Are Bitcoins Killing Gold’s Price?

I think this is a worthwhile premise. As I’ve said now for 3 years; Gold, Silver and Bitcoin – ‘hard money’ is where you need to be – with the big difference being that of the three BTC is the only one that is free to move against the dollar. But I don’t think we’re at the stage yet where BTC is stealing money-flow from Gold and Siver. The market cap for BTC is still too small at $1.2 bn. I do think that BTC’s market cap will – on its way to much higher levels – surpass the market cap of Silver (approx. $30 bn.). On its way to this level then we will see some money-flows redirected away from Silver and Gold toward BTC – but only if the price of Gold and Silver are successfully kept suppressed by the cartel. The likelihood of this happening seems less than great because what I see in the Gold and Silver charts is consolidation, not breakdown. And from a consolidating pattern we’ll see a sharp move higher. At that stage… if you are still following me; we might see a correction in BTC and then bloggers will ask: is the move in PM’s taking the steam out of BTC? But my guess at that stage would be ‘No’ for the same reason: small market cap (even if the price of BTC happens to be $200).

46 comments on “Are Bitcoins Killing Gold’s Price?
  1. Disgusted of Tunbridge Wells says:

    It may be wishful thinking to feel that Gold & Silver can be successfully suppressed by the Fed but Bit Coin cannot.

  2. Robespierre says:

    That does it ! Asshole !

  3. Jayme says:

    Naw, BitCoin may certainly be producing some small difference but the primary factor appears to me to be paper. How many people in India or China are buying bitcoin? The entire bitcoin market $1b = 21 tons of gold. I think Libya held 144 tons in BoE (good luck getting any of that back). If that gold is being used to feed the paper market, then that might better explain the drag on the gold price since Qaddafi was killed. Yearly gold production is what … 2500 tons? I don’t think BitCoin made more than a pimple’s difference and I don’t think ‘multivariate regressions’ are necessary.

  4. Lumber Jack says:

    The whole premise of gold and silver is that they’re insurance, first and foremost. If you plan on living longer than ten years, don’t sell your gold and silver, no matter what happens to the price. I don’t even follow the price of gold and silver anymore. Don’t expect them to soar to ridiculous prices like so many predict. I’m planning on putting roughly 20% of my money in bit coin, gold and silver, collectively. I just pre ordered a miner. I think Bit Coin will continue to go full blown parabolic because of the Eurozone crisis. There may be some nasty corrections as well, which will be buying opportunities. I apologize to Max and Stacy for dissing on them for pushing Bit Coin. As long as they keep to the subject matter and don’t ego trip all of the time, I’ll keep watching the show. I like zerohedge because they/he makes a lot of accurate predictions and he doesn’t brag all the time about it. Max Keiser and Tyler Durdin have been wrong a ton of times as well, don’t insult my intelligence by saying otherwise. BTW, It’s April 2nd. Let’s see if Max Keiser’s prediction for a massive global market crash happens. I think there will be a correction this month, but no crash or crises, and I bought SDS today (a double leveraged short of the S&P 500).

  5. SAO says:

    Who ever is manipulating PM’s should be taken out. I don’t care how, but adios assholes.

  6. daddy warbucks says:

    If your following the BRICS latest abandonment of the USD, world wide gold repatriation, the financial/USD collapse is very near.

    All the while our ‘trusted’ MSM’s huge effort to get the muppets out of physical gold and sending their wealth into a cyber cloud (controlled by who knows?). warning, warning

    I have a feeling this North Korea ‘build up’ (all over MSM) is setting the stage for a FALSE FLAG EMP attack (or similar). North Korea is too under the thumb of China & Russia to be rogue, can be squashed too easily by the USA & McCain/CFR/NWO are desperate for an event. Watch the other hand. Why is Israel so quiet about this?

    Say good bye to your Bitcoins if that happens.

