Author: Marin Aleksov

Cryptocurrency and Precious Metals: Where Does the Future Lie?

Understanding the various types of assets and currencies circulating within the consumer marketplace can be tricky, especially as an increasing amount of business is conducted digitally. Cryptocurrency is one such asset category that can be difficult to navigate, but it’s a form of currency that has risen to prominence in public discussion over the last decade. Let’s examine what cryptocurrency is, how it compares to more tangible asset categories like precious metals, and what the future may look like for both in terms of their consumer use and market success.

What Is Cryptocurrency?

cryptos

For those who may be unfamiliar with the concept, cryptocurrency is a type of digital asset that uses encryptions to enable secure financial transactions and fund transfers. Cryptocurrencies (or “cryptos” for short) are decentralized, meaning that they operate outside of a central banking system. Instead, cryptos use peer-to-peer technology known as “blockchain” as a ledger to digitally record transactional data.

Arguably the most famous example of cryptocurrency is Bitcoin, which first became available to the public in 2009. Since its creation and rise to popularity, there have been thousands of other cryptocurrencies (or “altcoins”) that have flooded the digital landscape, all of which can be used for any digital transactions that recognize and accept such cryptos as valid currency.

How Do Cryptos Differ From Precious Metals?

Those who support cryptocurrencies as “the currency of the future” cite its decentralization from banking institutions and the security of blockchain technology as reasons for its importance and potential for making a positive market impact. However, cryptocurrencies have a tendency to experience high levels of market volatility. Since cryptos’ credibility and the legitimacy of their value still come into question for many hesitant consumers, the price swings they encounter can at times be extreme.

Precious metals, on the other hand, are a type of asset that has retained value over the long-term. In times of economic uncertainty and market instability, gold and other metals tend to be recognized as a helpful resource for potentially safeguarding wealth.

What to Expect In The Future

crypto-coins

While some argue that cryptocurrency will eventually overshadow the market significance of precious metals, many others believe that metals like gold will continue to maintain their standing as valued assets.

It’s also possible that cryptos and precious metals will grow in tandem as they eventually begin to join forces with greater frequency. Stablecoins, or cryptocurrencies backed by more stable types of underlying assets, are becoming an increasingly common way for crypto developers to combat the volatility of the market. Precious metals like gold have already started to serve as reserve assets behind some stablecoins (Tether Gold, for example), so perhaps this collaboration between the two asset categories will prove to be a successful avenue forward in crypto enthusiasts’ quest to garner public support for cryptocurrency as a legitimate and dependable form of tender.

 

Whatever the future holds for cryptocurrency, it will be fascinating to observe how it continues to interact with precious metals on the market and whether a balance can ultimately be struck between the two.

Four Common Uses For Precious Metals

For much of human history, precious metals have been regarded as substances of significant worth. While they’re often thought of for their beauty and monetary value, metals like gold, silver, platinum, and palladium can be useful for a variety of purposes. Let’s take a look at four of the most common uses for precious metals in today’s world.

Technology and Machinery

silver-solar-panels

As innovation persists and production needs shift across various mechanical and technological industries, precious metals remain a consistent resource that businesses heavily rely on. Platinum and palladium, for example, are two metals that have become invaluable in the development of new auto manufacturing solutions, and silver is on the rise as a powerful component in clean energy initiatives.

Medical Purposes

Yttrium-90 Radioembolization Procedure, David Grant U.S. Air Force Medical Center

Throughout history, precious metals have been successfully used in a variety of medical procedures and treatments. Gold, for instance, is a material that was once extremely common in dental work, the treatment of rheumatoid arthritis, and as a remedy for conditions like lagophthalmos, a disorder that prevents individuals from being able to fully close their eyes. In recent years, metals like palladium have been used by oncologists in the treatment of breast cancer as a method of providing concentrated radiation to tumor removal sites.

Jewelry

jewelry

Gold, silver, and platinum have all served as the foundation for high-quality necklaces, earrings, bracelets, and rings sold by jewelers across the globe. In addition to the allure of their luster, the durability of precious metals makes it so the jewelry they’re made into can provide a source of beauty and joy to wearers for decades, perhaps (if wearers take particularly good care of their pieces) even centuries to come.

Portfolio Assets

gold-bar

In times of economic turbulence, many individuals look to diversify their asset portfolios as a means to help safeguard their wealth. Precious metal firms like Rosland Capital sell gold, silver, platinum, and palladium in a number of physical forms—product offerings like bullion, bars, and specialty coins—to consumers looking to help protect their savings from the potential volatility of the market.

 

Precious metals have been and continue to be an important part of our lives. No matter where advancements in science and adjacent fields take us in the future, it is likely that precious metals will play a role in their development.

