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Gold Bullion “Less Sexy” Than Bitcoin … For Now
Gold Bullion “Less Sexy” Than Bitcoin … For Now
- “There is a global financial bubble”
- Stock markets and bond markets at all time record highs
- Medium to long term, gold’s “fundamentals look very sound”
Wilfred Frost of CNBC:
Do you think markets are adequately pricing in the risks that are present around the world today, particularly in Europe and the gold price itself?
Mark O’Byrne of GoldCore:
No, I don’t think so. I think in light of the “Grexit”, which you just mentioned, and also the “Brexit” and the overall debt positions globally -- we would have a concern that there is a global financial bubble with stock markets at all time record highs, bond markets at all time record highs.
Meanwhile, gold prices have traded sideways, as you said, for a long period of time. We have had a serious correction and we believe there is consolidation. It looks undervalued. At the same time it could go lower before it goes higher. I think technically there is a weakness there and I think there is support at $1140 so short-term there is weakness, quite possibly, but medium to long term the fundamentals look very sound.
Wilfred Frost of CNBC:
Do you think that’s because we have had a breakaway from the idea that gold remains a great hedge towards any risk that’s out there -- whether that’s inflation, deflation or just big geopolitical crises or is it just because markets don’t understand that those risks are present and they are ignoring them?
Mark O’Byrne of GoldCore:
I think the latter…for the moment.
I think it’s very like the 2003 to 2006-2007 period. The imbalances were building up in the system - meanwhile stock markets kept gallivanting higher and gold was a very under-owned asset and there wasn't an appreciation of gold as a safe haven asset.
I think you are right.. I think that perception of gold … it has fallen out of favour. Sentiment towards gold is as bad as we have seen it since the 2003/2004 period.
Bitcoin is the more sexy thing. People want to talk about bitcoin and anything with “bit” in the name seems to be doing very well.
Whereas gold is very much less sexy. It’s less on the radar because it has performed quite badly in the short term. But, I suppose past performance is no guarantee of future returns and you have to look at the long-term store of value characteristics of gold as a proven hedging instrument and safe haven asset… over the long term. Not in the short term, obviously.
Carolin Roth of CNBC:
Mark, there simply is no inflationary pressure… I don’t see why gold should be moving higher at all. We are in a disinflationary or low inflation world. I don’t see why gold should be moving past the $1200 level that we’ve been bumping around over the last couple of months. And then we’ve got a dollar that’s moving higher. It’s a bit of a rough patch for the dollar right now but it’s still moving higher. I don’t see why anything we are seeing in gold is more than a dead cat bounce, essentially…?
Mark O’Byrne of GoldCore:
You’re right -- there [are] no inflationary pressures … right now.
The question is “is that inflation building up?” And I think it probably is.
At the same time gold is not just a hedge against inflation -- it’s actually not a really a hedge against inflation per se, it’s more of a hedge against serious inflation and stagflation. It’s also a hedge against deflation.
So when you have a Lehman Brothers moment or a potential “Grexit” there is that significant counterparty risk. And gold -- because it has no counterparty risk if you own the actually physical asset -- it is actually a hedge against deflation as well.
There is a huge body of academic research that shows that.
The CNBC interview, “Is Gold Becoming ‘Less Sexy’?” can be watched on CNBC here and on Yahoo Finance here
MARKET UPDATE
Today’s AM LBMA Gold Price was USD 1,209.60, EUR 1,084.36 and GBP 772.60 per ounce.
Yesterday’s AM LBMA Gold Price was USD 1,206.75, EUR 1,085.33 and GBP 777.57 per ounce.
Gold climbed $2.00 or 0.17 percent to $1,210.20 an ounce on yesterday, and silver remained unchanged at $17.12 an ounce. Overnight, gold in Singapore continued to flatline and near the end of day trading was steady at $1,209.60 an ounce.
Gold remained firm above $1,200 an ounce as yesterday's Fed minutes contained no new information and showed that a June rate hike would be premature.
In spite of the news, outflows in the world's largest gold-backed exchange-traded fund, New York-listed SPDR Gold, showed bearish sentiment. The fund holdings fell 0.41 percent to 715.26 tonnes yesterday its lowest in four months. Holdings fell another 2.98 tonnes yesterday, bringing its total outflow for the month to just over 24 tonnes
Recent dollar strength after some positive U.S. economic data has capped gold’s recent rise. A strong dollar makes gold more expensive for holders of other currencies reducing its role as a hedge.
The government of India has released a discussion paper on the gold monetisation scheme that the finance minister had proposed in his budget. The paper outlines that citizens can benefit from a tax-free interest on gold that is deposited with the banks. It proposes individuals and institutions to deposit gold as low as 30 grams.
