Gold Rises As Global Stocks Plunge and Bitcoin Crashes 70%

Gold Rises As Global Stocks Plunge and Bitcoin Crashes 70%

- Gold gains 0.6% in USD and surges 1.7% in euros and pounds
- European stocks fall more than 3% at the open after sharp falls in Asia
- DJIA falls 1,175 points, S&P 500 down 4.1% and Nikkei plummets 4.7%

- Gold rises from $1,330 to $1,342, £942 to £960 and €1,067 to €1,085 /oz
- Bitcoin crashes another 10% and has now plummeted by 70% to below $6,000
- Increased risk aversion will drive safe haven demand for gold as its hedging properties are appreciated again 

Source: Bloomberg via Mining.com

Gold prices rose today in all major currencies as a rout in global equities prompted investors to seek shelter in safe haven gold.

Spot gold prices were up 0.4 percent to $1,345.00 per ounce this morning in early European trading following Monday’s 0.6 percent gain in dollar terms. Gold saw larger gains in euros, sterling and other currencies as the dollar bounced back after a recent pronounced weakness.

Bitcoin plummeted for a fifth day, dropping below $6,000 and leading other digital tokens lower. A backlash by banks and government regulators against cryptocurrencies is impacting already fragile sentiment due to recent sharp falls.

Yesterday, bitcoin tumbled as much as 22 percent to $6,579. It has lost 70 percent of its value from a record high $19,511 in December. Other crypto currencies also fell sharply on Monday, with Ripple losing as much as 21 percent and Ethereum and Litecoin also weaker - down 16% and 13% respectively.

We believe gold prices may rise further as the global rout in stock markets should lead to a period of risk aversion and a new found appreciation for gold's hedging and safe haven attributes.

However, as was seen during the 'Lehman moment' in 2008, gold could see short term weakness if stock markets continue to crash as speculators see margin calls and some liquidate all futures positions.

The fact that gold made good gains in all currencies yesterday, including the dollar, bodes well for gold and shows there is robust demand and the fundamentals of the gold market are sound. This is more than can be said than the fundamentals of the US economy and indeed of global stock and bond markets.

 

News and Commentary

Gold rises as equity sell-off spurs safe-haven buying (Reuters.com)

Global Stock Sell-Off Deepens, Yen Gains Haven Bid (Bloomberg.com)

These Charts Show Just How Bad the Selloff in Risk Assets Is (Bloomberg.com)

Bitcoin Tumbles Almost 20% as Crypto Backlash Accelerates (Bloomberg.com)

Monday massacre: Gold price rises as stocks crater (Mining.com)

Why the stock market is selling off, explained (WashingtonPost.com)

4 Takeaways From Monday’s Stock Market Sell-Off (NYTimes.com)

Gundlach: 'Hard to love bonds at even 3 percent' yield (Reuters.com)

Why the European sovereign debt crisis is back (CapitalAndConflict.com)

Argument against crypto is getting tired (StansBerryChurcHouse.com)

Gold and Silver Price Riggers Arrested - David Morgan (Youtube.com)

Two Elephants In The Room That The GOP Has Completely Forgotten (DavidStockMansContraCorner.com)

Gold Prices (LBMA AM)

05 Feb: USD 1,337.10, GBP 947.20 & EUR 1,072.49 per ounce
02 Feb: USD 1,345.00, GBP 946.48 & EUR 1,077.61 per ounce
01 Feb: USD 1,341.10, GBP 941.99 & EUR 1,077.98 per ounce
31 Jan: USD 1,343.35, GBP 950.29 & EUR 1,078.98 per ounce
30 Jan: USD 1,345.70, GBP 954.37 & EUR 1,083.56 per ounce
29 Jan: USD 1,348.40, GBP 955.07 & EUR 1,085.46 per ounce

Silver Prices (LBMA)

