Gold a bit firmer as Fed Chair Powell on deck

Gold prices are slightly up and near the daily high, while silver is modestly down in midday U.S. trading Thursday. The markets are seeing some price consolidation following recent solid gains. Mild profit-taking from the shorter-term futures traders was featured in earlier trading. Still-keener risk aversion in the general marketplace as the Middle East crisis continues to play out will very likely keep a floor under the two safe-haven metals for at least the near term. December gold was last up $2.20 at $1,970.60 and December silver was down $0.079 at $23.01.

The U.S. marketplace highlight of the day Thursday is the midday speech by Federal Reserve Chairman Jerome Powell to the Economic Club of New York. Powell’s remarks will be closely scrutinized by the marketplace, to see if he wavers from his heretofore hawkish tone on U.S. monetary policy.

Rising bond yields and high tensions in the Middle East are squelching the equities market bulls late this week. Reports said Hamas is firing more missiles into Israel. This comes after an explosion at a Gaza hospital killed over 500 people earlier this week. U.S. and Israeli intelligence say the explosion was caused by Palestinian militants.

Asian and European stocks were mostly lower overnight. U.S. stock indexes are slightly down at midday. Downbeat quarterly earnings from EV maker Tesla has dampened Wall Street spirits Thursday.

  Time to increase allocation to gold – JPMorgan's Kolanovic

The key outside markets today see the U.S. dollar index lower. Nymex crude oil prices are slightly up and trading around $88.50 a barrel. The yield on the benchmark U.S. Treasury 10-year note yield is closing in on 5.0% and is presently fetching around 4.9%.

Technically, December gold futures prices hit a six-week high Wednesday. Recent price action suggests that a market bottom is in place. The bulls have the slight overall near-term technical advantage. A five-month-old price downtrend on the daily bar chart has been negated and prices are now trending higher. Bulls’ next upside price objective is to produce a close above solid resistance at $2,000.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,875.00. First resistance is seen at this week’s high of $1,975.80 and then at the August high of $1,980.20. First support is seen at today’s low of $1,957.00 and then at $1,950.00. Wyckoff's Market Rating: 5.5.

December silver futures bulls have the slight overall near-term technical advantage. A three-month-old downtrend on the daily bar chart has been negated and prices are now trending up. Recent price action suggests a market bottom is in place. Silver bulls' next upside price objective is closing prices above solid technical resistance at $24.00. The next downside price objective for the bears is closing prices below solid support at $21.60. First resistance is seen at today’s high of $23.185 and then at this week’s high of $23.49. Next support is seen at today’s low of $22.785 and then at this week’s low of $22.535. Wyckoff's Market Rating: 5.5.

December N.Y. copper closed up 45 points at 359.15 cents today. Prices closed near mid-range today. The copper bears have the solid overall near-term technical advantage. Prices are in a choppy, 2.5-month-old downtrend on the daily bar chart. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 378.60 cents. The next downside price objective for the bears is closing prices below solid technical support at 340.00 cents. First resistance is seen at this week’s high of 363.05 cents and then at 367.45 cents. First support is seen at this week’s low of 353.15 cents and then at 350.00 cents. Wyckoff's Market Rating: 1.5.

By

Jim Wyckoff

For Kitco News

Time to Buy Gold and Silver

David

Sharp gains for gold on better safe-haven bidding

Gold prices are solidly higher and hit a six-week high in midday U.S. trading Wednesday. Silver prices are slightly up and scored a three-week high. Keener risk aversion in the marketplace as the Middle East violence is flaring up has traders and investors seeking out safe-haven assets like gold and silver. December gold was last up $26.70 at $1,962.40 and December silver was up $0.016 at $23.04.

Risk aversion has up-ticked at mid-week after a bombing at a hospital in Gaza has reportedly killed over 500 people. Hamas blamed an Israel air strike, while Israel blamed an errant Hamas missile. Reports said U.S. military intelligence says the explosion was caused by a Palestinian military group. Reads a Barrons headline today: “Rate fears, bond yields, war; market concern grows.”

U.S. stock indexes are lower at midday.

