You are on page 1of 60

SPECIAL REPORT 2023

China Attacks US Dollar


3 Steps to Take to Prepare for Financial War

A publication of
China Attacks US Dollar:
3 Steps to Take to Prepare for Financial War

Dear Friend,
Billionaire Sam Zell once said that he could imagine anything more
disastrous for our country than losing the dollars role as the reserve
currency.

I couldn’t agree more.

Make no mistake about it: China is trying to dethrone the U.S. dollar as
the world’s reserve currency. And it’s making progress.

“ China is Quietly Trying to Dethrone the Dollar.”


- Foreign Policy

The mainstream media isn’t talking about it. That could be for political
reasons or because they don’t understand the seriousness of the
issue. Or both.

My competitors aren’t talking about it either. They’re too busy talking


about some nonsense “dollar recall” stuff. I don’t think they
understand the seriousness of the issue either.

But my job isn’t to warn the mainstream media or my competitors. It’s to


warn you.

A publication of Behind the Markets Copyright 2023


2
You need to understand what’s happening here. It doesn’t get more
serious than this.

To that end, I’ve been burning the candle at both ends to get this to
you as soon as I could. And believe me, that wasn’t an easy task.

What made this report particularly challenging is that I had to try to


explain complicated issues in the simplest terms I could.

And these are difficult issues to understand. Not many folks can
explain them in a way that’s understandable.

If I went to your job and asked you to explain to me the most


complicated thing you do, I’d hope you talked to me like I was two
years old. That’s the only way I’d understand it. And that’s what I’ve
tried to accomplish here.

This report is the first part of a plan to help you understand:

(1) what’s happening,


(2) why it’s important, and
(3) what you can do about it.
As this unfolds, I will continue to adjust this report and our plans for
how to deal with this.

But let’s start today by taking a look at this picture...

A publication of Behind the Markets Copyright 2023 3


On the right is a picture of China’s currency, the Yuan.

China has one goal: replace the U.S. dollar as the world’s reserve currency.

And they’re getting closer to that goal each day.

In February, they got Iraq to ditch the dollar for trade.

“ Iraq to allow trade with China in yuan.”


- Reuters

In March they got Brazil, the largest economy in South America, to ditch
the dollar for trade.

“China, Brazil Strike Deal to Ditch Dollar for Trade.”


- Barrons

A publication of Behind the Markets Copyright 2023 4


In April, they got Argentina to ditch the dollar for trade.

“Argentina to settle Chinese imports in yuan as China


marches into South America to dethrone US dollar.”

- South China Post

Now they’re going after Saudi Arabia.

“Saudi Arabia Considers Accepting Yuan


Instead of Dollars for Chinese Oil Sales.”
-The Wall Street Journal

Now the “elites” have been saying this could never happen.

But this is happening.

“ De-Dollarization is happening at a ‘Stunning’ pace.”


- Bloomberg

A publication of Behind the Markets Copyright 2023 5


And it's happening right now.
In real time.

“ China is sending a message to the White House


that they don’t support the global financial
system backed by the U.S. dollar.”

- Willem Middlekoop, the Commodity Discovery Fund

Make no mistake about it: this is economic warfare.

And it’s about to get worse.

Sometime in the not-so-distant-future, the Chinese Communist Party


will announce the second phase of its attack against the U.S. dollar.

“ Joe Biden’s China Nightmare Could be


About to Come True for the U.S. Dollar.”

- Forbes

A publication of Behind the Markets Copyright 2023 6


Like a Category 5 hurricane, this announcement will demolish America’s
financial markets, stunning investors and businesspeople alike.

Certain stocks could drop by 80%.

Inflation would soar, leading to a massive drop in bonds.

Certain money market funds could become almost worthless –


virtually overnight.

In other words, many investments that you and your family depend
on for your retirement – will no longer be safe.

This announcement will be “catastrophic for the American economy.”

“ Catastrophic for the American Economy.”


- Economist Peter St. Onge, Heritage Foundation

The Clock is Ticking


The clock is ticking.

Those who aren’t prepared could lose everything.

The good news is that this is not yet a widely known fact.

A publication of Behind the Markets Copyright 2023 7


But in the highest financial circles, word is starting to spread…
Elon Musk has sounded the alarm…

““Elon Musk Sounds the Alarm About the


U.S. Dollar.”
- The Street

Billionaire investor Ray Dalio has sounded the alarm…

“We are going to be in a different world.”


- Ray Dalio

But billionaire investor Stanley Druckenmiller has already acted:


he’s gone short the U.S. dollar.

“I’m short the U.S. dollar.”


– Stanley Druckenmiller

And he’s right: now is the time to act.

This report is my attempt to get you to do just that.

But first, it’s important for you to know who I am and why I’ve
spent the past three months working like a dog to get this out to
you.

A publication of Behind the Markets Copyright 2023 8


My name is Dylan Jovine.

My name is Dylan Jovine.

I started my career on Wall


Street in 1991.

That’s when I was hired by Peter Jaquith, one of the investment


bankers who became famous for saving New York City from
bankruptcy in the 1970s’.

That was a big break for a kid who grew up dirt poor on
welfare and food stamps in Queens, New York. I wasn’t going to
waste it.

It was an opportunity I would not take for granted. I may not


have had the connections other people had.

I managed accounts. But I fell in love with researching stocks.

A publication of Behind the Markets Copyright 2023 9


Studying a stock was like reading a short history book about the
town the company was in, the people that worked there and the
products they made. I loved it. I couldn’t believe people got paid
to do this.

Within three years, I earned a reputation for picking stocks right


before they were taken over.

Stocks like Paramount which was bought out by Viacom three


months after I recommended it for a 100% gain.

Or the 70% gains we made when US Reinsurance was acquired six


months after I recommended it.

Or the 78% gains we booked when Chase Manhattan Bank was


acquired by Chemical Bank.

Or the 83.3% profit we made when Michigan National Bank was


acquired for $110.

Remember, it was the early 1990’s - before the Internet bull


market of the 1990’s.

And here I am this 23-year-old kid picking takeover after takeover.

By 1996, my clients bankrolled me to start my own brokerage firm.

And that’s how, at just 24 years old, I became one of the youngest
people in American history to launch a registered broker-dealer
and market-maker.

A publication of Behind the Markets Copyright 2023 10


Our office was at 100 Wall Street, below…

After Predicting the 2009 Market Crash,


I Was Invited onto Fox Business News

Because of what I accomplished at such a young age Wall Street


took notice.

But it wasn’t until I predicted the 2008-09 financial crisis and


crash a year before it happened that the general public took
notice.

That’s when I was invited onto television to share my opinion.

A publication of Behind the Markets Copyright 2023 11


My message was simple:

The stock market at 6,500 is like walking into your dealership


when everything is on sale marked 90% off!

Like the easy 624% returns we booked after buying American


Express at $14.24 a share.

