The latest Listener's Q&A segment includes phone calls on the increasingly popular topics of silver and Bitcoin from Tom in Arizona, John in Sunny San Diego and an anonymous caller.
Tom starts off the segment, noting that he’s heard that many of the silver dealers are running low on their stockpiles and he wonders why the price remains subdued amid low supply.
John is also perplexed by the silver market scenario.
Chris suggests that the improving fundamentals have boosted the technical case for a renewed silver bull market.
For instance it appears that the downtrend was competed in 2015 and a solid base formed in 2016/2017 which could launch pad for a new advance to multi-year highs of $28-$30.
By observing the long-term trend, investors will gain insights into the strength / endurance of the silver price advance.
The second caller finds a correlation between the announcement of a BTC futures contract on the CBOE and the 100% advance in BTC in Dec. 2017, followed by a subsequent 50% decline.
Several key experts in the field refute the futures market thesis, citing instead seasonal factors combined with lack of liquidity.
In Dec. 2017, leading BTC exchanges turned down hundreds of thousands of applications for new accounts.
At one point Bitfinex accounts were actually put up for sale, for several thousands of dollars, online.
Large delays in buying Bitcoin, even on Coinbase, where investors were expected to overcome time-based hurdles as a security feature, to build trust over time added to a supply bottleneck. The situation accelerated demand to euphoric levels.
If the futures contract scenario were truly to blame then the readily available BTC ETF, ticker GBTC would be the go-to alternative and was actively traded on the NYSE since 2016.
Chris posits that the bottleneck scenario could return at the end of 2018/2019 as institutional investor demand increases.
As demand grows exponentially, futures and options markets may resize contracts to reflect dwindling supply, so that the typical contract size of 1 BTC could drop sharply.
Bill Murphy, GATA Chairman Murphy grew up in Glen Ridge, N.J., and graduated from the School of Hotel Administration at Cornell University in 1968. In his senior year he broke all the Ivy League single-year pass-receving records. He then became a starting wide receiver for the Boston Patriots of the American Football League. He went on to work for various Wall Street brokerage firms and specialized in commodity futures. He began as a Merrill Lynch trainee and went on to Shearson Hayden Stone and Drexel Burnham. From there he became affiliated with introducing brokers and eventually started his own brokerage on 5th Avenue in New York. He now operates an Internet site for financial commentary, www.lemetropolecafe.com.
About Peter Grandich Managing Member, Grandich Publications, LLC.
With no formal education or training, Peter Grandich entered Wall Street and within three years was appointed Vice President of Investment Strategy for a leading New York Stock Exchange member firm. He was the editor and publisher of four investment newsletters, and appeared on national TV and radio over 400 times.
Labeled the Wall Street Whiz Kid, Grandich gained national notoriety by being among the very few who not only forecasted the 1987 stock market crash just weeks before it happened, but on the very next day he predicted that within a year the market would reach a new all-time high which it did. Proving his 1987 forecast was no fluke, Mr. Grandich said in January 2000 that the year 2000 will go down as the year the great mega bull market of the 80s and 90s came to an end.
He speaks at numerous major investment conferences worldwide and was awarded Best Speaker Award eight times by the International Investors Conferences.
Grandich is the founder and managing member of Grandich Publications, LLC. Grandich Publications publishes The Grandich Letter. First published in 1984, it provides commentary on the mining and metals markets. In addition, the company also provides a variety of services to publicly-held corporations on a compensation basis.
In addition, Grandich is a member of the National Association of Christian Financial Consultants, and a long-standing member of The New York Society of Security Analysts and The Society of Quantitative Analysts.
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