Crypto or Junior Miners—Who Wins in 2021?

A Glimpse into My Past is Revealing the Future

Elite and Premium members have been privy to the core message below as of late (although not the old broker stories!). I have dripped over and over and often straight up pounded the table to encourage GIL subscribers to accumulate Bitcoin and Ethereum for quite awhile. Besides making my first recommendation here at GIL to buy BTC  in 2016 at $500 ish, we have had a clear strategy since the spring of 2018 (when BTC broke down into the $7,000's) to start building a serious position for the next bull run, which is clearly in motion!

Owning some bitcoin into the late 2017 run to $20k was nice, but it was funny money! I sold around $2,500 and announced that publicly here in our e-letter, right before it RIPPED to almost $20K in just a few months! I bought back in between $8,700-$9,500 and was able to flip it fast in the mid $17,000's near the peak. Although it was again, small dough. But during that summer of 2017 I had begun a deeper dive into bitcoin, blockchain, and cryptocurrencies in general. The price action into January 2018 caused me to accelerate my learning.  That is primarily because of the memories it stirred up from when I was a young stockbroker during the internet stock bubble in late 1999-early 2000.

Back then was the first time in my life that I had ever made any "real" money, and it came fast and furious! Not just in transaction fees, but my client accounts and mine had gone up between 8X to 15X in a matter of 5 months! I actually felt deeply compelled to write down the account values of my top ten people in early October 1999 before leaving for a trip. This was done on the back of my business card and taped to my wall! I felt like I "knew" that the lows were in and that something big was on the horizon. They were not large accounts, but these were the faithful few who had followed me to a new firm about a year earlier in November 1998.

During the 2nd half of 1999, a prevailing concern was the "year 2000" issue, which predicted utter chaos as software in various sectors weren't programmed to go past 1999 (including the banks-apparently!). However, I had formed a contrarian viewpoint and it was cemented when I heard economist Ed Yardeni say that he was expecting a melt up in early 2000, not a melt down in stock markets, as was the prevailing consensus. I thought that the hype and fear around imminent disaster was over baked into the market, while the internet names were subtly being accumulated by smart money.

Fear and Crickets to MANIA in a Blink of an Eye

*This is all very relevant to gold and our mining stock investments which I get into below.

The entire year from October 1998 until November 1999, I had focused on making sure that somebody (anybody!) bought shares in my favorite stock at the time, ALPNET! I chipped away day in and out to build our position in AILP and some days I didn't get anyone to take action. Other days, I was able to get a small new account with the pitch or have a client buy $2k worth (our firm minimum). My close customers knew that I had serious conviction though, and added shares periodically between $1.50-$1.80 during the 2nd half of 1999. I was making a big bet on Alpnet, just like I had done 2 years earlier in a company called Modacad, which became a career making bet and lifesaving home run!

Then between the middle of November 1999 and February 2000 (not even 100 days), Alpnet's share price went from 1.50 to $10.50! Not only that, but I was zeroed in on the action, convincing the majority of my clients to top up when we saw the stock finally break $2 on volume, which had been formidable resistance for a long time. I then had everyone sell half of their positions right around $6 per share, which was still in December, if I recall. Then, "they" shook the trees on the late comers piling in on pure momentum and AILP pulled back abruptly to $4. But I saw further gains coming, and support firming, so we went all back in again at $4-$4.20!

4-5 weeks later a fund manager was recommending it on CNBC and AILP traded over 10 million shares and hit $10.50 exactly! Notably, I was the only buyer in sight on MANY days over the previous 12-18 months. I began cashing everyone in on about 2/3 of our positions between $9-$10 on the CNBC highs that same day. Fast forward to March 2000 when the highs were being put in on the NASDAQ, and I started buying AILP back around $7. I was looking to duplicate the magic I had from selling at $6, buying back in at $4, then basically calling the top to the day. Not to mention that I was proven right after a very long stretch as a lone buyer in the wilderness! The internet hype was still in the air and many of us were caught up in the HIGH of making so much money so quickly.