Or the fast 700% profits with Starbucks which I bought at $8


which then soared to a high of $56.

Or the hidden 459% profits we found buying shares of AutoNation


between $10 - $11 a share.

Or the speedy 235% gains that came from those who bought
FactSet Research with us at $63.23.

Or John Harland which was taken over six months after I


recommended it, giving investors a fast 35% gain.

Or shares of K-Swiss, which gave my clients a easy 65% gain.

And remember Radio Shack? I brought investors fast 80% profits


after the stock soared from $16 to $29.

Or the stellar 40% gains we earned when Hilton Hotels was taken
over.

I’m grateful that I was able to help so many people profit from the
2008 crash.

A publication of Behind the Markets Copyright 2023 12


But China’s attack on the US dollar has me more concerned than ever
before.

When China makes this announcement, you could wake up one morning
to find your portfolio down 50%.

In a moment, I’m going to tell you exactly what to do when this happens.

And I’ll show you my “red-flag” list – this is a list of 3 investments that
will be hit the hardest (I can email it to you as well. Stay tuned to the
end).

Finally, I’ll show you what I think is the absolute most important thing
for you to do to keep yourself safe before this announcement
comes…and make a lot of money in the process.

The assumptions youʼve built your retirement plans on are about


to change...

And they’re about to change in a very big way.

For the past 50 years, investing for your retirement was straightforward:
you’d work hard, save as much as you could, invest that money in the
stock market and then watch it grow.

But all that that changed when Russia launched its invasion of Ukraine on
February 24, 2022. The world expected the Biden administration to put
sanctions on Russia. And I understand that. They wanted to stop Russia
from being able to fund its war against Ukraine.

A publication of Behind the Markets Copyright 2023 13


The Financial “Nuclear Option”

But they didn’t just choose typical sanctions – like penalizing countries
that sold weapons to Russia.

They chose the financial “nuclear option” -

On February 27, 2022, three days after Russia invaded Ukraine, Biden
froze the assets Russia kept in its own Central Bank.

“The U.S. shut off the Russian central bank’s access


to most of its $630 billion of foreign reserves.”
- The Wall Street Journal

This will go down in history as a “historic mistake”…

…the beginning of the end for the US dollar.

That’s because Biden could have accomplished 90% of his goals with
more targeted sanctions.

But they did the one thing you can’t do if you want to keep the U.S.
dollar as the world’s reserve currency…

…they crossed the line and went after central bank reserves.

“They violated the presumed sanctity of


central bank reserves.”
-The Atlantic Council
A publication of Behind the Markets Copyright 2023 14
That decision shocked the world.

“If Russian Currency Reserves aren’t really money,


the world is in for a shock.”
- The Wall Street Journal

And it sent a message to every other country on earth: if you don’t do


what the United States wants, we can take your country’s money away.

All of it. With the snap of a finger.

“Sanctions have shown that currency reserves


accumulated by central banks can be taken away.”
-The Wall Street Journal

Regardless of whether you support the war in Ukraine or not, you


need to understand something:

This will go down as one of the biggest mistakes in U.S. history…

… a far bigger mistake than the Vietnam War.

“Weaponizing the monetary system


against a Group-of-20 country will have
lasting repercussions.”
- The Wall Street Journal

A publication of Behind the Markets Copyright 2023 15


And China took advantage of Biden’s mistake. They used it as an
opening.

“Sanctions against Russia have provided China


with an important opening to demonstrate
how its currency can be used.”
- Bloomberg

Let me show you exactly how I believe it’s going to play out in the
next six months…

Almost every significant income-related investment in America will


crash when China makes this announcement.

How do I know this is going to happen?

Because the table is being set right now. Let me explain.

In 2018, China launched a secret plan to replace the U.S. dollar as the
world’s reserve currency. But nobody took them seriously at first.

Until we froze the assets of Russia’s Central Bank.

That was the opening they needed.

A publication of Behind the Markets Copyright 2023 16


They went to their trading partners with a simple message:

“The United States can take all your country’s money at will.
Protect your money from the U.S. by using our currency
instead of the dollar.”

“Everyone…needs to move away from the dollar


when their greenback-denominated assets
can be taken from them on
Washington’s say-so.”

- The South China Morning Post

And after what Biden did, countries like Brazil finally listened.

Brazilian companies sold $31 billion worth of soy to China in 2022.

The Chinese used to pay them in dollars.

But this year, China got them to accept China’s currency, the Yuan.

“China, Brazil Strike Deal to Ditch Dollar for Trade.”


- Barrons

A publication of Behind the Markets Copyright 2023 17


Iraq listened too.

Iraqi oil companies sold $39 billion worth of oil to China in 2022.

The Chinese used to pay them in dollars.

But this year, China got them to accept China’s currency, the Yuan.

“ “Iraq to allow trade with China in yuan.”


- Reuters

And the rebellion against the dollar is starting to spread.

“ If you weaponize your currency enough times,


other countries will stop using it.” - Elon Musk

Everyone’s afraid that we’ll drop a “financial nuclear bomb” on


them next.

So, they’re all looking to ditch the dollar.

“Suddenly Everyone is Hunting for Alternatives to the U.S.


Dollar.”
- Bloomberg

A publication of Behind the Markets Copyright 2023 18


Southeast Asia is thinking of ditching the dollar.

““Southeast Asia, Too, is Losing Patience


with King Dollars Clout.”
- Bloomberg

Saudi Arabia is thinking of ditching the dollar.

“Saudi Arabia Considers Accepting Yuan Instead of


Dollars for Chinese Oil Sales.”
- The Wall Street Journal

And things are about to get worse.

In the coming weeks, China will soon make an announcement that


will get those countries – and a whole lot more – to ditch the
dollar for good.

This announcement threatens the very foundation of our


economy…and risks your retirement.

Let me explain.

A publication of Behind the Markets Copyright 2023 19


China’s Announcement:
The Final Nail in the Dollar's Coffin

This announcement from China will be the final nail in the dollars
coffin.

When it happens, the ripple effect will cause tens of trillions in


bonds, stocks, and other income related investments to plunge in
value.

Some stocks may even go to zero.

I know this may sound hard to believe…

But as I’ll already shown you…this dollar rebellion has been


happening since Biden first froze the assets of Russia’s Central
Bank.

And China’s upcoming announcement will get the rest of the


countries to ditch the dollar too.

I believe that will happen at the next meeting of China’s Federal


Reserve, the People’s Bank of China.

On that day, China will announce the next phase of its attack
against the dollar: the launch of a gold-backed currency.

A publication of Behind the Markets Copyright 2023 20


You see, China’s been very busy this year.

In addition to getting countries to ditch the dollar, they’ve been


buying gold hand-over fist.

In June, they bought 32.5 tons.

“Beijing bought 32.5 tons of gold in in June.”


- The World Gold Council

In July, they upped the purchase and bought 80.1 tons of gold.

