You can invest back in the business, to serve more customers or build more lemonade stands. You can do a lot with the cash that business generates.

Every year, your gold or silver coin sits on the shelf and collects dust. There’s little you yourself can do to affect its price.

Are Precious Metals Good Investments?

Why do people invest in gold? What’s the point?

Is buying gold risky? Depending on your appetite for risk, sometimes it can make sense. Precious metals like gold and silver and platinum tend to move in directions opposite of the market. If there’s a market drop (like in 2008), gold prices tend to rise. You can’t count on that happening, but diversifying your investments into classes like stocks, bonds, and commodities can help you avoid losing everything.

Gold and silver prices can continue to increase. They may get more valuable because they get more scarce-mining and refining might produce far less gold or silver one year-but by the same token, they might lose value because the get more common, too. Can you predict that?

Gold and silver prices might increase because demand increases. More people want to buy them. (That’s probably why there are so many advertisements to buy gold or silver!) Then again, demand might decrease. Can you predict that?

Maybe they’ll do neither. Maybe they’ll hold their value. Maybe $1000 in gold bullion today will be worth about $1000 in gold bullion in five years, and you’ll only have lost inflation. That’s better than losing everything, right?

Meanwhile, all of those great businesses worth owning make real money every year. This profit gets returns to investors as dividends or stock buybacks or other investments to make even more money in the future.

Meanwhile, what’s the market for your Kruggerand? It’s not as easy to sell as a share of gold.
You need to have someone evaluate its condition and then find a buyer willing to negotiate with you for some fraction of what it might be worth. You could melt it down for its value as a fixed amount of gold, but that’s illegal for many currencies and you won’t necessarily get the full value of the coin.

How Do You Sell Gold?

If you do own gold and want to turn it back into cash, how can you do that? How easy is that? Or what if there’s no cash available? How are you going to trade a bar of bullion for a deer carcass and some hunting rifle

Where’s Your Gold?

When I was in London in December, I got the chance to speak with an expert in rare and ancient coins. He showed me a rare Roman coin, with the face of a long-dead emperor still clearly stamped in the metal. He also spread Viking coins and others from an array of different periods in Europe across the table between us.

After years of staring at computer screens, watching stock prices inch their way up or down a chart, it was almost a surreal moment to hold those coins in the palm of my hand, to feel their weight.

There was no mistaking, in a world of fleeting paper profits, what I was holding in my hand was true wealth.

And I’m not the only one who believes it’s time to get a little more physical with our wealth…

Gold in Your Pocket

Demand for physical gold is on the rise. The World Gold Council revealed that while overall gold demand for the first quarter dropped 18% from the same period a year ago (where the 2016 first quarter was the strongest first quarter ever for gold demand), gold bar and coin demand increased by a healthy 9% at 290 tons.

What’s more, Bloomberg recently reported that two firms have plans to open new vaults in Europe capable of holding more than $112 million in gold.

BullionVault revealed that it added three tons in gold in the past 12 months, lifting its total holdings up to nearly 38 tons.

The Bank of England – which stores gold for the U.K. Treasury, other central banks and private firms – has added 6% to its holdings since the beginning of 2016, bringing its total holdings to 5,067 tons in February.

As you can see, more investors are adding physical gold to their portfolios – gold exchange-traded funds (ETFs) just aren’t going to cut it when you consider the fees associated with the ETFs.

And which would you prefer in times of turmoil: paper gains or the weight of a gold coin in your hand?

Many investors around the globe are adding physical gold to their assets for three big reasons:

  1. Rising inflation. We are starting to see signs of inflation in the U.S. and across Europe. In the past, we’ve seen the price of gold climb in tandem with inflation, allowing investors to stay ahead of its bite.
  2. Negative interest rates. While not a problem in the U.S., part of the world is still struggling with negative interest rates. And rather than giving over more of their wealth to banks, investors are opting to invest their cash in physical gold. (And considering that U.S. interest rates are still low, gold potentially offers a better return.)
  3. Geopolitical uncertainty. Questions about the health of the economy, the length of the bull market’s run, fighting in Washington, terrorist attacks, elections and more have left investors on edge, waiting for the next black swan event to swoop in and send the market crashing. In moments of chaos and destruction, gold is the safety net you want to have in place. Stocks plummet and bonds implode. Gold holds its value and even climbs.

As the Senior Managing Editor for The Sovereign Investor Daily and Winning Investor Daily, Jocelynn handles the day-to-day operations for bringing you the Banyan Hill team’s daily insight. She has spent over a decade working as an editor for financial publications. A former trader, Jocelynn has spent 15 years in the financial industry.

It’s a Great Time to Add Gold to Your Portfolio

The flu has ravaged the country this winter. People are dropping like flies, as this year’s flu shot has proven less effective as a variety of flu strains have circulated.

Today, the Centers for Disease Control and Prevention announced that for the first time in its 13 years of monitoring the flu, the continental U.S. has shown “widespread” flu activity.

