I go to lunch break and it's over 100 already.....man the chills. Listen to the blockchain. |
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I never thought of the concept that maybe potential Gold investors could be looking at BTC. (Note: This article assume some knowledge of the Cyprus Crisis, for more on that issue see my recent article here.)
By now everyone has heard about Cyprus, Italy, and the EU's continuing battle to hold itself together (which frankly reminds me a lot of Sisyphus and his perpetual struggle to roll a boulder up a hill, but that's another story). However, one surprising result of the increased attention to the EU has been the relatively muted response in gold (GLD) and gold miners like Goldcorp (GG), Newmont Mining (NEM), Barrick Gold (ABX), Yamana Gold (AUY), Kingross Gold (KGC), and a herd of other smaller miners.
Historically, gold and to a lesser extent silver and the gold miners have displayed a strong negative correlation with the rest of the market. On some of the worst days in 2008, virtually the only S&P 500 companies in the green were the gold miners. This negative correlation between gold/gold miners and the rest of the market was extremely valuable for investors because it enabled them to easily hedge their portfolio without having to take on short positions. The correlation coefficient between the gold miners and the broader stock market over the last 5 years is -0.68. (See my blog for a further discussion of correlation coefficients over time and using correlations in market hedging). Essentially this just reinforces the casual observation that when the markets are down, gold and the miners are up. OK, so chaos is good for safe haven assets like gold, so what's the problem?
I think there is something else happening to the price of gold; something that isn't yet widely discussed, and which affects the value of gold as an investment asset. Recently, a CNBC reporter was discussing gold and espoused the view that gold is no longer a safe haven asset. Instead, the reporter's view was that gold has become securitized and now deserves to be treated like a common ETF asset rather than a separate store of value. But if this is the case, what are people using as a safe haven asset instead? Well, I'll get to that in a minute, but first let's talk about the recent performance of gold and the miners |
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What happens on Easter Sunday night on Bitstamp, stays on Bitstamp. Right, Mr. Manipulator?
Lol,I was thinking the same.There have been a lot of purchases and highs on there or Bitfloor.I suspect 100 will be hit tomorrow through Bitstamp. |
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I think the idea that BFL will be able to flood the market with ASIC's isn't likely if they are finding it difficult to come up with a prototype that works at spec.I think however we're looking at a moderate rise in difficulty due to Avalon's being delivered and ASICminer.
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Dear guy with the 2k sell wall @ 93.5,
Everyone hates you.
Bear
Heh,Yeah I think we'd be over 94.5 by now just like Bitstamp.I guess someone is trying to buy the cheaper coins first before the anticipated price increase due to Cyprus banks. |
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I have to say I don't think BFL is a scam but there tactics are definitely scam-like.However,after reading this I do think there products will hit the market and likely the difficulty as well. |
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I swear if one day the US does regulate bitcoin I really hope lawmakers don't say it is,"a series of tubes".
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Interest about BTC is higher than ever according to Google trends and the forum itself...... Most Online Ever: 4824 (March 28, 2013, 09:20:50 PM) I'd be more bearish about it if there was no rising interest and the price was just being manipulated. |
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I don't see how the price can't continue to rise in the short term with associated interest from Europe next week and Coinlabs. |
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Yeah,Let us know how it goes.
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Just an idea:
1. Sell your coins on MtGox
2. DDOS MtGox
3. Watch price crash
4. Buy back
5. Profit
Trading Conspiracies 101
Trade conspiracy 102 1.Same 2.Same 3.Same 4.More adopt Litecoin..... 5.Profit |
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It's not fake! That's a real Avalon mining rig. Ah,havent looked at the Avalon's too carefully.Thanks for that. |
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Bear fail!  I tried to buy at $75-78 but got goxxed. I didn't predict the panic so I didn't have bids  Congratulations to those that did! Same here,I went out for the day and would have loved to get some coin during that time. |
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It looks like there were some order sold ~ 1000 BTC sold not too long ago.
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Da hell,I go to sleep and another epic rally ensues.
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