This page has been archived and commenting is disabled.

Bitcoin Surges Over $900 As Gold Vulnerable Of Fall To $1,200/oz

GoldCore's picture




 

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.

Click Gold News For This Week’s Breaking Gold And Silver News
Click Gold and Silver Commentary For This Week’s Leading Gold And Silver Opinion
Like Our Facebook Page For, Interesting Insights, Blogs, Prizes and Special Offers

 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Tue, 11/19/2013 - 10:27 | 4169315 USisCorrupt
USisCorrupt's picture

Your liver will do fine, the radiation will end up getting us all when it all goes airborne.

Tue, 11/19/2013 - 13:34 | 4170217 TPTB_r_TBTF
TPTB_r_TBTF's picture

your liver ainT gonna make it that long...

 

 

How long will it take to generate all the coins?


The last block that will generate coins will be block #6,929,999 which should be generated at or near the year 2140. The total number of coins in circulation will then remain static at 20,999,999.9769 BTC.

Tue, 11/19/2013 - 10:00 | 4169191 Azannoth
Azannoth's picture

After the "mildely positive" opinions about BTC from the "government panel" I am getting more and more sceptical about BTC, and than you have Big Ben saying something like "yeah sure we can subvert it.."(not exactly his words).

 

There does not exist an idea, no matter how noble and well thought out, that the government can't turn to pure evil by regulation, just wait till they get a hold of BTC and will be able to trace back every and any transation ever! Now that is their wet dream come true.

Tue, 11/19/2013 - 09:54 | 4169171 swedish etrade baby
swedish etrade baby's picture

I going to pick up a copy of extraordinary popular delusions and the madness of crowds

Tue, 11/19/2013 - 09:54 | 4169169 Azannoth
Azannoth's picture

"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."

What makes you think that?

Tue, 11/19/2013 - 10:55 | 4169443 KnightTakesKing
KnightTakesKing's picture

There is something like 65 claims for every ounch of gold on COMEX. Do the math....

Tue, 11/19/2013 - 12:51 | 4169988 Matt
Matt's picture

However, smething like 99 percent of the volume is speculation with intent to settle for dollars, not stand for delivery, so the leverage is irrelevant; most just want to make money off gold, not stockpile it.

Tue, 11/19/2013 - 10:11 | 4169249 RaceToTheBottom
RaceToTheBottom's picture

The more interesting part is the next line to your quote:  " This will only happen when prices are again dictated by physical supply and demand."

 

What will suddenly drive gold prices to not be dictated by paper and instead be dictated by supply and demand?

The author is saying they are presently not so what will drive the change?

With easy money to banksters and fractional reserve lending and multiple leasing of gold, more paper can be created than physical by multiples, so why will gold ever be driven by physical?  Gold prices are ETF driven not supply driven.

Tue, 11/19/2013 - 11:38 | 4169582 One World Mafia
One World Mafia's picture

Physical demand may be outpacing supply now were it not for BTC.

Tue, 11/19/2013 - 12:20 | 4169805 indygo55
indygo55's picture

I bought Bitcoin way back, not as much as I should of damn it but I have some. I tried to buy more this summer and again last week. I am in the US and it seems impossible to do it. Every passage is blocked. Coin MAMA, Dwolla and a few others will not make the exchange and dont explain why. The silence is deafening.

Tue, 11/19/2013 - 17:48 | 4171465 One World Mafia
One World Mafia's picture

Sounds rigged.

Tue, 11/19/2013 - 10:35 | 4169353 Tall Tom
Tall Tom's picture

RaceToTheBottom asks, "What will suddenly drive gold prices to not be dictated by paper and instead be dictated by supply and demand?"

 

That is such a simple question that I care not to answer. If you do not know this at the present moment then neither I can teach you, nor, can anyone. It is just apparent that you make a choice for outright IGNORANCE and DENIAL. But gladly (yes I am glad) you will SUFFER THE CONSEQUENCES OF YOUR DENIAL as you are absolutely DESTROYED because of your misguided LOYALTY to your Government.

