[2017-12-12] Analysts Blame Gold’s Fall On Bitcoin’s Rise

[entrepmind23]

As bitcoin’s price has surged, gold has suffered. Some market analysts see a correlation. Gold and bitcoin have both been viewed as safe havens for capital during periods of uncertainty for asset values.

As bitcoin’s price has soared, some analysts think investors are favoring bitcoin as an investment, causing gold to lose value.

Gold Hits Low Point
GDX, an exchange-traded fund for gold miners, has lost 15% of its value since September while gold prices have fallen to its July low point.

Larry McDonald, who oversees U.S. macro strategy at ACG Analytics, said gold’s declines have been accompanied by lower bond yields, a situation the strategist calls unusual.

McDonald told CNBC that every time rates have declined in the last two years, gold has increased. There has been an 82% correlation between bonds and gold prices, he said, but this past week, that correlation dissolved. He pointed to bitcoin as the cause for this.

The growth of bitcoin and cryptocurrencies could bring an even greater downside for gold, McDonald said.

Bitcoin Eats Into Gold
Cryptocurrencies currently have a market capitalization equal to 23% of liquid tradeable gold, McDonald said. That figure has increased 2% or 3% over a year ago, so cryptocurrencies are definitely eating into the gold.

While gold has declined more than 2% in the last month, bitcoin has more than doubled its value.

Sunday’s launch of the CBOE bitcoin futures took bitcoin to close to $16,800 by Monday morning. Gold, meanwhile, has remained near its July lows.

Phillip Streible, a senior market strategist at RJO Futures, said bitcoin futures contracts will hold a key indicator for gold’s future. If bitcoin futures collapse, gold will gain, he said on CNBC’s “Power Lunch.” Gold will regain its attraction as a safe haven store of value.

CME, another exchange, will launch its bitcoin futures on Dec. 18.

Source: https://www.cryptocoinsnews.com/analysts-blame-golds-fall-bitcoins-rise/

[eddie13]

Phillip Streible, a senior market strategist at RJO Futures, said bitcoin futures contracts will hold a key indicator for gold’s future. If bitcoin futures collapse, gold will gain, he said on CNBC’s “Power Lunch.” Gold will regain its attraction as a safe haven store of value.

LOL, they think they will be able to name the price of bitcoin so easily!!!

Watch them get REKT

Bitcoins price finding mechanism is widely distributed, as with most things bitcoin, and one fiat traded options exchange isn't going to change that..

No, if futures collapse, they will get squeezed hard..

Third they are talking like it's a sure planned thing..

Guy is pretty much saying "eherm eherm, bitcoin is winning against gold so we are going to attack its price through fiat settled futures and pump gold back up to where it was"..

[CryptoBry]

Yes, this is quite possible as the open market we have right now is depending all of its movement on the law of supply and demand. Certainly, when investors are shifting their attention to Bitcoin and converting their gold assets into it that can mark a shift away from gold. However, I am sure that gold is gold and its value will remain to be stable and strong so they should not be worrying that much. It is just natural that investors would be looking for ways to enhance their profits and when they see Bitcoin to be very attractive then they will also make a stake in here. Gold has suffered a flat line when it comes to profits though it is always viewed as the real safe haven because of its stable value unlike the volatile Bitcoin.

[ImHash]

Can you carry a ton of gold when you go shopping? I could carry 16.7 M bitcoins, Worth more than $200 B in my laptop, I'm in love with gold, Expecting my fiance to buy more of it for me, Sadly I'm not gonna be able to sell them and buy bitcoin with it.

[Guardian.P]

Well, what was to be expected. People have understood that the gold that they have, does not do any good. When gold can be sold and bought Bitcoins. Or maybe the price of gold was inflated?

[1Referee]

I find it quite entertaining that if similar entities talk about Bitcoin's increase, they talk it down like it's just this or that underperforming causing people to flee into Bitcoin, or that it's absolutely based on nothing and that it will crash sooner than later. It not only shows how bitter these people are, but also how ignorant. In every shape or form they deny that people buy themselves into Bitcoin because of the fact that it offers financial freedom, and a way to escape from an economy only making people lose out on purchasing power. I get it that people look to bank on Bitcoin's massive boom, but I have seen an exponential increase in people understanding how Bitcoin offers more advantages than simply burning their savings where they lose purchasing power every year. People are sick and tired of this, and in some cases even economists admit that there is far too much fiat into circulation.

[MoonJeina]

This seems so contrasting comparing to the past years . The first bitcoin was used to buy a pizza and now "gold" is being compared to bitcoin . Not only it is being compared to bitcoin but bitcoin is being considered superior in front of it .
Obviously , bitcoin has grown immensely in past months and the market of bitcoin is  more flourished as compared to any other financial entity. Comparing it to gold and considering it better then gold might not be wrong according to the scenario . But according to me , gold will always stay superior for a long term no matter how much downfall it has faced in past few months.

