Inverse relationship between Bitcoin and PM's?

[Sal]

Is that accurate statement? If Bitcoin goes to 100k will gold go to under $1000 a ounce  and silver head to $10 a ounce?  Thoughts?

[Bumble]

I daresay some of the demand for BTC is coming from contrarian investors who might otherwise have bought gold. Maybe even some are selling gold to buy BTC. But I don't see them as opposites whose prices will vary inversely. Both are, in effect, votes of no confidence in the currencies of the central banks. Both will tend to do well if there are negative real interest rates, or a perceived risk of bond defaults, currency collapse, bank failures or a large stock market drop. Once the price of BTC has stabilised and the speculative frenzy has died down, I would expect them to move in parallel.

[HawkHybrid]

the gold price is up this year. bitcoin is up this year. not

too sure how that is seen as an inverse relationship?

gold and bitcoin are completely different markets?

 

HH

[vand]

IMO the price action of the last 2 months in both cryptos and PMs has been very significant- the bubble top in the cryptos coinciding with the "backtest" low in the PMs.

From a purely anecdotal I have never seen anything approaching the fevour for BTC. Everyone in my office is talking about it; at the Xmas party they couldn't shut up about it. This time next year it'll be a very different story.

And also from a PM perspective the recent action has done precisely what has been needed - flush out the last of the weak holders to sent sentiment to the depths - "dump everything for cryptos!" - while keeping the technicals all perfectly intact.

 

 

[Nora]

The cost of cryptocurrencies seems very volatile, whereas the value of gold and silver seem relatively stable (increasing in price over time mostly because paper money is decreasing in value), so I don't think that they would be connected inversely like that, especially since recently some cryptocurrencies are coming out that are actually backed by gold.  Has anyone heard of these gold-backed cryptocurrencies?  I have been really interested in them recently.

[999magnum]

This is so simple to me. I shoulda been a PM guru instead of slaving for the MAN for so long. Listen, somehow I knew everything would be up or level comes the new year! Don't ask me how I knew, I just knew, and see? Boom! Everything is up from 2017. From now to the middle of the year PMs will play the pocket change waltz. Pennies will go up, and pennies will go down. Stackers will celebrate in utter joy because they saved 10 cents an ounce of silver from the day before. Cryptos will not disappear(bitcoin will level to a workable speed, but won't burst and crash), instead all the smaller cryptos will become popular because of new investors not understanding the reason Ripple went up and will start buying Tron, Iota, and Cardano. As far as gold...Hummana hummana hummana, yes the planets tell me gold will be up this year! So simple, and all this information is free for forum members btw.

[swAgger]

1 hour ago, 999magnum said:

...Hummana hummana hummana, yes the planets tell me gold will be up this year!

Lo! so twas foretold.....and yea, so didst they stack.....and the people rejoiced