Now fast forward 18 months later to late 2001 (well into a nasty recession) and Alpnet was acquired for just .21 cents, while I bought it all the way back down! We gave virtually ALL of it back. And when I say "all" that includes most of the other enormous trades and gains we had between Q4 1999 into Q2 2000. I picked many fast 30-40-50% winning trades along with multiple triples, quadruples, and even more 8-10X hits. What an experience now that I think back!

The lessons I learned during that time were Invaluable, but I was burnt out and completely broke by early 2002. I was also flipped upside down in 2009 at the absolute worst time! Forced to puke out of my positions at the lows so I could pay my bills and eat! This was also an expensive but very valuable lesson. I've had to learn the hard way many times during my investing and trading career. But these cumulative errors and setbacks are exactly why I have a very formidable toolbox to utilize today. So, why did I just walk through a 1999-2000 cautionary tale during the internet boom? Because...It is about to happen AGAIN, are YOU ready for it?!

I believe that the largest creation and transfer of wealth in human history has begun!

2021---Gold and Especially Bitcoin Will Pounce

Whether you like it or not gold investors, some BIG money has already started to wade into bitcoin under the "digital gold" premise. I personally see these two assets as perfect partners! Together they are and will eat up fiat currency market share globally. But sadly, most gold bugs (I am a gold BULL and don't wish to get stepped on like a bug after this bull market ends!) either hate bitcoin or blow it off entirely, which is NOT a good idea! Most bitcoin loyalists say that bitcoin is the "better version" of gold and that it will "Capture X or Y market share from gold". The majority of gold investors do not understand bitcoin at all and the majority of crypto investors do not understand gold at all! Yet BOTH assets will attract massive amounts of capital and savings globally at an accelerated pace moving forward.

It is my contention and strong belief that gains in Bitcoin will continue to SMASH every other asset class that exists over the next 5-10 years (just as it has done over the last 1-5-10 years). This includes gold and silver. The only shot that "our" sector has to keep up with 100%-500% annual gains are via very select junior gold and silver mining stocks. Gold is simply not designed to blast off like bitcoin, nor would I want it to be! Gold is already at an extremely mature stage and commands a massive market value worth over $11 Trillion USD. BTC is only $350 Billion, which is less than approximately 20 individual companies value today. BTC has more room to gain in % terms by far but that means it will have to TRIPLE against every 10% bump in the gold price!

In terms of gold, silver, and mining sector investments, 90% of YOU are underweight. How about the rest of the investors out there that don't even understand it?! We still have less than a 1% global allocation to gold, which is ridiculous. If you have been a subscriber here for a while and still own no physical gold or silver, and have a "play money" allocation into mining shares, I don't know what to tell you! For the rest of us, we've got this area covered in our sleep, and it is going to be a very fun 2021 and beyond! But the crypto area is where I am very concerned that our readers will finally be taking time to learn more about it and buy into the sector when Bitcoin is in the hundreds of thousands per, or in the millions (which is just a matter of time!).

But those of us who have TAKEN ACTION early on are now about to see our spoils accelerate Madly! I have put in close to 5,000 hours studying AND using crypto and blockchain technology over the past 3 years (give or take 1,000 hours). 1/2 of this time was put in during 2020, and yes I am behind on sleep! This fervor was driven by the huge mistake that I made in the early 2000's, as the internet was rising up and about to become such a disruptive and integral to all of our lives. I focused on making quick money trading and investing in "hot stocks" whose business model descriptions included "buzzwords" like e-commerce, bandwidth, web browsers, ISP's, online marketing, SEO, banner ads, and many more.

The error I made was not putting in the work, time, and energy to dig beneath the surface and understand JUST HOW MASSIVE things were about to change! Those who did, are VERY rich now. Even if you sold vacuum cleaners back in 2002, if you were early to start Google/Internet search advertising, you would be the largest vacuum distributor in the world!

