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Albert Sung is the author of Correlation Economics, monitoring breaking economic news on a day to day basis. He started investing in 2008 because of the economic crisis and holds a masters degree in chemical engineering. Previously, he worked several years as a process engineer at Ashland, a... More
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Correlation Economics
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  • Bitcoin Crashes

    As predicted many times ago, bitcoin is a bubble. Finally, people are starting to realize this. Mt. Gox has now temporarily suspended withdrawals of money from their exchange. Everyone is now rushing to get their money selling their bitcoins. But the funny thing is, this will take more than a month to do so and it will also take 4 weeks to validate your bank account. So in total you won't have your money for probably several months and now they suspend your withdrawal.

    Do you really think people want to put their money in a virtual currency, knowing that their exchange could crash/go bankrupt at any time and their money disappear in a second?

    Needless to say, the bubble has popped and that is visible in the following graph and it's going to get worse.

    Peter Schiff was right... bitcoin is a bubble. You won't have these problems with gold, I can tell you that.

    Feb 07 2:42 AM | Link | 1 Comment
  • J.P. Morgan COMEX Gold Unwinding Continues

    Remember when I posted this here about the COMEX unwinding?

    It is continuing and it's again J.P. Morgan who is unwinding. At this rate, I give it until mid March 2014 until it implodes.

    Tags: GLD
    Jan 28 3:47 PM | Link | 2 Comments
  • Paper Gold Pyramid Scheme Unwinds Right Now?

    Pretty breaking news in the COMEX is that we are seeing a start in the unwinding process of leverage in paper gold.

    Zerohedge reports that J.P. Morgan got its largest drop in eligible gold in one day.

    This is how it looks like. Of course with so few real physical gold at the COMEX, the whole paper pyramid scheme will collapse in a jiffy.

    (click to enlarge)

    And the leverage which will collapse too (still a long way to go down), is shown below. When everything unwinds, the paper shorts will have to come up with the real gold as China buys an ever increasing amount at the SGE. This week the SGE had a record delivery of 59 tonnes, the second highest after the 79 tonnes we got last week.

    Add to that the most probable import tax restriction easing of the Indian government and we have the perfect storm for gold. I even sold my copper stocks to buy extra gold mining shares.

    And I didn't even mention the end of manipulation by Deutsche Bank, the increasing investments from China in the gold mining sector and the decreasing supply from high grade mines going into 2015. Nor did I mention the crashing stock market which will make gold soar when investors switch their equities for gold.

    Tags: GLD
    Jan 24 4:38 PM | Link | 2 Comments
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