  7. gussy says:

    I see bitcoin surpassing everything. Gold & silver priced in bitcoin will restore price discovery,

  8. Robespierre says:

    @SAO
    If it was only precious metals. It’s about everything. The food, the water, the oïl. the gas, the pharmaceutical products, the interest rates, the electricity tarifs, the carbon crédits, the insurance rates. EVERYTHING. That’s what is so fantastic SAO. Dont even have to do this crap mind you. There is enough money out there for example to buy ALL the physical silver out there. And the mystery is that nobody is thinking of doing it !

  9. gussy says:

    Why doesn’t Goldmoney.com etc not accpet bitcoin. M&S you know the bods over there, give them a good clout, get them to get their finger’s out.

  10. Robespierre says:

    @gussy
    You are from Ireland if I remember ? OK. It explains a lot of things. Are you serious ? Reestablishing price discovery with an electron, a geek toy ? I think you should stop smoking, sniffing or drinking your funny stuff in Ireland. Hope Ireland gets totall cyprussed.

  11. Robespierre says:

    @gussy
    So gussy. You mortgaged your house to buy two gizzillions bitcoins ? Bitte-Conne vas.

  12. Ade says:

    We want Gold and Silver to be succesful too, we don’t want all our eggs in the same Basket, and we need to be setting up real economies too.
    You and Alex Jones have the reach, you’ve helped generate and publicise the money, now we need to be creating the new industries.
    I know we’ve got pirate my film and 3D printing, but the best way to ensure the long term success of BTC is not to keep hyping bitcoin per se, but to startt encouraging, and maybe even financing start up businesses or existing ones to accept Bitcoin.
    The best way for those heavily invested in Bitcoin might be for them to re invest or even give away 1% of their gains each year to help bitcoin startups or help educate existring businesses to untilise bitcoin.

  13. gussy says:

    Robespierre your all a bit fuckin’ la de da, what’s the matter didn’t buy at $4, tough shit.

  14. kevin says:

    all the ones and zeros on the entire planet don’t add up to a single ounce of gold. Bitcoin is a symptom of the problem and not a solution. keep stacking.

  15. bill says:

    You have a lot of things right, Max, but not everything…………

  16. Robespierre says:

    @gussy
    Fak you and hope Ireland goes belly up. You want to be cocky ? Hope your country get cyprussed before Canada and it will. Arrogant cocky full of manure pretentious arrogant blazing bubble head. Instead of mocking me, you irish beer drinker, try to answer the couple of question not one of you dare to answer.

  17. Angel says:

    Bitcoin will never offer the protection that precious metals do but most importantly human behavior will rhyme with world history.

    Bit of a con is what I say.

  18. Robespierre says:

    @gussy
    Sorry Gussy. I forgot. Ireland is already cyprussed. It’s just that the Irish are just too stupid to have noticed. Like in Cyprus. And a week from now the morons in Ireland will wake up at it will be bank Holiday and their journalist whores will have announced there was a brush haircut of 40%, 50%, 60%, 70% of their money at the bank. I really dont care a fuck if you bought your bitte-conne at 4 dollars. I just care at least if what is said is the truth and will eventually crash JP Morgan and central banking but it wont. So enjoy your million but I dont care. You are also evidently judge and party at the same time and you are punch drunk like Max and Stacy.

  19. gussy says:

    Blazing bubble head… (can’t help laughing).

  20. Greg says:

    This is fairly heartbreaking. How can Max say that the market cap is ONLY $1.2 billion. At this rate it will soon reach $30 billion and then what’s he going to say? This guy celebrates the fact that silver was best performing asset in the past 10 years but he only became a noisy, showboating, cheer-leading clown for the tail end of the bull run. Now he’s doing the same for bitcoin, as if he had much to do with the popularization of bitcoin until VERY recently. There are a lot of humble, non-celeb grinders working behind the scenes to escort us out of our debt-based money systems but Max strikes me as some goddamned nuisance know-it-all who can’t resist the impulse to shriek, “I TOLD YOU SO”. You know… if I had the same urge to do that… I would just make 10 prediction per week and when 1 came true I would posture myself as an economic prophet and scream, “I TOLD YOU SO”. Max, go fuk yourself with a plastic tube of silver coins.