In overnight news, China got some mixed economic data today. China's third-quarter GDP came in at up 4.9%, year-on-year, helped by resilient consumer spending. However, China's third-quarter GDP came in below the second quarter's reading of up 6.3%, year-on-year. That puts the world's second-largest economy on course to hit an annual GDP target of around 5% for 2023, Bloomberg reported. GDP got a boost from strong retail sales in September that posted the biggest increase since May. On the downside, China property investment contraction accelerated during September. Home sales continued to decline and construction of new homes dropped almost 24% in the first nine months of the year. Funding for property development dropped 13.5%, year-on-year.

Off the record: silver looks better than gold in 2024 according to LBMA survey

The key outside markets today see the U.S. dollar index higher. Nymex crude oil prices are higher and trading around $88.00 a barrel. The yield on the benchmark U.S. Treasury 10-year note yield is presently fetching around 4.85%.

Technically, December gold futures prices hit a six-week high today. Recent price action suggests that a market bottom is in place. The bulls have gained the slight overall near-term technical advantage. A five-month-old price downtrend on the daily bar chart has been negated and prices are now trending higher. Bulls' next upside price objective is to produce a close above solid resistance at $2,000.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,875.00. First resistance is seen at today's high of $1,975.80 and then at the August high of $1,980.20. First support is seen at $1,950.00 and then at today's low of $1,935.90. Wyckoff's Market Rating: 5.5.

December silver futures prices hit a three-week high early on today. The silver bulls have the slight overall near-term technical advantage. A three-month-old downtrend is in place on the daily bar chart has been negated and prices are now trending up. Recent price action suggests a market bottom is in place. Silver bulls' next upside price objective is closing prices above solid technical resistance at $24.00. The next downside price objective for the bears is closing prices below solid support at $21.60. First resistance is seen at today's high of $23.49 and then at $23.80. Next support is seen at today's low of $22.84 and then at this week's low of $22.535. Wyckoff's Market Rating: 5.5.

December N.Y. copper closed up 25 points at 358.10 cents today. Prices closed nearer the session low today. The copper bears have the solid overall near-term technical advantage. Prices are in a choppy, 2.5-month-old downtrend on the daily bar chart. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 378.60 cents. The next downside price objective for the bears is closing prices below solid technical support at 340.00 cents. First resistance is seen at today's high of 363.05 cents and then at 367.45 cents. First support is seen at this week's low of 353.15 cents and then at 350.00 cents. Wyckoff's Market Rating: 1.5.

By

Jim Wyckoff

For Kitco News

Time to Buy Gold and Silver

David

Gold, silver firmer despite hotter U.S. CPI and rising bond yields

Gold and silver prices are a bit higher in midday U.S. trading Tuesday. The precious metals bulls are holding their own despite a stronger-than-expected U.S. retail sales report and rising U.S. Treasury yields this week. December gold was last up $1.80 at $1,936.10 and December silver was up $0.23 at $22.995.

The gold market lost some of its overnight gains in early U.S. trading when the U.S. retail sales report for September showed a much-stronger-than-expected gain of 0.7% on the month, versus market expectations for a 0.3% rise. The report boosted U.S. Treasury yields and falls into the camp of the U.S. monetary policy hawks, who want to see more interest rate increases in the coming months.

Asian and European stocks were mostly higher overnight. U.S. stock indexes are lightly lower at midday. While the Israeli-Hamas war remains near the front burner of the marketplace, there have been no major, markets-moving developments over the past week. Traders and investors are starting to focus more on other, more normal economic and business factors that are impacting the marketplace, such as economic reports, earnings reports and central bank rhetoric. But make no mistake, the Middle East conflict will not just fade away and there are likely to be markets-moving surprises develop in the coming days and weeks.

  Rising tail risks in the market warrant holding more than 6% of your portfolio in gold – BIS' Zöllner

The key outside markets today see the U.S. dollar index slightly down. Nymex crude oil prices are near steady and trading around $86.75 a barrel. The yield on the benchmark U.S. Treasury 10-year note yield is presently fetching 4.819%.

