[2019-01-28] VAN ECK: BITCOIN INVESTORS ALSO INVESTING IN GOLD

[ruthbabe]

Gold has always been a hedge against other markets in times of financial uncertainty.

During the Bitcoin (BTC) bull run on 2017, however, gold saw some of its investors flock into the first and foremost cryptocurrency in search of massive gains. Now, some of those investors are reportedly switching back. Van Eck explained on CNBC’s “ETF Edge” last week:

"I do think that Bitcoin pulled a little bit of demand away from gold last year, in 2017. Interestingly, we just polled 4,000 bitcoin investors and their number one investment for 2019 is actually gold. So gold lost to bitcoin and now it’s going the other way."

This isn’t particularly shocking, as traders and speculators are wont to go where they anticipate making a profit. With the markets looking shaky this tax season, it has already become clear that many are moving their wealth into precious metals.

That said, there remains significant overlap in those who actually ‘invest’ in Bitcoin and those who actually ‘invest’ precious metals. Though the former is new and the latter is ancient, both currently maintain a position as a hedge against (or alternative to) fiat currencies and attract investors who have little faith in central bank-issued paper and/or the governments that borrow it.

Investors are likely flocking to precious metals as the charts seemingly suggest that a generational bottom may be in — especially for something like silver, which has been in a bear market for a prolonged period of time but appears to be on the verge of a monthly breakout.

Meanwhile, many in the cryptocurrency space believe that Bitcoin is near its bottom, which may be reached in the first half of 2019. Should this happen, it might not be much of a surprise to see more speculators flood back into the fast-moving digital asset.

Source:  BITCOINIST

[Slow death]

"I do think that Bitcoin pulled a little bit of demand away from gold last year, in 2017. Interestingly, we just polled 4,000 bitcoin investors and their number one investment for 2019 is actually gold. So gold lost to bitcoin and now it’s going the other way."

people are looking to make a profit with little risk of losing money, so it's understandable that after they've seen a drop of $20,000 to $ 3000 they also invest in gold and other things. No one forces people to invest in bitcoin and we should not be making comparisons between gold and bitcoin

With the markets looking shaky this tax season, it has already become clear that many are moving their wealth into precious metals.

I wonder what the next months will be like, because I only see a price drop.

[BitHodler]

Pulling 4000 Bitcoin investors? In other words, ordering investors to shift focus to an asset with more short term potential, and there is some momentum going for gold so it doesn't really surprise me.

It however does mean that whenever an ETF gets approved, there is an instant flow of demand for that product with how there is a lot of money to be made with such a bullish addition to an illiquid market.

I wonder what the next months will be like, because I only see a price drop.

Nothing at this point indicates a trend reversal, so it's going to be a lot of sideways action, or more downward action. If I'm not mistaken, we're currently going through the longest ever bear market (assuming the bottom isn't in yet).

[Kemarit]

Obviously, investors love to shift around their money to make more money. So we can attribute the boom last 2017 to some gold investors moving their funds into the ecosystem and then get out book their profits. Maybe a few stayed but I'm sure majority chooses to get out with the price hits $10,000 and go back to Gold or even real state. Will they go back when there's a bull run again? Absolutely, they're not just investors, but smart one who have been in this whole investing scheme and really know how to play the game.

[1Referee]

Pulling 4000 Bitcoin investors? In other words, ordering investors to shift focus to an asset with more short term potential, and there is some momentum going for gold so it doesn't really surprise me.

It's quite interesting how he stated that 'we pulled 4000 investors'. It may very well have been one of the main reasons the price tanked from $6000 to $3000 considering how much weight these very likely institutional traders bring with them. The moment they understood that the SEC wasn't going to approve it, they unloaded their bags and went back to Gold.

Institutions always look for a reason to dump when they want to get out, and the drama around the BCash hashwar was the perfect opportunity.

Obviously, it's pure speculation, but it could partly explain the brutal decline with how everything happened within a very small time frame. Either way, if they really pulled investors from Bitcoin, they'll be back whenever they see there is more to gain from Bitcoin than Gold.

