Hedge Funds Abandon Gold To Chase Bitcoin

Since the beginning of December, gold and bitcoin have drastically diverged.

For the first 11 months of this year, gold and bitcoin were largely positively correlated (albeit low at 0.25). That changed at the start of December...

 

As it seems gold's relative tranquility was shunned in favor of Bitcoin's chaos...

 

And hedge fund managers dumping their gold positions and, as the chart below shows, piling into digital gold...

Who knows how long this regime shift will last, but we do note that Gold/Bitcoin is at a critical level of overbought-ness once again...

Comments

QueeroHedge TheReplacement Mon, 12/18/2017 - 17:38 Permalink

This is a great opportunity for goldbugs but most will just bleat about the bush. You would think an ingenius new form of decentralised money would be a hit here amongst a crowd of economically literate people who want the government out of our money. At the very least you would think these tulipturds would stfu with dignity once the price hit 10k. Their delight at being on the wrong side of a losing trade is a good laugh too.  Also note the correlation between hating bitcoin and believing trump will be different. These ih8obama types must really hate reality. Oh well, they're turds. next.

In reply to by TheReplacement

TheReplacement homiegot Mon, 12/18/2017 - 16:06 Permalink

This will end just fine if you stop being a pessimistic ludite and start seeing opportunity.Bitcoin is going to the moon versus USD.Gold is hovering around $1,250.This means that as the hedgies run to the other side of the ship bitcoin is going to keep buying more and more gold IF you have bitcoin with which to buy gold and a means to perform the transaction.Here is the place to do it - www.vaultoro.com/?a=105149.  Yes, you can fund it however you wish.  That is up to you.  You can cash out to bitcoin or take physical delivery of the gold (100 grams minimum).  So think about it - you have a rare opportunity to get in on a winning trade with an obscene amount of foresight of what it coming AND you can get a real valuable physical asset out of the deal.

In reply to by homiegot

Consuelo ParticularlySt… Mon, 12/18/2017 - 15:52 Permalink

  No...   That may have been true 10 years ago, but not now.   In fact, it matters little what the Fed does or does not do now with relation to our debt and its bitch, the $USD.   A handful of nations coordinating towards use of currencies which have real, tangible backing is going to be the deciding factor.   In the meantime, best to prepare accordingly and/or, enjoy your last few years of 1st world existence.  

In reply to by ParticularlySt…

Raffie FreeShitter Mon, 12/18/2017 - 16:55 Permalink

When gold goes up $10 they call it a rally.When gold drops $30 they don't call it a crash due to butt hurt stackers.Buy Pm when its drops, hold till next drop and buy, hold till next drop and buy................60+ years from now they still doing BTFD but never get a chance to sell.They do love that Fed ride called Pump-N-Dump Forever. 

In reply to by FreeShitter

SumTingWongJr Mon, 12/18/2017 - 15:12 Permalink

BitCoin or cyrptos not much different than Bermie Madoff.Price has soared due to folk keeping their positions especially iwth very limited ability to buy stuff with it.Same with Madoff ---  with 12 % returns why cash out?   So it is easy to support the ponzi with limited payout for purchases or profit taking. 

TheReplacement SumTingWongJr Mon, 12/18/2017 - 16:21 Permalink

There used to be a time you HAD to carry physical money (gold/silver).  Then came currencies.  Then came checks.  Then came credit cards.  Then came debit cards.  Then came mobile pay apps.  Now there ARE dapps. I think I might do some christmas shopping on Overstock or Ebay or Craigslist or any of the thousands of retailers who accept cryptos directly without a need for an app to convert at the POS.  I might even gift metal bars/coins since gold is CHEAP AS HELL when you pay with bitcoin.Enjoy the being left behind if that is truly what you want.  For the rest of you reading this, be smart, hedge accordingly, and don't commit more than you can afford to lose.  

In reply to by SumTingWongJr