The impact of this flu season could cost employers more than $9.4 billion in lost productivity, according to Challenger, Gray & Christmas.

But the flu isn’t creating the only shutdown that should concern investors right now. Luckily, there’s a shining star waiting in the wings to soar…

Don’t Brush off This Shutdown

Nobody likes to make a budget and actually stick to it. Washington is certainly no different.

But agreed upon funds to keep the government’s lights on run out at midnight tonight. While the House of Representatives pushed through a one-month stopgap measure on Thursday, the chances of it passing the Senate are looking pretty grim.

The potential for a partial government shutdown is looking strong. And even a brief shutdown could add uncertainty to the market.

Since 1976, there have been 18 government shutdowns, and only 44% of those saw the market close higher during that time frame.

On average, the market has fallen 0.6%.

I’m sure you’re thinking: “But you’re being silly. A 0.6% drop is tiny.”

And you’re right. A 0.6% drop really is… well, just a drop in the bucket. But let’s consider the market’s recent run.

The S&P 500 has gone 394 days without a 5% drawdown, according to Goldman Sachs. That’s tying the longest stretch in the market’s history.

We’re facing an overstretched market, and it’s looking for an excuse to let off a little steam in the form of a pullback.

Under normal circumstances, a brief government shutdown wouldn’t have much of an impact. But we’re not trading under normal circumstances.

Washington turmoil could be used as an easy excuse to take some profits off the table, sending stocks sharply lower.

However, there is one standout this year that could easily weather a government shutdown and a stock market sell-off.

Gold Is the One Stronghold You Need

Gold has enjoyed a stellar rally. After putting in a short-term bottom on December 12 at $1,238.30, the yellow metal has rallied 7.7%.

Over the same time period, the S&P 500 Index has gained 5.1%

Gold is a favorite among investors during times of turmoil and uncertainty.

Load up on Gold Now

Gold has surprisingly outperformed the broad market over the past month, and it’s likely to maintain that uptrend through a potential pullback in stocks.

You can leverage those golden gains through mining companies that are set to announce solid earnings on the strength in gold’s price.

Should I Buy Gold? Why Gold and Silver Is a Smart Investment Now

Let’s understand first that different investments have pros and cons, and the choices we make are always personalized to our personal circumstances, which include many variables. Some of those variables include the following: investment objectives; length of time to reach your objectives; your risk comfort level; the value of your existing holdings; your unique tax consequences; your potential need for liquidity; and more. Here I named a few things that will lead each of us to our own decisions for our unique situations. Please note that I am not providing any investment advice, particularly in light of what I just mentioned above (I am not a tax, law, or investment professional, nor do I know anything about you or your unique circumstances). Let’s see how gold and silver fits into this picture.

So why gold and silver you ask?

The answer is because it has its place for almost anyone in their portfolio. Let’s review the reasons.

Both gold and silver are universal. That is, they hold their value anywhere in the world, no matter what the local currencies are doing or what the local economies are experiencing. Gold and silver is the world currency, and in fact has been the basis of currency on our planet for thousands of years.

Of the many objectives people have, some invest to build wealth, and others to sustain or protect wealth. I believe it is fair to say that most people invest to either build a financial future or to protect their financial future. Because gold and silver are precious metals, they have the innate ability to hold value – which is perfect for wealth protection. This makes it ideal to sock away a percentage of your investment dollars and to protect those dollars by owning physical bullion. By doing this, you are also building your wealth.

It is true that there are risky investments that can bring you a higher return, but it is also important to note that they are also more likely to bring you large losses. High risk investments have their place (for some people), but if you do venture there, be sure you know what you are doing and be sure to be diversified to mitigate that risk. Again, gold and silver is a perfect place for a low risk investment simply based on the fact it will always hold value by nature.

Another important point is how it relates to the economy and the changing economic conditions. Various economies move up and down the world over. These changes cause all sorts of investment to swing wildly. These changes cause inflation, and even deflation in currencies around the world. Both gold and silver values vary as well, but keep this interesting point in mind: You can pretty much buy the same amount of milk today with an ounce of gold as you were able to by thirty years ago. How’s that for stability! Don’t be fooled by the small swings in value… it is important to realize that both gold and (especially) silver have important roles in commercial use, and those demands do have a day to day effect.

So why is gold and silver a smart investment now?

In short, the answer is uncertainty. There is a great deal of unrest around the world. We have threats of terrorism abroad and at home. We have shifting world trade and power with the growth of China and other growing nations. We have an increasing threat from North Korea. We have a US President who some citizens feel is exactly what we need, yet other citizens are horrified at the very prospect of his presidency. No matter what happens here, the uncertainty is a good reason for having the stability of silver and gold in your portfolio right now.

An additional reason for investing now is the looming prospect some people feel for the implosion of our currency. People who prepare for disaster are collecting gold and silver because they can use it as currency for trading for the things they would need in such a scenario.

Whatever you reason, precious metals can make a great addition to your portfolio or a great way to start your portfolio. Just be sure to learn how to buy the right way, and do it with confidence!