Now they have come together, gold and blockchain technology.
When it comes to blockchain technology, I am a Luddite.
I have always prided myself as an early adopter. During the 51 plus years I have been writing about global investing I have helped readers capture many trends at a most early stage.
In the 1970s I was one of the original gold & silver bugs. I was also a leader into Japanese, German , Swiss, British, Australian and Hong Kong markets that decade.
In the 1980s I led investors to London and Isle of Man real estate. Then in the 1990s we recommended investing and living in Ecuador long before others.
But when crypto currencies came along, I missed the boat. More accurately I did not even try to catch its sailing.
I have always had a feel, a mental-emotional anchor of value for precious metals, real estate, global currencies and shares. That drove me to speculate and make huge profits (along with some losses too).
That feeling has not emerged with blockchain currencies.
I’m going to London later this month, mostly to be with grandchildren, but also to consult with a blockchain expert to see if I can really grasp blockchain so it’s mine. Unless one has such a feeling… investing in what you do not understand is dangerous. One lacks commitment, conviction and the ability to spot distortions that create value.
I do not have that understanding of blockchain yet, but I can see why it could become a valuable economic tool.
The article “The End of Capitalism Has Begun”(1) at the Guardian Newspaper’s website (I recommended you read this earleir this week) helped me understand why crypto currencies could become a mainstay in the world.
One paragraph in that article explained why blockchain is evolving.
The article says: Almost unnoticed, in the niches and hollows of the market system, whole swaths of economic life are beginning to move to a different rhythm. Parallel currencies, time banks, cooperatives and self-managed spaces have proliferated, barely noticed by the economics profession, and often as a direct result of the shattering of the old structures in the post-2008 crisis.
As a result, large parts of the business class have become neo-luddites. Faced with the possibility of creating gene-sequencing labs, they instead start coffee shops, nail bars and contract cleaning firms: the banking system, the planning system and late neoliberal culture reward above all the creator of low-value, long-hours jobs.
We need totally different visions about every aspect of the economy, including currencies.
We Luddites had better catch up!
Image from the Forbes article “10 Blockchain Companies To Watch In 2019” (2)
The article says: This list showcases 10 companies working to make blockchain more accessible, prominent and mainstream. Some you may have heard of; others are new to the scene. The companies come from all regions of the world. Each offers something unique with the potential to disrupt traditional industries as well as gain support from legitimate entities.
One of the ten blockchain companies listed in this Forbes article is Karatbars International GmbH.
The article says: Based in Germany, Karatbars International GmbH is the parent company of KaratGold Coin and a robust gold-based ecosystem of cross-border blockchain solutions. Their latest product, the IMPulse K1 Smartphone, is the first phone using Voice Over Blockchain Protocol (VOPB). Currently, KaratGold allows consumers to trade or purchase gold on more than 500,000 acceptance points worldwide. With all of the recent talk about Bitcoin versus gold, this company provides the best of both worlds.
I am still grappling with my understanding of blockchain and how this digital technology fits together with gold. Fortunately while I am researching this, a long time friend and scientist, Bob Shane has acquired a lot of information about Karatbars.
Bob wrote: Hi Gary, here is a summary of what I have been doing in crypto and of the gold backed crypto from Karatbars alone with some video and information links. Keep in mind many people are only interested in getting gold and saving it for some crisis in the future. Others are more interested in getting the gold backed coin (KBC) and passively holding for a couple of years as its value goes up. Others are traders.
For people wanting to build a gold backed crypto business there is also a referral program where commissions are paid for introducing the program to others.
For the last few years I have been investing in cryptocurriences. I have made some money and lost some money but am still ahead. I’ve learned a lot and know that crypto is the wave of the future but it needs to be backed by tangible assets or could fail. The most promising company I have found has their coin 100% backed by gold bullion from some of the largest gold mines in the world that they own or have rights to the gold.
We are told that by the next meeting of affiliates in Sao Paulo, Brazil, December 15, 2019 that Karatbars will be a public company listed on Frankfurt Stock Exchange. This will be the first regulated crypto company listed on stock exchanges.
The bank they are opening will be open and fully functional, live on blockchain as well as physical, plus the company is opening of new gold mine in Brazil.
Bob also sent me an article from the Coindesk.com website, entitled “Gold backed crypto tokens promoter investigated by Florida regulators” (3). This article has both positive and negative comments, but should be read by anyone considering this gold back currency.
Crypto currencies are still new in the economic world and they face some major hurdles.
Perhaps the biggest hurdle of all is governments. After all they are the biggest creators of digital currencies, (their own currency) and they are savage monopolists.
The US money supply for example is based on cash, coins (M1), and balances held in checking and savings accounts, and other near money substitutes (M2). M2 in other words is a digital currency without any real backing.
According to data from the Federal Reserve, as of March 2019 a little over $3.7 trillion in M1 money was in circulation, while almost $14.5 trillion in M2 money was circulating in the United States. Well over half of the American money supply is digital currency.
