I couldn’t be more excited for gold’s potential this year.
Both 2016 and 2017 were positive years for gold, despite the precious metal’s price action. In fact, gold gained 6% in 2016 and doubled that with a 12.7% gain in 2017.
Since mid-December, this sector has been on fire, with gold ahead nearly 6% since then. Meanwhile, gold stocks are up 10.9% as a group, and they’re quickly outpacing gold’s gains.
I think 2018 will turn out to be a breakout year for the precious metals sector.
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But what I’d like to tell you more about today is how gold-as-money is gradually creeping into the consciousness of the market… and why it’s such a huge development for investors…
Gold Is Joining Bitcoin in the High-Tech World
I don’t need to tell you about Bitcoin and the tremendous run it has had in 2017, along with numerous other cryptocurrencies. In all likeliness, they’re primed for further gains.
Sure, many have a limited supply, but their value is only derived from what the market is attributing to them.
Gold, on the other hand, always has value, because significant effort is required to wrest it from the ground, which is why certain mining stocks make such good investments.
What’s more, the yellow metal has numerous industrial, medical, and other applications.
It’s those “other applications” that are so exciting right now.
You see, one UK-based technology company, Glint Pay, has developed a complete system whereby consumers can deposit funds into an account, and then use those funds to purchase gold or other currencies. It’s already teamed up with Mastercard and Lloyds.
Here’s what Jason Cozens, co-founder and CEO, says about his company’s approach…
“Glint’s ability to use gold as money as part of the global payments system is a landmark event… Everyone is familiar with gold as one of society’s oldest means of exchange, its universal acceptance, its reliability, its history as a store of wealth and as a means of underpinning the value of ‘paper’ currencies. Unlike ‘paper’ currencies, gold can’t be wiped out, devalued or corrupted.”
Glint is authorized and regulated by the United Kingdom’s Financial Conduct Authority. Funds are kept in segregated accounts, and any physical gold is allocated to clients and held in a London Bullion Market Association-accredited Brink’s bank vault in Switzerland.
A smartphone app coupled with a credit card facilitate tracking the user’s account balance and transactions.
While the service is currently available only to residents of Europe and the United Kingdom, Glint expects to expand into Asia and North America in 2018.
This is real innovation, and I can easily imagine a similar service in the future that would incorporate some of the most beneficial features of cryptocurrencies, like blockchain technology, into gold-as-money.
But I also think the ultimate money of the future is going to be a blending of gold, blockchain tech, and mobile technology.
I expect gold to regain favor among investors in a big way as its return to a secular bull market picks up steam.
Since gold bottomed at $1,050 in December 2015, it’s already 25% higher, yet relatively few have noticed.
That’s the hallmark of a nascent bull market – one that I think has every chance of giving the legendary 1970s bull market a run for the money. That historic era saw gold appreciate nearly 2,300% in a decade.
In fact, my 2018 gold forecast is very reminiscent of the 1970s, as you can see here.
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