Top Gifts From Rosland Capital This Holiday Season

It can be hard to know where to begin with holiday shopping for your family and friends. It’s natural to want to get them something they’ll love that will last them a long time, but it isn’t always easy to decide on a present that fits that criteria.

Fortunately, exclusive collector’s coins from Rosland Capital make for a perfect holiday gift! Not only do they serve as beautiful mementos that honor some of the greatest events and individuals in sports history, but they can also act as new precious metals assets to help enhance and protect your loved ones’ future wealth.

For the coin collector and sports enthusiast in your life, here are three specialty coins created this year by Rosland in collaboration with some of our wonderful partners.

PGA Tour 2019 Players Championship ¼ oz Gold Coin

pga-players-2019-1_4oz-gold-card-front

This beautiful, limited edition gold coin was produced to commemorate the PGA Tour’s annual tournament, the Players Championship. It features the iconic 17th green and hole on the front and a portrait of Her Majesty Queen Elizabeth II on the obverse.

Formula 1 2019 Gold Kilo Coin

F1-Gold-KILO-Coin-2019-Reverse

This coin was developed (among others in our F1 collection) in celebration of Formula 1’s 2019 Grand Prix racing season. On the front, it features a list of all the race locations from this year’s season in calendar order around the dramatic official F1 logo, shown in the center of the coin. On the back of the coin is Ian Rank-Broadley’s portrait of Queen Elizabeth II.

Davis Cup 2019 ¼ oz Gold Coin

davis-cup-2019-gold-coin-card-front

This collector’s item honors the largest annual international team competition in men’s tennis, the Davis Cup. The front of the coin features the Davis Cup itself, and the obverse side bears the portrait of Her Majesty Queen Elizabeth II.

 

Happy Holidays from all of us at Rosland Capital!

2020: An Exciting Year for Formula 1

Anyone familiar with Rosland Capital will know that we have great admiration for our friends at Formula 1. In previous years, we’ve done a number of exclusive coin collaborations with them to commemorate some of their most important events and famous figures, like the 2018 FIA Formula 1 World Championship, the 1000th race in F1 history, and motorsport champion Sir Jackie Stewart’s lifetime of achievements and philanthropic work with Race Against Dementia.

2019 has had a number of significant moments for Formula 1, especially in recent weeks. At the end of October, I had the pleasure of attending their “Hollywood and Highland” event here in Los Angeles, which featured iconic car exhibitions and appearances by champion racers like Valtteri Bottas and Max Verstappen. Based on the turnout, it’s clear that enthusiasm for Formula 1 and the world of motorsport is alive and well, and that F1 fans are just as excited as we are at Rosland to see what’s going to come next.

F1 billboard

I also thoroughly enjoyed following the action at the 2019 Grand Prix in Austin at the beginning of this month. It was a little surreal to see Bottas take victory only days after seeing him in person in Hollywood!

As someone with both personal and professional interest in seeing Formula 1 continue to impress audiences and promote greatness in motorsport, it’s absolutely thrilling to look ahead and see how their 2020 schedule is shaping up.

One of the events I’m most excited about is the Vietnam Grand Prix in April, which will be the first race in F1’s history to take place in Hanoi. It’s great to see that passion for motorsport has continued to spread around the world and that Formula 1 has been able to expand their reach so that new audiences may come to understand the joy and wonder of racing.

f1-hanoitrack.jpgHanoi 2020 Track (Source: FormulaSpy, Formula 1)

 

Looking forward to seeing what else lies down the road for Formula 1!

Palladium: What Is It, and Why Does It Have Such High Market Value Right Now?

In the precious metals industry, heavy focus is frequently placed on gold and silver as two of the more valuable metals available for purchase. While it’s undeniable that these metals are held in high regard by many industry experts, there are also other, more obscure metals that are rising in demand and value among consumers. Palladium, for example, is a precious metal that has experienced a prodigious ascent through the market within the last several years. If you’re unfamiliar with palladium, it may be worthwhile to learn a little more about it so you can assess how including it in your asset portfolio might be beneficial to your long-term finances.

What Is Palladium?

Palladium is a lustrous silvery-white metal that is most often used in industrial settings, but it can also be found in electronics, jewelry, and some methods of dentistry. In recent years, it has gained popularity among automakers as a means of reducing the amount of harmful pollutants released by vehicle exhaust systems. With stricter environmental regulations being put in place, this precious metal has become a crucial component in the creation of new cars, leading to nearly 80 percent of palladium consumption being accounted for by auto manufacturers.

palladium-bar-web.jpg

Source: Rosland Capital

Why Is Palladium So Valuable?

Even though the demand for palladium has increased significantly due to these new regulatory measures, there has been a shortage in supply. In fact, many precious metals specialists have speculated that the amount of palladium supplied to consumers in 2019 will likely fall short of demand for the eighth year in a row. Because of this, prices have reached record-breaking levels, and the market value is expected by some analysts to continue increasing in the coming months.