In the past gold deposit scheme the government only allowed a minimum quantity of 500g of gold. This allows Indians to use their wedding jewellery or other gifts to finance other business endeavors, family loans etc. However, Indians like to take possession of their gold and wear it and keep it in the house due to a distrust of banks.
The new scheme to relieve the Indians of their gold is unlikely to succeed due to their cultural preference to possess their gold -- be that coins, bars and especially jewellery.
On the Comex in New York gold futures for June delivery tacked on $1.50, or 0.12%, to trade at $1,210.20 a troy ounce and futures were in a tight range between $1,207.70 and $1,212.30. Silver futures on the Comex for July delivery climbed 9.9 cents, or 0.58%, to trade at $17.21 a troy ounce.
In mid morning European trading gold is up 0.07 percent at $1,210.83 an ounce. Silver is up 0.53 percent at $17.19 an ounce and platinum is unchanged at $1,155.00 an ounce.
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"Bitcoin, because being ripped off with green certificates isn't enough."
Liberty is a demand. Tyranny is submission.
Barter >> Gold >> Warehouse Receipts >> Fiat >> Database Entries >> LOL
Ha! Comparing that "sexy" bitcoin with the Classical St George Slaying the Dragon design is pretty funny!
Great Britain has been utilizing that design on their silver Crown's, and gold sovereign's throughout the Commonwealth, for over two centuries! I know, the article compares the "function" of gold vs bitcoin, but why not depict gold as an old Buffalo? Not that I consider St George to be very "sexy"...
Can someone please tell me just what the Hell that fool thinks he's doing going off to "slay dragons" Bare-Assed Nekkid except for his helment and a Cape?
Gold is for dinks, at least for the moment.
Gold is a great store of value, it could also have practical use by using it as backing for a unit of exchange, the auditing of such a backing is however problematic and not water tight, therefore its primary use is as a store of value.
I bought gold and silver very early and way before Bitcoin, however Bitcoin is superior by far as a currency and as a store of value. I still hold my gold and silver but there is no reason to buy it anymore only Bitcoin.
Gold bugs do not understand value, they do not understand whats actually being exchanged in the economy. They need to answer to themselves why does fiat or Bitcoin in fact and practice work as a means of exchange of value if it has none itself?
In the end its dead simple, the only thing of value in the economy is peoples time and energy and it is that which is being exchanged, made manifest in the form of goods and services.
Therefore the currency is not the thing of value instead it is the tool for the exchange of that value (your energy) all then that a currency needs is the most desirable attributes.
22 "inconvenient truths" about climate, aka 22 more reasons the CO2
argument is a hoax when it comes to promoting nuclear energy.
http://nukeprofessional.blogsp...
1.
The Mean Global Temperature has been stable since 1997, despite a
continuous increase of the CO2 content of the air: how could one say
that the increase of the CO2 content of the air is the cause of the
increase of the temperature? (discussion: p. 4)
2. 57% of the
cumulative anthropic emissions since the beginning of the Industrial
revolution have been emitted since 1997, but the temperature has been
stable. How to uphold that anthropic CO2 emissions (or anthropic
cumulative emissions) cause an increase of the Mean Global Temperature?
I think you're on the wrong thread. . .
Put a gold necklace in front of a chick and then tell her it's not for her but you bought her some bitcoin, see what happens.
:)
Touche!!!
Yes, Mark, gold is a deflation hedge and an inflation hedge -- but its most important function today is acting as the ultimate hedge against currency collapse.
is 'disinflation' the same thing as 'deflation'?
What the hell is the guy from goldcore talking about there is no inflation. Look at stocks and bonds, the prices are higher than ever! Look at food, beer, fucking gas! It's hella high! Look at housing - HIGH! This dude must be high too.
Bitcoin is sexy because people USE it.
Stacks are great, but almost no one uses their AU, or even their AG in daily commerce. If they did, things would be different.
Trade moves two ways, buyer to seller, and people trade gold for paper and vice versa all the time.
Cashless is cashless, credits in the ether are not incorruptable or uncorruptable and infinitely taxable.
Bitcoin vs Citibank debit card, neither disempower the banksters. To the contrary, the perfect fiat.
Dunno 'bout that. I've ran my company 18 months on bitcoin and haven't interacted with a bank at all. If my customers or employees want to or need to interact with banks, welp that's just up to them.
paint it red ca... bitcoin IS cash, baby - if you don't hold it [your wallet cryptographic keys] you don't own it. Also, care to explain exactly how bitcoin fails to disempower banks.
Yeah, I dont think anything that happens in greece will disempower the bankers either.
Amen, brother!
Google "Bit Gold" or go to 321 gold and read about it. A great idea which of course is not legal in the U.S. http://en.wikipedia.org/wiki/BitGold
Here's a better piece on the stock which has gone supernova in a week. http://business.financialpost.com/investing/bitgold-incs-soaring-stock-r...
Bitgold is great.
