Gold Losing It's Shine?

[bornil267645]

According to Mark O'Byrne of GoldCore, gold is slowly losing it's shine. And things like bitcoin and cryptocurrency are stealing the spotlight.

Wilfred Frost of CNBC:

Do you think markets are adequately pricing in the risks that are present around the world today, particularly in Europe and the gold price itself?

Mark O’Byrne of GoldCore:

No, I don’t think so. I think in light of the “Grexit”, which you just mentioned, and also the “Brexit” and the overall debt positions globally — we would have a concern that there is a global financial bubble with stock markets at all time record highs, bond markets at all time record highs.

Meanwhile, gold prices have traded sideways, as you said, for a long period of time. We have had a serious correction and we believe there is consolidation. It looks undervalued. At the same time it could go lower before it goes higher. I think technically there is a weakness there and I think there is support at $1140 so short-term there is weakness, quite possibly, but medium to long term the fundamentals look very sound.

Wilfred Frost of CNBC:

Do you think that’s because we have had a breakaway from the idea that gold remains a great hedge towards any risk that’s out there — whether that’s inflation, deflation or just big geopolitical crises or is it just because markets don’t understand that those risks are present and they are ignoring them?

Mark O’Byrne of GoldCore:

I think the latter…for the moment.

I think it’s very like the 2003 to 2006-2007 period. The imbalances were building up in the system – meanwhile stock markets kept gallivanting higher and gold was a very under-owned asset and there wasn’t an appreciation of gold as a safe haven asset.

I think you are right.. I think that perception of gold … it has fallen out of favour. Sentiment towards gold is as bad as we have seen it since the 2003/2004 period.

Bitcoin is the more sexy thing. People want to talk about bitcoin and anything with “bit” in the name seems to be doing very well.

Whereas gold is very much less sexy. It’s less on the radar because it has performed quite badly in the short term. But, I suppose past performance is no guarantee of future returns and you have to look at the long-term store of value characteristics of gold as a proven hedging instrument and safe haven asset… over the long term. Not in the short term, obviously.

Carolin Roth of CNBC:

Mark, there simply is no inflationary pressure… I don’t see why gold should be moving higher at all. We are in a disinflationary or low inflation world. I don’t see why gold should be moving past the $1200 level that we’ve been bumping around over the last couple of months. And then we’ve got a dollar that’s moving higher. It’s a bit of a rough patch for the dollar right now but it’s still moving higher. I don’t see why anything we are seeing in gold is more than a dead cat bounce, essentially…?

Mark O’Byrne of GoldCore:

You’re right — there [are] no inflationary pressures … right now.

The question is “is that inflation building up?” And I think it probably is.

At the same time gold is not just a hedge against inflation — it’s actually not a really a hedge against inflation per se, it’s more of a hedge against serious inflation and stagflation. It’s also a hedge against deflation.

So when you have a Lehman Brothers moment or a potential “Grexit” there is that significant counterparty risk. And gold — because it has no counterparty risk if you own the actually physical asset — it is actually a hedge against deflation as well.

There is a huge body of academic research that shows that.

[newcripto]

Gold will never lose it's shine as this is oldest asset which is trusted by everyone throughout history.If you refer at recent collapse of price then I will say that was hype and was artificial raise in price.Gold will always decide the value of everything.This time when Gold's price will rise that when will be genuine and long term rise.

[RodeoX]

I have not done well with gold in the past year. I still like it and think it is a great hedge against a catastrophic stock market decline, but I'm down like $40 an Oz. 

[Benjig]

Gold might be a glittering temptation for investors looking to fatten their investment returns with a relatively safe commodity. But it's far from foolproof. Indeed, gold shouldn't be considered an investment at all. Rather, the precious metal acts as a hedge, or a way to try to protect wealth against the risk of loss in such asset classes as real estate, equities and bonds. And I believe Bitcoin do the same as gold in the world of Cryptocurrencies.

[Pab]

Whan dollar is loosing in price ,gold is going up

But last time gold prices were climbing together with hossa on stock,a lot of tha fiat money went in gold,but in virtual gold.If gold will goes under 1200$ it can easly hit 800$,

Some financial institution in some moment will urgently need cash,so sell everything,than buy back low price

[Amph]

I think buying gold under 1200$ is a good idea as it keeps going back up to at least 1200 and selling it there currently, eventually it will rise higher but right now it seems thats where it is becoming stagnant.

notice how bitcoin reached that value too, maybe there is a cospiracy behind that price number..i think that gold is done its extraction isn't like bitcoin and don't fall every 4 years, is scarcity is fixed, so it should not rise much more than its current price

better to invest in something else for higher return

[aso118]

People are attracted to gold because it acts as a hedge against inflation.
Right now, inflation doesn't seem to be a worry.

[expert4knowledge]

I think Gold never lose its shining because many of rich people, power bands and governments have invested more than billions of $ on it but it may be a little cheaper, but as long as people who have power has not changed the Gold price does not change.