[Kronos21]

This is not surprising. Now the yield is much higher bitcoin of all available assets for investment. Many investors will go to bitcoin. This is evidenced by the futures contracts. But it will not be long money. It seems to me that they will try to quickly make money and return to gold. This will lead to the pump and now the dump in the future.

[Gotottack]

As bitcoin’s price has surged, gold has suffered. Some market analysts see a correlation. Gold and bitcoin have both been viewed as safe havens for capital during periods of uncertainty for asset values.

As bitcoin’s price has soared, some analysts think investors are favoring bitcoin as an investment, causing gold to lose value.

Gold Hits Low Point
GDX, an exchange-traded fund for gold miners, has lost 15% of its value since September while gold prices have fallen to its July low point.

Larry McDonald, who oversees U.S. macro strategy at ACG Analytics, said gold’s declines have been accompanied by lower bond yields, a situation the strategist calls unusual.

McDonald told CNBC that every time rates have declined in the last two years, gold has increased. There has been an 82% correlation between bonds and gold prices, he said, but this past week, that correlation dissolved. He pointed to bitcoin as the cause for this.

The growth of bitcoin and cryptocurrencies could bring an even greater downside for gold, McDonald said.

Bitcoin Eats Into Gold
Cryptocurrencies currently have a market capitalization equal to 23% of liquid tradeable gold, McDonald said. That figure has increased 2% or 3% over a year ago, so cryptocurrencies are definitely eating into the gold.

While gold has declined more than 2% in the last month, bitcoin has more than doubled its value.

Sunday’s launch of the CBOE bitcoin futures took bitcoin to close to $16,800 by Monday morning. Gold, meanwhile, has remained near its July lows.

Phillip Streible, a senior market strategist at RJO Futures, said bitcoin futures contracts will hold a key indicator for gold’s future. If bitcoin futures collapse, gold will gain, he said on CNBC’s “Power Lunch.” Gold will regain its attraction as a safe haven store of value.

CME, another exchange, will launch its bitcoin futures on Dec. 18.

Source: https://www.cryptocoinsnews.com/analysts-blame-golds-fall-bitcoins-rise/

I do not subscribe to this. I think the rise and fall of Bitcoins has nothing much to do about gold. Otherwise stated, these two are not directly proportional. The reason these two are being put together is because of its likelihood to each other. Hence, people go onto comparing and contrasting Bitcoin from gold and vice versa.

[J. Cooper]

I'm not quite sure if there's a direct correlation between bitcoin and gold but there certainly is a possibility. Because bitcoin has been, wrongfully or not I will let you decide, called the digital gold and since times are changing and we're living in a world where a lot of things are becoming digital, people don't want to be left behind. That could be a possible theory as to why gold isn't doing so well while bitcoin is. The funny thing is that these 'analysts' couldn't be more biased. It's pretty obvious that they favor gold themselves or have got some stashed away and they don't want to see their profits evaporate. That's why they try to talk bitcoin down.

[Xavofat]

Bitcoins price finding mechanism is widely distributed, as with most things bitcoin, and one fiat traded options exchange isn't going to change that..

It's not impossible.  Mt. Gox used to control the vast majority of total volume before it collapsed.  It's certainly possible that a fiat based exchange, with enough whales involved in it, could get to a similar point (or at least that a combination of different futures exchanges could reach that point).

No, if futures collapse, they will get squeezed hard..

This depends on how much volume they have.
Still, it's unlikely that the change in the gold price is all about Bitcoin.  It may have some effect but it could take an even higher price before any FUD in the gold market becomes prominent.  It could also just be a series of coincidences so far.

[darkangel11]

Gold has its uses that will never be undermined by cryptocurrencies. Don't forget that it's used in electronics and is one of the most popular metals in jewelry making.
Here lies the reason why it's becoming less popular. Just go to any jewelry store. Years ago you had only gold and silver in various forms on display. Now you have platinum, white gold, titanium. New metals are becoming trendy and pushing yellow gold to the sidelines. Gold became boring that's the problem. Cryptos are just taking the free spot.

[Argoo]

The fact that the price of gold falls against the backdrop of rising costs of bitcoins is quite logical and logical. The yield of bitkoyna this year exceeded 1500 percent. Such income does not give either gold, not one of the world's banks for deposits or other legitimate business activities. Therefore, people invest in bitcoin, and not in gold, as a result of which gold falls in value. While the bitcoin rate will grow rapidly, the gold rate will accordingly fall. This state of affairs will continue as long as bitkoyn more or less stabilizes in price, or its growth will not be so significant.