The Wall Street Journal article “Visa Mastercard and others reconsider involvement in Facebook’s Libra network” (4) shows how governments will be brutal to anyone, even a coalition as large as Facebook, Visa and Mastercard, if the government feels that it monopoly and control over its currency is at risk.
The article says: Some of Libra’s backers decline Facebook’s requests to publicly support the project
Cracks are forming in the coalition Facebook Inc. FB -0.43% assembled to build a global cryptocurrency-based payments network.
Visa Inc., Mastercard Inc. MA -0.68% and other financial partners that signed on to help build and maintain the Libra payments network are reconsidering their involvement following a backlash from U.S. and European government officials, according to people familiar with the matter. Wary of attracting regulatory scrutiny, executives of some of Libra’s backers have declined Facebook’s requests to publicly support the project, the people said.
At best, Karatbars and all crypto currencies are a speculation and must be approached with caution. So too were Hong Kong shares in the 1970s, London real estate in the 1980s and Ecuador real estate in the 1990s. Those speculations I took turned into outstanding profits.
The idea of crypto currencies is worthwhile and I love an approach that backs a blockchain currency to gold so I am continuing my research with an open mind.
While I am researching this union of blockchain and gold, you can research as well.
For more details on KARATBARS INTERNATIONAL contact Bob Share at email@example.com
The Only 3 Reasons to Invest
The stock market has always been the best place of places to protect and increase wealth over the long haul. Yet it’s also been the worst place to lose money, a lot of it, quickly.
There are only three reasons why we should invest. We invest for income. We invest to resell our investments for more than we had invested. We invest to make our world a better place.
The goal of investing should be to stabilize our security, bring feelings of comfort and elimination of stress!
We should not invest in social networked protests that guarantee loss. This is like burning our houses down in protest.
If we want to change the world, we should invest in good equities that bring profit and use the extra wealth to create something beneficial for mankind.
We should not invest for fun, excitement or to get rich quickly. We should not divest in a panic due to market corrections.
This is why my core stock portfolio consists of 16 shares and this position has hardly changed in five years. During this time we have been steadily accumulating the same Top Value ETFs and have traded only a few times.
The study below shows how a value based model portfolio that dates back to 1969 has outperformed almost every stock market in the world.
The US market has not been even close to the top performer over the long term.
The DQYDJ Dow Jones Industrial Calculator (1) shows that an investment in the Dow Jones (with dividends reinvested) has risen at an average of 10.74% over the last 50 (51 actually) years.
That’s 10.74% is pretty good, but an analysis of 51 years performance of all the developed stock markets shows that (using country indices as hypothetical investments) investing in the top value (not top performing) markets would have returned 12.5%.
The chart below shows the analysis.
An annual return of 12.5% compared to the 10.74% US return is a 1.76% per annum difference. This may not seem like much,
In the long term the difference is huge. Calculations from the investor.gov site (2) shows that $10,000 invested at the 10.74% compound rate turns $10,000 into $1,817,734.62 in 51 years.
Wow, that sounds pretty good until you look at the results of the 12.5% rates. $10,000 grows to $4,062,362.22!
Investing in the top value (not the top return) markets earned $2,244,627.60 EXTRA!
$4,062, 362.22 means you would have $2,244,627.60 MORE by investing in good value markets versus $1,817,734.62 earned investing in the US market. That almost 125% more money!
Here are the best value developed markets at this time (as of end of March 2021).
No matter how we look at it, over time, value investing always wins!
Our portfolio is built around a strategy that’s taught in my Purposeful Investing Course (Pi). I call these shares my Pifolio. The course shows how to use the value analysis of Keppler Asset Management to create a portfolio of ETFs that cover undervalued stock markets. I have combined my 50 years of investing experience with the study of the mathematical market value analysis of Michael Keppler, CEO of Keppler Asset Management.
In my opinion, Keppler is one of the best market statisticians in the world. Numerous very large fund managers use his analysis to manage billions of dollars in funds. However because Keppler’s roots are in Germany (though he lives and operates from New York) all of his funds are registered for the European Union citizens, Americans cannot normally access his data.
I was lucky to have crossed paths with Michael over 25 years ago, so I am one of the few Americans who receive this data so I can share it with Pi subscribers.
The Pifolio analysis begins with Keppler’s research that continually monitors 46 stock markets and compares their value based on current book to price, cash flow to price, earnings to price, average dividend yield, return on equity and cash flow return. Keppler looks at these numbers and takes market’s history into account.
Michael Kepler CEO Keppler Asset Management.
Michael’s analysis is rational, mathematical and does not worry about short term ups and downs. Keppler’s strategy is to diversify into an equally weighted portfolio of the MSCI Indices of each good value (BUY) markets.
This is an easy, simple and effective approach to zeroing in on value. Little time, management or guesswork is required. You are investing in a diversified portfolio of good value indices.
