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Bitcoin Surges Over $900 As Gold Vulnerable Of Fall To $1,200/oz
Today’s AM fix was USD 1,272.25, EUR 942.13 and GBP 790.12 per ounce.
Yesterday’s AM fix was USD 1,283.50, EUR 950.04 and GBP 797.01 per ounce.
Gold fell $14.10 or 1.09% yesterday, closing at $1,273.70/oz. Silver slid $0.34 or 1.64% closing at $20.41/oz. Platinum dropped $30.50 or 2.1% to $1,406.99/oz, while palladium fell $15.47 or 2.1% to $714.83/oz.
Gold remains under pressure after the losses incurred yesterday. Gold has failed to rally despite Janet Yellen, the Federal Reserve's chief in waiting, indicating she would continue the U.S. central bank's ultra-easy monetary policy.

Gold in USD, 1 Year - (Bloomberg)
Gold prices look vulnerable to further price falls. Support is at the recent low of $1,261.42, followed by the $1,251.84 low from October 15th. A close below that mid October low could see gold fall to test the June lows of $1,180/oz.
Investor sentiment remains extremely bearish amid surging stock markets and a complete lack of awareness of real and growing risks - sovereign, monetary and systemic.
Speculators on the COMEX got less bullish on gold last week as hedge funds and banks doubled their short holdings. The net long position on the COMEX plunged 37% to 55,456 futures and options in the week ended November 12, U.S. Commodity Futures Trading Commission (CFTC) data show, the biggest drop since February. Short bets climbed to 54,143, the highest since mid August, from 26,490 a week earlier.
The world's largest gold exchange-traded fund, SPDR Gold Trust, said its holdings fell 1.2 tonnes to 864.51 tonnes on Monday - the fund's lowest since February 2009.
Physical demand, which usually tends to provide a floor for prices at lower levels, remained anaemic even after Monday's price drop. Demand has lately failed to pick up even below the $1,300 level as many bullion buyers had bought a lot of bullion when prices fell earlier in the year.
The Fed's $85 billion in monthly bond purchases are inflationary and remain very gold bullish but gold remains very weak despite this ongoing currency debasement.
This money printing and currency debasement and still elevated systemic risk has led to bitcoin surging to new record highs overnight as buyers take shelter in the new virtual currency. Yet, at the same time gold prices remain weak. This is giving further credence to allegations of price suppression.
The virtual currency rose to a high of $900.98 on the Mt. Gox exchange Monday afternoon. It surged 42% from Sunday's close and is up 107% from a week earlier.

Cross Currency Table - (Bloomberg)
Bitcoin was developed in 2009 and is a decentralized digital currency that enables low cost payments without the need for central authorities and issuers. Bitcoin is a peer-to-peer (P2P) currency system created in open source C++ programming code. Bitcoins can be accessed from anywhere in the world with an internet connection. Once a user has Bitcoins, they are stored in a digital wallet. Bitcoins can then be sent to anyone else who has a Bitcoin address.
U.S. law enforcement and regulatory agents expressed optimism and acknowledged risks for digital currencies. U.S. officials outlined the potential benefits and liabilities of bitcoin.
Federal Reserve Chairman Ben Bernanke said in a letter in absentia to the Senate panel that virtual currencies "may hold long-term promise, particularly if the innovations promote a faster, more secure, and more efficient payment system."
Bitcoin’s latest gains came despite the potential for regulation of the digital currency. The U.S. Senate Committee on Homeland Security and Governmental Affairs (HSGAC) began a hearing yesterday. The event brought representatives from different federal agencies and representatives from the bitcoin community to discuss virtual currencies.

Gold Prices/Fixes/Rates/Volumes - (Bloomberg)
Bitcoin has increased more than tenfold since the beginning of 2013. One of the reasons for the incredible surge is that bitcoin is a freely traded market and not subject to rigging or price manipulation by banks or government. Total market capitalization of bitcoins is in excess of $8 billion based on recent prices, according to Bitcoincharts.com.
The bitcoin frenzy today will be mirrored by a gold buying frenzy which will again see gold prices surge in value in the coming months. This will only happen when prices are again dictated by physical supply and demand.
Bitcoin is an interesting speculative punt and may merit a small allocation in a portfolio however its virtual and digital nature create advantages and also risks.
Physical gold, either in your possession or in allocated accounts, remains a far safer alternative both to bitcoin, to digital gold platforms and to paper and electronic currencies in what is still a vulnerable banking system.
