Yesterday, when it was becoming increasingly clear that Germany has had it with Greece - as was confirmed moments ago when the Eurogroup failed to reach a deal despite the "absolutely final" ultimatum it itself had imposed on Greece, we made a quick observation:
Bitcoin may be cheap here
— zerohedge (@zerohedge) July 11, 2015 [7]
Since then bitcoin has soared by 5%
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... and is now at its highest price in 2015:
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Why not gold? Because between the BIS endless selling of paper gold - hi Benoit Gilson [10]- and Citi [11]and JPM [12]'s relentless pounding of physical via record notionals of derivatives, not to mention China's liquidation selling, gold will likely tumble here just to give the illusion that central banks still have some control, which would mean that various mints are again about to run out of gold. It also means that courtesy of constant price suppression as a policy tool, the precious metal continues to trade at a huge discount to physical value.
What are other markets looking like right now? We won't know for a while until USDJPY opens, which as the central banks know is how you manipulate the E-mini, in a few hours, and certainly not until ES opens in 7 hours, but thanks to UK spread bettors things are not looking good right now.
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