Category: Cryptocurrency

GOLDMAN SACHS: Bitcoin hasn’t taken a bite out of demand for gold

BusinessInsider/Will Martin/12-12-17

The surging price of bitcoin has not put investors off buying gold, with “no evidence of a mass exodus” from the safe haven metal despite a drop in prices recently, according to research released by Goldman Sachs this week.

Jeffrey Currie, Goldman’s global head of commodities research, said that the groups of investors looking to invest in the two assets are vastly different, therefore protecting gold demand, he wrote in a note to clients reported by the Financial Times.

…”We believe the composition of demand between bitcoin and gold is the key difference in the recent price action. In our view bitcoin is attracting more speculative inflows relative to gold.”

Posted in Cryptocurrency, Gold News, Gold Price, Gold Views |

Could gold do a bitcoin and hit $10,000 an ounce in 2018?

The National/Peter Cooper/12-10-17

After bitcoin’s spectacular price spike this year, could gold be about to stage a similar grand finale to its bull market that began back in 2000?

Bitcoin also took many years before its final speculative reach-for-the-sky. Indeed, the scramble to buy at the last minute has been reminiscent of gold’s previous price spike back in 1980 after a long run up in prices during the economically unstable 1970s.

There are certainly goldbugs who argue for $10,000 an ounce convincingly. Ex-CIA macroeconomic adviser Jim Rickards’ latest tome, The New Case for Gold explains how gold will again be needed as a linchpin of the global economy.

PG View: That price target seems pretty optimistic, but given the rise in BitCoin this year, why couldn’t a real tangible asset make a similar jump?

Posted in Cryptocurrency, Gold News, Gold Price, Gold Views |

Economist Jim Rickards on gold versus bitcoin — intrinsic value is meaningless for both but the bitcoin prices aren’t real

BusinessInsider/Jacqui Frank & Kara Chin/12-03-17

Jim Rickards is the editor of Strategic Intelligence and the author of Currency Wars: The Making of the Next Global Crisis. He believes gold can go to $10,000 an ounce but he is much more skeptical about bitcoin. Rickards doesn’t trust the bitcoin price action and doesn’t believe the cryptocurrency will fare well in a financial crisis.

Posted in Cryptocurrency, Gold News, Gold Price, Gold Views |

All the Reasons Cryptocurrencies Will Never Replace Gold as Your Financial Hedge

RiskHedge/Olivier Garret/11-17-17

Despite what the crypto-evangelists will tell you, digital tokens will never and can never replace gold as your financial hedge.

Here are six reasons why.

#1: Cryptocurrencies Are More Similar to a Fiat Money System Than You Think.

#2: Gold Has Always Had and Will Always Have an Accessible Liquid Market.

#3: The Majority of Cryptocurrencies Will Be Wiped Out.

#4: Lack of Security Undermines Cryptocurrencies’ Effectiveness.

#5: Hype and Speculation Continue to Drive Cryptocurrencies’ Value.

#6: Cryptocurrencies Do Not Have Gold’s History as a Store of Value.

Posted in Cryptocurrency, Gold News, Gold Price, Gold Views |

Bitcoin is not the new gold, Goldman Sachs says

CNBC/Arjun Kharpal/10-19-17

Cryptocurrencies like bitcoin are not the “new gold,” Goldman Sachs said in a note, advising investors that precious metals “remain a relevant asset class” in portfolios.

In a note to clients earlier this week, Goldman detailed the benefits of holding gold in a portfolio.

“The use of precious metals is not a historical accident – they are still the best long-term store of value out of the known elements,” the investment bank said.

PG View: I remain amused by the financial press’s instances on using a gold coin emblazoned with the symbol for some cryptocurrency in both pro and con stories (the video accompanying this piece is no exception). There is nothing tangible about cryptocurrencies. Absolutely nothing. And if they need to represent it with images of something that it most definitely is not (I do it just to make that point), it might be worth considering just buying the gold in the first place.

Posted in Cryptocurrency, Gold News, Gold Views |

Crypto-Fool’s Gold?

ProSyn/Kenneth Rogoff/10-09-17

The price of Bitcoin is up 600% over the past 12 months, and 1,600% in the past 24 months. But the long history of currency tells us that what the private sector innovates, the state eventually regulates and appropriates – and there is no reason to expect virtual currency to avoid a similar fate.

“My best guess is that in the long run, the technology will thrive, but that the price of Bitcoin will collapse.” — Kenneth Rogoff
Posted in Cryptocurrency |