Bitcoin and Gold price correlation - very surprising

[virtualmaster]

While the drops of the Bitcoin price in the last months surely have a lot of own reasons there is a surprising negative correlation between the Bitcoin and gold price changes.
Is it just a coincidence or does it have a plausible explanation that the gold price became higher as the Bitcoin price became lower ?
http://www.zerohedge.com/news/2014-02-16/bitcoin-greatly-rotating-bullion

[LiteCoinGuy]

i think there is no true correlation.

[gollum]

The smartest move bitcoiners could do was to buy 1 Oz of gold at with 1 BTC when the BTC was worth $1200$

[RodeoX]

The smartest move bitcoiners could do was to buy 1 Oz of gold at with 1 BTC when the BTC was worth $1200$

I guess that makes me 10 times smarter than the smartest move. 
Actually gold crashed a bit right after I bought, but it has since moved into the profit zone. I don't know about any correlation. It may take years to accumulate enough data to see. But there certainly is an inverse correlation with the stock markets. For me, gold is a stock market hedge.   

[cypherdoc]

I do

[gollum]

The smartest move bitcoiners could do was to buy 1 Oz of gold at with 1 BTC when the BTC was worth $1200$

I guess that makes me 10 times smarter than the smartest move.  
Actually gold crashed a bit right after I bought, but it has since moved into the profit zone. I don't know about any correlation. It may take years to accumulate enough data to see. But there certainly is an inverse correlation with the stock markets. For me, gold is a stock market hedge.  

Congrats!
I have been buying physical gold coins several times last two years, I believe gold has a rock solid double bottom now and should move back to AT LEAST $2000.

It's still not too late to buy gold with your bitcoins dear forum friends, for example at www.coinabul.com


All money that has printed since 2008 thanks to Bernanke's QE has chased assets like stocks and real estate, but if the stocks crash Im confident a huge portion of that capital will flow into gold instead and push gold between $5,000-10,000 which will be bubble territory. I think a fair price of gold is around $3,000-$5,000 given all money printing since 1971 (the year US dollar no longer was backed by gold)
http://en.wikipedia.org/wiki/Nixon_Shock

[traderCJ]

If one believes that Bitcoiners are good judges of gold movement, this makes perfect sense.  After all, it is incredibly easy to liquidate BTC -> gold.

[Adrian-x]

The smartest move bitcoiners could do was to buy 1 Oz of gold at with 1 BTC when the BTC was worth $1200$

true for now, I think that is what JP Morgan wants you to believe, they have been hitting Bitcoin hard.

[Adrian-x]

I do

... think there is a plausible explanation? I don't quite understand? 

[traderCJ]

The smartest move bitcoiners could do was to buy 1 Oz of gold at with 1 BTC when the BTC was worth $1200$

true for now, I think that is what JP Morgan wants you to believe, they have been hitting Bitcoin hard.

How so? You mean with press statements?

[knightcoin]

Thats what I am talking about ....

Casascius 1000 BTC Fine Gold Coin 
https://bitcointalk.org/index.php?topic=54845.0

 

[knightcoin]

I think now it should be

1kg (32.15 oz) Gold Bar loaded with 10 BTC lol

[chessnut]

The value of gold is driven by fundementals of the USD and stock market, while the value of bitcoin is driven by the fundementals of bitcoin.

even at similar prices, you simply cannot compare an asset that has grown 8000% in one year to another that has never seem more than 100%.

having said that, the effects of a stock market crash should cause a small correlation to gold, considering the scale of a stock market crash.

[Adrian-x]

The smartest move bitcoiners could do was to buy 1 Oz of gold at with 1 BTC when the BTC was worth $1200$

true for now, I think that is what JP Morgan wants you to believe, they have been hitting Bitcoin hard.

How so? You mean with press statements?

Well the win. if you sold Bitcoin at the top to buy gold at the bottom, is evident.
But JP Morgan have funded a published study dissing Bitcoin followed by negative media, and to top it off with a tinfoil hat there has been talk of a shorting Bitcoin in to crash the market buy investment traders in the know - followed by Gox fud and someone shorting 8000 odd XBT for a flash crash to $100.

It all looks too convenient for coincidence.

[av123]

The smartest move bitcoiners could do was to buy 1 Oz of gold at with 1 BTC when the BTC was worth $1200$

true for now, I think that is what JP Morgan wants you to believe, they have been hitting Bitcoin hard.

How so? You mean with press statements?

Well the win. if you sold Bitcoin at the top to buy gold at the bottom, is evident.
But JP Morgan have funded a published study dissing Bitcoin followed by negative media, and to top it off with a tinfoil hat there has been talk of a shorting Bitcoin in to crash the market buy investment traders in the know - followed by Gox fud and someone shorting 8000 odd XBT for a flash crash to $100.

It all looks too convenient for coincidence.

Would you agree that any flash crash would be short in duration? I also don't think JPMorgan Chase can affect the price of bitcoin for any lengthy period of time with FUD alone.

[RodeoX]

The smartest move bitcoiners could do was to buy 1 Oz of gold at with 1 BTC when the BTC was worth $1200$

I guess that makes me 10 times smarter than the smartest move.  
Actually gold crashed a bit right after I bought, but it has since moved into the profit zone. I don't know about any correlation. It may take years to accumulate enough data to see. But there certainly is an inverse correlation with the stock markets. For me, gold is a stock market hedge.  

Congrats!
...

Thanks, but it was not really my ability to predict th market. I have a hedging plan that I follow. It was just luck that I timed it right. 

[coincorrelation]

If you compare the correlation between bitcoin (BTC/USD rate) and gold (XAU/USD) rate at http://coincorrelation.com , it shows pretty much no relationship on the daily log returns for this year so far, so I'd say it was a coincidence in this instance.

http://coincorrelation.com/share/images/btc_correl_20140730.png
http://coincorrelation.com/share/images/btc_vs_gold_20140730.png