[elda34b]

Pulling 4000 Bitcoin investors? In other words, ordering investors to shift focus to an asset with more short term potential, and there is some momentum going for gold so it doesn't really surprise me.

It's quite interesting how he stated that 'we pulled 4000 investors'.

Eh guys, where did you read that? I only saw "we polled 4000 investors" = we asked 4000 investors about their investment choice.

Anyway, Van Eck just re-submit their ETF application according to many sources. I wonder will this cause another swing in the near future, but it's clear that the average joe is not interested in Bitcoin because there is no momentum for it to go higher for now.

[1Referee]

Eh guys, where did you read that? I only saw "we polled 4000 investors" = we asked 4000 investors about their investment choice.

I assumed that was a typo considering how Jan Van Eck's pronunciation of pulled and polled are quite similar.

https://www.youtube.com/watch?v=ufxIk_yyQFA skip to 05:20

He first said that he thought that Bitcoin pulled a little bit of demand away from Gold in 2017, then said that we pulled or polled 4000 Bitcoin investors, and that their nr 1 investment for 2019 is Gold.

Either way, thanks for pointing out.

Anyway, Van Eck just re-submit their ETF application according to many sources. I wonder will this cause another swing in the near future, but it's clear that the average joe is not interested in Bitcoin because there is no momentum for it to go higher for now.

That was extremely fast. I seriously believed that they would wait for more legacy infrastructure to be built around Bitcoin before they would attempt another application, because that would make way more sense.

[Pab]

I see yet another post that bitcoin investors are moving to gold
I don't agree .Gold is just a gold now Fed is pausing rates increase so price of gold is going a little higher
In a case of bitcoin wait for Fidelity launch platform what is done for big investors
Did you read article about Fidelity launch in March

 Financial services provider Fidelity, which has some $7.2 trillion in client assets under management, said Thursday that its anticipated crypto trading and custody platform is in its “final testing” phase.

The company noted in a blog post late Thursday that it had on-boarded “a select set of eligible clients” already, while it worked on building Fidelity Digital Asset Services (FDAS). Fidelity first announced it would be launching a digital asset service last October

https://www.coindesk.com/fidelity-in-final-testing-period-for-crypto-platform


Big investors want to have secure platform to trade and store his digital currencies
Where they can trade now on Binance or Coinbase Fidelity will be biggest market for crypto

[timerland]

That said, there remains significant overlap in those who actually ‘invest’ in Bitcoin and those who actually ‘invest’ precious metals. Though the former is new and the latter is ancient, both currently maintain a position as a hedge against (or alternative to) fiat currencies and attract investors who have little faith in central bank-issued paper and/or the governments that borrow it.

Investors are likely flocking to precious metals as the charts seemingly suggest that a generational bottom may be in — especially for something like silver, which has been in a bear market for a prolonged period of time but appears to be on the verge of a monthly breakout.

I can't believe that they actually bothered writing up an entire article just about this.

Honestly, it's common sense. Gold and silver have a lot of the monetary properties that makes it a good hedge against fiat currencies, much like what bitcoin offers. Bitcoin just offers a lot more in terms of transaction capability, global transactions, divisibility and portability in general. That's why you see that people who see precious metals as long term investments often have investments in bitcoin as well.

But their findings of people's number one investment choice in 2019 being gold is pretty surprising. In this bitcoin bear market, I think the best decision is to buy bitcoin as it nears the bottom. Even though gold and silver may have a good year, I still think that bitcoin will continue to take away from their investor base as bitcoin as a store of value becomes more and more popular in the long run.

[btyco]

There is a lot of economic uncertainty in europe due to the uk brexit and the debts building up in italy. Traditionally investors flock to gold so it's not a surprise, but they will regret when bitcoin start to pump

[coinmundial]

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[Naida_BR]

They saw a huge opportunity of making a profit and they switched from gold to bitcoin this is normal.
Bitcoin would give them a good rate of making bigger profits in a short term period rather than keeping their money in commodities like gold, where the rates are low due to the low risk of this investment.