Gold Price Prediction & its impact on cryptocurrencies

[bits4books]

I still think that classic investors will not touch cryptocurrencies if they choose between them and gold simply because gold is valuable in itself, while the price of btc depends only on the demand for it and its popularity (and speculation).

That's where most of gold's value is derived from too. Only a very small part of gold's market (~10%) can be attributed to actual industrial or medical uses, what you might consider inelastic demand. It's mostly used for value storage, jewelry (which largely falls under value storage), and speculation.

Every thing is valued based on demand and supply, silver could have been more valuable than gold if most of people demands a lot of silver than gold, but the only thing is gold is more rare than silver. It is same with bitcoin, the difference is that its core pricing is speculation. If bitcoin would be adopted in the future, the price of it will skyrocket as people will choose to have it for convenient in  paying online.

Even if you imagine an apocalyptic version of the development of history, you will be able to pay with gold at least somehow but not with btc (unfortunately)

Maybe right now, but 2-3 decades from now? I'm not sure. Before long, apocalyptic versions of history will include peer-to-peer mesh networks and other technologies that will sustain Bitcoin.

The time is running, world is progressing, and you can't predict the future. All that happens now will just be a history.

My position is that gold (and any other precious metal) is valuable in itself, not only because they were chosen long ago as a material for minting coins.
Any precious metal has quite a practical application. You can find it in any kind of electronics. This is a physical object that has many different purposes and hence its usefulness.
BTC (let's be honest) exists OUTSIDE of the real world and it has no other application other than the conventional acceptance of it as the equivalent of the price. That's what I'm talking about.

[bits4books]

I still think that classic investors will not touch cryptocurrencies if they choose between them and gold simply because gold is valuable in itself, while the price of btc depends only on the demand for it and its popularity (and speculation).

That's where most of gold's value is derived from too. Only a very small part of gold's market (~10%) can be attributed to actual industrial or medical uses, what you might consider inelastic demand. It's mostly used for value storage, jewelry (which largely falls under value storage), and speculation.

Even if you imagine an apocalyptic version of the development of history, you will be able to pay with gold at least somehow but not with btc (unfortunately)

Maybe right now, but 2-3 decades from now? I'm not sure. Before long, apocalyptic versions of history will include peer-to-peer mesh networks and other technologies that will sustain Bitcoin.

Have you ever wondered why metals are used for savings? Yes, because it is a PHYSICAL object with which nothing will happen and which is independent of electricity, the Internet and the blockchain.

In this scenario, people will not be able to raise networks to support the use of cryptocurrencies as much as possible. Even if you recall one of the popular games on this topic - Fallout - then there are used as money caps from Cola, and not some electronic money (despite wide usage of electricity). Providing a communication system and the Internet in the case of post apocalypse is the most non-trivial and rather useless task in terms of survival.

[carlisle1]

Gold and other minerals are being consumed and probably, only a few will left that's the reason why the gold prices will become profitable soon.

Though there might be other Gold mining places in existence the problem is those are not being founded and maybe not in the near future so
yeah Gold will grow in value sooner,Like what bitcoin will be
in the next years to come.

Every day, gold is one of the resources that are being consumed in electronic products, jewelry, and medicines so there's a chance that it'll outplay cryptocurrency's value soon.

The demand of Gold is increasing day by day but i believe Bitcoin also has the same though because this is a Volatile
 market it has been played by Whales.

But I guess this gold is nothing to do with cryptocurrency since they have different features and purposes so it will cause less impact on crypto. Both of them have potential in the market but the only difference, gold is less risky than cryptocurrency.

That is what exactly the fact,why they are both being compared when the truth is they have own market and own believers .

[jaysabi]

Putting Bitcoin as a safe investment along with gold and silver is laughable. Things that routinely fluctuate 10% or 20% in a day are not safe havens to store wealth.  Gold has thousands of years of history as a (relatively) stable store of value, but bitcoin has barely a decade and it's rife with horrific crashes. There's no way you can make a credible argument that something that volatile can be a safe haven.

Agreed, but I do think Bitcoin's monetary policy lends itself to being a store of value. It just can't be done overnight. This volatile price discovery is theoretically just part of the early adopter phase, for the same reason startup penny stocks can be so volatile. Investors are speculating on a rather binary situation: mass adoption (or capturing major market share)......or failure.