“Beijing in July alone received 80.1 tons of


gold – more than double the 32.5 tons it
bought in June.”
-Fox News

And their pace hasn’t slowed down.

“ China’s Central Bank Adds More Gold for a


Ninth Straight Month.”
- Bloomberg

A publication of Behind the Markets Copyright 2023 21


A Chinese currency backed by gold will be devastating to the U.S.
dollar.

“Making the Yuan convertible into gold effectively


turns the currency into a global investable asset…”
- Economist Chi Lo

It would suck trillions of dollars out of America and pump them into China.

That would flip the entire financial system upside down.

“ This could have profound geopolitical and economic


implications as it… could tilt the geopolitical balance
towards China.” - BNP Paribas

Before he died, billionaire real estate investor Sam Zell said his “single
biggest financial concern was the loss of the dollar as the world’s reserve
currency.”

“My single biggest financial concern is the loss of the


dollar as the reserve currency. I can’t imagine anything
more disastrous to our country.” - Sam Zell,
billionaire real estate developer

He said he couldn’t imagine anything more disastrous for the United


States. And I agree with him.

Mark my words when I tell you this: Americans are not prepared for
what’s coming... Let me show you why.

A publication of Behind the Markets Copyright 2023 22


Trillions of U.S. Dollars at Risk
America has some of the lowest interest rates on earth because the
dollar is the world’s reserve currency.

Let me explain how it works.

Let’s say Mercedes-Benz makes a $20 billion profit each year selling its
cars in the United States. That means they’re sitting on $20 billion U.S.
dollars.

So, what do they do with it? Well, it doesn’t just sit in a bank account.
They buy $20 billion of U.S. bonds with that $20 billion in US dollars.

Now Mercedes-Benz is just one company. Every company on earth


does the same thing.

Having the world’s reserve currency means that almost every company
on earth that sells something gets paid in dollars.

That adds up to trillions of dollars a year. And all those trillions of extra
dollars are used every day to buy things like U.S. Treasury bonds.

But when China launches its gold-backed currency…

Mercedes will invest that money into China’s gold-backed currency


instead of Treasury bonds. So will thousands of other companies,
central banks, and investment funds from around the world.

It’s just a better store of value. It’s backed by gold.

Once China makes this announcement, the first domino will fall.

That’s when things will start to get ugly.

A publication of Behind the Markets Copyright 2023 23


When all of these companies, central banks and investment funds from
around the world stop buying bonds, which I believe will happen
within the next six months…

Interest rates will not only rise…but they’ll rise much faster than
anyone is ready for.

They’ll rise because a lot less people are buying our Treasury bonds.

Rising rates means bond prices will get hammered.

And the longer the bond, the harder it’s going to get hit.

So, if you own bonds right now, that means the value of those bonds
will plunge.

And that’s when the second domino will fall.

A publication of Behind the Markets Copyright 2023 24


To sell bonds to companies like Mercedes, the government will have
to boot the interest rate it pays dramatically.

Put yourself in Mercedes’ shoes: they could buy a gold-backed


currency that won’t lose value, or Treasury bonds which lose value
every year because our government can’t stop borrowing and
spending.

To beat the Chinese government and get the money into America, the
government will be forced to sell Treasury bonds at 10% - 15%
interest rates.

And when interest rates rise, all sorts of other rates and loans go up
too.

Mortgage loans, credit card loans, car loans, truck loans, college loans,
small business loans, you name it.

Think a 7% mortgage loan is bad?

Wait until we’re staring down the barrel of a 15% mortgage loan.

That’s when the third domino will fall.

A publication of Behind the Markets Copyright 2023 25


We all know that the stock market goes down when interest rates rise.

It’s like a see-saw relationship.

But the last time we faced interest rates these high was in the 1970’s.

That decade was a financial horror show. And it felt like it lasted
forever.

The stock market sank 64% that decade, dropping from 6,593 in Jan
of 1973 to a low of 2,352 in June of 1982.

Think that’s bad?

That’s when the final domino will fall.

A publication of Behind the Markets Copyright 2023 26


Last year, we paid $476 billion in interest payments on our nation’s
debt.

And that’s with Treasury bonds we sold at 3% interest rates.

Compared to what’s coming, we’re going to look back at these as the


good old days.

When the government is forced to sell bonds at 10% interest rates,


our annual interest payments will soar.

In five years, they’ll double. In ten years, they’ll triple.

At that point, they’ll be choking us.

That’s when politicians running for office will have to do something


they haven’t done for fifty years: level with the American people.

They’ll talk about us having to making sacrifices for the next


generation.

But what they’ll really mean is that with $1 trillion a year in interest
payments, we’re going to have to make some cuts.

And the cuts will hit everything: Social Security, Medicare, Medicaid
and National Defense.

A publication of Behind the Markets Copyright 2023 27


Billionaire Sam Zell predicted you would see a 25% reduction in our
standard of living if the dollar was no longer the world’s reserve
currency.

“ I think you could see a 25% reduction in the


standard of living in this country if the US
dollar was no longer the world’s reserve
currency. That's how valuable it is."
- Sam Zell, billionaire real estate developer

Imagine your benefits got cut by 25%?

That’s why economist Peter St Onge said that losing our status as the
world’s reserve currency would mean “a catastrophic collapse in America’s
living standard.”

“A Catastrophic Collapse in America’s Living Standard.”

Taken together, the facts are clear – China’s launch of a gold-backed


currency presents a clear and present danger to our country and to
your retirement.

One morning you’ll wake up and read that China made the
announcement.

$25 trillion in stock market value would be wiped out the first day.

Your IRA, 401k, mutual funds, 529 plans would all be cut by 50%.

A publication of Behind the Markets Copyright 2023 28


Can you imagine waking up one morning to see your
retirement cut in half?

That’s literally what’s in front of us.

But the biggest risk you face is not being prepared.

The good news is that I’m here to help you do just that.

And I’ve made a career of seeing around corners.

Here’s a recent example…

How to Make Money from Disaster

In early 2020, the stock market crashed 40% because of the Covid
pandemic.

March was the worst of it. It was like a stampede out of stocks.

One billionaire hedge-fund manager went on CNBC and cried, “hell is


coming” as he wiped away tears.

But I kept my cool.

On March 12, 2020, I wrote an article titled, “4 Steps to Profit from


this Market Panic.”

A publication of Behind the Markets Copyright 2023 29


Right at the height of the market crash, I urged readers to buy
saying…

“When we get to the other side of this, the market


will likely have a “SNAP-BACK” rally because prices
and interest rates are so cheap.”
- Dylan Jovine, March 12, 2020

Because of my experience and my ability to see these opportunities


before they appear…My readers kept their cool. Because we kept
our cool, we were able to pocket huge returns like…

• ChemoCentrix: 435% Gain


• Magnolia Oil & Gas: 159% Gain
• Krystal Biotech: 275% Gain
• Scotts Miracle Gro: 194% Gain
• Floor & Décor: 174% Gain
• DraftKings: A 115% gain.
• Agio Pharma Calls: 142% Gain

Keep in mind, these aren’t hypothetical examples…My readers had


the opportunity to get into these trades and make a lot of money in a
short amount of time.