 

The LOSS OF CONFIDENCE and LOSS of TRUST for the CME Group and London Bullion Market Association to Stand and DEliver on Paper Promises will be the CATALYST that decouples the price of Physical Gold from that of a Paper Promise which will stand unsettled.

 

I can hardly wait for CME Group to DEFAULT. The DEFAULT will happen because, not only are they the Brokerage that handles Gold, but they are the Brokerage that handles the CREDIT DEFAULT SWAPS.

 

When, (NOT IF BUT WHEN) there is that Black Swan Event, most likely because of an HFT in US Treasuries that cause MASSIVE IMBALANCES due to the fact that they are HIGHLY LEVERED, HAPPENS then it will BANKRUPT CME Group.

 

(I'd love to see the look on Jeffery Christian's face when that happens...)

 

That is when the LOSS of CONFIDENCE happens and the LACK of TRUST occurs.

 

I will be laughing as your market melts down in a worse disaster than the Cores of Fukushima.

 

My Fallout Shelter is built out of Gold. What is yours built out of?

 

Paper? Dollars? Bitcoin?

 

LMAO.

 

Have a good morning.

Tue, 11/19/2013 - 11:49 | 4169651 daemon
daemon's picture

" I can hardly wait for CME Group to DEFAULT. The DEFAULT will happen ... "

You probably won't be that happy, when this event happens, because there will be some  Executive Order 6102 in the air.

Tue, 11/19/2013 - 13:04 | 4170059 Mad Mohel
Mad Mohel's picture

Executive order my fuckin nuts (grabbin my fuckin sack)!!!!!

 

Tue, 11/19/2013 - 13:36 | 4170223 daemon
daemon's picture

" grabbin my fuckin sack "

That sure hurts, but will it be of any use to do that ?

Tue, 11/19/2013 - 11:19 | 4169518 RaceToTheBottom
RaceToTheBottom's picture

Actually bomb shelter boy, I probably own way more silver or gold than you do.  I was after more of a mathematical discussion as to how the overleverage VS delivery would play out, than your 1000 word non answer. But glad I could help you get your daily exercise. 

For every OZ Physical there is something like 62 OZ committed.  But for every OZ real there are ? OZ pretending to be real (CB lending, etc) and with unlimited fractional lending of both $ and gold/silver, doesn't 62<<infinity?

Anyway go back to painting your silver/gold bomb shelter....

Tue, 11/19/2013 - 09:50 | 4169154 observer007
observer007's picture

 

Bitcoin Rollercoaster - Low today: 370 E / 502$

Target: 100000 - after a while

Realtime qutoes and news:

http://btcpost.net/index.php

 

Tue, 11/19/2013 - 09:46 | 4169138 Obadiah
Obadiah's picture

Bitcoin to GOLD?

hAve I lost my f|_|cking mind by not buying this shit instead of physical

 

wtf  it can't be legit

Tue, 11/19/2013 - 13:20 | 4170170 sgorem
sgorem's picture

"the ONLY thing to FEAR, is FEAR itself".....Winston Churchill. Chill everybody. IF YOU are a person who knows the Greatest Scam/Ponzi/Lie that has EVER befallen the worlds slaves in general, and the American people in particular, then you know that in the long run, Gold, Silver, PM's, and even Bitcoin will prevail. The Fake fiat Will collapse, the Fake governments WILL collapse, all the lies, manipulated data/numbers, and all the bullshit the scofflaw traitorous Main Stream Media spews forth will bring this contemptuous Crime down. Holding anything physical that is a valuable asset will be the key to your survival, one way or another. WE get so caught up in numbers, projections, charts, advice, etc., that we sometimes lose that insight of what is truly happenning to us all. WE'RE being taken for a ride via the scenic route. When the President of the United States LIES, seemingly everytime his lips move, and the rest of the governmental minions either back that lie up, or hide in fear they too will be exposed, then it's time to plan to matters into your, and my hands, AS BROUGHT FORTH BY OUR FOUNDING FATHERS OF OUR CONSTITUTION. Good Men will rise to their destiny, and this aborration will be history one day.