URGENCY

Once $20,000 BTC breaks, watch what happens. SEE YA! A massive amount of institutional capital will be jolted into hyper alert mode to BUY MORE and FAST. The problem is that there is NO FLOAT. Bitcoin is VERY scarce. I"m observing a myriad of signs and signals that having over 40% of my entire net worth in Crypto at this time is absolutely merited! That's right, 40%. Some of the smartest money that I know who come from old school backgrounds in traditional capital markets, venture capital, and macro investing, are 50-80% in crypto! I'm sorry all, but $hit is about to get WILD!

I believe that we are HOURS to maybe DAYS away from Bitcoin trading above $20,000 and blowing wide open! It is VERY close, hence this long write up tonight, because I am WATCHING it about to happen...

Your Options

I am convinced that Bitcoin will be trading 4x to 10x higher than it is today, within 12 months. If I'm even marginally close on those projections, it means that it is not too late! In fact, I can tell you that I am strongly convinced that it is still early, but the tipping point is imminent.

Now what? Well, you best be buying some Bitcoin and Ethereum at a minimum! If you want more important alerts and updates as this market SOARS in 2021, it would be foolish not to join GIL Premium. The price is doubling in 2 weeks as well and I am likely shutting down new membership sometime in Q1. The Elite waiting list should be considered quickly also if you are a high net worth individual, family office, or professional investor of any sort. Premium is paramount and WAY too cheap! Both or either memberships can be secured here:

If you want to play catch up FAST (even just on the education of this incredible movement), or are already involved but want to add octane to your BTC/ETH holdings positions, go grab one of my crypto special reports that I just put out last week:

Don't worry too much about the prices, they are peanuts compared to what you get and what's coming! People who purchase the Tier 3 package (up to 10 max) will have direct access to me via text and my cell number. I'm sharing extra time right now so that you can get moving! I want to help ensure (at least for the next 2-4 weeks) that those who step up now will be able to facilitate what you want to buy quickly. Even if it's just to get started, open up a crypto based account, and have your US Dollars or Euros etc on the ready to buy once Bitcoin busts $20k. By the way, I will be plunging in the last of my purchases when that occurs!

Decentralized Finance, or "DeFi"as it's commonly known, is about to turn every single corner of our financial system on its head. I know it's coming because it is already here!  I'm using various platforms to generate over 5% interest on some of my Bitcoin and Ethereum holdings. I am getting over 8% interest on US Dollar savings! It's real, and there are many other opportunities to accrue very attractive rates in some of the most exciting companies/coins around. Gold, silver, and mining stocks are actually quite an integral beneficiary of this current and future financial paradigm shift. There are abundant investments to deploy capital in this/our sector alone. So, I will not cover any crypto tokens, coins, etc. outside of Bitcoin here in the GIL E-Letter.

It's important to note that you do not have to buy an entire Bitcoin for $19,200 (currently). The blockchain was brilliantly designed to break down as small as one-hundred millionth of a Bitcoin, called a "Satoshi". This means you that can put $5, $50, or $200 into it. You can use Paypal, Cash App, Coinbase (if US based), and I love Binance.com if you live anywhere outside of the US for Bitcoin purchases and hundreds of various Alt coins if you wish. Here is a link to receive 10% kickbacks on any/all commissions that you pay for life:

I will highlight this sector once we burst through $20k because it will be immensely important for us as gold investors, opportunists, and traders alike. But, outside of BTC, you will need to be on the Tier 2 or Tier 3 crypto report list, an elite member, or at least a premium member to receive more content on these matters.

Lastly, I do not recommend GBTC as a viable supplement for your exposure to Bitcoin! You're going to pay a 25% premium to NAV because you're lazy? Open an account and buy Cryptocurrency! It isn't going away. Blockchain stocks are not the same as owning Bitcoin or Ethereum etc either. Yes, we own several o them with huge upside, but none of them are "miners". Why pay their capex, opex, exchange listing fees, and management salaries to mine exactly what I can easily buy directly myself!

And whatever you do next, please PAY ATTENTION and spend time LEARNING because EVERYTHING is about to change! The internet, mobile, social media, and many other enormous value creations that changed our world have NOTHING on what is coming. Now is not the time to be asleep...

If you like this content be sure to enter your email into the box for free E-letter updates.