When China makes this announcement, you’ll have the opportunity to


lock in some big winners yourself. That’s why I’m talking to you
today…

In a moment I’ll show you how you can protect your financial
security…and put yourself in a position to make money. Stocks my
research shows will be the best picks for the coming announcement.

But before I reveal the exact details...Here’s what I recommend you


doing immediately…

A publication of Behind the Markets Copyright 2023 30


The first thing you must do is check your exposure to certain long-term
bond funds.

Look into your 401k, IRA and any other retirement accounts you have.
If you have any mutual funds, see what you’re invested in. Log into
your brokerage account. I’ve found 16 funds that would be the first to
get crushed.

Here are the 16 high-yield bond funds most at risk if China launches a
gold-backed currency -

1. Fidelity High Income Fund (SPHIX)


2. T. Rowe Price Intermediate Tax-Free High Yield (PRIHX)
3. iShares iBoxx $ High Yield Corporate Bond ETF (SYM: HYG)
4. iShares 0-5 Year High Yield Corporate Bond ETF (SYM: SHYG)
5. Vanguard High-Yield Corporate Fund Investor Shares (VWEHX)
6. SPDR Bloomberg High Yield Bond ETF (SYM: JNK)
7. Schwab High Yield Bond ETF (SYM: SCYB)
8. VanEck Fallen Angel High Yield Bond ETF (SYM: ANGL)
9. T. Rowe Price Tax-Free (PRFHX)
10. Northern High Yield Municipal Fund (NHYMX)
11. Northern Light High Yield Fixed Income Fund (SYM: NHFIX)
12. T. Rowe Price Tax-Free High Yield Fund (SYM: PRFHX)
13. PIA High Yield Managed Accounts (SYM: PIAMX)
14. American High-Income Municipal Bond Fund (SYM: ABHFX)
15. Fidelity High Income Fund (SYM: SPHIX)
16. Aristotle Strategic Credit (SYM: ARSSX)

A publication of Behind the Markets Copyright 2023 31


That brings us to step two…

China’s blitzkrieg-style attack against the U.S. dollar this year has
already caused billions of dollars’ worth of damage.

That’s one reason the dollar has performed so poorly this year.

But when they announce they’re launching a gold-backing currency,


that number could jump into the trillions.

That’s when the dollar could sink to lows not seen in the history of
this country.

Here are three steps you can take to protect yourself:

Flip China’s “blitzkrieg” attack against the dollar on its head with a
strategy that used to be available to professional investors: shorting
the U.S. dollar.

The U.S. dollar is in trouble.

At the moment, China wants to put an end to its dominance.

Along the way, they’ve convinced Iraq, Argentina, Russia, and


reportedly France to stop using the dollar, too. Now, even the
Saudis may be considering it.

A publication of Behind the Markets Copyright 2023 32


In fact, “As China’s economic might continues to rise, that means
that it’ll exert more influence in global financial institutions and
trade etc.,” Cedric Chehab from Fitch Solutions said, as quoted
by CNBC.

Even Brazilian President Luiz Inácio Lula da Silva called for reduced
reliance on the U.S. dollar.

“Why can’t we do trade based on our own currencies?” he added,


drawing loud applause from the audience of Brazilian and Chinese
dignitaries, as noted by the Financial Times. “Who was it that
decided that the dollar was the currency after the disappearance of
the gold standard?”

Worse, billionaires like Ray Dalio recently noted that dollar-


dominated global order is fading. Even billionaire Stanley
Druckenmiller admits that he’s shorting the U.S. dollar, too.

All could point to significant downside for the U.S. dollar, which
could be catastrophic.

We also have to consider that, “The dollar has become quite


overbought and overloved,” said Matt Maley, chief market
strategist at Miller Tabak + Co. “Therefore, it’s getting ripe for a
pullback. Sentiment is reaching extreme levels for the
greenback, and thus that doesn’t leave many more buyers to take
it higher at least over the near-term. Short-term traders should be
careful about long positions in the dollar.”

A publication of Behind the Markets Copyright 2023 33


That being said, investors may want to consider hedging the U.S.
dollar with the Invesco DB US Dollar Index Bearish Fund ETF (SYM: UDN).
At $18.50 a share, the UDN ETF has an expense ratio of 0.77%, and
trades an average of 79,622 shares daily.

Launched in 2007, the Invesco DB U.S. Dollar Index Bearish Fund


seeks to replicate the performance of the Deutsche Bank Short U.S.
Dollar Index Futures Index.

The tracked benchmark measures fluctuations in the value of the


euro, Swiss franc, Japanese yen, British pound, Swedish krona, and
Canadian dollar relative to the U.S. dollar.

Technically, the UDN ETF appears oversold at support dating back


to early 2023. It’s also over-extended on relative strength (RSI),
MACD, and Williams’ %R at the moment. In fact, the last few times
these three indicators became this over-extended, the UDN ETF
bounced back.

This little-known gold fund acts like a shield against the fall of the dollar –
and pays you dividends while you wait!

China wants to put an immediate end to U.S. dollar dominance.

To do so, they’ve already convinced Iraq, Brazil, and Argentina to


ditch the dollar for trade. Now, even the Saudis are reportedly
“open” to the idea of trading in Yuan instead of the U.S. dollar.

A publication of Behind the Markets Copyright 2023 34


Worse, according to Currency Transfer:

“Saudi Arabia is not dropping the petrodollar yet, but their activity
suggests they might be considering other options. Saudi
Arabia might be the keystone in the petrodollar too, and if for
example, they begin to trade oil in yuan, this may cause a domino
effect, and the other members of OPEC might follow suit.”

Elon Musk says de-dollarization is inevitable as the main currency.


Billionaire Ray Dalio recently noted that dollar-dominated global
order is fading. Even billionaire Stanley Druckenmiller admits that
he’s short the U.S. dollar, too.

All could point to significant downside for the U.S. dollar, which
could be catastrophic.

In fact, “The risk of de-dollarization, which is a periodically recurrent


theme throughout post-war history, has returned into focus due to
geopolitical and geostrategic shifts,” said Alexander Wise, a Vice
President at JP Morgan.

In addition, rising interest rates are also making the U.S. dollar
far too expensive for emerging nations, leading some to trade in
other currencies. After all, any appreciation in the U.S. currency
can lead to higher import prices.

We should also note that the very idea of de-dollarization is the key
reason global central banks have been increasing their gold
reserves this year.