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Bitcoin, the protocol cannot be manipulated (well unless the majority of nodes decide to go along with it).
Bitcoin, the currency can be manipulated relative to fiat in the near term.
Does that make more sense?
"As an unmuddied lake... As clear as an azure sky of deepest summer. You can rely on me..." -li'l Alex
No argument from me on your first sentence, but the second one is hardly as inconsequential as you are making it out to be; more like an Achilles heel.
Especially when 'near term' is just as subjective as 'long enough' to destroy it; with both of those timeframes serving the pleasures of any and all fiat issuers.
Do you think your govt is capable of shutting down/hacking/segregating the internet in your country?
I'm not advocating that my country's govt is awesome - just the opposite in fact - its a huge crime syndicate in partnership with Wall St and needs to be burned to the ground so we can rebuild starting with following the Constitution verbatim
I think national governments are capable of screwing up the internet for a certain period of time, sure. But they are going to cut their own throats in the process as well. Other countries would be very welcoming to these immigrants with their superior currency.
and when they tell business that if they accept BTC, they will be supporting terrorism so businesses will no longer accept them. If you think other countries won't oblige, wake up.
Your brain seems to be stuck in some 1950's comic where the US can go around and order what everyone around the world does. Let me know where these terrorist countries using Bitcoin are going to be so I can relocate now.
Again, nobody cares what the US does or does not do.
ETFs being considered. Reeks of the grubmint's desire to manipulate.
Bitcoin has become insanity.... just who is causing this price insanity? Looks almost a deliberate attempt to make bitcoin look like a joke.
Who is going to buy in to bitcoin with these peverse fluctuations... you could buy in at 750 and 5 seconds later it is 400. Thats a good way to gets some sleep.
So just what is the price discovery mechanism for bitcoin?
An as far as gold is concerned its intrinsict value in USD is the current price x 100 and probablya lot more, since if every ounce sold had to be covered with real physical its USD value would become exponential.
AND we know for certain that at some stage the US economy is going to blow up...since you cannot print $85bn per month.....have a $t1rn-plus budget deficit each and every year, no growth in GDP and a sick global economy with minimal growth.
AND the US will have to print increasing amounts to keep covering.....
The US needs to the global economy to recover.....however if it does recovers their currencies do as well then the USD starts look like the toilet paper it really is with no sick hookers to compete against.
If I had to take a guess, I would say the ASIC Mining manufacturers are suspect. They have tens of millions invested in new hardware they need to sell. Losing a few million buying and selling bitcoins at a loss in China to create buzz would probably be a very successful way to sell bitcoin mining hardware in China.
Who buys at this vbolitility? Gamblers.
The price discovery mechanism is via auctions where people post bid and ask prices. The market, however, is segmented, with big spreads between China and the rest of the world, within China itself, and between Mt. Gox and the other exchanges.
I think you gold bugs are looking at it wrong. If all trades on gold had to be full reserve and no derivatives, I bet the price of gold would be at least 50 times as volitile. Contracts settled in cash and other derivatives take the pressure off, preventing the wild swings we see in bitcoin.
As USD becomes gradually less important to the rest of the world, it will be easier for it to devalue against other currencies; once USD is worth a quarter of what it is now, America will be far more competitive. Slow changes over time are far less disruptive than a sudden shock.
"Who is going to buy in to bitcoin with these peverse fluctuations..."
People who realize that Bitcoin is going to seven figures and beyond, that's who.
seven figures? by what calculations?
The more these crooks print, the more they will throw at the pathetic short selling of paper gold, and the more in the shit they will take everyone. They should all be lined up and shot
This is a fascinating study in human psychology....I know intellectually that bitcoin is a bubble....in fact, pretty much EVERYTHING is a bubble....we are in the midst of the most preposterous monetary bubble in human. It matters not that they are borne of irrationality and literally altered states of mind....brain chemistry is a bitch. And yet here I sit, desperate for mtgox to verify my account so that I can "get rich quick". My stomach is churning, my chest feels heavy....I am addicted to bubbles. AND, when the bubbles crash, I become addicted to Zerohedge and Denninger and to all of the doom blogs. Wow....
I went through all of that shit in April. From what I can gather, in China, if you have a bank account you just transfer the money across to BTC China and buy. Not sure if you have to be chinese to buy but I have a chinese bank account. Took me ten minutes to set up. The US government is so far up its fat ass it can never get out again.
Any truth to the rumor the new James Bond movie will be called BitcoinFinger?
