Silver To The Moon?

Contributed by: The Big Fat Whale

We have taken inspiration for my title to this post from the now trending Reddit community; where the short squeeze of GameStop was brilliantly done from the #wallstreetbets Reddit crowd. They also have a #wallstreetsilver Reddit forum which could be the next to go on a trending mode as a short squeeze was on the way recently but it halted at the critical 30 dollars level. 

This post will be touching more on the fundamentals of silver rather than just pure speculation and hoping for a parabolic surge based on a short squeeze. A comparison of a short squeeze on SLV (the largest silver ETF) as compared to GameStop seems not logical: SLV short interest is just around 8% versus over 100% when Reddit traders were squeezing the hell out of the short-sellers.

What is the attractiveness of silver as an investment then? The simple answer to this question will be supply and demand. Currently, the supply and demand numbers are at around 1 billion ounces per year and so there is not much excess supply to go around.

Industrial Use

Silver demand as compared to Gold is multi-faceted: there are lots of uses for silver in the industrial space and gold is mainly used as a store of value. More than half of the 1 billion ounces per year are set aside for industrial use. Silver is used in many sunrise sectors such as solar, electric vehicles, medical, dentistry and others. The demand for industrial use would only accelerate in the future based on the uprising sectors such as solar and electrical vehicles.

Half of the remaining supply (250 ounces) would be used for investment purposes such as ETFs and physical silver. The other half will be for jewellery and silverware.

 

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https://thebigfatwhale.com/silver-to-the-moon/

NFTs as an Alternative Investment?

Contributed by: TheBigFatWhale

There have been lots of hype on NFTs recently. It is not surprising given that the Beeple NFT digital art piece, " The First 5000 days" was sold for a whopping 69 million dollars. It was purchased by a Singaporean, Vignesh Sundaresan (Metakovan), who have the conviction that it would be worth a billion dollars in the future. Fun Fact: Beeple has not sold any of his digital art for more than $100 before this auction.

The origin of NFTs could be dated back to 2014 where bitcoin minted the coloured coins. In 2017, Cryptopunks and Cryptokitties was the impetus to pivot the NFTs market.

To have a feel of the prices in the digital NFTs market, you could check out the 10 most expensive digital art to date.

Considering that CryptoPunks was a project by Larva Labs to create 10000 uniquely generated characters using the Ethereum network through an algorithm. Ethereum is the second most popular blockchain after Bitcoin and has been used for commercial contracts.

They gave out all the characters for free at its launch in 2017- in the NFT world, it is called an NFT drop. Now some of them are worth millions of dollars- what a joy to be one of the frontrunners and get a character of the Cryptopunks to call our own.

 

Source: Pexels

So what exactly is NFT?

The term for it is non-fungible tokens and they are unique by themselves, that is backed by a multimedia file. It could be digital art, video, music tune, sound recording, a tweet (Jack Dorsey first tweet sold for $2.9 million) or even a blog post, etc.

The difference between an NFT and a bitcoin would be bitcoin is fungible. There is no difference between one and the other and that makes it exchangeable; Bitcoin is like digital gold. As for NFT, most of them are currently minted in the Ethereum network, it is an original token or one of its kind.

Therefore, once we buy an NFT token, it is similar to owning a baseball card or being an owner of an original painting. Scarcity brings demand and hence possibly higher prices in the future if we choose the right NFT- must have an eye to find the next Monet, Miro or Dali of the digital art world.

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https://thebigfatwhale.com/nft-as-an-alternative-investment/