Gold:Bitcoin (Price Ratio)

[OROBTC]

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As a fan of both Bitcoin and gold, one indicator I often observe is the gold price to Bitcoin price.

https://ounce.me/ currently (12:37 AM, US ET) has the ratio at 4.757 (4.757 BTC to buy a troy ounce of gold).

I have bought gold with BTC three times, alas I was "lucky" (buying a tiny amount of gold at some 3:1, high BTC price).  Lately I bought a bit more at some 4.89, the first time I had seen BTC relatively strong vs. gold.

I cannot draw any conclusions yet as to when is a good time to accumulate more Bitcoin (at a low price I hope) vs. when to USE some of that BTC to buy gold (when BTC is relatively high vs. gold).

But, I am watching, watching, watching...

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[Monnt]

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As a fan of both Bitcoin and gold, one indicator I often observe is the gold price to Bitcoin price.

https://ounce.me/ currently (12:37 AM, US ET) has the ratio at 4.757 (4.757 BTC to buy a troy ounce of gold).

I have bought gold with BTC three times, alas I was "lucky" (buying a tiny amount of gold at some 3:1, high BTC price).  Lately I bought a bit more at some 4.89, the first time I had seen BTC relatively strong vs. gold.

I cannot draw any conclusions yet as to when is a good time to accumulate more Bitcoin (at a low price I hope) vs. when to USE some of that BTC to buy gold (when BTC is relatively high vs. gold).

But, I am watching, watching, watching...

Hope fully it can drop under 1.

Which website did you use to purchase gold with btc?

[OROBTC]

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I have bought from amagimetals.com as well as providentmetals.com.  I prefer Provident, as their shipping time was much quicker than the time I bought from Amagi.

I have an order en route from Provident even now, maybe Monday...  

On the other hand, Provident does not have any platinum (Pt American Eagles, which I greatly prefer) in stock now, whereas Amagi DOES.  It took some two weeks, but I did get my Pt coin from Amagi.

Even though I like platinum as well (great diversification in precious metals, Pt is used by industry), I have not kept track of THAT ratio (it would likely highly correlate to gold:BTC).  Platinum is currently selling for a small (roughly 2%) discount to gold.  That is relatively rare.  Historically, that means platinum is a good buy now...

[Monnt]

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I have bought from amagimetals.com as well as providentmetals.com.  I prefer Provident, as their shipping time was much quicker than the time I bought from Amagi.

I have an order en route from Provident even now, maybe Monday...  

On the other hand, Provident does not have any platinum (Pt American Eagles, which I greatly prefer) in stock now, whereas Amagi DOES.  It took some two weeks, but I did get my Pt coin from Amagi.

Even though I like platinum as well (great diversification in precious metals, Pt is used by industry), I have not kept track of THAT ratio (it would likely highly correlate to gold:BTC).  Platinum is currently selling for a small (roughly 2%) discount to gold.  That is relatively rare.  Historically, that means platinum is a good buy now...

Have you tried agora commodities?

[OROBTC]

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I am aware of them, but have not bought yet from them.  IIRC, they have a nice & slick website.  Perhaps I should give them a try.  Especially if they have platinum in stock.

Have you bought from them?  If so, how was your experience? 

Are they related to the Agora publishing group ("The Daily Reckoning", etc.)?

[Monnt]

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I am aware of them, but have not bought yet from them.  IIRC, they have a nice & slick website.  Perhaps I should give them a try.  Especially if they have platinum in stock.

Have you bought from them?  If so, how was your experience? 

Are they related to the Agora publishing group ("The Daily Reckoning", etc.)?

Nope. I don't think so.

I haven't actually bought from them, but have emailed them and seems pretty legit.

They have their own thread too. Just search them up. Their account is a Sr Member one too. Pretty trusted guy.

[Q7]

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As a fan of both Bitcoin and gold, one indicator I often observe is the gold price to Bitcoin price.

https://ounce.me/ currently (12:37 AM, US ET) has the ratio at 4.757 (4.757 BTC to buy a troy ounce of gold).

I have bought gold with BTC three times, alas I was "lucky" (buying a tiny amount of gold at some 3:1, high BTC price).  Lately I bought a bit more at some 4.89, the first time I had seen BTC relatively strong vs. gold.

I cannot draw any conclusions yet as to when is a good time to accumulate more Bitcoin (at a low price I hope) vs. when to USE some of that BTC to buy gold (when BTC is relatively high vs. gold).

But, I am watching, watching, watching...

Hope fully it can drop under 1.

Which website did you use to purchase gold with btc?

It's either gold price going down considerably or bitcoin price moving up. More likely the latter. However I imagine 2.0 figure to be a more realistic target assuming that gold price stays the same.

[Monnt]

...

As a fan of both Bitcoin and gold, one indicator I often observe is the gold price to Bitcoin price.

https://ounce.me/ currently (12:37 AM, US ET) has the ratio at 4.757 (4.757 BTC to buy a troy ounce of gold).

I have bought gold with BTC three times, alas I was "lucky" (buying a tiny amount of gold at some 3:1, high BTC price).  Lately I bought a bit more at some 4.89, the first time I had seen BTC relatively strong vs. gold.

I cannot draw any conclusions yet as to when is a good time to accumulate more Bitcoin (at a low price I hope) vs. when to USE some of that BTC to buy gold (when BTC is relatively high vs. gold).

But, I am watching, watching, watching...

Hope fully it can drop under 1.

Which website did you use to purchase gold with btc?