PALLADIUM GRAPHIC PRICE

Source: Reuters

What Value Does It Hold for Non-Commercial Consumers?

In addition to reducing your exposure to toxic emissions from your car, palladium could be a valuable addition to your asset portfolio. When diversifying your wealth, the inclusion of a variety of precious metals amid other types of financial holdings may aid in safeguarding your retirement savings against the volatility of the stock market. 

Although market prices for metals like palladium are subject to fluctuation, precious metals are often seen as attractive because of their enduring, inherent value, in contrast with paper-based assets that may be less secure in times of economic uncertainty. The purchase of palladium in physical forms like bullion bars may be of significant benefit to the overall stability of your portfolio, thereby improving the stability of the future you’re building for yourself.
If you’re interested in learning more about how to add palladium in addition to other precious metals to your holdings, contact one of our precious metals specialists at Rosland Capital.

Promoting Gold for 2019

Why Now Could Be a Great Time to Own Gold

When you’re involved with the precious metals industry, you have to learn to take the long view.

Prices will change from day to day, but buying gold today isn’t about eking out a small profit tomorrow or next week. In uncertain times, gold can provide us with a measure of financial security — and uncertainty can strike next week, next year, a decade from now, or even further in time.

Take a look at this chart and see if you can identify those periods of uncertainty:

rosland-gold-price-chart-062619.png

Source: Rosland Capital.

In 2006 and 2007, the price of gold surged as markets began waking up to the reality of an economy built on bad debts. From 2009 through 2011, a shaky recovery didn’t seem convincing enough to draw buyers towards other asset classes, and gold enjoyed three years of strong growth.

Prices seemed to have gotten into a slump, particularly with a 22% drop in 2013, but then gold  increased in value by 22% just between May 22 and September 4, 2019.

And, as noted earlier, you have to take the long view:

Screen Shot 2019-09-17 at 9.50.38 AM.png

Source: Rosland Capital.

Since 2000, the global economy has endured a dot-com crash, 9/11, Hurricane Katrina, a subprime mortgage crisis that nearly led to a second Great Depression, the Eurozone debt crisis, the 2011 Japan earthquake (and subsequent nuclear plant meltdown), a number of other multibillion-dollar natural disasters, and most recently, an escalating trade war between the United States and some of its most critical trading partners.

In spite of — or because of — all this instability, since 2000, gold prices have grown at an average rate of over 9% per year, as you can see in the first chart. This is still true in 2019, as the annualized growth rate, from 2000’s starting price of $285 to the current price of $1,538, works out to 9.28% per year, virtually identical to the 9.31% from 2000 to the end of 2018.

We often hear that gold isn’t as good as stocks when it comes to helping build a secure nest egg. When you look at the price on the S&P 500 Total Return Index, which includes dividends, it might seem like gold has been left in the dust since the turn of the century:

Screen Shot 2019-09-17 at 9.51.35 AM.png

Source: Yahoo! Finance.

The index’s starting price at the turn of the 21st century was about $2,070. Today, it’s at $5,993. In 19 years, the supposed gold standard (pun intended) for dividend-paying stock indices has produced average growth of 5.76% per year. By this measure, you’d have left a lot of gains on the table by going with stocks rather than gold.

So, after 19 years of relative outperformance, why should we look at 2019 as a great opportunity to buy gold?

It all goes back to where we started: gold may help defend your assets against uncertainty, and we’ve already seen seeds planted that could grow into significant geopolitical and economic instability in the near future. Deloitte’s weekly economic update has highlighted several reasons for concern in August:

  • Escalating trade war between the U.S. and China
  • Inconsistent Federal Reserve actions
  • General recession fears
  • An inversion in bond yields (a reliable recession predictor)
  • China’s economic slowdown
  • Weakness in European economies
  • A no-deal Brexit

These are all easily verifiable issues that have come to the fore in 2019, and at least some are likely to continue impacting the global economy in 2020 and beyond.

It’s an uncertain world. How will you prepare?

Marin Aleksov waits for a serve at the International Tennis Federation's (ITF's) Client Cup tournament.

Rosland’s Marin Aleksov at the ITF Client Cup

Wimbledon wasn’t the only tennis tournament taking place in London this past July. On July 11, as competition at the All England Club neared its end, nearly two dozen teams — comprised of leaders from the International Tennis Federation (ITF) roster of clients and corporate partners — took to the courts just a few miles down the road at the Bank of England Sports Ground.

The ITF Client Cup featured several grass courts for friendly but determined tennis play, and Rosland Capital’s CEO Marin Aleksov participated in the event. Players took to the courts in the classic all-white ensemble familiar to Wimbledon watchers for several hours of team-based contests.