If the first scenario plays out, I could see price plateauing an order of magnitude or two higher than now, with volatility gradually declining as the speculative nature of Bitcoin becomes fully priced in over time.

Gold is still considered a rather volatile asset, easily fluctuating 1-5% in a day (it fell 6% in a day last month). I could see BTC eventually occupying a similar store of value niche and degree of volatility to gold, or certainly silver. It might take decades to get there, and maybe I won't live to see it.

In theory, the artificial scarcity should help rather than hurt the price, but there are a couple of caveats to consider.  For one, plenty of things are scarce and not valuable, so scarcity itself doesn't equal an ability to be valuable or hold value.  Value has to come from somewhere else, like utility.  On that front, there are plenty of cryptos that are more useful than Bitcoin (faster, cheaper, etc.).  Pretty much the only thing Bitcoin has going for it is first mover advantage and inertia.  I don't see Bitcoin ever reaching the kind of mass adoption you're envisioning because on just about every functional utility criteria you can measure it against, there's another crypto that does it better.  For these reasons, I never see Bitcoin entering a phase of price stability necessary for it to be a long term store of value.

[jaysabi]

Lots of articles that show Gold price prediction performance, and like the prediction in the opening post it shows that Gold really is
good as a safe investment. That's why big investors like Warren Buffet finally decided to buy Gold. This has become strong evidence
that Gold is indeed a safe investment. And some of the articles I read show Gold is getting popular  in 2020. In my opinion Bitcoin
and land property are another safe investment alternative besides Gold.

You're misreading the situation.  Warren Buffet hasn't bought gold.  Warren Buffet has a long history of speaking on the record of what he thinks of gold as an investment, and he thinks it's trash.  Buffet bought a stake in a gold mining company.  He's not interested in the gold they produce, he's interested in the cash flow the mining operations produce because he feels the business is undervalued based on the fundamentals of the business.

Buffet is a value investor. He buys businesses that produce cash flow when the current value of the business is lower than the expected future cash flows the business will generate. Since bitcoin and gold are not a business and do not produce cash flow, Buffet isn't interested in trying to value them and it's the reason he will never own them.

[pokeronlinestatus]

I am not entirely sure if the world is moving towards something better for us or better for richer wealthy people which does really have an impact on gold and crypto. First of all the super wealthy will not care about crypto if there is even a bigger wealth gap, I mean cartoon levels of gap, so that is gone, gold is something they already deal with and they will try to get all of it obviously but after a while there will be none left, all will be in their vaults.

So, that means as long as capitalism continues to hurt the poor people and let them to die and just tells them to keep grinding (like that works, people have 3 jobs to survive, do not tell them to grind) and meanwhile steal money from the poor via legal means we will not really see neither gold nor crypto to go super high after a while, eventually they will stop.

[verita1]

I don't think the price of gold influences the price of Bitcoin.
Both act due to the supply and demand of the market. It is interesting how Bitcoin has been compared to a currency, a commodity in relation to gold. What makes us show that Bitcoin is of interest to investors due to the benefits that are obtained when making their transactions.

https://www.google.com/amp/s/cointelegraph.com/news/new-data-suggests-bitcoin-and-gold-arent-as-correlated-as-you-think/amp

[2double0]

<<>>

are you sure the price of gold will break $ 321.54 / gram and how will it affect the crypto backed-gold currencies like GOLD stable coin

give your opinion

When a cryptocurrency is backed by Gold, I think that it should be worth the same price which Gold have/will have in the future. And to reach that price, gold will need too much money to be poured in it by the investors to let it take off. Instead, I see it going inverse and getting crashed a bit. The aggregate value of gold is much less compared to what we see in the markets, but the demand after covid-19 surged for gold and that is the only source for Gold to remain high.

[tvplus006]

Have you ever wondered why metals are used for savings? Yes, because it is a PHYSICAL object with which nothing will happen and which is independent of electricity, the Internet and the blockchain.
...

Traders who invest in gold are no longer dealing with a physical object. For such investors, gold has long been a digital currency, which is expressed in numbers on the monitor screen. Although everyone understands that this digital asset cannot be exchanged for physical gold.

