SUMMARY:
Pan American Silver Temporarily Closes Mexican Mine.
Bitcoin as Hedge against Inflation
Jefferies recommends a 10% of assets weighting to Bitcoin to protect from Inflation.
Mark Yusko on Blood in the Street for Bond holders.
New addition to LOTM Ten Under $10 – Third new name in the past week.
Pan American Silver (PAAS) $13.87
Pan American close its largest mining operation. Pan American Silver said it has suspended all operating activities at its La Colorada mine in Mexico after reporting an armed robbery involving two trailers of concentrate. We think this is a one off event and that Pan American can be back in business within weeks. I mention this here because a drop in price on the news over the weekend is seen by LOTM as a buying opportunity. The mine site was robbed. PAAS closed the mine due to safety concerns of the workers. Is seems to me that added security at the site can resolve the issue of being an ongoing issue. That is only my personal opinion with out direct knowledge. See their press release for more details. The event happened on October 5th. Link to press release here.
Bitcoin is a ‘critical hedge’ against currency debasement and return of inflation: Jefferies.
Published Thu, Oct 5 2023
Jefferies has also recommended a 10% allocation to Bitcoin for U.S. dollar-based long-term global investors, including pension funds. The firm has incorporated Bitcoin into its global portfolio over the past couple of years, alongside physical gold, unhedged gold mining stocks, and Asia equities.
“Prepare for Mass Bitcoin Adoption! Frenzied Global Adoption before 2025
– Lyn Alden, 15 minutes. Lyn is referring to the adoption of a Spot ETF for Bitcoin.
LOTM: Bitcoin can be purchased directly through crypto exchanges. If that isn’t an option or if you want other paths to owning companies that benefit from higher Bitcoin prices, there are multiple options. You can buy the Bitcoin miners like Marathon Digital (MAMA) or CleanSpark (CLSK) you could also buy into public companies that own Bitcoin. Companies who own large blocks of Bitcoin includes, Microstrategy (MSTR) Galaxy Digital (BRPHF)* & Block (SQ). List of largest positions in Bitcoin by public companies here.
Think of the annual inflation rate as the amount you are losing in purchasing power of the US Dollar.
Bitcoin and inflation: Everything you need to know – CoinTelegraph
As the value of fiat money went down, the value of assets with a limited supply like stocks, real estate, shares and Bitcoin went up. Despite mass unemployment and economic unrest globally, the prices of these assets went up steadily. Bitcoin attracted traditional investors who saw the cryptocurrency’s potential as a hedge against inflation, driving a historic price run that saw the decentralized digital currency gain over 250%.
Raoul Pal is over-weight in Ethereum feeling longer term Ethereum price will out perform Bitcoin.
“I Am Ridiculously BULLISH On Crypto, Here’s Why” Raoul Pal Bitcoin 2024 Prediction – 12 Minutes
On the Bond Market: “Blood is Running in the Streets Things are Breaking, It’s Bad Out There” – Mark Yusko at Blockworks Macro. 57 minutes – if you only watch one of these videos – this is the one to watch.
In the interview linked above are a lot of direct, and no BS comments of what is happening right now. Mark is opinionated and no holds barred. Exactly what you want in uncertain times. He has also had four decades of big asset money managing experience to help form his views. The chart below is from the video above with Mark Yusko.
The drop in Bond prices has now exceeded the total drawdown of Equities in 2008.
Banks and anyone with 2% to 3% interest rates that needs to refinance, could be in trouble.
Our intent in this blog is to get you thinking – not create fear and loathing. We are more convinced than ever that Bitcoin and Ethereum are safer than stocks and bonds at this point in time. That gold and silver and precious metal and industrial miners are a place to be.
NEW ADDITION TO LOTM TEN UNDER $10 List:
We are adding on Monday, Pacific Bio Science (PACB) $8.13 to the LOTM Ten Under $10. We believe we are seeing the bottom formed on the Genetic and Biotech sector of the market. Those who know us know we are always early. You might consider dollar cost averaging methodology rather than a single purchase approach if acting with above normal purchase allocations. I would suggest by the end of 2023 you want to be fully invested.
We think oil & gas and related pipelines are attractive places to be for dividends. A surprise for us is the very long list of name in the asset management sector that pay dividends that are giving Quantitative buy signals.
Good luck to all.
Tom
Written October 8, 2023, by Tom Linzmeier.
Accounts related to LOTM and Tom Linzmeier can & will, buy or sell securities at any time.
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