With Gold & Silver tumbling, will investors seek out Bitcoin as a hedge?

[Phinnaeus Gage]

http://www.usatoday.com/story/money/markets/2013/06/26/gold-plunged-to-three-year-low/2460251/

The price of gold Wednesday fell up to 4.2% to $1,224.18 an ounce, the lowest level since Aug. 24, 2010, says Bloomberg News. Gold is down roughly 23% this quarter, positioning the metal for its largest quarterly loss since 1920. Meanwhile, the price of silver is down to its lowest levels since August 2010. Wednesday, silver fell as much as 4.7% to $18.64 an ounce.

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[superresistant]

It would be fucked up to seriously invest in bitcoins

[mupartee]

It would be fucked up to seriously invest in bitcoins

why? sure it has no guarantee and many obstacles to overcome if it wants longevity and adoption by more users (and governments) but nothing has a guarantee, as gold/silver is proving right now. I bought silver at $40/ounce three years ago when it was "the sure bet" and now I have less than half of my wealth. And I did that as a way to find a safe haven for a 12k investment that was salvaged from a failing IRA that had an original investment of 14k...

The majority of BTC investors bought BTC below its current price, and of all the options on the table, its appreciation since its inception and or any time prior to 6 months ago has outpaced all other options...

[superresistant]

It would be fucked up to seriously invest in bitcoins

why? sure it has no guarantee and many obstacles to overcome if it wants longevity and adoption by more users (and governments) but nothing has a guarantee, as gold/silver is proving right now. I bought silver at $40/ounce three years ago when it was "the sure bet" and now I have less than half of my wealth. And I did that as a way to find a safe haven for a 12k investment that was salvaged from a failing IRA that had an original investment of 14k...

The majority of BTC investors bought BTC below its current price, and of all the options on the table, its appreciation since its inception and or any time prior to 6 months ago has outpaced all other options...

Well if gold and silver investment can fail despite all predictions, imagine what can happen to Bitcoin...

[bitrebel]

It would be fucked up to seriously invest in bitcoins

why? sure it has no guarantee and many obstacles to overcome if it wants longevity and adoption by more users (and governments) but nothing has a guarantee, as gold/silver is proving right now. I bought silver at $40/ounce three years ago when it was "the sure bet" and now I have less than half of my wealth. And I did that as a way to find a safe haven for a 12k investment that was salvaged from a failing IRA that had an original investment of 14k...

The majority of BTC investors bought BTC below its current price, and of all the options on the table, its appreciation since its inception and or any time prior to 6 months ago has outpaced all other options...

Well if gold and silver investment can fail despite all predictions, imagine what can happen to Bitcoin...

Gold and Silver are being suppressed artificially, by the bankers. Rothschilds set the rate daily, in London.
Bitcoins are not manipulated like this.

Neither would be the safest investment. But both are worthy investment gambles as anything else.

[exogan]

It would be fucked up to seriously invest in bitcoins

why? sure it has no guarantee and many obstacles to overcome if it wants longevity and adoption by more users (and governments) but nothing has a guarantee, as gold/silver is proving right now. I bought silver at $40/ounce three years ago when it was "the sure bet" and now I have less than half of my wealth. And I did that as a way to find a safe haven for a 12k investment that was salvaged from a failing IRA that had an original investment of 14k...

The majority of BTC investors bought BTC below its current price, and of all the options on the table, its appreciation since its inception and or any time prior to 6 months ago has outpaced all other options...

Well if gold and silver investment can fail despite all predictions, imagine what can happen to Bitcoin...

Gold and Silver are being suppressed artificially, by the bankers. Rothschilds set the rate daily, in London.
Bitcoins are not manipulated like this.

Neither would be the safest investment. But both are worthy investment gambles as anything else.

What is the reason for the bankers to suppress gold and silver?

[RodeoX]

Reading that makes me more likely to trade BTC for gold. I buy when the market tanks and sell when it soars. I divested of it a few months back when it was clearly at a silly high.

Perhaps it is time to buy back in. Hmmm. 

[bitrebel]

It would be fucked up to seriously invest in bitcoins

why? sure it has no guarantee and many obstacles to overcome if it wants longevity and adoption by more users (and governments) but nothing has a guarantee, as gold/silver is proving right now. I bought silver at $40/ounce three years ago when it was "the sure bet" and now I have less than half of my wealth. And I did that as a way to find a safe haven for a 12k investment that was salvaged from a failing IRA that had an original investment of 14k...

The majority of BTC investors bought BTC below its current price, and of all the options on the table, its appreciation since its inception and or any time prior to 6 months ago has outpaced all other options...

Well if gold and silver investment can fail despite all predictions, imagine what can happen to Bitcoin...

Gold and Silver are being suppressed artificially, by the bankers. Rothschilds set the rate daily, in London.
Bitcoins are not manipulated like this.

Neither would be the safest investment. But both are worthy investment gambles as anything else.

What is the reason for the bankers to suppress gold and silver?