A publication of Behind the Markets Copyright 2023 35


For example, “Despite a year-on-year decrease of 103 tons
in purchases during the second quarter, net purchases by
central banks worldwide still hit a record-breaking 387 tons in the
first six months of the year, according to the latest data
compiled by the World Gold Council (WGC),” says Global Times.

Even China’s central bank, for example, just extended its gold-
buying spree for the tenth straight month. All as it starts to back
away from U.S. dollar reliance. In fact, The People's Bank of China's
stockpile of the precious metal climbed by 29 tons in August to
2,165 tons, according to Bloomberg. About 217 tones were added
over the last 10 months.

The World Gold Council also just said nearly 62% of central banks
say gold will make up a greater share of reserves in the next few
years. That being said, one way to trade gold upside is with an
exchange-traded fund, such as the iShares MSCI Global Gold Miner ETF
(SYM: RING).

With an expense ratio of 0.39%, the RING ETF offers exposure to


companies that derive most of their revenues from gold mining.
Some of its top holdings include Newmont, Barrick Gold, Newcrest
Mining, Gold Fields, and Kinross Gold to name a few of its 37 total
holdings.

Making miners even more attractive – for more than 20 years, gold
mining stocks have outperformed the price of gold in bull markets.
All thanks to how gold mining companies use their operating
leverage to boost overall profits, which can lead to higher stock
prices.

A publication of Behind the Markets Copyright 2023 36


Also, consider:

“A rise in the gold price is usually going to lift the gold miners
as well. It’s not that unusual for miners to outperform gold in a
rising gold market – and perform worse on the way down,”
noted Capital.com. “When gold surged between 2000-2011, the
metal itself provided a rise of 550%; however, gold mining
equities on the NYSE Arca Gold Miners Index jumped 690%. Since
2015, gold has seen an upswing of about 78% – far outstripped by
gold mining stocks, with a surge of about 182%.”

That being said, investors may want to consider investing


in the iShares MSCI Global Gold Miner ETF (SYM: RING).

TIPS: Protect yourself with what I call bond-market blowout “insurance” –


except it has no annual premiums and it isn’t actually insurance.

There’s a growing chorus among global leaders to replace the U.S.


dollar as a reserve currency.

Worse, according to Australia’s Lowy Institute, the currency is


headed for a vicious cycle that will further erode its dominance.

So far, China, France, Argentina, Russia, and possibly, even the


Saudis are on board. China and Russia are also making bilateral
trade agreements that exclude the U.S. dollar.

A publication of Behind the Markets Copyright 2023 37


As noted by Kitco.com:

“China recently completed the first yuan-settled LNG trade. China


also struck a deal with Brazil to trade in their own
country's currencies. China and Malaysia are discussing the
creation of an Asian Monetary Fund to reduce reliance on the
U.S. dollar, while India and Malaysia announced that they
abandoned trading in U.S. dollars and can now settle in Indian
Rupees.”

In addition, earlier this year, Former Goldman Sachs


chief economist Jim O'Neill called on the BRICS bloc to
expand and challenge the dominance of the U.S. dollar.

Plus, consider this. Right now, the U.S. dollar’s share of global
foreign-exchange reserves stood at just below 60% in
the last quarter of 2022, according to the Council on
Foreign Relations. That’s down from 70% in 1999.

They also noted that, “China, the largest overseas holder of U.S.
treasuries, has cut its holdings of dollars as its relations with
the United States have nosedived. Its current holdings are at their
lowest point since May 2009.”

In short, the very idea of ditching the U.S. dollar is only growing.

One way to trade those de-dollarization fears is with the iShares


TIPS Bond ETF (SYM: TIP).

A publication of Behind the Markets Copyright 2023 38


With an expense ratio of 0.19%, the iShares TIPS Bond ETF (TIP)
tracks the performance of US Treasury inflation-protected
securities.

This is a good bet with de-dollarization. That’s because the


reduction in global dollar demand could have long-term
hyperinflationary consequences as the dollar declines.

Even better for TIP ETF investors, the ETF is seeing considerably
large inflows.

For example, in September, we saw an inflow of $200.5 million – a


0.9% increase in a week.

Plus, the TIP ETF also yields about 3.45%. And we should also note
that the TIP ETF currently has 48 holdings generating a real yield
(the yield after inflation) of 2.649%, a weighted average maturity of
7.04 years, and a weighted average coupon of 0.69.

Also, despite the weighted average maturity of 7.04 years, it also


holds Treasury bonds with maturities over 20 years, which make up
10.59% of net assets. Those due in the next one to two years make
up 14.42% of net assets.

Most importantly, all of the holdings in the ETF have a AAA credit
rating – which is incredibly safe.

A publication of Behind the Markets Copyright 2023 39


The “Boring” Gold Miner Billionaires Use to Have Income
Deposited into Their Accounts Like Clockwork

Royal Gold Inc. (SYM: RGLD)

Royal Gold is a unique gold company that does not operate mines
but acquires and manages royalties and streams on gold and other
metals. All of which allows the company to generate higher margins,
with lower capital expenditures.

As of June 30, 2023, the Company owned interests on 181


properties on five continents, including interests on 40 producing
mines and 20 development stage projects. The company also just
announced a fourth quarter dividend of $0.375 per share, payable
on Friday, October 20, 2023, to shareholders of record at the close
of business on Friday, October 6, 2023.

A publication of Behind the Markets Copyright 2023 40


Why invest now?

At the moment, the company has two key catalysts.

One, gold prices could push aggressively higher on the potential for
de-dollarization.

Remember, China wants to put an immediate end to U.S. dollar


dominance. To do so, they’ve already convinced Iraq, Brazil, and
Argentina to ditch the dollar for trade. Now, even the Saudis are
reportedly “open” to the idea of trading in Yuan instead of the U.S.
dollar. Elon Musk says de-dollarization is inevitable as the main
currency. Billionaire Ray Dalio recently noted that dollar-dominated
global order is fading.

All could point to significant downside for the U.S. dollar, which
would send gold prices higher.

Plus, global central banks are still buying gold.

For example, “Despite a year-on-year decrease of 103 tons in


purchases during the second quarter, net purchases by central
banks worldwide still hit a record-breaking 387 tons in the first six
months of the year, according to the latest data compiled by the
World Gold Council (WGC),” says Global Times.

Even China’s central bank just extended its gold-buying spree for
the tenth straight month. All as it starts to back away from U.S.
dollar reliance.

A publication of Behind the Markets Copyright 2023 41


Two, the company just bought an attractive royalty package on two
mines in Brazil.

In fact, the company’s wholly-owned subsidiary RG Royalties just


entered into a binding commitment letter with ACG Acquisition
Company Ltd. to acquire new royalty interests on the producing
Serrote and Santa Rita mines in Brazil for total cash consideration of
$250 million.

The royalty interests consist of a gold royalty on the Serrote mine, a


gold, platinum and palladium royalty on the Santa Rita mine, and a
copper and nickel royalty on both the Serrote and Santa Rita mines.

