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Gold Spikes Back Above $1100, Bitcoin Jumps
Gold is jumping after the overnight double flash-crash...testing back towards $1100...
Bitcoin is back up to pre-"Greece is Fixed" levels...
Charts: Bloomberg and Bitcoinwisdom
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LISTEN to gold. The global economy is griding to a screeching halt. What you want now is USD CASH $.
Once the dust has settled - after 20 years of bankruptices, defualts, debt repudiation, contract abrogation, etc - you can buy up all the gold, silver, oil, real estate, equities, etc you want for pennies on the dollar.
I think you have madcow disease. There will be a default but it will be through printing money so good luck holding your fiat toilet paper.
Gramps you are wrong Madcow is correct he should get rid of Gold and get Paper. So to help out Madcow I will take all that nasty gold off your hands and pay you 50 cents in the dollar.
Bernank would love for you to buy Bitcoin, and if you trade your gold for it, all the better. Meanwhile Bernank accumulates AG-47 at rock bottom prices.
HO LEE FOOKING BITCOIN!!!
Why would Bernank want you to buh Bitcoin? Bitcoin is his worst nightmare come true....
Do NOT junk teh we!
Hey, I'll pay 55 cents on the dollar.
.60!
... you can buy up all the gold, silver, oil, real estate, equities, etc you want for pennies on the dollar.
Not really...physical gold and silver are in short supply right now and premiums are going thru the roof. If the paper price continues to go down the same thing will happen as in 2008...you won't be able to find any metal at all and even if you did the premiums will be 100%.
....you will be buhing up all the gold, silver, oil, real estate, equites, etc you want for satoshis on the Bitcoin.
There fixed it for vous!
1100 gold?
Talk about lowered expectations.
Please, beat me so I understand pleasure better...
Thank you, Sir. May I have another?
I'm very pleased to be buying at these prices.
Thanks Janet!
I was going to post something similar.
The only question now is where do gold and BTC reach parity. Is it at a new BTC ATH or is it under $1,000.
Litecoin is likely to go double or more the Silver price before Bitcoin reaches parity with Gold.
Not really. Just another pump and dump by the chinks.
There is absolutely no reason to buy LTC. BTC, sure, has first mover advantage, but for a new to permanently gain market share, it needs to address the problems with bitcoin. LTC doesn't--it's just a clone.
I think that "revised clone" would be more appropriate. I'm not making predictions, just stating my opinion. LTC is up 200% in the last month or so. Hardly something to sneeze at. It's great for speculating if one enjoys the thrills (and battling the "Chinks").
The first time bitcoin touched parity with silver there was a 2 - 3 years delay before it smashed it and stayed above. BTC did go parity with gold in 2013 so there is still a way to go yet.
When teh we was touched by Satoshi's light we felt amazing!
Wake me when ___.
To court the LGBT vote Hillary dresses up a s Poof the Magic Dragon for SF's Gay Pride Parade?
whadda I win whadda I win whadda I win huh huh huh
$1080 was/is a big number. It doesn't look like it will break tothe downside. This could very well the lows?
$1080 could be the lows. Every single analyst/chartist is waiting to buy under $1000 and under $100HUI!
Or it will take a lot more than $2.7B the next time they try.
In other news, the local coin store received three monster boxes of ASEs today that they were expecting to get six weeks from now. He also reported that he has had a busy week on the sell side.
Curiouser and curiouser
-Alice (Ralph Cramden's wife)
because the dollar will come out of it unscathed?
Where are the good places people buy physical gold? Any good online shops?
One ounce gold coins have about a 50 dollar premium - a lower percent than silver premiums now. It depends on your volume but you can do a little better or a little worse. Big online dealers are Apmex, SDbullion, JMbullion, TexMetals, Provident Metals, and Gainesville Metals. There are others. Shop around for the best price based on your volume and watch for free shipping if you can get it.
The action in the commodity sector needs to be clearly understood as to the larger implications with global deflation and the health of the international economy. I'm not going to debate whether I believe PMs are commodities or actually currency (as they really are a unique animal all to themselves) but I will make the following points on why this is so critical to understand:
- First, commodities across the board are getting hammered from oil to natural gas to coal to all forms of industrial metals to base building materials, etc., etc., etc. Whether this is the result of years of mal-investment rebalancing (i.e., the easy money party is over and companies actually have to turn a profit and generate positive cash flow to survive rather than live on cheap debt) or actual global demand decreasing, or a combination of both, the implications are huge on the debt front. That is, all of these material based businesses have debt that is supported by cash flows and assets based on higher prices. When prices drop, so does the ability to service the debt and just like that, all of this debt, most of which is Junk but some HG as well, will lose its value like a fart in the wind. Don't think for a moment that the credit markets aren't going to feel some real pain from this scenario.
