I thought it may be interesting to have a look at the Bitcoin to Gold relationship as it stands now. I have often voiced my opinion that gold and bitcoin easily and comfortably live together, each fulfilling its own purpose in the system.
Utilizing the cup and handle formation on the monthly chart of gold, built up since 2012, and projecting the depth of the cup using the right shoulder of the formation, gives us a dollar value of approximately $1,000.00 added to the top horizontal green line of $2,000.00, giving us a projected price of about $3,000.00. As always, this represents the what, and the when is always the really difficult part to predict.
The last two weeks of 2022 were a real head scratcher for me as the prices of gold and silver were increasing while the gold and silver stocks were languishing or falling. I can only put this down to large portfolio holders rebalancing or selling losing positions for taxation purposes.
Last week we had a look at the Gold state of play, this week I would like to have a look at the situation with silver.
When banks are in trouble it is a misnomer, because of bank legislation regarding bail-in’s YOU are in trouble as your deposits will be used to bail them out. Remember your deposits are LOANS to the bank. When was the last time you looked at their financials?
Last week we spoke about silver and looked at the reasons that the dollar is getting pushback worldwide. This week I would like to add to that, but focusing on gold.
The majority of reasons discussed regarding silver apply equally to gold.
As you are probably aware, I strongly favor silver and silver stocks for numerous reasons. When looking all the way back to 2000, you can see that silver prices increased by about 125% and from 2003 to 2011 it increased by a whopping 950%
The World Gold Council said that it could not identify the source for 300 tonnes (US$ 15,325,887,500.00) in official sector gold demand in early November, (this is a huge amount of gold to be unidentified), speculation is that the whale might be China.
Buying by central banks has been huge in this past quarter. I wonder if this is why the prices have not been allowed to run, reflecting the enormous money ‘printing’ spree of the past number of years.
The crypto side are convinced that the crypto’s will win the day and are just starting their moonshot trajectory, the gold side rely on the five thousand year history of stability and substance of the metal.
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