Wednesday, January 29, 2014

Billionaire Paul Singer: Bitcoin over gold? Are you crazy?!

I featured Paul Singer yesterday with regard to his views on the minimum wage. This guy is solid. He is even singing the EPJ Daily Alert son on gold versus Bitcoin. CNBC reports:
Hedge fund manager Paul Singer is "shocked" by Bitcoin's rise, especially given gold's fall.

"There is no more reason to believe that bitcoin will stand the test of time than that governments will protect the value of government-created money, although bitcoin is newer and we always look at babies with hope," Singer wrote in a letter to investors of his $23.3 billion Elliott Management on Jan. 27.

"If you want an alternative currency, check out gold. It has stood the test of thousands of years as a store of value and medium of exchange," Singer added.

"Better yet, it is not just a computer entry in the ether somewhere, and it is currently available at a good price. Bitcoin and its relatives represent an understandable impulse (anti-big-government, pro-freedom, pro-modernity), but we do not see how it actually survives. At least with gold you have to work really hard to dig the stuff up."[...]

We think that gold is a unique investment asset, the only real money that has stood the test of time throughout recorded history," Singer wrote. "With its durability, finite and difficult-to-extract supply and natural allure, it is a store of value that should be particularly attractive at a time when monetary debasement is the major policy practiced by most developed countries to keep their economies afloat."

Singer believes that gold will be back in favor soon.

"If the global economy recovers strongly without a significant uptick in inflation, then gold might continue to be a neglected asset class. But low growth and high inflation are typical hallmarks of structurally unsound economies experiencing monetary debasement, so perhaps that phase is next, or soon to appear," Singer said. "We shall see."


  1. Gold is a neglected asset class? Ron Paul said yesterday one bad year "doesn't destroy a so-called bull market."

    1. First again, troll! Austrians getting into your head, eh? LOL

  2. JW will not appreciate this.

  3. one bad year?

    lol, are we talkin' price for an "all in investor" with no fiat income, wishing the status quo will end sooner ?
    are we talkin' physical changing hands?

    cuz2me,2013 was one of the greats. (years)

    mad stackin', yet an opportunity to discuss how the QTM is a LMFAO joketard that should be buried (perhaps) with all of the monetarist libertarians stuck in 1974 when money was publicly viewed as gold and silver.

    So ya get QEinf, then QE85, cash supply increases and lo and behold, no 1-to-1, nor directional impulse, nope folks prices are subjectively, and individually selected.

    The order book for paper gold (deliverable into metal, say at the COMEX, DGCX, or SGE) is 'mechanically' subject to flow, but each entry (both size/volume and price) are subject to change in a moments notice.

    The book can go from "I offer 1oz at 1,300", to "1 offer 100oz at 1,280", but also could be pulled, 0 offered at that price, or marked to 40,000 euro each, just as 4 FB trades did on opening day. But did price stay there? No, the next offers were not so high, but the experience illustrates the principle: order books can get up and leave in an instant / change in an instant / the changes are subjective and individually determined, and as such recovery and "end-printing" (despite the fact it was ended twice before) is/was believed by those in the paper gold market.

    Further, one could argue internationalists don't want "to kill Amurica", but rather to equal the playing field internationally, such that a balanced global mon sys is more likely, not only to last, but to be adopted in the first place, hence enabling bullion transfer West to East today sets that up.

    Just look at Greece and Cyprus, the template is use the gold as collateral for euro loans, selling it is a threat used for paper price scares (not that it would actually impact prices)... and add to that the ECB head just said he 'never thought it wise' to sell gold.

    Singer's got the lead... it's about the perspective of future loss in purchasing power -- some is expected, extra prompts the search for alternative mediums of storing wealth.

  4. The key to this opinion is that it is from a billionaire investor. Of course gold doesn't mean much to him. He already has all he needs. So for him, life is speculation. And what good speculation this is. Most don't have the money to gamble on such things, especially for the timeframes that are required.

  5. I would probably take the advice of a billionaire over anyone named "honey badger" or "anonymous" spouting about how "great" shitcoin is. Buy GOLD. You've been warned.