- Second, and even more problematic is the deflationary cycle this could set off through the entire product food chain. For example, if home builders start to realize the value of cheaper input prices, they can drop prices to move excess inventory. While great for the new home buyer, the old home buyer has a loan against a higher priced home and thus their equity is reduced and the lender that provided the financing now has less collateral to secure the loan. This holds for all sorts of products as well, from a trash can sold at Wal-Mart (as plastic products rely on petroleum as a main input) to an auto using large amounts of metal to you name it. The real concern is that for even these non-material producers, if their input costs fall so does their product prices but if they have debt taken out in the past and based on fundamentals of higher prices, then the debt becomes more difficult to service (as they have to sell more and more products to service the loan). Look no further than the oil producers as they have to pump more and more oil, at a lower price to maintain the same revenue level (further amplifying supply and causing even more pressure on the price).
- Third, the commodity or material sector is really just the first of all industries in having to deal with "fundamental economics" of supply, demand, and real price discovery. I've stated this below and I'll note it again but what is needed is a hard, decisive, and extremely painful capitulation to force the weak hands out, cleanse the industry "dogs that can't hunt" and clear the system to establish sound fundamental economics. BTW and it should be noted, that the material/commodity sector of the economy supports a number of high paying jobs that are going to be eliminated. These are skilled workers that demand higher pay for the type of work they complete. This isn't a buth of bartenders and administrative frontend employees suckling off the healthcare gravy train. When these jobs are lost, it will hurt (not in numbers but in purchasing power).
- Fourth, as for PMs, yes they have decreased in value relative to the USD but keep in mind that relative to other currencies (across the globe), PMs are holding if not increasing their purchasing power. This is what MSM is missing as that they are so tunnel vissioned on just the USD/PM price relationship, they don't bother to ask the most important question of all. That is, if I'm in Russia or Mexico or Greece, what is the relative purchasing power of PMs?
I could go on but it must be understood that while inflation worries the world's CBs, deflation scares them to death. The reason is simple and based in the world's debt or leverage in relation to real assets. As all ZH readers know, the world's debt level is in uncharted water. Any unraveling of the collateral food chain will start innocently enough but could quickly spiral out of control in relation to credit defaults. If not managed proactively, a massive unwind will bring the entire thing down and ultimately produce the reset which is so desperately needed.
Also keep this in mind. In other hyper-inflationary situtations (Argentina comes to mind but I can't remember where the chart was that supported my next comment), there's first a nasty bought of deflation in an overleveraged economy that takes hold. This produces a drag on the economy, reduces revenue, cash flow, and tax receipts, makes debt harder to service. This then leads to a debt crisis and ultimately a currency crisis and wha-la, hyper inflation sets in. Remember, inflation is a monetary event. Hyper-inflation is a currency event.
I have no doubt the world's CBs are watching the commodity space very closely as if this continues to unwind, watch for a flood of credit issues, then stress, restructurings, and eventually default (Greece anyone?). Everyone was waiting for the contagion of a Greece or similar situation to bring the world's economies to its knees. What we might have all missed is that illness has taken hold in commodities and will work its way up the food chain consuming everything in its path.
FUBAR at its finest, no doubt so now the real question is will the world's CBs through absolutely everything they have at this problem and fight the final battle - Massive inflation to inflate away the excessive debt or a deflationary collapse to rebalance the market? Commodities are in the deflationary corner. Health, housing and education are in the inflationary corner (at least in the US). And PMs, hard to see a situation where not having a hedge in this asset class is not advisable (unless you are in the unicorn boat that everything is fixed/fine and we'll have another ten years of growth until the next recession).
Excellent summary – thanks.
"SPIKES" ???? Get the fuck outta here...lmao
Mintcoins are better than Bitcoins. Up over 1000% percent this year. Faster energy efficient, and a rewards savers. Bitcoin may pump and rise again, but long-term is bound to crash.
Today's price is now a long way of from the alltime high price $2,070 in 1980, or from $1,840 price in 2011.
I noticed last night bitcoin made a move. It has had such a crappy time this year trying to hold over $300. But I use it to buy stuff all the time. More people are probably also gradually using it and of course most people just want to hold onto it. 30% more left to mine in the next 6 years or somewhere's in there and the last 7% over the next hundred years.
I wish I could keep up with it alll.
That housing number earlier sure dropped a stinky turd in the Fed. punch bowl.
I have both but my BTC never seems to be part of any boating accident, it's the h4ck3rs instead....