One Bitcoin was Worth MORE than an Ounce of <b>Gold</b> Today |
- One Bitcoin was Worth MORE than an Ounce of <b>Gold</b> Today
- <b>Gold</b>- Casey Research: Three <b>charts</b> every <b>gold</b> bull should see
- <b>Gold Chart</b> of The Week - INO.com
- Why <b>Gold</b> and Bitcoin Aren't So Different After All The Bitcoin <b>...</b>
| One Bitcoin was Worth MORE than an Ounce of <b>Gold</b> Today Posted: 29 Nov 2013 12:53 AM PST Bitcoin exceeded the price of gold on Mt. Gox this morning, an event bitcoin advocates say is symbolic for the virtual currency. The price has since dipped, and at the time of writing is trading at $1,146 on Gox, below the gold spot price of $1,246 per ounce in US dollars. The price of the coin, which broke $1,000 just a few days ago, has been rapidly approaching the price of gold, which has fallen in recent weeks. Today it reached a high of $1,242 on Mt. Gox, topping gold's $1,241.98 at the time. Erik Voorhees, an early entrepreneur in bitcoin, was in jubilant spirits. Voorhees, who sold his gambling site SatoshiDice for 126,315 BTC this year, said that it was a psychologically significant event. He said:
"Many of us two or three years ago said that bitcoin could (and probably should) absolutely cost more than an ounce of gold. We were laughed at and ridiculed. Now we can just look and say, 'scoreboard!'." This isn't bitcoin's first symbolic price threshold, points out Anthony Di Iorio, the head of Canada's Bitcoin Alliance, a national organisation that promotes bitcoin. "It went past $500 and then $1,000, and now it's past gold," he said. It is widely known that the value of the virtual currency surpassed silver long ago. Bitcoin may have been rising to meet the price of gold, the precious metal has also fallen to meet it. The price of gold has taken a dive this year. At the start of the year, it sat at around $1,700 before plummeting to a yearly low in July. It rallied to just over $1,400 in September, but since then it has fallen to a four-month low.  Graph showing gold price vs Mt. Gox bitcoin price in 2013 Gold's latest fall saw it drop $10 in around 10 seconds on 20th November. This drop accompanied news that the UK's Financial Conduct Authority (FCA) have begun an investigation into pricing methods for gold on the spot market (the market where people trade directly between each other). Traditionally, gold spot prices are set during a London-based conference call between five banks. Prices from those discussions are used to set spot prices for gold worldwide. In addition to the FCA investigation, the German regulator, BaFin, is also said to be exploring the issue. Other issues affecting the price of gold in recent months include fears over a potentially early end to US stimulus measures, as stronger economic data emerges.When the US central bank buys bonds it tends to boost gold prices because people buy it to hedge against possible inflation. Could bitcoin be gold 2.0? That's unlikely, thinks Voorhees. He remarked that the cryptocurrency has several advantages over the precious metal. Primarily, it can be transported anywhere in the world instantaneously, making it suitable for Internet payments. It is also far easier to divide and recombine than gold. He added:
On the other hand, gold continues to work even when the Internet does not, and it is a long-standing, stable, and well-understood commodity. It's immune to bugs, hackers and the loss of community support. "This is very special, and cannot be replaced by bitcoin for a very long time," Voorhees said. Although we know how many bitcoins we can mine, we only have a rough idea of how much gold is left in the ground, and how difficult it is to get. According to the World Gold Council, we have mined 174,100 tonnes of the stuff since civilisation began, which would fit into a 21 metre cube. Much of that is, of course, locked up in jewellery and industrial applications (and a considerable number of teeth). Actual world gold reserves total 31,575.1 tons. The US is the largest single holder of gold reserves. Bitcoin's market capitalisation today is around $13.5bn. The total value of all gold mined in the world, at today's price, stands at around $7.6 trillion. The total value of the world's current reserve holdings is around $1.38 trillion. Di Iorio says he lost 20% on his own gold investments last year. "I took my loss and put it into bitcoin and got my return back," he said. "I no longer have gold holdings. I believe much more in the fundamentals of bitcoin." Gold is superior for conservative, steady, long-term storage of wealth, Voorhees suggested, while bitcoin is far better for commerce and payments. Voorhees advises people to keep their savings mostly in gold, and their spending money mostly in bitcoin. "As bitcoin's price crosses that of gold, it shouldn't be taken as an indication that 'bitcoin is better,'" Voorhees concluded. He added: "They're just different, and a proper understanding of the monetary virtues of both gold and bitcoin puts one ahead of just about everyone else on earth." Not everyone agrees, though. Venture capitalist Chamath Palihapitiya, who heads up the Social+Capital Partnership, has gone on the record to advocate bitcoin's potential for stored value. "What you're talking about right now is, for the next three to five years, an unbelievably better stored value. It is gold 2.0. Right?" he said to Forbes in April, arguing that bitcoin can be used to store long-term value outside of government control.
