Week Wrap-up! Bitcoin Soars Above 15,500 As Investors Seek Protection From Eroding US Dollar (Ethereum Up 6.90%, Silver Up 1.95%)

Bitcoin, the popular Cryptocurrency, soared to about 15,500 as investors fear an eroding US Dollar.

In percentage terms, Ethereum is up 6.90% today.

The US Dollar seems to be spiraling down from a cycle high.

But silver is up 1.95% while gold is only up 0.23%. Hi-yo Silver!

Iron ore is up 3.87%, but my neighbors would be rather angry if I had 5 tons of iron ore dumped on my driveway.

Speaking of Bitcoin,

Thousands of bitcoins — worth $1 billion — were seized by law enforcement this week in what the Justice Department said was the largest seizure of cryptocurrency in the history of agency. The cryptocurrency is linked to sales of illicit drugs and goods on Silk Road, a dark web marketplace that shut down in 2013.

Venezuelan Annual Inflation Rate Is A Pulverizing 2,025% As Oil Prices AND Production Collapse

In August 2018, Venezuela re-denominated the bolivar, lopping five zeros off it. Today’s price of 25.00 new bolivars is equal to 2,500,000 old bolivars. Converted into dollars, that comes to less than $0.50.

Bloomberg’s Cafe con Leche indicates that a cup of coffee (with milk) in Caracas Venezuela costs 430,000 Bolivars. This is happening as Venezuela’s crude oil basket crashed to 13.74.

This is happening as Venezuela oil production is crashing.

According to Steve Hanke at Johns Hopkins, the Venezuelan annual inflation rate is at 2,025%, over 4X Zimbabwe’s annual inflation rate.

Revival! Gold Is Rallying In Part To Never-ending Fed Stimulus (Rate Increases On Hold Until After 2023)

Gold’s rally is showing signs of a revival.

The spot metal has posted two straight weekly gains, and at least one technical signal is pointing to further increases. Bullion’s moving average convergence-divergence indicator, a gauge of price momentum, crossed above the so-called signal line last week for the first time since early August in a bullish sign for traders who follow price patterns.

Of course, never ending juice from The Federal Reserve is helping.

And the juice isn’t going away until after 2023 (according to the Fed Dots plot).

Its a shame for the people of Venezuela that they can’t pump gold instead of oil given that their 9.25% sovereign bond has fallen from over $100 in 2013 to $9.28 today.