[Mauser]

Have you ever wondered why metals are used for savings? Yes, because it is a PHYSICAL object with which nothing will happen and which is independent of electricity, the Internet and the blockchain.
...

Traders who invest in gold are no longer dealing with a physical object. For such investors, gold has long been a digital currency, which is expressed in numbers on the monitor screen. Although everyone understands that this digital asset cannot be exchanged for physical gold.

That is not always the case, I know some friends of my parents who are older and they all store real gold at a deposit in a bank. Among the elderly population it's pretty common to invest in physical gold, they just don't trust financial derivatives that mirror the gold price. In my opinion the motivation to buy gold is very similar to buy cryptos. Investors want security which they can't find in the traditional assets like stocks and bonds.

[South Park]

I just read about the prediction that the price of gold will go to the moon

World gold is predicted to fly to US $ 10,000 / troy ounce, by Dan Olivier, founder of Myrmikan Capital. This is a New York-based fund management company focused on gold research (Myrmikan Research) and fund manager Myrmikan Gold Fund.

Referring to the rules in the market, one troy ounce is equivalent to 31.1 grams, so the amount of US $ 10,000 per troy ounce projected by Dan Oliver, then converted by dividing the number by 31.1 grams, the result is the US $ 321.54 / gram

the price of Gold for the past few years
snip

are you sure the price of gold will break $ 321.54 / gram and how will it affect the crypto backed-gold currencies like GOLD stable coin

give your opinion

Over the long term the price of gold should always go up, after all even if gold is mined every year the rate at which this happens is lower than the rate at which governments print their fiat currencies, however the speed at which this happens is very slow compared to bitcoin so anyone thinking about investing in gold should think about doing so over at least a decade and even that amount of time could not be enough to see any results if paper assets perform well during that time.

[AnonBitCoiner]

<<>>

are you sure the price of gold will break $ 321.54 / gram and how will it affect the crypto backed-gold currencies like GOLD stable coin

give your opinion

When a cryptocurrency is backed by Gold, I think that it should be worth the same price which Gold have/will have in the future. And to reach that price, gold will need too much money to be poured in it by the investors to let it take off. Instead, I see it going inverse and getting crashed a bit. The aggregate value of gold is much less compared to what we see in the markets, but the demand after covid-19 surged for gold and that is the only source for Gold to remain high.

In this corona,some hidden money had play a vital role.And it's one of the cause of the rise of demand of the gold.Secondly many marriages was get into action and increase the demand of gold in the market.The gold merchant made a statement of,the demand is high and we can't get gold to corona.Like this the price of gold reached the new high price.

[bits4books]

Have you ever wondered why metals are used for savings? Yes, because it is a PHYSICAL object with which nothing will happen and which is independent of electricity, the Internet and the blockchain.
...

Traders who invest in gold are no longer dealing with a physical object. For such investors, gold has long been a digital currency, which is expressed in numbers on the monitor screen. Although everyone understands that this digital asset cannot be exchanged for physical gold.

That is not always the case, I know some friends of my parents who are older and they all store real gold at a deposit in a bank. Among the elderly population it's pretty common to invest in physical gold, they just don't trust financial derivatives that mirror the gold price. In my opinion the motivation to buy gold is very similar to buy cryptos. Investors want security which they can't find in the traditional assets like stocks and bonds.

So this is not surprising. I would buy physical gold myself if I didn't constantly ride around the cities of my country - it's just physically more pleasant to have metal bars at home than some numbers on a metal account/in cryptocurrency. In addition, in the case of any global financial crisis I will be able use this gold either for direct payment (since gold is a soft metal and it will not be difficult for me to divide it into the number of parts I need) or as technical assistance for something (less likely outcome of events, but still).

Physical gold - for those who are in no hurry and have a permanent home. And as we know, a person's home is his fortress (which I myself am gradually striving for).

[bits4books]

Have you ever wondered why metals are used for savings? Yes, because it is a PHYSICAL object with which nothing will happen and which is independent of electricity, the Internet and the blockchain.
...

Traders who invest in gold are no longer dealing with a physical object. For such investors, gold has long been a digital currency, which is expressed in numbers on the monitor screen. Although everyone understands that this digital asset cannot be exchanged for physical gold.