It's either gold price going down considerably or bitcoin price moving up. More likely the latter. However I imagine 2.0 figure to be a more realistic target assuming that gold price stays the same.

I was hoping that bitcoins can rise to an incredible price, not gold dropping to 0 lol.

[tabnloz]

The decision to purchase gold with btc works best when you are bearish on bitcoin.

I'd say there is more of an upside to bitcoin due to its volatility, speculative nature and lengthy bear market (supposing it ends soon). Comparatively gold has an all time high of approx $1800; a 50% rise from current price. Bitcoin has a ath of approx $1100, around 5x its current price.

There are plenty of scenarios whereby gold takes off: sovereign debt default, increased weighting in SDR basket, fiat uncertainty / de-dollarization, court proven manipulation  etc etc. A mid term estimate might be 5-7000 per ounce. In a troubled economic environment (like that which would initiate this) will bitcoin react upwards? If not, then gold is the best / safest bet, but I think bitcoin will absorb some of golds SoV hedge due to its ability to electronic nature etc. It might then be a chance to stack a hefty amount of gold very cheaply compared to today.

[Monnt]

The decision to purchase gold with btc works best when you are bearish on bitcoin.

I'd say there is more of an upside to bitcoin due to its volatility, speculative nature and lengthy bear market (supposing it ends soon). Comparatively gold has an all time high of approx $1800; a 50% rise from current price. Bitcoin has a ath of approx $1100, around 5x its current price.

There are plenty of scenarios whereby gold takes off: sovereign debt default, increased weighting in SDR basket, fiat uncertainty / de-dollarization, court proven manipulation  etc etc. A mid term estimate might be 5-7000 per ounce. In a troubled economic environment (like that which would initiate this) will bitcoin react upwards? If not, then gold is the best / safest bet, but I think bitcoin will absorb some of golds SoV hedge due to its ability to electronic nature etc. It might then be a chance to stack a hefty amount of gold very cheaply compared to today.

Sometimes I guess you just get bored holding so much bitcoins and want something else.

Sometimes you might want long term financial security, since bitcoins has no guarantee of value.

[stonerider]

Gold is a good hedge against inflation. The way things are going, inflation is going to rear its ugly head. And you're supposed to put some % of your investmennts in precious metals, like %33.

[OROBTC]

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I received my latest gold order from Provident today, everything OK, and I even "tested" the coin ("ring" test, OD, and weight).

The "ring" test is carefully balancing a 1 oz Gold Eagle on your fingertip, and lightly striking it to hear the very nice ring.  The Eagle (22 kt, has 1 toz of gold and a little copper and silver to make it tougher) has a very nice & distinct ring, the (24 kt) Buffalo has a very weak ring. 

TUNGSTEN does not even have a "ring", only a dull thud sound.

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I note that BTC is over $270 as of my writing (so ratio of Au:BTC is about 4.42).  Maybe I should have waited another week before buying gold from Provident...

But, it really does not matter.  BOTH BTC and gold are alternatives to the USD.  I have (and will HODL) both.

Au:BTC ratio can be found at: ounce.me  <=== Very handy!

[OROBTC]

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Monnt

I went and looked at Agora Commodities, but they have changed their name to "veldtgold.com":

veldtgold.com

They seem to be US-based.  They accept (and encourage!) Bitcoin as payment.  They also sell platinum.  At some point I will get in touch with them.

But, Provident is tough to beat.  Provident is part of Elemetal LLC, the same company owns Ohio Precious Metals ("OPM"), the USA's largest refiner of gold. 

Provident sells OPM kilo gold bars, pant, pant, pant...  All Ohio Precious Metals bars are RECYCLED (from jewelry, etc.), they make it very clear that they do not buy "conflict gold".

[afbitcoins]

This is a nice thread, same as me I'm also interested in gold and bitcoin ratio. Heres a look at my latest ratio chart



From a glance it looks very similar to the price chart of bitcoin measured in US$ but this is measured in ounces of gold. Currently bitcoin is gaining in value and broken up from some resistance. Will it reverse where i have marked top of channel ?

Personally i'm in a dilemma to swap gold back to bitcoin..? do it now or wait for possible better value ie lower ratio in the future ?

[OROBTC]

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NICE GRAPH afbitcoins! 

(Note: I do not "do" TA (technical analysis) so can offer no opinion on what predictive power ANY chart has re the future.)

If I had to guess, I would expect to see "fairly good" correlation between price of BTC and price of gold (both in dollars) as time marches on.  If you have the price data of both in MS Excel, then you could run the correlation coefficient routine (price in $ of both), I would think that you would get a 0.75 - 0.85 or so, "pretty good" by social sciences standards.

I will go take a look at your blog.  Looks interesting!

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I mention this in other threads, but it also seems to be worth noting here as well.  BOTH gold and BTC are assets, and further, are assets that most people do not own.

They also have different "fundamentals" (price dynamics) from each other.

Sooo, that means buy and hodl both (as your financial and perhaps other circumstances permit).  EVERYONE who can should own at least a small amount of gold.  Anyone HERE at bitcointalk should likewise own at least a little BTC.  How much of each?  Ahh...

If anyone travels, especially if their home country and travel destinations have outlets that accept BTC, you can carry A LOT of wealth in that little Ledger Nano...  Never know, having a few hundred (or thousands) of dollars worth of BTC might come in handy.  And our amigos at TSA can't take it away, the Ledger Nano probably would not even show up on the machines...

[Monnt]

I'm not investing in bitcoins, just using it as a day-to-day payment gateway.

You can't really spend gold directly though, that's the problem.