Technically, December gold futures see recent price action suggesting a market bottom is in place. However, the bears still have the overall near-term technical advantage. A five-month-old price downtrend is in place on the daily bar chart, but just barely. Bulls' next upside price objective is to produce a close above solid resistance at $2,000.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the October low of $1,823.50. First resistance is seen at last week's high of $1,946.20 and then at $1,950.00. First support is seen at this week's low of $1,921.20 and then at $1,913.60. Wyckoff's Market Rating: 3.5.

December silver futures prices hit a three-week high today and scored a bullish “outside day” up. The silver bears have the slight overall near-term technical advantage. A three-month-old downtrend is in place on the daily bar chart, but just barely. Recent price action suggests a market bottom is in place. Silver bulls' next upside price objective is closing prices above solid technical resistance at $24.00. The next downside price objective for the bears is closing prices below solid support at $21.60. First resistance is seen at today's high of $23.18 and then at $23.50. Next support is seen at today's low of $22.535 and then at $22.25. Wyckoff's Market Rating: 4.0.

December N.Y. copper closed down 70 points at 357.50 cents today. Prices closed nearer the session high and hit a nearly 12-month low early on today. The copper bears have the solid overall near-term technical advantage. Prices are in a choppy, 2.5-month-old downtrend on the daily bar chart. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 378.60 cents. The next downside price objective for the bears is closing prices below solid technical support at 340.00 cents. First resistance is seen at this week's high of 360.55 cents and then at 365.00 cents. First support is seen at today's low of 353.15 cents and then at 350.00 cents. Wyckoff's Market Rating: 1.5.

By

Jim Wyckoff

For Kitco News

Time to Buy Gold and Silver

David

Gold is a better diversifier when bonds are this correlated to stocks – TheStreet's Dierking

Get all the essential market news and expert opinions in one place with our daily newsletter. Receive a comprehensive recap of the day's top stories directly to your inbox. Sign up here!

Bonds are no longer a very good diversifier as they have become too correlated with equities, making gold and other commodities a superior choice, according to David Dierking, Editor of ETF Focus at TheStreet.

Dierking noted that investors who stuck with the classic 60/40 portfolio over the past couple of years have suffered, as “only a 100/0 portfolio really had a chance at generating positive returns.” And while 5% yields on Treasury bills have looked very attractive recently, long-term Treasury bonds are down 45% from their 2020 peak.

“As the Fed has executed the most aggressive rate hiking cycle in history, it’s lifted bond market volatility to historically high levels,” he said.

Dierking points out that the last time the bond market was this volatile was during the financial crisis, and this volatility has remained elevated for a year and a half. “I probably don’t need to tell you that when market volatility is at 15-year highs and has been that way for the past six quarters, nothing good usually comes of it,” he said.

With inflation still a problem, bond market volatility will likely remain high along with yields, so going heavily into Treasuries and cash isn’t the best move, he said, and investors should consider rotating part of their portfolio into gold and other commodities instead.

“Treasuries have a long history of acting as a great diversifier to stocks (the past two years notwithstanding),” Dierking wrote. “Their low correlation to other riskier asset classes helps to reduce overall portfolio risk and smooth out some of the volatility that occurs on a regular basis in the financial markets.”

But he said gold and commodities do the same thing, perhaps even better. “Gold has virtually no correlation at all to stocks, making it perhaps the ultimate diversifier,” he said. “Commodities also have a low correlation to stocks, but their price movements are often based more heavily on where we are in the market cycle.”

Dierking shows the relative performance of stocks, bonds, gold and commodities over the past 15 years.

“The historical absolute returns of each asset class aren’t what’s important here since the future is likely to look very different,” he said. “What’s much less likely to change are risk levels and inter-asset correlations. Equity correlation to both bonds and gold, historically, have been very low and the correlation to commodities, while higher, is still at the level where there is significant diversification benefits.”

