Daily Market Report

Blockchain Primer

The euro traded at a three-year high right after the European Central Bank announced that it is cutting its Crisis Era stimulus program faster than expected.

In turn, the Dollar Index broke thru its major support level 91.75, a level all the Foreign Exchange and Gold traders expected to hold. Subsequently the price of Gold rallies over $11 dollars on the news.

At 8:30 a.m. Eastern, the December Consumer Price Index news immediately took Gold off its highs and dropped the yellow metal $5 dollars.

Now all eyes are watching the U.S. Dollar as further moves in the price of Gold will be predicated on the movement in the Dollar index. The next major level of support will be the 91.01 level.

The Foreign Exchange traders I spoke with this morning expect further weakness in the Dollar so the price of Gold should recover somewhat from the 8:30 AM CPI news.

The Blockchain

We are watching many Blockchain technologies as they emerge, so I thought it would be prudent to once again answer the many questions we receive from our clients.

What is Blochchain?

The best way to describe the Blockchain network is as a distributed database that maintains a shared list of records. These records are called blocks, and each encrypted block of code contains the history of every block that came before it with time-stamped transaction data down to the second. In effect, chaining those blocks together, hence the name, Blockchain.

A Blockchain is made up of two primary components: a decentralized network facilitating and verifying transactions, and the immutable ledger that network maintains. Everyone in the network can see this shared transaction ledger, but there is no single point of failure from which records or digital assets can be hacked or corrupted. Because of that decentralized trust, there’s also no one organization controlling that data, be it a big bank or a tech giant like Facebook or Google. No third-parties serving as the gatekeepers of the internet. The power of Blockchain’s distributed ledger technology has applications across every kind of digital record and transaction, and we’re already beginning to see major industries leaning into the shift.

There are endless applications that can be used on the Blockchain network. If you can imagine it, it can become a reality.

Blockchain’s potential is so vast. Right now there are thousands of startup applications. From money transfers, to medical records, to the new Precious Metal Industry inventory platforms being developed and the list goes on and on. So when it comes to digital assets and transactions, you can put absolutely anything on a Blockchain. A host of economic, legal, regulatory, and technological hurdles must be overcome before we see widespread adoption of this type of technology, but first movers are making incredible strides. Within the next few years, large amounts of your digital life may begin to run on the Blockchain network, and you probably won’t even realize it.

As the saying goes, we'll keep our readers “in the loop” with all the Blockchain enhancements being introduced in our industry. All you have to do is keep reading the "Daily Market Report"

Have a wonderful Friday.

Investing in Precious Metals

Many Investment advisors recommend precious metals as part of a properly diversified portfolio to provide capital appreciation, liquidity, and a hedge against conventional paper assets. Because precious metals are counter-cyclical to paper assets, a diversification into gold, silver, and platinum can therefore reduce the total risk of your overall portfolio and preserve your wealth. History supports the premise that investment in precious metals is the best protection against uncertainties in the future.

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