If FBI auctioned $18m of seized gold, would price of gold take a hit?

[RUEHL]

If FBI auctioned $18m of seized gold, would price of gold take a hit?

Hell no!

Then why Bitcoin?   Doesn't make sense... 

[1714609881]

1714609881

[1714609881]

1714609881

[1714609881]

1714609881

[Bit_Happy]

Bravo. I think the prices will be above market value, since people will not have to send funds to unregulated exchanges outside of the USA.
They are sealed (blind) bids, will the actual sale prices even be revealed at all later?

[bananas]

Bravo. I think the prices will be above market value, since people will not have to send funds to unregulated exchanges outside of the USA.
They are sealed (blind) bids, will the actual sale prices even be revealed at all later?

I think it has to be made public, like all governement things. It is probably sealed just for the auction purpose, and then it is public information.

[Cicero2.0]

I think it is kind of a different market though. With gold it is pure supply and demand so I would think the price would go down more dramatically. With bit coin it is different depending on whether or not it goes through the exchanges isn't it?

[OROBTC]

...

$18 million of gold is less than half a metric tonne.  Peanuts.  Not a price blip at all.  For now.

In round numbers, current prices:

($1277 / toz Au) * (32.15 toz / kg) * 1000 kg / metric tonne) = $41,055,000 / metric tonne

$18 mln / $45.1 mln = 44% of a metric tonne.

***

Yes, you can buy that all at once (physical Au) if you have the money.

***

More gold information here:

"Gold: Basic Facts for the 99%"

http://goo.gl/i3GESl

[beatljuice]

Market cap of gold = 6,647,834,263,217

Market cap of Bitcoin = 7,521,163,339

To have the same effect as $18,000,000 does on Bitcoin you would have to sell $15,909,907,994 of gold.

[beatljuice]

Remember that Bitcoin is TINY! Its market cap is only slightly over 1% of Apple and that's just one company (granted the highest valued company there is). When you understand this is when Bitcoin gets really exciting.

EDIT: Really exciting from an investment perspective. There are many other reasons to be excited about Bitcoin also.

[NEM minnow]

Remember that Bitcoin is TINY! Its market cap is only slightly over 1% of Apple and that's just one company (granted the highest valued company there is). When you understand this is when Bitcoin gets really exciting.

EDIT: Really exciting from an investment perspective. There are many other reasons to be excited about Bitcoin also.

This is soooo true.  It is exciting from an investment perspective because we know if it gets big it has room to grow 100 times or even 1000 times bigger.  That being said, it is also so comparatively small, that another tech could displace it.