Dierking wrote that the problem is that stocks and bonds are much more correlated today than in the past, perhaps as high as 0.80. “Plus, when that high correlation is associated with downside risk, it makes the portfolio construction decision that much more complicated,” he said. “While the stock/bond correlation is likely to return to the long-term average eventually, but the short-term solution may be to substitute the temporarily high correlation of bonds for the low correlation of gold and commodities.”

 

To test this, Dierking created three simulated portfolios: Portfolio #1 holds 100% U.S. Stock Market, Portfolio #2 is 80% U.S. Stock Market and 20% U.S. Bond Market, and Portfolio #3 contains 60% U.S. Stock Market, 20% U.S. Bond Market, 10% Gold, and 10% Commodities.

“You may ask why I would take the 20% away from stocks in Portfolio #3 instead of bonds,” he said. “The answer is that I believe we will soon enter a period where safe haven assets begin behaving like safe haven assets again. That likely comes with the onset of a potential recession in the next couple of quarters. If that happens, the higher return potential will be with bonds, not stocks.”

Dierking then back tests the three portfolios over the past 16 years.

“The all-stock portfolio produced better returns on an absolute basis than did the more diversified portfolios, but it also came with much more risk,” he noted. “The 60/20/10/10 portfolio lagged the 100/0 portfolio by about 2% annually, but it was also about 30% less volatile. Its maximum drawdown over the measurement period was also only about 2/3 of the all-stock portfolio.”

Dierking said that the most interesting finding was the comparative risk-adjusted returns. “The Sharpe and Sortino ratios for the 100/0 and 60/20/10/10 portfolios are virtually identical, which means that they’ve delivered the same amount of return for each unit of risk,” he said. “The more diversified portfolio just dials things back by about 30%.”

He added that this remains true when annual returns are analyzed. “There’s a very consistent pattern (with just a few outliers) where the gain/loss on the 60/20/10/10 portfolio is less than that of the other two,” he said.

Dierking wrote that while investors are always looking for ways to maximize returns, most don’t realize that they can get those returns while minimizing downside risk. “Losing less is just as valuable as gaining more,” he said. “If we are indeed trending towards a recessionary environment, the lower risk factor of the 60/20/10/10 portfolio could be incredibly valuable.”

By

Ernest Hoffman

For Kitco News

Time to Buy Gold and Silver

David

Gold Price News: Gold Consolidates As Middle East Conflict Boosts Haven Appeal

Once again, gold has confirmed its key role as a safe haven amid market uncertainty.

Growing geopolitical concerns from escalating tensions in Israel and Gaza increased investors’ demand for bullion and pushed the price higher. In the last few days, gold has been supported by dovish remarks from Federal Reserve key speakers, after months of hawkish rhetoric and rate hikes.

gold kau on kinesis exchange

The temporary weakness of the greenback and the decline of yields are also supportive factors for gold. As a result, yesterday we saw the precious metal extending its gains and consolidating above the support zone of $1,850.

For the time being, the next key resistance zone, at $1,890, remains relatively far away, with the gold price currently steady around $1,860. Although from a technical perspective, the scenario has improved.

The gold spot price has shown resilience remaining above the $1,850 threshold in the last 24 hours, while volatility has declined. Investors are now waiting for the release of the minutes from today’s Federal Open Market Committee (FOMC), and US inflation data, which will be released tomorrow. The reports are forecast to show a decline from 3.7% to 3.6%.

A confirmation of these expectations could reinforce the notion that a peak in interest rates for this cycle has been reached – or at least, is extremely near. This is all supportive of gold.

Time to Buy Gold and Silver

David

Gold, silver a bit weaker following warm U.S. inflation report

Gold and silver prices are slightly down in midday U.S. trading Thursday, following a U.S. consumer inflation reading that was just a bit higher than expected. The markets also saw routine corrective pullbacks from recent price gains. December gold was last down $2.90 at $1,884.20 and December silver was down $0.183 at $21.95.