With the Serrote Mine, Royal Gold is purchasing a gross smelter


return (GSR) royalty of 85% of the payable gold from the Serrote
mine until achievement of a royalty revenue threshold of $250
million from this royalty, and 45% thereafter; plus, a GSR on the
copper production ramping to 1.1% in 2025, and dropping to 0.55%
after reaching a revenue threshold of $90M.

The Santa Rita mine is a nickel mine, with significant gold, copper,
and platinum-group metals by-products. With this mine, Royal Gold
will receive 64oz of gold, 135oz of platinum, and 100oz of palladium
for each 1M lb. of payable nickel produced from the Santa Rita
mine.

The platinum and palladium royalty will terminate after the


achievement of a royalty revenue threshold of $100M. Additionally,
the same base metal royalty as for the Serrote mine will apply.

A publication of Behind the Markets Copyright 2023 42


The Numbers

In the second quarter, the Company recorded net income and


comprehensive income of $63.4 million, or $0.97 per basic and
diluted share, as compared to net income of $71.1 million, or $1.08
per basic and diluted share, for the quarter ended June 30, 2022.

The decrease in net income was primarily attributable to higher


debt-related interest expense.

It also saw total revenue of $144 million, which included stream


revenue of $106 million and royalty revenue of $38 million at an
average gold price of $1,976 per ounce, an average silver price of
$24.13 per ounce and an average copper price of $3.84 per pound.

That’s comparable to total revenue of $146.4 million year over year.

Also, according to Bill Heissenbuttel, President and CEO of Royal


Gold:

“Our second quarter was relatively quiet and the portfolio


provided another quarter of solid cash flow. We repaid $100 million
of our outstanding revolving credit facility balance and grew our
liquidity to over $700 million by the end of the quarter. We also
extended the term of our $1 billion revolving credit facility a further
two years to mid-2028, which ensures continued access to a key
non-dilutive and flexible financing tool.”

A publication of Behind the Markets Copyright 2023 43


Conclusion Royal Gold Inc.
(SYM: RGLD)
Royal Gold should benefit from the growth
Royal Gold, Inc.
and development of its existing portfolio, as 1144 15th Street
well as from potential acquisitions of new Suite 2500
Denver, CO 80202-1161
royalty and stream interests, such as the
Brazilian mines mentioned above. Plus, (303) 573-1660
https://www.royalgold.com
with growing calls for de-dollarization,
and the potential for higher gold prices in Key Stock Statistics
the months ahead, Royal Gold is a clear Recent Price: $108.67
Shares Outstanding: 65.69
winner. million
52-Week Return: +25.7%
Average Volume: 3-month:
Even better, as we wait for Royal Gold to 381,470;
push higher, we can collect its dividends. 10 days: 382,380
Yield: 1.38%
Again, as noted earlier, the company just
Market Cap: $7.138 billion
announced a fourth quarter dividend of P/E: 31.23
$0.375 per share, payable on Friday, October Inst. Holdings: 88.71%

20, 2023, to shareholders of record at the Description:


close of business on Friday, October 6, 2023. Royal Gold is a precious
metals stream and royalty
company engaged in the
Analysts like the stock at current prices, too. acquisition and
Cantor Fitzgerald, for example, just upgraded management of precious
metal streams, royalties
Royal Gold to Buy from Hold with a price and similar production-
target of $145. After downgrading the stock based interests. As of
earlier this year, the firm now believes there’s June 30, 2023, the
Company owned interests
“sufficient upside” ahead. BMO Capital
on 181 properties on five
analysts raised their price target to $145 from continents, including
$138, with a market perform rating. The firm interests on 40 producing
mines and 20
believes that M&A in the sector, including a
development stage
transaction with ACG could drive growth. projects.

A publication of Behind the Markets Copyright 2023 44


When China makes this announcement, smart money will begin
shifting into a few key asset classes. And you should too – while it’s
still early.

In short, this coming announcement is presenting you with a once-in-a-


generation opportunity to make a significant amount of money
from the financial markets…

So, let’s get started…

The $2 Micro-Cap Gold Miner Quietly


Being Bought By Billionaire Jim Simons

Dakota Gold (SYM: DC)

Dakota Gold (SYM: DC) is a South Dakota-based gold exploration and


development company with a specific focus on revitalizing the
Homestake District in Lead, South Dakota.

A publication of Behind the Markets Copyright 2023 45


In fact, Dakota Gold has high-caliber gold mineral properties covering
over 46 thousand acres surrounding the historic Homestake Mine.
And, at the moment, the company is focused on new gold discoveries
and opportunities that build on the legacy of the Homestake mine.

We should also note that the Homestake Gold Mine was the deepest
and most productive gold mine in the Western Hemisphere. At one
point, it produced more than 40 million troy ounces of gold, nine
million troy ounces of silver, and six million ounces of copper. While
the mine was closed in 2003, Dakota Gold is looking to reinvigorate
operations.

Why invest now?

At the moment, Dakota Gold Corp. has a few key catalysts.

For one, gold prices could shine with the potential for de-dollarization.

We know China wants to put an end to its dominance. Even Iraq,


Argentina, Russia, France, and potentially even the Saudis want to
dethrone the U.S. dollar. Now, even Indonesia is joining in.

"Bank Indonesia is confident that the National LCT Task Force will
be an effective coordination forum to strengthen policy synergy between
government ministries and agencies in an effort to increase the use of
local currencies in bilateral transactions between Indonesia and major
trading partners," Governor of Bank Indonesia, Perry Warjiyo said, as
quoted by Business Insider.

A publication of Behind the Markets Copyright 2023 46


Brazilian President Luiz Inácio Lula da Silva called for reduced
reliance on the U.S. dollar.

“Why can’t we do trade based on our own currencies?” he added,


drawing loud applause from the audience of Brazilian and Chinese
dignitaries, as noted by the Financial Times. “Who was it that
decided that the dollar was the currency after the disappearance of
the gold standard?”

If de-dollarization strengthens, we could see significant downside for


the U.S. dollar, which could be catastrophic.

At the same time, it would fuel higher highs for gold prices.

Two, the company has a bright future ahead of it with key gold
discoveries.

Drilling already commenced at the Mailtand Gold and Richmond Hill


Gold Projects in spring 2022 and has encountered significant gold
mineralization at both projects including two new discoveries, the
Unionville Zone and the JB Gold Zone at Maitland, according to the
company.

In fact, the company recently announced they found “gold


mineralization in the Maitland and Richmond Hill areas, and they are
confident Dakota’s exploration will lead to new resources,” as noted
by BHPioneer.com.

A publication of Behind the Markets Copyright 2023 47


Also, as noted by Jerry Aberle, chief operating officer with Dakota
Gold Corp.

