1. Kyle Bass spoke to Bloomberg about China’s issue with WMP’s and how it’s on a scale way more massive than the GFC, approximately 5 times larger than it. Commodities are currently blowing up and the Shanghai exchange is following cue. This might actually be the bear that shoves the bull off the cliff.
2. The second interesting development is the Japanese frenzy into Bitcoin. Japan is pushing for digital currencies and is actually dropping the 8% consumption tax in July. However, even with the 8% tax in place, JPY makes up more than 50% of trading volume in the past 24 hours. I bet you either couldn’t care less, or you are completely flabbergasted at the sheer volume and interest in BTC coming out of Japan. I know I am the latter. $200 USD up in 4 days is no joke.
Needless to say that a smack in broad commodities is at least short term negative for both oil and gold.
I might be looking to pick up some precious metals soon, the decline is already 14 days strong. If China does have a systematic failure, I can assure you that precious metals would… shine. Lol, dat pun.
Back in Feb, I said that I don’t think that Oil is recovered. The path ought to be bumpy, and if we head lower (and it seems like it), I wouldn’t mind to accumulate more.
Regarding China, I do see it as a huge problem, but like Kyle Bass said, the timing is anyone’s guess. It’s probably best to avoid China related stuff for a while. Quite a few smart people have been predicting a devaluation of the RMB and it seems like that might really happen.
In Singapore, I doubt digital currency will be taking off anytime soon. There are just a few exchanges in Singapore (Itbit, Luno, CoinHako) and most people have (1) no idea what it is (2) no idea what you can spend it on (3) no idea how you can get it.
I do have an account with 1 of the exchanges, but it’s more of an emergency getaway plan. Could I buy bitcoins, move them into the dark web, wash it and disappear and then cash out on the other side of the globe? Yes, yes I can.
As much as I am in denial, I am quite certain that the future would be digital currencies of some sort. Personally, I’m a gold and silver kind of guy.