Focus today was on a key U.S. inflation report: the consumer price index report for September. The CPI rose by 3.7% compared to the previous year–higher than the consensus estimate of up 3.6%. On a monthly basis, consumer prices advanced by 0.4%, easing from a 0.6% gain in August but exceeding market expectations of 0.3%. Core CPI, excluding food and energy prices, also increased by 0.3% for the month and 4.1% on a 12-month basis, aligning with expectations. It marked the lowest reading since September 2021. The slightly warmer-than-expected CPI reading today slightly dented bullish enthusiasm in the precious metals markets. Still, the safe-haven bid amid the elevated Middle East tensions is likely to at least keep a floor under gold and silver prices.

Asian and European stocks were mostly higher overnight. U.S. stock indexes are mixed at midday. The U.S. stock indexes this week are “climbing a wall of worry” as the turmoil in the Middle East is on the front burner of the marketplace.

  September sell-off presents buying opportunity for gold investors – WGC

The key outside markets today see the U.S. dollar index solidly higher, which was also a daily negative for the metals. Nymex crude oil prices are slightly higher and trading around $83.75 a barrel. The yield on the benchmark U.S. Treasury 10-year note yield is presently fetching 4.651%.

Technically, December gold futures still see very early clues that a market bottom is in place. However, the bears still have the firm overall near-term technical advantage. A five-month-old price downtrend is in place on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at $1,900.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,800.00. First resistance is seen at $1,900.00 and then at $1,913.60. First support is seen at Wednesday’s low of $1,871.70 and then at this week’s low of $1,857.50. Wyckoff's Market Rating: 3.0

December silver futures prices scored a bearish “outside day” down today. The silver bears have the overall near-term technical advantage. A 2.5-month-old downtrend is in place on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at $23.00. The next downside price objective for the bears is closing prices below solid support at the March low of $20.615. First resistance is seen at today’s high of $22.39 and then at $22.555. Next support is seen at this week’s low of $21.705 and then at $21.50. Wyckoff's Market Rating: 3.0.

December N.Y. copper closed down 215 points at 359.05 cents today. Prices closed nearer the session low. The copper bears have the solid overall near-term technical advantage. Prices are in a choppy, two-month-old downtrend on the daily bar chart. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at last week’s high of 378.60 cents. The next downside price objective for the bears is closing prices below solid technical support at 350.00 cents. First resistance is seen at this week’s high of 367.45 cents and then at 370.00 cents. First support is seen at today’s low of 358.35 cents and then at the October low of 354.90 cents. Wyckoff's Market Rating: 2.0.

By

Jim Wyckoff

For Kitco News

Time to Buy Gold and Silver

David

Gold prices holding near one-week high as FOMC minutes support 'higher for longer' interest rates

The gold market is holding solid gains even as the minutes of the Federal Reserve's September monetary policy meeting show that the central bank is committed to maintaining a "higher for longer" monetary policy stance.

Although the Federal Reserve is nearing the end of its tightening cycle, the minutes showed that the committee continues to support elevated interest rates until it is confident that inflation is falling back to the 2% target.

"All participants agreed that policy should remain restrictive for some time until the Committee is confident that inflation is moving down sustainably toward its objective," the minutes said. "Several participants commented that, with the policy rate likely at or near its peak, the focus of monetary policy decisions and communications should shift from how high to raise the policy rate to how long to hold the policy rate at restrictive levels."

The gold market is not seeing much reaction to the latest minutes. December gold futures last traded at $1,885.50 an ounce, up 0.54% on the day.

The gold market continues to be well supported due to renewed safe-haven demand as investors remained focused on the growing chaos in the Middle East and the new war between Israel and Hamas.

Although the Federal Reserve is expected to maintain restrictive monetary policies for the foreseeable future, the minutes also show the committee recognizes the difficult path that lies ahead.

"Many participants commented that even though economic activity had been resilient and the labor market had remained strong, there continued to be downside risks to economic activity and upside risks to the unemployment rate," the minutes said. "Participants generally noted that it was important to balance the risk of overtightening against the risk of insufficient tightening."

Despite the Federal Reserve's relatively hawkish stance, markets expect that the Federal Reserve will leave interest rates unchanged next month. According to the CME FedWatch Tool, markets see a less than 10% chance of a 25-basis point hike.