All of the Patriots and Gold Bugs and Survivalists that stocked up in the last 4 years as prices rose, are not in the hole hundreds, and thousands, and hundreds of thousands of dollars per person who invested. They have to be hit hard to keep the NWO going. If those who bought and stocked up are allowed to increase their wealth, then that is power for the resistance to the central banking and power scheme. The metals market will be hit very hard before the crackdown, with NDAA, and then, sometime as people realize the extent of the collapse, prices will shoot up very high to where they should be, but by then, all the survivalists will have sold for less, to buy food and other supplies, and they no longer hold it in their hands. That's the plan, I believe.

[bitrebel]

Reading that makes me more likely to trade BTC for gold. I buy when the market tanks and sell when it soars. I divested of it a few months back when it was clearly at a silly high.

Perhaps it is time to buy back in. Hmmm. 

It's predicted it will fall to around $1000, so hold on before you buy.

[Technomage]

I see this as a good opportunity to buy gold & silver. Too bad I'm long term on them just as much as I am with Bitcoin. So I'm watching from the sidelines.

[atomium]

its a good opportunity to invest in silver and gold since the prices are low but i honestly stopped investing in them since i heard of bitcoin, i much rather invest in bitcoin where it has the chance to change the world and become a worldwide currency that can be used anywhere. Unlike gold and silver where no one is going to carry them around anymore because of its bulkiness.

[superresistant]

its a good opportunity to invest in silver and gold since the prices are low but i honestly stopped investing in them since i heard of bitcoin, i much rather invest in bitcoin where it has the chance to change the world and become a worldwide currency that can be used anywhere. Unlike gold and silver where no one is going to carry them around anymore because of its bulkiness.

That's sound more like a reason to invest in Bitcoin.

[smoothie]

I tend to think they will.

Where else will they run to get good gains? The miners? lol

[nameface]

The silver market is estimated at 80X Bitoin's. If 1% of the silver money went to Bitcoin, it would cause a huge uptick in the price.
Big paper silver market manipulators probably don't have Bitcoin on their radar because it's small potatoes.
And I bet only a tiny % of the average silver investor would consider Bitcoin because they are old school hard asset people.

I wonder how big 5% of the casual silver investor market is?

[Lethn]

What is the reason for the bankers to suppress gold and silver?

To put it simply without the crazy bullshit, it makes the people in power look good, because gold and silver is often used as a way of measuring inflation it would make sense to keep the prices low, that way people are supposed to think there's nothing wrong with paper money and it's doing fine, then of course Bitcoin comes along and fucks up that whole illusion I think this is just a normal price correction though, people will be selling off etc. in preparation for the next collapse and yes, I do think one is coming soon because this is what happened the last time and the media was in complete denial back then too.

[Vince Torres]

It would be fucked up to seriously invest in bitcoins

why? sure it has no guarantee and many obstacles to overcome if it wants longevity and adoption by more users (and governments) but nothing has a guarantee, as gold/silver is proving right now. I bought silver at $40/ounce three years ago when it was "the sure bet" and now I have less than half of my wealth. And I did that as a way to find a safe haven for a 12k investment that was salvaged from a failing IRA that had an original investment of 14k...

The majority of BTC investors bought BTC below its current price, and of all the options on the table, its appreciation since its inception and or any time prior to 6 months ago has outpaced all other options...

If you can't handle a 50% loss in an investment you may as well not invest. Quoted from Warren Buffet, paraphrased by me.

[CurbsideProphet]

No, the average investor will not hedge with Bitcoin.  The poor economic data that came out means the Fed is likely to keep printing.  If the Fed prints, yields go down and price goes up, so the hedge for a traditional investor is treasuries and equities.

Obviously we investors here are a different story but we make up only a fraction of the populace.

[bitrebel]

No, the average investor will not hedge with Bitcoin.  The poor economic data that came out means the Fed is likely to keep printing.  If the Fed prints, yields go down and price goes up, so the hedge for a traditional investor is treasuries and equities.

Obviously we investors here are a different story but we make up only a fraction of the populace.

You cannot print your way out of a paper bubble, without making the bubble that much more explosive.

[ShroomsKit]

http://www.usatoday.com/story/money/markets/2013/06/26/gold-plunged-to-three-year-low/2460251/

The price of gold Wednesday fell up to 4.2% to $1,224.18 an ounce, the lowest level since Aug. 24, 2010, says Bloomberg News. Gold is down roughly 23% this quarter, positioning the metal for its largest quarterly loss since 1920. Meanwhile, the price of silver is down to its lowest levels since August 2010. Wednesday, silver fell as much as 4.7% to $18.64 an ounce.

No.

[CurbsideProphet]

No, the average investor will not hedge with Bitcoin.  The poor economic data that came out means the Fed is likely to keep printing.  If the Fed prints, yields go down and price goes up, so the hedge for a traditional investor is treasuries and equities.

Obviously we investors here are a different story but we make up only a fraction of the populace.

