“We haven’t seen anything yet.”
That’s what an executive from Tether said to me last month at the Beaver Creek Gold Conference.
I was there to meet with leaders from mining companies. In addition to crunching numbers, it’s vital that I have face to face conversations with company leadership…
At the time, I didn’t know exactly what Tether was planning… but Juan Sartori, head of special business development at Tether had recently become a Chairman of a company I cover in my Golden Portfolio service.
That was after Tether bought a 37.5% share of this company back in July… A week ago, Tether acquired enough additional shares to become a majority shareholder with 51.5% ownership.
Then, over this past weekend, Tether announced it had acquired significant blocks of shares of TWO MORE of my GP holdings.
GP is my service dedicated to precious metal royalty and streamer companies. These firms are my favorite gold stocks to own for the long term because they secure decades-long cash flow by investing up front lump sums to help gold miners explore//develop/build their mines.
That means Tether isn’t just day-trading miners… they’re building long-term stakes in royalty firms because they see the business value.
That’s on top of Tether reportedly buying 2 tonnes of gold per week to support its stablecoin, Tether Gold.
As I wrote in my most recent issue of GPIV: “Two tonnes. Every week. That’s fifty-eight thousand ounces. At a $3,700 gold price, it comes to $216 million worth of gold, week in and week out. Over $11 billion a year. For context, that’s as much as China, the largest gold buyer in the world. And it’s not a rumor. It is happening. Tether is taking down that much physical gold, loading it into its own vaults in Switzerland, and removing it from the Wall Street system entirely.”
Tether leadership clearly sees gold as a vital backstop for the same reasons that central banks have been buying record amounts of gold in the past few years…
It’s a little funny to think of the inversion of bitcoin advocates talking about gold as “natural bitcoin” – since for years, bitcoiners have referred to bitcoin as “digital gold” – but the end result is what matters.
A meshing of the crypto market with the gold market is massive. It provides a very liquid and simple escape hatch or pressure valve for cryptocurrency holders to move into gold.
This Tether news just keeps getting better for gold and for our gold holdings. And to put Mr. Sartori’s quote into perspective, he also said,
“Tether Gold is going to be bigger than Tether USD”.
Tether USD holds $172 billion, and Tether Gold only holds about $1.4 billion. That’s more than 100X growth.
It’s also unclear how much more shopping in the gold stock market Tether will engage in. Owning royalty and streaming firms gives Tether long-term access to being able to own physical gold at a discount, which makes sense for their stablecoin goals.
It is clear that Tether viewed this past week’s gold price correction as a time to be buying…
I hope you’ve had the chance to do the same.
If you haven’t yet, I recommend taking a look at my most recent investment brief on my favorite gold stock to own right now.
Read here for the full details.
Best,
Garrett Goggin, CFA, CMT
Lead Analyst and Founder, Golden Portfolio