It makes me a little sad, to be honest. Even the precious metal that laid the Foundation for stable economic relations "goods-money-goods" turned into bytes of information and nothing more. I certainly understand that this is progress and so much more convenient (in General) but still somehow it's a shame that even such things are digitalized.
I may be wrong, but I think some things should be left unchanged.

[peter0425]

<<>>

are you sure the price of gold will break $ 321.54 / gram and how will it affect the crypto backed-gold currencies like GOLD stable coin

give your opinion

When a cryptocurrency is backed by Gold, I think that it should be worth the same price which Gold have/will have in the future. And to reach that price, gold will need too much money to be poured in it by the investors to let it take off. Instead, I see it going inverse and getting crashed a bit. The aggregate value of gold is much less compared to what we see in the markets, but the demand after covid-19 surged for gold and that is the only source for Gold to remain high.

In this corona,some hidden money had play a vital role.And it's one of the cause of the rise of demand of the gold.Secondly many marriages was get into action and increase the demand of gold in the market.The gold merchant made a statement of,the demand is high and we can't get gold to corona.Like this the price of gold reached the new high price.

What Hidden money are you talking about here mate?who has the hidden money and how did they affect the crypto market?
and many marriage happens?people has no money now so why need to prioritize marriage when they need Money to survive?
i don't think your idea is appropriate in this thread,No offense.


Gold has its own market same as Crypto so it is irrelevant to compare them both.

[bryant.coleman]

In this corona,some hidden money had play a vital role.And it's one of the cause of the rise of demand of the gold.Secondly many marriages was get into action and increase the demand of gold in the market.The gold merchant made a statement of,the demand is high and we can't get gold to corona.Like this the price of gold reached the new high price.

Lol.. what is the relation between the number of marriages and gold price? Even if there is some relation, how can you claim that the number of marriages are increasing now? At this time, the number of marriages should actually go down, due to lockdowns and other restrictions. So if your theory is correctm then the gold prices should decline now, right?

[tvplus006]

It makes me a little sad, to be honest. Even the precious metal that laid the Foundation for stable economic relations "goods-money-goods" turned into bytes of information and nothing more. I certainly understand that this is progress and so much more convenient (in General) but still somehow it's a shame that even such things are digitalized.
I may be wrong, but I think some things should be left unchanged.

This should not be a cause for frustration. For people like you, it is still possible to buy gold in Bank bars or jewelry. But you must remember that such purchases become profitable only for the long term. Otherwise, the Bank's commission will only bring a loss from such a purchase/sale of gold.

[Darkelf11]

This should not be a cause for frustration. For people like you, it is still possible to buy gold in Bank bars or jewelry. But you must remember that such purchases become profitable only for the long term. Otherwise, the Bank's commission will only bring a loss from such a purchase/sale of gold.

Profit, even if you hold your gold bars or gold jewelries is not assured, though it's not guaranteed, yes time really matter for commodity investments like gold, but it is not always assured, as you will remember, Musks is planning to mine gold on an asteroid, if that happened, the supply of gold on our planet will be enormous making a massive drop to it's value.

But if that didn't happened, expect gold's value to go higher as years pass.

[peterpanda]

Profit, even if you hold your gold bars or gold jewelries is not assured, though it's not guaranteed, yes time really matter for commodity investments like gold, but it is not always assured, as you will remember, Musks is planning to mine gold on an asteroid, if that happened, the supply of gold on our planet will be enormous making a massive drop to it's value.

But if that didn't happened, expect gold's value to go higher as years pass.

Gold had a significant value since time immemorial and I think it will continue to have value in the future.  Gold is one of the daily necessities of human life so we can expect gold price will be rising in the future.

[lixer]

If you’re referring to cryptocurrencies that are backed by gold, I don’t see the difference, because holding a cryptocurrency that is said to be backed by gold is the same as holding gold; the token that is being given to you as an investor is a like a receipt or proof to show that you own a share in whatever possession of gold the company holds. So, when the price of gold is going up these ones will go up as well. Unless you’re referring to other cryptocurrencies like Bitcoin.

Although Bitcoin has been said to have a correlation with gold, by some people who also call it digital gold, I don’t believe such thing because from what I have seen the both of them only show such correlation when there are crisis that generally affects the market.