05 Feb: USD 16.88, GBP 12.01 & EUR 13.56 per ounce
02 Feb: USD 17.14, GBP 12.05 & EUR 13.72 per ounce
01 Feb: USD 17.19, GBP 12.09 & EUR 13.82 per ounce
31 Jan: USD 17.23, GBP 12.17 & EUR 13.84 per ounce
30 Jan: USD 17.30, GBP 12.24 & EUR 13.91 per ounce
29 Jan: USD 17.34, GBP 12.33 & EUR 13.99 per ounce


Recent Market Updates

- U.S. Debt Is “Extraordinarily High” and Are Stock And Bond Bubbles – Greenspan
- Gold Bullion Price Suppression To End? Bullion Bank Traders Arrested For Manipulating Market
- ATMs Hit By Malware “Jackpotting” Attacks That Dispense All Cash In Minutes
- London Property Market Tumbles As Glut of Luxury Apartments Grows To 3,000
- Silver Bullion: Once and Future Money
- Greatest Stock Bubble In History? GoldNomics Podcast Transcript
- Davos – My Personal Experience of the $100,000 Event, $60 Burgers, Massive Inequality and the Blockchain Revolution
- Is This The Greatest Stock Market Bubble In History? Goldnomics Podcast
- Cyber War Coming In 2018?
- Government Shutdown Ends – Markets Ignore Looming Debt and Bond Market Threat
- Global Pension Ponzi – Carillion Collapse One Of Many To Come
- The Next Great Bull Market in Gold Has Begun – Rickards
- Gold Bullion May Have Room to Run As Chinese New Year Looms

Comments

luckylongshot Tue, 02/06/2018 - 08:31 Permalink

In 2008 when the public stopped borrowing and the Fed decided to step in and start spending to keep the markets looking healthy, if just one sensible person had asked "How is this going to end?" perhaps we would not be where we are today.

Avichi Tue, 02/06/2018 - 09:25 Permalink

Classic FEAR Psychosis- Watch for President #TRUMP  drive another dragger into the FED manipulation and send FEAR- Today they NASA IS SENDING ANOTHER SECRET MILITARY SPACE MISSION. WARIII -T-100..99...98 "EMERGENCY WILL BE DECLARED" -MARTIAL LAWDemocRATS and the CABAL are going TO GO UNDERGROUND,OBAMA,CLINTON AND HER CRIME FAMILY ALONG WITH SOROS AND THE GANG ARE GOING UNDERGROUND.

 

THIS IS A WAR BETWEEN GOOD Vs. EVIL - PLANE AND SIMPLE

THESE BASTARDS HAVE TO BE PURGED AND ELIMINATED

Hope Copy Tue, 02/06/2018 - 09:47 Permalink

Rumor is that this has bee spiked by MasterCard and VISA forcing repayment on crypto currency purchases..  The little guy is getting it up the wazoo.

silverer Twatter Tue, 02/06/2018 - 10:22 Permalink

No it isn't. You don't have to move gold to pay with it. All you have to do is leave it where it is and transfer ownership. If you really want it, you can always take physical possession. But if you want to pay with it, you put it back into the system via a private (never a bank) vault. Check out GoldMoney. I pay for things with it. It's just a simple plastic MasterCard. But it's tied to real gold you own, instead of the non-existent zeroes and ones in your bank which is only backed by 20 trillion dollars of third party debt.

In reply to by Twatter

silverer Tue, 02/06/2018 - 10:18 Permalink

When I was a kid, I remember having dreams where I would find something really, really cool, and I wanted to keep it so bad, and I'd have it in my hands, but then I'd wake up and it would be gone. Now I have a name for it. Bitcoin.

Aireannpure Tue, 02/06/2018 - 10:33 Permalink

Whoa! No big up move into BTC as predicted. All the turd BTC pro-mo's had EVERYONE going into BTC when the market tanks. BTC is just a demand deposit account and tons of confusion as to what promoters think it is. 

JibjeResearch Tue, 02/06/2018 - 10:45 Permalink

First they allowed you to buy BTC with cards... when the price is high..

Then they stopped you from buying BTC with cards when the price is low.

 

.... You need to give them lead as monthly payment!