A BUY rating for an index does NOT imply that any one stock in that country is an attractive investment. This eliminates the need for hours of research aimed at picking specific shares. It is not appropriate or enough to instruct a stockbroker to simply select stocks in the BUY rated countries. Investing in the index is like investing in all the shares in the index. You save time and gain incredible diversification because all you have to do is invest in the ETF to gain the profit potential of the entire market.
To achieve this goal of diversification the Pifolio consists of Country Index ETFs.
Country Index ETFs are similar to an index mutual fund but are shares normally traded on a major stock exchange that track an index of shares in a specific country. ETFs do not try to beat the index they represent. The management is passive and tries to emulate the performance of the index.
A country ETF provides diversification into a basket of equities in the country covered. The expense ratios for most ETFs are lower than those of the average mutual fund so they provide diversification and cost efficiency.
Here is the Pifolio I personally held at the beginning of 2021. There have been no changes since.
70% is diversified into Keppler’s good value (BUY rated) developed markets: Germany, Hong Kong, Italy, Japan, Norway, Singapore, Spain and the United Kingdom.
30% of the Pifolio is invested in Keppler’s good value (BUY rated) emerging markets: China, Brazil, Chile, Colombia, South Korea, Malaysia and Taiwan.
There is one trick Pi subscribers learn about China which is different from the rest of the funds.
iShares Country ETFs make it easy to invest in each of the MSCI indicies of the good value BUY markets.
For example, the iShares MSCI Germany (symbol EWG) is a Country Index ETF that tracks the investment results of the MSCI Germany Index. The fund invests at least 80% of its assets in the securities of its underlying index that primarily consists of all the large-and mid-capitalization companies traded on the Frankfurt Stock Exchange.
iShares is owned by Black Rock, Inc. the world’s largest asset manager with over $4 trillion in assets under management.
There is an iShares country ETF for every market in our Pifolio.
This year I celebrate my 53rd anniversary of writing about global investing. Our reports and seminars have helped readers have better lives, with less stress yet make fortunes during up and down markets for decades. This information is invaluable to investors large and small because even small amounts can easily be invested in the good value shares we cover in our seminar.
How you can create your own good value strategy.
Stock and currency markets are cyclical. These cycles create extra profit for value investors who invest when everyone else has the markets wrong. One special part of your course looks at how to spot value from cycles. Stocks rise from the cycle of war, productivity and demographics. Cycles create recurring profits. Economies and stock markets cycle up and down around every 15 to 20 years as shown in this graph.
The effect of war cycles on the US Stock Market since 1906.
Bull and bear cycles are based on cycles of human interaction, war, technology and productivity. Economic downturns can create war.
The chart above shows the war – stock market cycle. Military struggles (like the Civil War, WWI, WWII and the Cold War: WW III) super charge inventiveness that creates new forms of productivity…the steam engine, the internal combustion engine, production line processes, jet engines, TV, farming techniques, plastics, telephone, computer and lastly during the Cold War, the internet. The military technology shifts to domestic use. A boom is created that leads to excess. Excess leads to correction. Correction creates an economic downturn and again to war.
Save $124.50 If You Act Now
Subscribe to the first year of The Personal investing Course (Pi). The annual fee is $299, but to introduce you to this online, course that is based on real time investing, I am knocking that down to $174.50 in this special offer. Plus I am reducing annual renewals from $299 to only $99.
I would like to send you, on a no risk basis, a 130 page basic training course that teaches the good value strategy I use. I call this strategy Purposeful Investing (PI). You learn all the Pi strategies, what they are, how to use them and what each can do for you, your lifestyle and investing.
You get this course when you enroll in our Purposeful Investing program (Pi) with a triple guarantee.
Enroll in Pi. Get the 130 page basic training, a 46 stock market value report, access to all the updates I have sent in the past five years right away, plus numerous updates over the next year.
#1: I guarantee you’ll learn ideas about investing that are unique and can reduce stress as they help you enhance your profits through slow, worry free, easy diversified investing.
#2: I guarantee to send you monthly updates that are based on a study of every share in 46 stock markets around the world. These updates will show the values, the earnings of all these markets and categorize each market as Top Value (buy), Neutral Value (hold) or Poor Value (sell)
#3: If you are not totally happy, simply let me know. I guarantee you can cancel your subscription within 60 days and I’ll refund your subscription fee in full, no questions asked.:
You have nothing to lose except the fear. You gain the ultimate form of financial security as you reduce risk and increase profit potential.
When you subscribe to Pi, you immediately receive a 120 page basic training course that teaches the Pi Strategy. You learn all the Pi strategies, what they are, how to use them and what each can do for you, your lifestyle and investing.
You also begin receiving regular emailed Pifiolio updates and online access to all the Pifolio updates of the last five years so you can back track if you desire. Each update examines the current activity in a Pifolio, how it is changing, why and how the changes might help your investing or not.
Subscribe to a Pi annual subscription for $174.50 and receive all the above.
Your subscription will be charged $99 a year from now, but you can cancel at any time.