Started using it this week - have already sent gold to my family back home (I work internationally)
I found it this weekend. I tried to sign up and alas- in the great land of the free- I was not allowed the freedom to spend my money or exchange it like I want to. It's as though my money is actually their money.
Try trading BitCoin for fresh eggs after the government shutsdown the internet under Martial Law.
You silly, Bitcoin is for when the lights are workin'. Gold is for when them lights go out.
POS terminals will likely handle that within the next few years:
http://www.coindesk.com/bitcoin-box-can-process-payments-web-connection/
Then I may change my mind about bitcoin.
In a few years.
Bitcoin , BTChezzzzzzz.
Mt. Gox
Not Sexy.
Pamp Suisse
Sexxxy!!!
Thank you.
Adopters and investors of Bitcoin should be fully aware of its origins. That is not to say it doesn't have a place in a portfolio but having all the facts is essential in any investment decision.
Of course crazytech is all about bitcoin, we always get somewhat emotionally involved in investments we have and it seems even more so with precious metals and bitcoin.
Hey vatos! Cap'n D, CRAZYtec, et al... Enjoyed the little "chat" yesterday. Back again today I see, ha! When I keep hearing nonsense like this...
"Carolin Roth of CNBC:
Mark, there simply is no inflationary pressure… I don’t see why gold should be moving higher at all.
...we are seeing in gold is more than a dead cat bounce, essentially…?"
"Mark O’Byrne of GoldCore:
You’re right -- there [are] no inflationary pressures … right now."
I keep thinking about the early Weimar monetary geniuses that were puzzled at one point because they kept expecting some inflation to start showing up simply because of the increase in the monetary base...
Well, we all know that worked out, no?
Bitcoin as a concept is a pretty good idea, as reality, not so much. The problem is the existence Of Bitcoin is entirely digital existing on the net. The NSA etal has the ability to track, and if needed, completely disrupt the trading system. With no physical reality it can be made to disappear and various holdings tracked down and people arrested using IRS regulations....
Can you explain how exactly NSA could disrupt bitcoin network? And no - bitcoin does not HAVE to live on the net.
In bitcoin it is equaly true that if you don't have it in physical posession you don't own it. So store your private keys securely on an off-line device or printed paper wallet and only use small amounts for hot wallets such as mobile or computer.
A small adjustment to the DNS servers can completely disrupt the system or they can reroute and do "man in the middle" attacks. Also, even encrypted, Bitcoin has a unique signature which makes it easy to track.....
Bitcoin is pure Peer-2-Peer , it does not use DNS , the only way to stop bitcoin is to shut down the internet. M-I-M atacks are only possible if it's being used over Tor. Shame you have not done your homework on this technology.
Precisely correct. While gold is a reasonably good store of value, Bitcoin is far more useful and practical for the modern age.
Gold is difficult to transport, expensive to store, not easily divisible, and very difficult to spend on goods or services. Even if you want to turn gold into something useful, like a watch, it is even more difficult and expensive to do that.
Bitcoin's utility is immeasurably greater, in addition to being easy to transport, free to store, easily divisible, and relatively easy to spend on goods and services (getting easier every day). Bitcoin can also be used to create new currencies, register property deeds, and dozens of other valable uses that gold will never be capable of.
Gold made sense among cave men who liked shiny metals (and there may be esoteric properties to gold that most are not aware of) but Bitcoin is far more practical. However, Bitcoin itself may not be such a great store of value - but new tools are allowing people with Bitcoin to fix their Bitcoin to any other asset they want (gold, USD, etc.) so eventually you'll be able to use Bitcoin to represent almost any commodity.
Agricultural land, now there is a good store of value.
I make my living doing network security and first off, everything is routed and that octal address you think bypasses the server actually doesn't bypass it, it merely routes a bit differently. If you think Man in the Middle is a Tor only thing go and look at the attacks that have been done on corporate credit networks in the last couple of years. It would also be good to remember that all internet traffic goes through a small number of backbone hubs that the government has fiber connects directly to all of them under the Patriot Act....
No way are you a network security engineer. You have no idea what you are talking about do you. You need to do much more research.
http://www.veracode.com/security/man-middle-attack
https://www.owasp.org/index.php/Man-in-the-middle_attack
and read through http://www.protocols.com/pbook/tcpip1.htm
and http://www.bind9.net/arm97.pdf
I have not even bothered to click on any of those links because I already know that not one of them will even mention attacking bitcoin , because bitcoin QT and bitcoin Core is not suceptible to MIM attacks because it is technically impossible unless the bitcoin QT or Core software is running over a Tor connection. Even then the attacker would require spoofing so many IP addresses it would not be worth doing it on all bitcoin nodes , it's impossible , there are currently 6000 bitcoin worldwide nodes all talking directly with each other through Peer-2-Peer. If you think that is disruptible via MIM attack then you know precisley next to nothing about computer network security.