“We’re hitting consistent gold mineralization. Our drilling has


proven that the mineralizing fluids that formed the 1.74 billion-year-
old Pre-Cambrian gold formations at the site of the Homestake Mine
area also present in the Maitland area. Not only that, but Dakota
Gold’s drilling has also identified zones of tertiary-aged gold
mineralization that are only about 50 million years old at both
Maitland and Richmond Hill locations.”

If the resources pan out, Aberle also aid Dakota Gold could have an
approved mining permit within five to 10 years.

Three, higher gold prices could boost Dakota Gold stock.

Dakota Gold has been exploring the Homestake Mining District for
about a year now with a focus on the Maitland Gold and Richmond
Hill gold exploration projects.

All of which has been growing, considerable interest, with gold prices
expected to run higher.

In fact, with “gold prices having increased eight-fold over the past 20
years, the mining district has recently attracted renewed interest from
explorers like Dakota Gold after the district became uneconomically
viable for gold production in 2002 as operating costs became
disproportionately high,” as noted by Seeking Alpha.

A publication of Behind the Markets Copyright 2023 48


Conclusion

Dakota Gold (SYM: DC) should benefit from the growth and development
of its existing portfolio.

Two, shares of DC could push higher on de-dollarization and its


potentially lucrative impact on gold prices. And three, as the company
notes, it’s “hitting consistent gold mineralization.”

Plus, as gold price rise, and interest grows in the Homestake Mining
District, shares of Dakota Gold could shine moving forward.

**********
Dakota Gold (SYM: DC)
Dakota Gold Corp. Description:
106 Glendale Drive Dakota Gold is a South Dakota-based
Suite A responsible gold exploration and
development company with a specific
Lead, SD 57754 focus on revitalizing the Homestake
District in Lead, South Dakota. Dakota
(605) 717-2540 Gold has high-caliber gold mineral
https://www.dakotagoldcorp.com properties covering over 46 thousand
acres surrounding the historic
Homestake Mine.

In addition, its objective is to unlock


Key Stock Statistics significant long-term value in the
Homestake District during a renewed
Recent Price: $2.65 time of favorable gold prices. The
Shares Outstanding: 78.76 million merger of Dakota Territory Resources
Average Volume: 3-month: 174,030; Corp. and JR Resources in early 2022
10 days: 141,100 has enabled the streamlining of
Yield: N/A governance and internal processes. This
will enable Dakota Gold to focus on its
Market Cap: $208.7 million strategic objectives, and also enhance
P/E: N/A its strategic agility to respond to future
Inst. Holdings: 26.25% Homestake District gold opportunities
and successes.

A publication of Behind the Markets Copyright 2023 49


This commodities trade can act like a hedge
against the dollarʼs fall and will target returns of
100% - 200% in the next 12 months.
Permian Resources Corp. (SYM: PR)

Headquartered in Midland, Texas, Permian Resources is the largest


pure-play E&P company in the Delaware Basin, which the company
believes has the lowest break-even pricing of any oil and gas
producing basin in North America.

Also, its assets are concentrated in Reeves and Ward Counties,


Texas and Eddy and Lea Counties, New Mexico, consisting of
approximately 180,000 net leasehold acres and 40,000 net royalty
acres.

Strengthening its position, the company just acquired Earthstone


Energy, Inc. in an all-stock transaction valued at approximately $4.5
billion, inclusive of Earthstone’s net debt.

A publication of Behind the Markets Copyright 2023 50


The transaction strengthens Permian Resources’ position as a
leading Delaware Basin independent E&P with over 400,000
Permian net acres, pro forma production of approximately 300,000
Boe/d and an enhanced free cash flow profile to increase returns to
shareholders.

Why invest now?

Permian Resources has a few strong catalysts.

One being the acquisition of Earthstone Energy, which will be


accretive to free cash flow even before synergies. In addition, the
deal will add 223,000 net acres, bringing PR’s holdings to over
400,000 acres. The deal should also be highly accretive to free cash
flow, growing at least 30% per year for two years and at least 25%
per year for five and 10 years. Synergies should drive $175 million of
annual cash flow improvement.

The accretive nature of this transaction immediately improves


Permian Resources’ current return of capital program. The Company
plans to increase its quarterly base dividend by 20% to $0.06 per
share beginning with its first quarter 2024 dividend.

Two, the company may now be an attractive acquisition target. In


fact, Truist analyst Neal Dingmann says the deal could make
Permian Resources a target, given its strong pro forma assets and
operations. The Permian Resources deal "will ultimately be one of
the most accretive transactions in several quarters based on agreed
price, cost savings and future operating efficiencies among other
things," he added.

A publication of Behind the Markets Copyright 2023 51


Three, there’s speculation we could see $100 to $150 oil again. That’s
according to Doug Lawler, CEO of Continental Resources. In fact, he
believes crude could push as high as $150 without new production.
“More price pressure is coming, he said, unless policies are put in place
to encourage more output,” he added as quoted by MarketWatch.

In addition, the issue of de-dollarization could force oil prices


higher, too. After all, US dollar weakness typically sends oil prices
gushing higher. As noted by an article on LinkedIn, “Typically, the
price of commodities like gold and oil is expressed in US dollars. As
the value of the currency used for pricing declines, a collapse of the
US dollar would probably result in an increase in commodity prices.”

The Numbers

In its most recent quarter, Permian Resources posted solid numbers.


Revenue of $623.4 million jumped about 32% year over year.
However, that still missed expectations by $19.7 million. Non-GAAP
EPS also missed by five cents. Still, the company has seen solid
production growth, with crude oil and total average production
increasing by 8% quarter-over-quarter.

“Permian Resources had a strong operational and financial quarter,


driven by robust well results across both Texas and New Mexico.
Over halfway through the year, our asset base is performing as
expected, with year-to-date well productivity in-line with last year’s,”
said Will Hickey, Co-CEO. “Additionally, we recently reduced our
operated rig count from seven to six rigs due to continued efficiency
gains and remain on pace to achieve our full-year and fourth quarter
production targets, highlighting the strength of our operations.”

A publication of Behind the Markets Copyright 2023 52


“We are proud to continue building upon our track record of
operational execution and returning capital to shareholders. For the
second quarter, we delivered $57 million to shareholders through
the base and variable dividends,” said James Walter, Co-CEO of
the Company. “Given our expected production growth profile and
reduced capital spending for the remainder of the year, we expect
to generate significantly more free cash flow during the third and
fourth quarters, assuming current strip pricing.”

Conclusion

Even after a substantial run, Permian Resources’ stock could gush to


higher highs. Not only is it benefiting from the potential for higher
oil prices, but it’s also benefiting from its recent acquisition of
Earthstone Energy.

In fact, the company may be an attractive acquisition target


following that deal. Remember, as Truist analyst Neal Dingmann
said, “the deal could make Permian Resources a target, given its
strong pro forma assets and operations.”

Also, should we see de-dollarization, and a potentially weak US


dollar, we’re likely to see higher oil prices moving forward. All of
which could be another very strong catalyst for the Permian
Resources stock moving forward.

