GoldMoney is no longer Gold Money

Digital Gold Currency Magazine is reporting that GoldMoney is suspending the ability to make and receive payments in precious metals to or from other GoldMoney customers due to the “global increase of compliance requirements for payment service providers.”

This capability was the key differentiator of GoldMoney to other online precious metal storage businesses. It . . . → Read More: GoldMoney is no longer Gold Money

Solid BitCoin Consolidation Finally Bears A BitCoin Breakout

Few assets are as volatile as BitCoins have been. Over the past 365 days they have ranged from about $0.05 to over $30. After a solid consolidation BitCoins have now broken out and the next upleg appears to have appeared with a 35% rise in the past 10 days.

BitCoin makes this . . . → Read More: Solid BitCoin Consolidation Finally Bears A BitCoin Breakout

How to decontrol the price of oil

We know a lot about price controls from the field of exchange rates. Here’s an argument from way back, in 1998:

When change comes to a stabilised currency, as it must, that change is painful. Change in the long term is inevitable. The random walk doles out a little change every day, which is . . . → Read More: How to decontrol the price of oil

BitCoin – How I Missed The Trade Of The Year

BitCoin. I first learned about it in October and wrote about it 17 January 2011 in BitCoin – The Best Financial Privacy Is Here … Probably. The article was theoretical not practical. I missed the trade of the year. This was a serious woulda, coulda, shoulda but didn’t moment. I even told a few . . . → Read More: BitCoin – How I Missed The Trade Of The Year

Ian Gordon: Gold Stocks Offer Protection from Financial Storm

Economic cycles, like weather, run in seasons. Longwave Group Founder Ian Gordon explains why he believes the world economy is in the “winter” portion of an approximate 80-year cycle and how the financial excesses of the past 60 years are now being wrung out of the system. Ian also explains how investors can . . . → Read More: Ian Gordon: Gold Stocks Offer Protection from Financial Storm

Rapid buildup of currency options open interest

Today, on NSE, derivatives trading showed the following numbers:

Product class Turnover (Billion rupees) Index futures 353 Index options 1981 Stock futures 391 Stock options 48 Currency futures 178 Currency options 30 Total 2981

This is really something: Rs.2.98 trillion notional rupees in a day. It’s starting to sound like a real market.

This . . . → Read More: Rapid Buildup of Currency Options Open Interest

Who Will Make the Exchange-Traded Currency Options Market?

In a few minutes, NSE and USE will start trading in currency options. This will be the first exchange-traded options in India on a non-equity underlying.

Currency options are obviously useful as a risk-management tool. I feel that futures are nice simple linear contracts: they ask the person to make only one decision — . . . → Read More: Who Will Make the Exchange-Traded Currency Options Market?

A World Of Multiple Reserve Currencies

WHAT OTHERS ARE THINKING

An example of “gold blindness” from Barry Eichengreen, Professor at the University of California in his recent article on reserve currencies:

“… the view that there can be just one international and reserve currency at any point in time is inconsistent with history. Before 1914, there were three international currencies: . . . → Read More: A World Of Multiple Reserve Currencies

The Euro as a Carry Trade Funder … Surprising?

Nothing is so bad, that it isn’t good for something

So goes an old adage in my home country (and I would imagine elsewhere too) and perhaps if hard burdened Eurozone policy makers and investors are finding it hard to find any kind of (positive) silver lining in the current debacle, . . . → Read More: The Euro as a Carry Trade Funder … Surprising?