[mrhelpful]

Gold is less sexy yeah, with people seeing other financial intruments making them money, and bitcoin has been getting more attention.

But, I rather prefer less sexy - the stable reoccurring financial %, then a unknown variable like bitcoin. Dont get me wrong, but in a financial perspective of things, I`m more on a small percent then a huge one. 

[OROBTC]

...

Both gold and BTC have been pretty range-bound lately...  Hmm.

GOLD has been a Store of Value for 5000 - 6000 years (depending on whose figures you accept).  For me, it is best thought of as insurance against government malfeasance, as well as a possible lottery ticket (to a MUCH higher price, physical gold in your own possession only).  Oh, and it's shiny!

BTC is volatile as well, but it is also "its own asset class", and so fits very well with my ideas about diversification.  BTC is also a lottery ticket, it may go to a much higher price as well.  Oh, and it's cool and digital...

We'll see what happens!  "We watch together, no?"

[deisik]

According to Mark O'Byrne of GoldCore, gold is slowly losing it's shine. And things like bitcoin and cryptocurrency are stealing the spotlight.

<shit skipped>

99% of all financial news that you hear about prices going to fall (rise) is just noise. That wouldn't be a problem if this noise wasn't contagious and toxic. Contagious and toxic here means that it still affects you and your financial decisions to a degree even if you know that it is no more than that...

Market never lies

[JusticeForYou]

It's not losing it's weight...

We have around $20 TRILLION dollars in debt, and another $60-$80 TRILLION in unfunded liabilities... There's not enough trees to print that much money. So the government definitely put the FIAT in fiat currency... The FED was suppose to protect us from this. It didn't.

I'm not say fiat currency can't work, it just needs to be managed with real controls that are not politicized. People will one day realize that fiat currency is an abstract item in a hyper-reality that is worthless. I'm not saying to go throw all your money into Gold but it better be part of your diversification portfolio, along with Silver, Palladium, etc... Canned Food too !!!

[coolcoinz]

Gold witnessed the rise and fall of empires, there's nothing to be afraid of Diamonds will surely lose value before gold and when it happens fiat will already be long forgotten.

[techgeek]

if anything bitcoin, I feel like its catching up real quick at its own speed.

Its pretty crazy how we saw it match gold at one point, and we all know how old gold is..

As for the fiat, we have way too much since its more of a socialist view for banks to get bailed out every single fuken time. True capitalism works, because you let it fall theres no such thing as bail outs. Socialists for the rich, true capitalism for the poor. wtf.. 

[Q7]

It is possible that gold is losing its shine considering the fact that now we have cryptocurrency being slightly better. However, I don't see it becoming oblivion or being forgotten anytime soon. The ideal scenario would be bitcoin moving alongside gold as an alternative investment option and certainly no matter what, those two are still far better than holding onto fiat.

[spazzdla]

When the BRICs flip the switch.. the USD will instantly lose 90% of it's value.. You heard it here first!

[Amph]

It is possible that gold is losing its shine considering the fact that now we have cryptocurrency being slightly better. However, I don't see it becoming oblivion or being forgotten anytime soon. The ideal scenario would be bitcoin moving alongside gold as an alternative investment option and certainly no matter what, those two are still far better than holding onto fiat.

The people who are stacking tons of gold (around 5% of their wealth) have no cares to what Bitcoin is at, they just want a hedge in case an economic crisis.

those same people usually care only about their portfolio/income, so if they see bitcoin as a better alternative they will jump on board regardless, but it's not exactly the case for bitcoin with the current down-trend

[expert4knowledge]

Maybe with passing time we can expect a little fall in prices of gold.

[BobK71]

At least two serious books have come out, detailing evidence that major central banks have been suppressing gold "market" prices by trading derivatives.

What this means is that the authorities' own reading of world sentiment (which is surely better than that of mortals like me) is that gold price suppression *is* necessary to support the value of paper currency and its associated assets.

This condition was the real essence of the gold standard. Gold standards were not designed, as declared, to safeguard the value of paper. They were really intended to hold down the price of gold and prop up that of paper -- a form of financial repression that tried to push savers to get into paper, spend, and lend.

So, as surprising as it seems to say this in 2015, we are on a (flexible version of) gold standard.

The main reason to hold gold right now (but only physical gold) is that if the authorities continue to have problems getting the economy back to growth and inflation after the financial crisis, as evidenced by the Fed being unable to raise rates 7 years after the crisis, they might be forced to, effectively, devalue currencies against gold. Devaluation fundamentally makes the most sense in this kind of situations. The problem (for the authorities) is that it would be bad for market psychology with respect to paper currency.

[ajareselde]

I don't know much about gold mining, but like any industry, im certain that gold mining also advanced quite a bit in terms of lowering costs of mining itself.Tech gets better, theres more gold mined, overall costs decline. Thats regarding new gold flow coming into market, but regarding the gold already held by people and institutions, i guess it can be manipulated to some point, just like anything else (bitcoin price included.)

cheers