Andrew Hunter, deputy chief U.S. economist at Capital Economics, said that he expects that the Fed's tightening cycle has ended.

"With several officials this week suggesting that higher yields could reduce the need for further rate hikes, we think it is increasingly likely that the Fed's next move will be a cut. We expect that to come in the first half of next year, with rapidly falling inflation and weak economic growth convincing officials to cut rates by 200bp in total by end-2024," he said in a note following the release of the minutes.

By

Neils Christensen

For Kitco News

Time to Buy Gold and Silver

David

Gold prices reined in by risk-on sentiment, but geopolitics, USD pullback should offer support – City Index's Razaqzada

Today’s uptick in risk appetite is creating some drag on gold prices, but the precious metal’s weekend gap remains open, says Fawad Razaqzada, Market Analyst at City Index.

“In other words, gold is still comfortably higher than Friday’s close,” he observed. “More gains could be on the way for gold for as long as geopolitical risks remain elevated and if the upcoming US macro pointers trigger fresh selling in the dollar, after the greenback ended a run of 11 consecutive weekly gains last week.”

Razaqzada said that even though geopolitical risks such as the ongoing Israel-Hamas conflict haven’t subsided, gold prices have moderated today, due in part to the rebound in bond yields.

“While gold may not be shining so brightly so far today, it could easily find renewed strength as the situation in the Middle East remains intense,” he said, underlining the potential for the conflict to widen. “This is why oil prices have remained elevated. Gold typically rises when there is heightened geopolitical risks.”

He said it’s possible that bond yields have peaked. “The stronger-than-expected US jobs report on Friday failed to deliver any more dollar strength and with the greenback falling further so far this week, the possibility that the dollar may have formed a top is undoubtedly something that many investors are wondering about,” he added. “If we see a similar response to this week’s upcoming data (FOMC minutes, CPI and UoM consumer Sentiment survey, among other things), then this will further fuel speculation that the worst is over [for] gold.”

Razaqzada said gold’s nearly 7% drop from its Sept. 21 high means prices were due to see a short covering rally. “So, some of the bullish price action since Friday could be just that – a short-covering bounce,” he said. “Therefore, one should not get too carried away by the recent bullish price action.”

He remains steadfastly bullish about gold’s long-term outlook, however. “[M]uch of the Fed’s hawkish repricing of interest rates are now done, meaning that the downside for bonds and, by extension, gold should be limited moving forward,” Razaqzada said. “So, be on the lookout for more bullish signals to emerge from here on.”

Razaqzada said that the fact that spot gold has not returned to Friday’s closing prices “must be making it uncomfortable to trade gold, as usually gaps tend to fill in highly liquid assets.” But he cautioned that this is not always the case. “I recall a gap on the EUR/USD a few years ago that remained unfilled for several months,” he said. “While a gap-fill would make things a bit more comfortable, gold can simply grind higher for a while, especially if the dollar selling gathers pace.”

He also offered some short-term strategies that may serve traders well in the current market. “One way to look for new trades while the gap remains open is to zoom in on the smaller time frames like the hourly, wait for a bit of consolidation and then look for long setups once price breaks higher, or about to,” he said, adding that traders can use short-term price structures as their invalidation levels.

“Obviously a much better scenario would be for gold to fill its gap and then create fresh bullish signals to trigger another rally,” Razaqzada said. “That could still happen, and the trigger could be the upcoming US data releases that will undoubtedly move the dollar and bond yields in the direction of the surprise.”

Spot gold continues to hold above $1857 on Tuesday afternoon, which Razaqzada said is the first key short-term resistance level. “While a bit of a move lower from here is understandable, the fact that support in the long-term area around $1805 to $1820 held last week, before the flare up of geopolitical risks, this could be a sign that the metal may have formed a low,” he said.

 

“The next level of potential resistance is seen around $1885, followed by $1900, with the latter being the base of the previous breakdown,” Razaqzada concluded. “On the downside, the next potential support level is Friday’s high at $1835.”

Spot gold last traded at $1858.66, down 0.15% on the session.