I cannot get Mtgox to finalize my verification. I want to buy tulip bulbs....errrrr....bit coins!!!!!!
How does one pay for their BTCs once they've been registered?
I have a few questions:
1. Why would the .gov allow a virtual currency that can be transferred at almost no cost anywhere in the world? Goodbye Western Union, Money Gram and all the other money transferers.
2. If this goes viral to the point of being able to use for everyday purchases at any and all stores, why would people ever keep FRN's in a bank again. Why would the .gov allow something that could possibly result in people taking all their FRN's out of the banks.
3. What happens if it gets hacked?
1. Because the globalists are in charge.
2. The banks are broke. People don't take their FRNs out of the bank; they transfer the money from their account to the account of the person selling them bitcoins. Digital money allows infinite leverage; much safer than people actually taking out paper bills at ATMs.
3. What gets hacked? If your wallet gets hacked, you just lost your money. Most likely, it will be your computer with some vulnerability, like the operating system, Java or Flash that will allow an attacker to take your wallet and log your password. If the bitcoin software gets hacked, it will get fixed and reverted back to the last known good state of the ledger, I'm sure.
Obvious questions with obvious answers.
I have a question too.... why do ZH readers keep thinking their government needs to "allow" something for it to be used? Does anyone remember a guy called Phil Zimmermann?
He's the guy who claims that encryption can be cracked with enough persistance by a resourceful [govT]:
Bitcoin @ 630 now; after having sunk to 540.
Gold: PBOC to ‘Basically’ End Normal Yuan Intervention, Zhou Says
Now we have a better insight into the recent record level Gold buying by China. Head of PBOC talks about currency flexibility and acceleration of yuan convertibility. All announced reforms are target to jump start the new phase of Chinese economic growth with Internal Consumption becoming the main driver. In this situation stronger yuan means stronger purchasing power in China, less US Treasuries buying (which is happening already) and higher commodity prices in US Dollar terms.http://sufiy.blogspot.co.uk/2013/11/gold-pboc-to-basically-end-normal-yu...
Bitcoin Rises Over $500 - Its Collapse Will Start The New Gold Leg Up
ZeroHedge reports another amazing development with Bitcoin. While Janet Yellen can not see "Any Bubbles Around" the cryptocurrency is in a parabolic rise and crossing $500 valuation now. Our take is that it is the classic Bubble Ponzi Scheme in the development now and the higher it goes the harder it will fall from the sky. It does not mean that you can not make money or that Bitcoin is bad, just be very careful comparing Tulips to Gold. Everybody who is cashing out their Bitcoins at these or higher levels can receive our congratulations. Everybody who is providing cash for this should be careful.http://sufiy.blogspot.co.uk/2013/11/bitcoin-rises-over-500-its-collapse....
What makes you think that, without capital controls, Yuan will be stronger and not weaker? Based on the spreads in bitcoin, it seems to me, people would be willing to part with a few hundred million dollars worth at 9 to 12 yuan to the USD.
Like Martin Armstrong said:
"The virtual dollar is coming. I would say after 2015.75 when the Fed has zero power and they will go electronic. So for now, bitcoin serves a purpose to get people use to the idea of a cashless society."
amd if you can read german:
http://deutsche-wirtschafts-nachrichten.de/2013/11/18/straf-zinsen-fuer-...
The plan is to go to virtual money.
Bitcoin paves the way.
It is the purpose of its creation.
Sathoshi my ass- CIAtoshi maybe.
I find your faith in the competence of government ... disturbing. You think the same people who spent hundreds of billions on a fighter jet that is sub-par, a data mining application that is sub-par, and who knows what else, somehow developed something as well-made as bitcoin?
A currency should be fairly stable as I spin my 1 oz. Gold Eagle on my desk.
Dfine stable. Compared to dollars, or compared to purchasing power over time? Gold seems to fluctuate quite a bit in the short term for a currency, but holds its value well as money.
Yeah, right. I'm sure nobody has written a bitcoin algo yet. The prices just naturally go up and down 10-20% in a day and nobody is sucking the juice out of the gyrations.
It's a financial dream come true.
the one who prints USD can manipulate any asset which trades in USD
Indeud. What is to stop any/all opaque fiat issuers from surreptitiously tapping their unlimited supply in order to whip the chart around like an angry cat's tail?
Selling gold to buy Bitcoin as a safe haven. WTF!!!! The madness has become all encompassing
I am about to move to Iceland and just let all this jive go...