In this Bloomberg article, Palihapitiya says that he transferred 1% of all his assets to bitcoin as 'schmuck insurance', lest catastrophe in the financial markets cause problems for the precious metal. He also calculates how much a bitcoin would be worth if all bitcoins were to have the same capitalisation as all the mined gold in existence. He divides his estimate ($8 trillion) by the theoretical number of bitcoins (21 million) and comes up with a theoretical upper bound of $400,000 per bitcoin. This symbolic crossing for bitcoin does not necessarily mean that it's better than gold, but it will likely bode well for the currency. Di Iorio says that the news will make yet more people aware of bitcoin. This, combined with a backlog of verifications in some exchanges (he cites Canada's Virtex as having a three week backlog) suggests that prices will continue to rise, at least for a while, as more people begin trading bitcoin, and the market continues to thicken. "We will see more people going after this scarce supply, and the price will jump up," Di Iorio says. Unlike gold, we have a precise picture of how many new bitcoins will become available over time. Gold image via Shutterstock  |
| <b>Gold</b>- Casey Research: Three <b>charts</b> every <b>gold</b> bull should see Posted: 06 Dec 2013 02:15 PM PST From Casey Research: After a 12-year run, it looks like gold's wave has truly crested, and many bears are arguing that it's all downhill from here. A quick glance at a long-term gold price chart can certainly seem to confirm this impression. Gold's price has fallen by more than a third since its 2011 high. The downturn exceeds the 2008 waterfall selloff. Many technical analysts are saying that the "damage" on the charts is too great for gold to recover. The rout is so bad, even hardened goldbugs have grown quiet lately. Is it time for gold investors to admit defeat? More on gold: A terrible event could finally turn the gold market around |
| <b>Gold Chart</b> of The Week - INO.com Posted: 09 Dec 2013 07:02 AM PST Each Week Lo Before the release of the Non Farm Payrolls last week on Friday, US markets could not catch a break. Lower highs and lower lows were put in on the daily chart of the S&P 500 after the new high was printed on November 29th. On Thursday, stocks took the day to consolidate inside the prior days price range, but exploded to the upside at 7:30 cst. Markets were treated to a better-than-expected jobs number where 203,000 jobs were created and the jobless rate in the US hit a five year low. Additionally, Consumer Confidence in the US shot up to a five year high soon after the jobs numbers were posted. In short, LAST WEEK traders and investors used favorable reports as a reason to buy equities. The big question is whether the stock market will react the same way THIS WEEK, when data is released. We will have to wait and see. There is far less important economic data being released in the US compared to last week, but we will hear from multiple FED Members and will also be informed on the ongoing budget negotiations in Washington. Traders will be focused on the language being used this week to determine whether the FED plans to taper their Bond Purchases before 2013 comes to a close or not. This language will be important as investors try to decide whether or not they will continue to buy the market in new high territory this week. Pre-Market, futures are only a few ticks below the high that was printed on the 29th. I feel the best way to approach this week is as a technical trader. The plan will be to break down price action on both daily and intraday charts, looking for the best technical prices to enter and exit trades. I think it will be far too difficult to make dependable commitments to any Financial market when the US Indexes are testing the highs again and waiting for speeches from the very members that will decide next week whether or not they will taper. It appears the Gold Futures may be waiting on the same confirmations. Last week, while the market did see some nice volatility in a range, we did not see a test of $1200 or a breach of the prior week's highs. I believe that Gold traders are waiting like the rest of us for a final determination from the FED before either levels are tested again. The language used this week by FED Members may give clues in advance of next week's meeting as to whether or not we should expect Ben Bernanke to close out 2013 with a slam in the equity markets. If you would like to discuss trading in the Futures and Futures Options markets with me, please feel free to call or email me directly. You can reach me directly at (888) 272-6926 or by email at bbooth@longleaftrading.com. Thank you for your interest, ** There is a substantial risk of loss in trading futures and options. Past performance is not indicative of future results. The information and data contained in this article was obtained from sources considered reliable. Their accuracy or completeness is not guaranteed. Information provided in this article is not to be deemed as an offer or solicitation with respect to the sale or purchase of any securities or commodities. Any decision to purchase or sell as a result of the opinions expressed in this article will be the full responsibility of the person authorizing such transaction. |
| Why <b>Gold</b> and Bitcoin Aren't So Different After All The Bitcoin <b>...</b> Posted: 09 Dec 2013 10:04 AM PST moneymorning.com.au / by Kris Sayce / 09 December 2013
It hardly seems possible. After all, isn't the US Federal Reserve printing US$85 billion a month? Doesn't that mean gold should appreciate as the US dollar depreciates? That's right, it should. But it isn't. Here's why… Over the past three or four years we've heard a lot of claims about what gold is and what it isn't. We've also seen many charts claiming to 'prove' that gold must go higher as the US Fed prints more money. Most of those charts involve overlaying a chart of the rising money supply with the rising gold price. These charts appeared to show that gold rises as the money supply rises. That was the 'proof'. It was a nice theory. Unfortunately, as the last two years have shown, it was also a woefully naïve theory. What those who used such arguments failed to realise is that it wasn't a fair comparison. The money supply chart represents a factual increase in the supply of a 'good', namely money. The gold price chart is completely different. It represents the price of something. Price relies on what a buyer is prepared to pay and what a seller is willing to receive. In other words, the relationship between the money supply and gold price was little more than a casual or coincidental relationship. |
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