By

Ernest Hoffman

For Kitco News

Time to Buy Gold and Silver

David

Coinbase fears crypto sector could follow semiconductors offshore due to lack of US support

At a time of robust crypto and Bitcoin news coverage, widespread investor interest, and a burgeoning array of new businesses competing within the sector, it almost seems implausible to suggest that this industry is somehow at risk.

And yet, that's exactly what Coinbase Chief Legal Officer Paul Grewal fears will happen if the US doesn't step up its support and commitment to lead the digital asset economy, in what he feels could be a case of history repeating itself if the country drops the ball on nurturing a new technology.

"We know exactly how this will look because we've seen it time and again when this country has ceded its traditional leadership role when it comes to new technologies and other countries have grabbed the mantle,” Grewal told Kitco News correspondent Matt Nesto in the attached video interview.

In likening crypto and digital assets to the present plight of the semiconductor industry, Grewal says there are multiple reasons to ensure the domestic digital asset incubator stays warm.

"For example, there's recently been a tremendous debate in the United States about semiconductors and how over the last 30 years, the industry that we developed, that we grew, has somehow found its way to countries far from the United States and countries that may not always have the United States interest,” he said.

So, while some may argue that this alarmism is unwarranted, this lawyer and former U.S. magistrate judge can't help citing precedent.

"I don't want, and Coinbase doesn't want, to find ourselves 30 years from now asking the same kinds of questions that we're asking about (semis),” he said. "We don't want to be asking in 30 years, ‘Who lost crypto?’”

You Only Get One Chance

Baseball fans often point to big opportunities and at-bats to change the course of a game and history, and from Grewal's purview, the present state of the domestic crypto industry is not all that different, with the country and its 50 million digital assets investors facing a put up or shut up moment of sorts.

"So this is an important technology and Americans have made it clear that they want this as part of their future,” he said, while calling on the country's investors to share their views and send a message to their elected representatives.

"Unless these 52 million Americans and others share their views with their representatives and make it clear to their elected representatives that they want to see sensible, fair, balanced regulation as applied to digital assets, the United States is going to lose this opportunity. We're going to lose this moment,” he said.

This call to action, so to speak, is all part of a broader Coinbase effort to ensure that digital assets are part of the campaign conversation and new standwithcrypto.org website.

"Call your congressman, send an email to your senator, let them know that we all want sensible digital asset legislation passed,” Grewal said. "Not in 5 years, not in 10 years, but now. This is too important an industry, too important a part of our economy.”

More Than Just Tech at Stake

Grewal's argument in support of the domestic crypto industry is not only based on nurturing the new tech and building a strategic geopolitical moat of sorts but it's also tied to keeping millions of good-paying jobs from moving offshore.

pic

"Do we really want to hand over a million developer jobs and 3 million other high-paying jobs to overseas jurisdictions simply because we can't get our act together in the US?” Grewal said in a recent post on X, the platform formerly known as Twitter.

In short, Grewal said that the Crypto, Blockchain, Web3 as Job Growth Engine story is not some out-there concept.

"It is happening,” he said. "The best research we see right now is that this industry will generate millions of jobs looking ahead,” he added.

"If these jobs are coming, and we know they are, Wouldn't we want to have at least a fair share of those here in the United States? I think the answer to that is an obvious one; Yes.”

That Enforcement Problem

In addition to industry support, national security and job creation, Grewal also took aim at the current regulatory environment.

"We think (enforcement) is appropriate, indeed, laudable that the Department of Justice has gone after the scammers, the fraudsters that target our industry, but that's no reason to throw out the entire baby with the bathwater,” he said.

In pointing to the fact that over 80% of the G-20 countries have already adopted cryptocurrency regulations or frameworks or are on their way to doing so, Grewal said it is imperative for the US to do more in order to be at the forefront of guiding the industry.

"The United States is falling behind. That's the bad news,” he said. ”The good news is there's still plenty of time to catch up,” he added, noting a number of bills that are currently pending in Congress. "The U. S. can still get this right, but it's time for us to act.

By

Matt Nesto

For Kitco News

Time to Buy Gold and Silver

David