Tue, 11/19/2013 - 12:41 | 4169929 fredquimby
fredquimby's picture

If I'd have bought BTC this last two years with all the money I have spent on gold and silver, I would today be sat somewhere retired, on a frikkin beach, in the bastard sunshine. Excuse my French.

That said, it was still a buzz seeing $800 blast up to $6,000 :)

 

Tue, 11/19/2013 - 11:28 | 4169558 One World Mafia
Tue, 11/19/2013 - 12:47 | 4169962 Matt
Matt's picture

Why? Proof of Stake? The more money you have, the more money you are allowed to create? That seems to me, the ultimate "rich get richer" concept.

Tue, 11/19/2013 - 17:46 | 4171457 One World Mafia
One World Mafia's picture

It was a joke.

Tue, 11/19/2013 - 10:53 | 4169436 Dick Buttkiss
Dick Buttkiss's picture

The global money and banking cartel is doomed to collapse under its own weight (or rather, the increasing weightlessness of its paper IOUs). Bitcoin is hastening the process and will prove impervious to regulation.

The dye is cast, in other words, so some simple math is in order:

Take global GDP of roughly $50 trillion, divide it by the Bitcoin limit of 21 million (all that can ever be issued), and what do you get?  Almost $2.4 million each.  Add to that the fact that the global economy will be vastly more productive in this "free banking" environment, and hunanity therefore vastly more wealthy, and there's no telling what the value of each Bitcoin will rise to.

Better get you some while they cost next to nothing, and BTFD along the way.

Oh, and be sure to get you some (more) gold and silver, as they are going to skyrocket, too.

Tue, 11/19/2013 - 11:41 | 4169614 Max Hunter
Max Hunter's picture

TPTB should be congratulated for their genius. They are taking a digital object and soaring its price past Gold. What says "FU I'm in control here" more than that? Bitcoin will fall when they are done playing with it.

Tue, 11/19/2013 - 12:21 | 4169808 RockyRacoon
RockyRacoon's picture

It's about time you folks learned the TRUTH about bitcoin!

Tue, 11/19/2013 - 11:46 | 4169636 Dick Buttkiss
Dick Buttkiss's picture

We shall see, as the game is on.

Tue, 11/19/2013 - 11:41 | 4169613 JeffB
JeffB's picture

They may well skyrocket, or perhaps more accurately the dollar will crash, but I don't agree that they are impervious to manipulation and control by the government cartels.

They could jump in and buy when they think it is most advantageous to continue to feed the mania, then sell millions to billions of $ worth in short order and crash it again.

People could hold on, of course, and be fine in such a scenario, if they're holding it as an investment or a store of value.

But the roller coaster effect would make it a lot riskier for vendors doing business in such a volatile market - which would likely be the governments' goal all along.

It would also be riskier for people holding it as a store of value. They'd never know whether it was going to be sky high or down low when they needed it to purchase something.

Of course governments could also add much risk and volatility be starting rumors threatening to outlaw it, or tax it, or regulate it... then backing off... then starting it all up again.

Or they could just carry through and outlaw, tax or regulate it to death.

They could also possible get their armies of hackers to work on getting viruses into the bank/wallet companies' computers to infect their customers, or DDoS attacks on hubs etc.

If they see it as a threat to the dollar I imagine they'll be scheming to neutralize that threat in any way they see fit.

 

 

Tue, 11/19/2013 - 11:48 | 4169645 Dick Buttkiss
Dick Buttkiss's picture

They themselves are the biggest threat to the dollar, as they can only perpetuate it by destroying it.

Do NOT follow this link or you will be banned from the site!