More convinced than ever that BTC is living on borrowed time.
I am more convinced than EVER that you have no idea on what is happening.
- Oh I know what's happening alright, I just chose to invest in Pm's to protect and insure against fiat currency collapse.
I could not agree with you more on the PM's, but you should learn more on how to hedge and even get MOAR PM's on THEIR Dime.
Learn how the game is played and its much easier to play.
Let's keep an OPEN MIND here People. And let's Look a it in the RIGHT frame of MIND. I totally agree that BitCoin is actually NOTHING. But what is Anything else Today? With the exception of PHYSICAL Gold and Silver? You guessed it NOTHING, but Perception & CONfidence. But if One would take a CLOSER Look you WILL see that BitCoin is LIMITED & SCARCE as compared to other Currencies. There can ONLY be 19,999,999 BitCoins EVER Mined as compared to the other so-called FIAT Currencies that are INFINITE. And when you have 7 BILLION People on this Planet and a LIMITED supply of ANYTHING that can ONLY be MANIPULATED to a certain extent, yes BitCoin is being Manipulated but they can only do so much far so long. The First try by the Central Bankers took BitCoin from $266 US to $60 US, OUCH! So this latest take down while the US were having Senate hearings were so like the Gold & Silver take downs when the FED & FOMC Speaks. But the % was much smaller this time 35%. And in time EVERY Central Banker along with every Financial Institution is wanting a piece of the PIE just in case, and when you have a "Just in Case" with only 19,999,999 of something and 7 BILLION People / Customers, in time you will have to pay much more when that LIGHT finally turns on in that MIND of yours on what is actually happening. ALL I can say is that EVERYONE should DIVERSIFY and BUY ONE!
You will be HAPPY that you did.
" I totally agree that BitCoin is actually NOTHING. "
As soon as there are people to trust it, accept it as a medium of exchange to buy/sell goods or services, it is something .
It's a fiat ("be made", "be done", by consent ) currency/money . It's value lies in the confidence its users have, that it will not introduce some bias (inflation) in their commercial relationship .
You get no arguement from me, I could not agree with you more. But for the time being one must hedge in order to keep Diversified and keep up with the games that are being played. I am very SICK of this game of Make Believe and have been for quite some time.
It's always been a question of trust, confidence, (hiding of)information, deception . That's why, we tend to cling to "hard money", it more difficult to cheat, at first sight .
Now I really don't know what will happen to BTC .
To me its a No Brainer, IF they are unable to shut it down it will end up going to the Moon. I like that last week that Galt's Gultch Chile started accepting it for the purchase of Real Estate. I just may get a place there after all? And China is now accepting it for the purchase of real estate. The more and more acceptance the less they "Central Bankers" will be able to stop it.
IMHO
I LOVE WHAT I SEE & HAVE MY BETS PLACED.
It's just being Diversified.
I REALLY Love Physical Silver but when there is OVER 180 MILLION Paper Ounces sold that does NOT even exist IF ALL the Silver in the ground were to be mined should TELL everyone just how these Make Believe Markets can be MANIPULATED! Are your pockets DEEP enough to out last THEM?
"I totally agree that BitCoin is actually NOTHING. "
I believe its point is that it is discipline. There is a process that must be followed to create new ones, that is known and followed and apparently not able to be directly manipulated by the FED/WS.
With Fiat, there are central banksters creating 85B/month and giving them to banksters.
That is a fundamental difference.
They can manipulate it but only to a certain extent, for they "the Bankers" have an endless supply of FIAT that they can use to Buy BitCoins for the SOLE purpose to put on and off the maket to create distortions and to scare people away from it. But over time less and less BitCoins will be available for more and more People will buy them just to put away as a hedge and their games will have less of an effect. Just look at what has happened to date will give you an idea now.
Just BUY ONE and sit on it, it could be worth a MILLION US one day.
IMHO
Curious to see where 1 BIT will be in a year from now?
Totally agree with how they can manipulate them.
Nice point(s). The number in circulation right now is probably around 11M depending on who you believe. But 10% or more of those will never see the light of day. And the rest will be pretty tough to extract. Owning one could be a nice gift to leave to your offspring. I wonder if I'll be around to watch the last one come into existence.
Actually there are close to 15 Million +/- out now and sometime around 2016 they will have been all mined.
2016? We're over 100 years from the last remaining Bitcoin.
No shit? I guess mining gear improved since the last time I looked. Wonder if I (and my liver) can make it until 2016...