What Is Happening?!? Gold $1247/oz. BTC $14,788/coin

Is this a bubble? Or is this real and only the beginning of the cryptocurrency craze?

Let me start of by making a distinct distinction between a bubble and its’ demise vs the asset in the bubble. So, regarding Bitcoin, I am believer 100% in the financial technology sector and the top crypto currencies being used in them. But people, this is beyond insane with what is happening to the price of BTC!!! Of course this is a BUBBLE and as fast as it went up it will come down- which is extremely fast.

What is happening now is a frenzy with everyone thinking it will only go up. Here’s the catch though, it will burst and but it won’t die. For what the currency stands for is too big and everyone that has access to technology these days has heard about cryptocurrencies and is learning more and more about it each day. Once the bubble pops, BTC will be taken back harshly but rebound in strength.

Bitcoin is more valuable than just the price the people are buying and selling it for now. It, along with the other top crypto currencies, represents much much more which is why I believe their monetary value will continue to grow over time. But, with BTC’s price BE VERY CAREFUL!

Gold at $1247 an ounce (at the time of this article) is a strange one. Interest rates are expected to rise with the Fed’s announcement this month, the equity markets keep on marching (like I said they would until the end of the year), oil is a tough one with all the stuff happening in the region, and gold seems to be completely stagnant. Here is another hint for investors- gold is cheap at the moment. Gold is what EVERYONE comes back to as a sense of wealth and value- it is the standard. Not any fiat currency or cryptocurrency (at the moment). I say this now because there are massive amounts of millennials that do not understand what gold is or what it represents. Gold is the tangible asset of the past that is timeless to us humans and the crypto currencies and financial technology is the future.

So, what to do. Invest in both wisely. At the moment there are so many moving parts to all these investments- how is this? Or how is that? Or what about if? Or that?… Just look at the big picture on the big wall. The writing is on the wall. We are in unchartered territory- period. Nobody knows what is going to happen, but if you look at the big picture there are a lot of danger zones. USD, EUR, GBP, YEN, CNY, SP500, DJ, FTSE, CAC, DAX, Gold, Oil, Bond Markets, and now cryptocurrency just to name a few. You have to be in the market and you have to be protected in the market. You hedge yourself and be alert. This is not like the old days anymore- except for gold. When the US Government injects $750+B in TARP (Troubled Asset Relief Program) back in the last financial crisis of 2008–2009 they unleashed a future storm that when it hits it will hit harder than anyone has ever been able to read about in our history books. It is simply unchartered territory.

Enjoy the end of the year and watch some financial fireworks heading into 2018!

About the author

[:ar]علي[:en]Ali [:] [:ar]حماده[:en] Hamadeh [:]

Ali is Vice President Institutional Business at Amana Capital and has a depth of experience in the capital markets and financial industry. He represented and worked for several US financial firms including New York Life, Merrill Lynch, and Vining Sparks. At Merrill Lynch, he was a Financial Advisor during the infamous financial crisis of 2008 and managed assets and financial planning for HNW (High Net Worth) clients. At Vining Sparks, an institutional fixed income broker dealer, he was Senior Vice President based in the US and London. He directed the MENA/GCC business focusing on the bond portfolio management for banks and financial institutions. He has a BS from the University of Mississippi and a Certified Financial Planning Degree from the Christian Brothers University- both from the US.

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