You cannot print your way out of a paper bubble, without making the bubble that much more explosive.

What does that have anything to do with what I said?

[nameface]

Gold is down roughly 23% this quarter, positioning the metal for its largest quarterly loss since 1920.

harsh 

[sickpig]

Reading that makes me more likely to trade BTC for gold. I buy when the market tanks and sell when it soars. I divested of it a few months back when it was clearly at a silly high.

Perhaps it is time to buy back in. Hmmm. 

It's predicted it will fall to around $1000, so hold on before you buy.

do you have any source to back this claim? just corious

[superresistant]

Do you guys know a way of exchanging directly gold <---> bitcoins ?

[nameface]

Do you guys know a way of exchanging directly gold <---> bitcoins ?

In Downtown Toronto -> http://www.xagau.com/jada/web/fe/default/English/home
This business seems to have a good rep, but the rates aren't great: http://www.coinabul.com/

[explorer]

Wow that xagau place only wants 50% more than the going rate! Deal!

[nameface]

Wow that xagau place only wants 50% more than the going rate! Deal!

BAHAHA You're right! That's gross.
But I know the business operator, I vouch for him. He doesn't do business through the website. If you show up here: http://www.xagau.com/jada/web/fe/default/English/content/Contact+Us He will buy and sell gold, silver, bitcoins, wtvr, at very fair prices.

[legitnick]

Its only logical they would, as Bitcoin can return far larger profits then Gold or Silver in the short term and long term.

[explorer]

Wow that xagau place only wants 50% more than the going rate! Deal!

BAHAHA You're right! That's gross.
But I know the business operator, I vouch for him. He doesn't do business through the website.

  Well that's not exactly a surprise 

Coinabul on the other hand actually has decent rates Listed. For small purchases, it actually looks cheaper than converting to fiat and buying from a more local source.  Haven't tried them yet.

I'll try contacting xagau  as I'd rather deal in Canada if its not significantly more expensive.

[fenican]

It would be fucked up to seriously invest in bitcoins

why? sure it has no guarantee and many obstacles to overcome if it wants longevity and adoption by more users (and governments) but nothing has a guarantee, as gold/silver is proving right now. I bought silver at $40/ounce three years ago when it was "the sure bet" and now I have less than half of my wealth. And I did that as a way to find a safe haven for a 12k investment that was salvaged from a failing IRA that had an original investment of 14k...

The majority of BTC investors bought BTC below its current price, and of all the options on the table, its appreciation since its inception and or any time prior to 6 months ago has outpaced all other options...

Well if gold and silver investment can fail despite all predictions, imagine what can happen to Bitcoin...

Despite all predictions?  Most mainstream economists were calling Gold and Silver a bubble years ago.  If you overlay Gold 2008 - 2013 over the 1920's stock market or 2000-2006 housing market you will see exactly the same pattern.  Obviously got way ahead of itself due to speculation and was overdue for a very severe pullback.

Any rational student of economics also knew two things in 2009.  (1) The risk was Deflation not Inflation and (2) The Federal Reserve played it way too tight.  They could have printed seven times as much money as they did, ignited a recovery years earlier, and still not triggered any kind of inflation.

Gold Bugs are now being taught a bitter lesson in economics.  It's a worthless yellow metal, manipulated by speculators, playing on irrational fear, that lands you in the poor house over long periods of time since it can barely even keep place with inflation.

[QuantPlus]

And I bet only a tiny % of the average silver investor would consider Bitcoin because they are old school hard asset people.

This.

PM and BTC enthusiasts should be Fellow Travellers...
But because PM investors are Old School "I wanna feel the weight in my hand" types...
There is actual hostility towards Bitcoin over there...
Just read the comments at ZH.

[axilla]

amagimetals seems to have the best prices i've found for gold <---> bitcoins

[TheShape]

I also see this as a good time to buy Gold.
The recent trend has been far from pretty, but if you are holding on for the long term the extra pick ups along the way here could be quite enjoyable.

[axilla]

i've been buying silver anytime it falls below $20..

[CurbsideProphet]

What you usually see quoted is the price of paper gold which is heavily manipulated and means nothing. There is huge demand for physical gold if you can find it. Only a matter of time when comex dafaults.

I can easily find physical gold and silver at reasonable prices over spot.  It may be difficult to find a specific type of bullion but gold is gold and bullion carries next to no numismatic value so it shouldn't matter in what form or smelter it comes from as long as they are recognized and reputable.   

[tclo]

I"m sure this has been mentioned above but hte price of bitcoin is tumbling too.

[BitcoinAshley]

With gold, silver, AND bitcoin tumbling, along with stocks and bonds, will investors seek out USD as a hedge?

Sadly, yes. The problem is, we won't get much warning when the USD sees its dying days. Well, those of us who know what's up will see it coming miles away, and everyone else will be like "[Insert famous last words here]"

[byronbb]

Interesting to see inflation adjusted gold converging to actual price.