Bitcoin's Wild Ride, Gold's Quiet Ride and a Mining Company
The Management, Strategy, and Potential of a Promising Venture
Bitcoin has gone bananas. I’m sure you heard. There were new all-time highs yesterday, albeit briefly.
Here is a stat to get you salivating: the time it took for bitcoin to double following previous all-time highs:
Dec 2020: 18 days.
March 2017: 84 days.
Nov 2013: 10 days.
March 2013: 18 days.
Each double is always harder than the last because of the amount of new capital required. Then again, the ETFs are enabling a lot of that new capital.
Our way-to-play-via-a-broker, Microstrategy (NDX:MSTR), has gone even more bananas. How about this for a chart?
I know some readers have been trying to trade it. Probably best to close your eyes and hodl.
It’s a good time to be a hodler.
Bull markets don’t last forever though. Enjoy them while they last.
There is an outside chance we put in a top - a double top - at $69,000, the old high. Some selling at that level was inevitable, as forecast. I think more likely is that, as I mentioned last week, this bull market has another a year in it.
That said, there really is so much noise about bitcoin that I am a little concerned. It might just be my social media feeds though.
One major positive is that I haven’t been asked on TV yet to talk about it, so we are probably good for the time being.
The US stock markets, meanwhile, are flirting with all-time highs as well and getting lots of attention. Like bitcoin, the S&P500 also makes up a core part of the Dolce Far’ Niente portfolio.
Meanwhile, under the radar, in what must be the most unhyped breakout in history, another of our core holdings, gold, is also hitting new highs. Monday was its highest close of all time. It’s like a crack-up boom.
Silver has been lagging. Not normally a good sign. Miners have been woeful, though they have turned up a bit, albeit from extreme lows. That is not a good sign either.
But the lack of hype is good. As is the fact that it has come in the face of a dollar that is by no means weak, while real yields are on the high side too. As my friend Charlie Morris puts it, “a quiet bull market is a good bull market”. (You should subscribe to his letters by the way. He is the mutts’ nuts. Get a month’s trial here).
If you are interested in buying gold and are not sure how, I have recently put together a guide (see PDF below). I have a feeling we are going to need it in the not-too-distant future. My recommended bullion dealer is Pure Gold Company.
I'm also going to update my guide to buying bitcoin as soon as I get a moment.
But today, I'd like to turn to what must be the most unloved, overlooked, and loathed sector in the stock market: gold miners.
How long can this sector remain so bombed out? It’s hard to see how it can go much lower.
In particular, I’d like to focus on one specific gold miner, the excitement over which was what led me to start this Substack two years ago.
I met with management last week. Here is what I found out.
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