Marin Aleksov waits for a serve at the International Tennis Federation's (ITF's) Client Cup tournament.

Rosland Capital CEO Marin Aleksov waits for the ball at the ITF Client Cup.

Rosland Capital CEO Marin Aleksov returns serve at the ITF Client Cup.

Rosland and the ITF forged a partnership in 2019, which has thus far produced two beautiful limited-edition collectible coins: the 2019 Fed Cup 1/4-Ounce Gold Coin and the 2019 Davis Cup 1/4-Ounce Gold Coin. Much like Rosland’s partnerships with the PGA Tour and Formula 1, its ITF collaboration will commemorate milestones and key events ITF hosts, including the two most notable team competitions in pro tennis.

Marin enjoyed the contest in London and is eager to continue building Rosland’s relationship with the International Tennis Federation. Tennis fans and gold buyers alike can look forward to more beautiful precious-metal collectibles honoring the ITF in the future.

Marin Aleksov and Jackie Stewart pose with a limited-edition gold coin donated to Stewart's Race Against Dementia charity.

Rosland Capital Supports Jackie Stewart’s Race Against Dementia

Rosland Capital and CEO Marin Aleksov recently participated in a fundraising event for Formula 1 legend Sir Jackie Stewart’s Race Against Dementia charity.

The event, held in Monaco to coincide with the Monaco Grand Prix weekend, featured a one-kilogram gold coin from Rosland, minted with Sir Jackie’s racing-era likeness and signature on the front and the classic Ian Rank-Broadley portrait of Queen Elizabeth II on the obverse side.

Only two of these coins will ever be minted. The first was auctioned in Monaco to benefit Race Against Dementia’s mission of finding better treatments, and an eventual cure, for dementia, which afflicts nearly 47 million people around the world today. The remaining coin, the last of its kind and a truly unique collectible, can be seen on Rosland’s website. It includes commemorative packaging, a certificate of authenticity signed by Sir Jackie Stewart, statements of fineness, weight, and proof, and a signature of the authorized Swiss assayer.

Marin Aleksov and Jackie Stewart pose with a limited-edition gold coin donated to Stewart's Race Against Dementia charity.

Rosland CEO Marin Aleksov and Sir Jackie Stewart pose with the 1-kilo coin in Monaco.

Rosland’s donated coin was won at auction by former Formula 1 driver Eddie Irvine, with all proceeds going to Race Against Dementia. All told, the Monaco event raised nearly $400,000 for the battle against dementia.

Appearing at the event alongside Sir Jackie, Marin Aleksov said:

“We’re passionate about supporting innovative charities and very excited to collaborate with Sir Jackie Stewart and Race Against Dementia to raise funds for a worthy cause. Sir Jackie Stewart is an icon of motorsport, with a lifetime of achievements; he has effectively used his profile away from the circuit to raise awareness for dementia research. There’s no better way to honour him than in gold, and no better place to auction this unique piece than in Monaco, the crown jewel of the Formula 1 World Championship. I would also like to thank Formula 1 for their support in this charity contribution; it’s fantastic when partners come together to support causes that are important to the Formula 1 community.”

Check out Race Against Dementia’s recap of the event, which includes a number of pictures of the auctioned coin, as well as photos of Marin Aleksov and Sir Jackie Stewart:

Amber Lounge, Monaco (Race Against Dementia news)

Rosland Capital releases new Presidents Cup Collection

This month Rosland Capital unveiled an exclusive new collection celebrating the PGA TOUR. The first coin to be released as part of this new series is the Presidents Cup coin, commemorating the U.S. team’s victory at Liberty National Golf Club last year. Including 1.5 ounce coins available in both gold and silver, the coins are offered together in a limited edition set of 500.

Each coin is considered legal tender, with the gold coin minted in 999.9 fine gold at a 40mm diameter and the silver coin featuring 999.0 fine silver at a slightly larger 50mm diameter. Both are minted by PAMP SA at their highest level of quality as proofs. The packaging for each coin contains further information on the competition, listing team members along with the Captains and Assistant Captains from both the U.S. and International teams. The New York skyline and Statue of Liberty feature on the front of the packaging, showcasing the unique view of Manhattan from Liberty National Golf Club.

Commenting on the new collection, Rosland Capital CEO Marin Aleksov stated:

“Recognizing that the PGA TOUR’s goal is to entertain and inspire fans, create outlets for volunteers to give back, generate significant charitable and economic impact in host communities, and grow the game of golf and provide opportunities for PGA TOUR players, we’re truly honored to have been chosen to play a part in this great team.”

For more information about this new exclusive collection from Rosland Capital, visit the Presidents Cup coin page and find more information about Rosland Capital on CoinWeek.