*****
A publication of Behind the Markets Copyright 2023 53
*****

Permian Resources Corp. (SYM: PR)

Permian Resources Corporation Description:


300 N. Marienfeld Street
Suite 1000 Permian Resources is a leading
Midland, TX 79701 independent oil and natural gas
company focused on generating
(432) 695-4222 outsized returns to our
https://www.permianres.com stakeholders through the
responsible acquisition,
optimization and development of
oil and liquids-rich natural gas
assets.

Key Stock Statistics Headquartered in Midland,


Texas, Permian Resources is the
Recent Price: $13.96 largest pure-play E&P company
Shares Outstanding: 349.72 M in the Delaware Basin, which the
52-Week Return: 110% company believes has the lowest
Average Volume: 3-month: 8.87 M break-even pricing of any oil and
10 days: 12 M gas producing basin in North
Yield: 2.84% America. Also, its assets are
Market Cap: $8.275 B concentrated in Reeves and
P/E: 9.5 Ward Counties, Texas and Eddy
Inst. Holdings: 94.9% and Lea Counties, New Mexico,
consisting of approximately
180,000 net leasehold acres and
40,000 net royalty acres.

A publication of Behind the Markets Copyright 2023 54


How a Bitcoin ETF can let you hedge yourself against a
falling U.S. dollar.

By now, you’ve heard about Bitcoin (BTC).

If not, Bitcoin is the massively popular digital currency that


eliminates the need for central authority, such as banks,
governments, and the Federal Reserve. Instead, Bitcoin relies on
blockchain technology to support peer-to-peer transactions on a
decentralized network.

Each Bitcoin is a digital asset, one that can be stored on a


cryptocurrency exchange – such as Coinbase, for example – or
stored in a digital wallet.

Also, each virtual coin represents the value of Bitcoin’s current


price.

A publication of Behind the Markets Copyright 2023 55


Granted, Bitcoin last traded at $26,898.90. But you don’t have to
pay that much for exposure. Instead, you can buy a fraction of a
coin, with the smaller denominations referred to as a Satoshi, which
is equivalent to a hundred millionth of one Bitcoin.

Owning fractional shares of Bitcoin is quite common.

Three Satoshis would set you back $0.001350, for example. So, no,
you don’t have to spend gobs of money to hedge with Bitcoin.

Bitcoin is powered by a trustworthy open-source code known as


blockchain.

The blockchain is a shared public history of transactions, which are


stored in “blocks” that are “chained” together to avoid tampering
issues. It creates a permanent record of each transaction, and it
provides a way for every user to operate with the same
understanding of who owns what. All without government or bank
intervention.

While Bitcoin can get far more complex, those are the bare-bones
basics.

What makes BTC even more attractive is its use as a hedge against
a week U.S. dollar.

For one, its decentralized nature and limited supply make it an


attractive asset for those looking to hedge against inflation and the
devaluation of traditional currencies.

A publication of Behind the Markets Copyright 2023 56


Two, as noted by Medium.com, “One of the key benefits of Bitcoin
is its scarcity. Unlike traditional currencies that can be printed
endlessly, Bitcoin has a fixed supply of 21 million coins, making it
immune to inflation caused by excessive printing of money. In
addition, the decentralized nature of Bitcoin means that it is not
subject to the same level of government intervention and
manipulation that traditional currencies are.”

Three, with the stability of the U.S. dollar become a bit unstable,
Bitcoin is seen as a hedge.

“With the unprecedented amount of money printing by central


banks, many investors are looking for alternative assets to hedge
against the risk of inflation and devaluation of the dollar. One such
asset that has emerged as a potential hedge against these risks is
Bitcoin.”

So, how can we invest in Bitcoin?

There are a few ways to invest in Bitcoin.

First, if you want to invest in the digital currency, you would visit an
exchange, such as Coinbase.com. Add your payment method. Start
a trade by clicking buy, and eventually sell. Select Bitcoin, as the
cryptocurrency to trade. Input the quantity. Finalize the transaction.
And there you go, you’ve bought Bitcoin. Easy. You can also buy
Bitcoin using PayPal, for example.

When it comes to storage, you can always store your BTC in an


online brokerage, such as Coinbase.

A publication of Behind the Markets Copyright 2023 57


There, your BTC is stored in a hosted wallet. It’s similar to how a
bank stores your money in a checking or savings account.

However, if you choose to store your BTC in a wallet, there are hot
wallets and cold wallets.

A hot wallet allows for your BTC to be used or moved around


easily. While hot wallets can have security issues because of
their connection to the Internet, some of the most popular
ones highlighted by Bankrate.com include:

• Desktop Wallets: You can download wallet software to your


computer and manage your crypto holdings from there. When
you’re done transacting, you can even take it offline,
increasing your security.

• Web wallets: This browser plug-in allows you to connect to the


blockchain and make transactions quickly, but the internet
connection makes it less secure.

• Mobile wallets: You can use software on a mobile device if


you’re using crypto to pay or transact.

There are also cold wallets, which rely on hardware to secure your
holdings. These can be disconnected from the Internet, which makes
them safer than hot wallets. Of course, if you lose the storage
device, you lose your BTC. Not good.

Or, if you’d rather invest in ETFs that rise and fall with the value of
Bitcoin, consider…

A publication of Behind the Markets Copyright 2023 58


The ProShares Bitcoin Strategy ETF (BITO)

If you believe the value of BTC will push higher, you can invest in the
Pro Shares Bitcoin Strategy ETF (BITO). With an expense ratio of 0.95%,
the ETF tracks the performance of spot Bitcoin, and is the world’s largest
and most actively traded cryptocurrency ETF, according to ProShares.

BITO is mimicking the price of Bitcoin as closely as possible without


investing in the cryptocurrency itself. As noted by Money, “Like all
crypto ETFs, part of the allure of BITO is that investors don’t need to
deal with cryptocurrency wallets and private keys but can instead invest
through a broker they already use.”

The ProShares Short Bitcoin (BITI)

Or, if you believe Bitcoin will drop in price again, or if you want to hedge
a long bet, there’s also the ProShares Short Bitcoin (BITI). This one
follows the S&P CME Bitcoin Futures Index, with profitability computed daily
(before fees and expenses) as the inverse (-1x) of the index’s daily
performance. BITI has an expense ratio of 0.97%.

Again, while Bitcoin can get far more complex, those are the bare-bones
basics.

Thank you for taking time to read this report. Because this is a fluid situation,
I will update you as events dictate.

God Bless You and God Bless America.

“The Buck Stops Here,”

Dylan Jovine
Chairman,
Behind the Markets

A publication of Behind the Markets Copyright 2023 59


A publication of

4260 NW 1st Avenue, Suite 55


Boca Raton, FL 33431
United States
1-800-851-1965
support@behindthemarkets.com
www.behindthemarkets.com

You might also like