there is been a video making the rounds recently known as “True Wealth” that focuses on older investors with disaster and gloom misrepresentations of the cryptocurrency bitcoin. The video will be from the notoriously fear mongering group Stansberry Research that released a similar one a few years ago warning of approaching economic collapse. It is important to tackle the claims in these video clips as they are targeting an older market that is already hesitant in the direction of getting involved in bitcoin plus, thanks to the video, for all the incorrect reasons. Not only are myths used repeatedly throughout the movie, but the advice is awful from an investing standpoint.
First of all, the file format is unlike regular video clips you would see on other sites; you are not allowed to skip past the hyperbole and get to the point. This is by careful design because the video is very long plus uses emotionally manipulative techniques to draw the viewer within while concealing supposedly helpful information about investing in a mysterious “secret” currency that the super rich have invested in for centuries. the particular narrator name drops this kind of families as the Rothschilds plus Morgans to add to the attraction of this investment, but it is all couched in an appeal to expert and bandwagon fallacy. The video compares Bitcoin to shares of poorly launched businesses that have failed in the past plus repeats the argument that those first to market usually fall short. If you can sit through it, which I begrudgingly did weeks back after it was sent to the boss, you finally find out this “secret” currency that guarantees untold wealth is *spoiler alert* numismatic collectible cash.
the perspective on this issue will be uniquely influenced by the position as an office supervisor at Roberts & Roberts Brokerage, a precious metals broker agent in Pensacola that requires bitcoin. We advise people to invest in physical bullion and the president, Tim Frey, regularly advises against investing in numismatic cash for a few reasons.
Numismatic coins are sometimes uncommon or common date cash that have been graded and placed in a nice looking case. They sell for high premiums over the melt value of gold, yet require constant attention to the market that few people are able to use especially those looking to simply invest in gold as a hedge towards inflation. In a transcript the Stansberry video was based on , they refer to numismatic coins as “rare, ” and while this is true of a few coins, many of them are very typical. The distinction takes a lot of time spent on research, and more common coins are often sold for a retail value much above their wholesale worth; truly rare coins are the exclusion.
So , we see the old bait plus switch in the video plus transcript where they talk about truly rare coins then segue into trying to sell numismatic cash that aren’t as uncommon as one may think. You can view how many common date numismatic cash have been graded on the website of PCGS .
Stansberry Research is trying to get you to invest in coins in whose values have dropped as much 89% of their premium over melt. Melt value is the value of the precious metal in an object based on the spot cost, which is the price per troy ounce on the commodity marketplace.
The value of numismatics has dropped dramatically over the past decade and differ from bars in that they have much higher rates and also slightly less precious metal. It wouldn’t be reasonable to only attack the way Stansberry is dispensing this information, therefore let’s crunch some figures.
One example of declining numismatics is the $ 5 MS64 freedom, a gold coin that sold in 2005 for a whopping 1236. 52% over the melt value of $ 101. 76. simply by 2013, the premium has been 143. 42% over a dissolve value of $ 402. sixty. Another example is the dollar 5 MS64 Indian that will reached a peak associated with 2872. 77% over a dissolve value of $ 101. seventy six then plummeted to 18. 48% over $ 402. sixty. When the spot value of precious metal increases, premiums for these cash fall and so far they have yet to recover. But don’t take my word for it; you can view the data here.
The video bashes bitcoin, yet just in the last year we’ve observed an increase of 5000% and even more since bitcoin came on the scene in 2008. whilst volatility is always a concern, numismatics simply don’t hold up to bitcoin as a store of value because premiums have dropped substantially and are showing no indication of recovery whereas the particular protocol functions of the Bitcoin network offer innovations we can look forward to aside from its worth as a currency.
