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Gold/Mining/Energy : Gold Price Monitor

GDXJ 106.75

-0.5%

4:00 PM EST

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To: Sun Tzu who wrote (115906)	1/8/2024 1:53:44 PM
From: Real Man	Read Replies (1) of 116791

You mentioned stable coins, which are smart contracts on smart contract-enabled cryptocurrencies. These can collapse like any currencies pegged to US dollar when the country US dollar reserves run out. Terra US dollar was a programmably tied stablecoin, tied to US dollar. Other stablecoins rely on reserves of US dollars of the smart contract issuer. They are much less stable than pegged currencies because such reserves are thin. It can be tied to embezzlement because the company issuing a stable coin can lie about its reserves backing that coin. Whenever crypto market tanks the market doubts stablecoins and their value deviates downward from par. Typically stablecoins are issued by large exchanges such as Binance with reserves of actual U.S. dollars (or euro). There is PAXG crypto tied to gold held in vaults of its issuer. Whenever you buy PAXG you rely on the issuer going to London to buy actual gold. What are the chances it of it actually happening? GLD, a regulated exchange traded etf, is considerably safer. In case of PAXG I don’t even know what the Hell I am buying, and I don’t receive any proper reports of the trade.

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