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Below my transactions (older than 1 month) from group K: info
Mission accomplished.
This ETF or actually ETN (Exchange Traded Note) does not belong to any group. Reason to place this ETN in each group so that all ETF customers can take note of it. Maybe now it looks like I'm going to invest in cryptos. No, I've never done anything with cryptos myself and I'm not going to do it. So why did you buy this Ethereum crypto ETN? I expect NFTs to become very large. Now it is quite difficult to buy exactly that NFT that will generate a lot of money later on. Too big a risk for me. Nevertheless, I want to be able to profit from the great success that these NFTs are likely to become. After research I found out that almost all those NFTs use the Ethereum blockchain and have to be paid with Ethereum. The reason is that the Ethereum blockchain is extremely suitable for NFTs. The Bitcoin blockchain, for example, is not. Ethereum is currently the absolute market leader among NFTs as a means of payment with more than 95%. There will be alternatives. But it is likely that Ethereum will remain the market leader. So almost everyone who buys an NFT has to buy Ethereum first. If those NFTs become a success, Ethereum will rise sharply due to all those purchases. And that's the reason I'm buying this ETN. But there's more. The energy consumption of most cryptos is huge. Ethereum has the solution. With “the Merge” they will switch to a new type of blockchain in the course of this year. The energy consumption can then be about 1000 times lower and the transaction costs can therefore also be significantly reduced. So with investing in this Ethereum ETN I kill 2 birds with 1 stone. This year, Ethereum will become an extremely low-power crypto that will beat Bitcoin. And the main reason for me; I have a nice spot on the just departing NFT train. Two things are important for a significant increase in this ETN: NFTs must become a great success and even better a hype. Ethereum should remain one of the most widely used means of payment for buying an NFT.
The price of gold today suffers from what the FED came up with yesterday. The FED indicated that there will probably be 1 rate hike in March. Now there is nothing to fear with inflation of 7%. However, Jerome Powell also indicated that the FED will probably reduce its balance sheet after the interest rate hike. The gold price is much more sensitive to interest rate hikes than to deleveraging. However, more than 20 interest rate hikes of 0.25% are needed before interest rates approach current inflation. So there is nothing to fear from those interest rate hikes either. So why is gold falling today? That is due to the rising dollar. However, this increase will not continue much further. Both gold and this ETF are being punished too harshly today.
ETF provider: VanEck Vectors (Van Eck Global)
Ticker: GDXJ
ISIN: IE00BQQP9G91
Currency: Euro
Exchange: Borsa Italiana
The gold price is under some pressure. Investors are overestimating taping. Now that economic figures are deteriorating, it is even questionable whether the FED can still taper this year. Jerome Powell indicated yesterday that contrary to what he previously indicated, inflation will remain high into 2022. The US political battle over the debt ceiling is causing a lot of uncertainty. To date, no response to the gold price. But if tensions continue to rise, that will happen. Meanwhile, all prospectors have in declines overshooted the gold price itself excessively. There is an oversold situation.
Tonight we get the Fed decision. This could have consequences for the gold price. With the purchase of this ETF, I assume that the FED will not taper yet. Gold investors can react with relief to this. It is still a question mark what the FED will say about inflation. It will become increasingly difficult to maintain that high inflation is temporary. What makes this ETF extra worth buying is that junior gold miners have fallen sharply this year. That while the gold price itself has mainly moved sideways this year. The gold price is today 7% lower since the beginning of this year. This ETF is down more than 20%. If the gold price rises, this ETF will follow in the superlative.
The price of gold has fallen because of the US jobs figure. Investors fear a rate hike. Given the high unemployment rate, that will not come yet. The current gold price is still good news for prospectors. For prospectors, the gold price must be high enough that if enough gold has been found, a gold mine can be started profitably. With a gold price above 1200 dollars, this is not a problem in most cases. Even gold mines with high production costs are almost always under $1500 an ounce. With the current gold price, one can later start a profitable gold mine and can therefore now raise enough money for drilling. The question of whether one can find enough gold, of course, remains a risk. But that is always there and has nothing to do with the gold price itself.