Another case for bitcoin is that they are actually rare as opposed to many of the coins being called numismatic. There are only 21 mil that can ever be produced and some have already been lost. If you combine the limited amount with the increasing amount of work needed to mine bitcoin, you have a currency/protocol that is set to increase in worth over time as they become more uncommon and demand increases. In the five years since bitcoin has been around, interest has just grown, and with the advent of new businesses accepting it and brand new apps being launched it is expected to continue.
There are a few other problems with the video, as well. The coin gathering business is quite literally about to die out . gathering truly rare coins is a pastime that is very time consuming plus decreasing among younger decades. At one time coin collectors outnumbered numismatic coins, but the figures have been gradually declining and we now see more cash than collectors.
We see this all the time at the brokerage; a family follows a bunch of numismatic coins plus sells them off instantly or an older collector provides them in—they are often amazed at how much their value offers declined because they haven’t carried out the meticulous research needed. Many people get sold expensive numismatic coins that are really looking for bullion, which has reduce premiums and is more reflecting of the actual market price associated with gold.
Younger generations have small interest in coin collecting as a hobby and the only people stuck with these numismatics are much old collectors. The large coin gathering house Heritage even refuses to buy most of these coins because they have so many already and more coins are being graded plus added to the mix that are not actually rare dates. a lot more coins and fewer enthusiasts creates a market that is drying up due to decreased demand.
Numismatics are a relic of an older time exactly where information could be bought for the right price, but we’ve developed accustomed to free information in the age of the internet—you can read the source code for Bitcoin and Satoshi’s white paper . It’s out there plus transparent for everyone to see, without having to use gimmicks and adjustment to sell you on it. whilst it’s my personal belief that will Bitcoin is a groundbreaking development to get involved in, I desire everyone to do their own study.
Young people would rather have an investment that is flexible, if they have any money to invest in any way, and bitcoin fills this position far better than numismatics. You are not investing in just a currency, but an idea as well. Bitcoin as a network has value whether or not the currency remains at a higher dollar price. We are watching the beginning of a new way to fire up contracts between parties plus send other information with the increase of cryptographic innovations.
Another feature associated with bitcoin that is appealing to Millennials is the divisible nature associated with bitcoin. You can buy as much as you can afford at the time rather than spending nearly $ 1, four hundred for a numismatic coin with a dubious future and rugged recent past. The gold coin collecting industry has been attempting hard to encourage investment in these coins, but if you do the study, it is because they have an excess of them that they can sell for a very high markup above wholesale to people who are less experienced within coin collecting. If you should buy numismatics, find a location that sells them with regard to wholesale.
You have to use fear plus deception to sell numismatics and that may be why Stansberry study produced this misleading movie; as with all things, follow the money. The company is selling you worry and for a low, low membership price you can find out all of their investment “secrets”. Sound dubious? If you have to pay money for sacred info, perhaps you should evaluate what the source stands to gain.
By selling a person overpriced numismatics; Stansberry could make a small fortune—even more if you are scared into their subscription plan. If the tone and content material of the video wasn’t sufficient to turn people away, Stansberry is also no stranger in order to controversy; in 2007 the creator Porter Stansberry was discovered guilty of fraud and ordered to pay $ 1. 5 mil in penalties. He has also been involved in other questionable schemes . As my accusations confirmed, the company seems to be using the same tactics that have in the past caused past clients to lose massive amounts of money.
For all the wailing regarding bitcoin being a Ponzi plan, it has historically been all those privy to classified information that have run them to rip individuals off. This mentality will be nothing new in the gold coin collecting and even precious metals business; even the U. S. great sells coins for far over their face value because of the special label “collectible”, yet I guarantee you that if you tried to sell them to the dealer for the same price you would be laughed out of the office. The same is true unfortunately for numismatics, and the target audience for Stansberry’s video are older decades, some of which could be easily misled by the seemingly high manufacturing value of the video and its histrionic promises.
Bitcoin is for everyone and easily accessible even for those adverse to technology. So the next time you see this video moving, you can reassure them that will bitcoin isn’t the danger Stansberry makes it out to be—at least not in the way they think of it .
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