  21. gussy says:

    Smouldering scabby toe…

  22. Robespierre says:

    @gussy
    I think you are talking about yourself. :) You are a tulip bulb head. I like the metaphor. Electrons are much less prettty than tulips.

  23. gussy says:

    Robespierre your right treat yourself to cultural revolution.

  24. Robespierre says:

    @Greg
    Making money very quickly makes you like that. They are punch drunk. It’s a waste of time to ask questions. It’s like the Church of Scientology. So the FED is dead and Bitcoin will soon render them all the master of Earth and the Solar System. It’s called hubris.

  25. Robespierre says:

    @gussy
    Revolution. ? A part from making money for yourself what does it do for humanity and lets the average poor guy that has only 2$ of 1$ to feed his family ? You arrogant punch drung assholes. You really think that a byte on a computer can change the world. Stop taking your internet electron LSD. Try at least to answer my questions which are quite rational by the way. I loved the concept but now I see that I am dealing with pigs obsessed by the plus values they are making.

  26. Robespierre says:

    @gussy
    ”Cultural revolution ?” Yeah like in the 60’s ? Total fiasco. Or the one by chairman Mao ? Total fiasco. You really have to stop taking all these magic mushrooms Gussy. Happy Bank Holiday and bank account haricut in Ireland ! :)

  27. gussy says:

    Windbag.

  28. Let’s talk REAL VALUE!
    http://en.wikipedia.org/wiki/Foldit

    Suppose you had cancer? and as reported very recently, cancer cells extracted from trial patients with leukemia unresponsive to conventional treatments, had those same cander cells re-engineered to become cancer-killer cells, and after re-injecting a few of these back into the patient, They all had 100% remission.

    Suppose you lost all your teeth, or a few in the front? Stem cell dentistry can now grow your teeth back good as new.

    Suppose a whole host of therapies turned up? rejuvenation amongst them. NOW THAT WOULD RAKE IN THE HARD CASH 4 SURE!

    Read on:- GoalsProtein structure prediction is important in several fields of science, including bioinformatics, molecular biology, and medicine. Successful identification of the structural configuration of natural proteins enables scientists to study and understand proteins better. This can lead toward the creation of novel proteins by design, advancements in the treatment of diseases, and the development of solutions for other real-world problems, such as invasive species, waste, and pollution.

    The process by which living beings create the primary structure of proteins, protein biosynthesis, is reasonably well understood, as is the means by which proteins are encoded as DNA. Determining how the primary structure of a protein turns into a functioning three-dimensional structure—how the molecule “folds”—is more difficult; the general process is known, but protein structure prediction is computationally demanding.

    [edit] MethodsSimilar to Rosetta@home, David Baker and his team of co-workers aim to use Foldit as a means of discovering native protein structures faster, through a combination of crowdsourcing and distributed computing. However, there is a greater emphasis on crowdsourcing and community collaboration with the Foldit project. Other methods, such as virtual interaction and gamification were added, creating a unique and innovative project environment with the potential to greatly assist the cause.

    So could ‘Crowd-Sourced’ Cyber Currency do something a ‘BIT’ more useful, that counting ‘Bits’ ???
    Louis von Arn, (BIG-Louis) reckons that with only one million people learning a second or even third language, with his Crowd-Sourced “DuoLingo” Project, ALL of Wikipedia… THE ENTIRE LOT OF IT!!! could be translated into anotrher language, at professional fidelity, in about 80 hours. The Bitcoin concept needs to evolve…. in my view Bitcoin is a bit like life at the ‘mud-soup’ end of the evolutionary spectrum.

  29. steve says:

    Have we forgotten why we are here? hard assets in times of trouble, The Bitcoin might take off, but it can be wiped out in a nanosecond. Can you wipe out Gold and silver physical in a nano second?. I think the Bitcoin idea is interesting but just play with it for now unless you have a lot of money you dont care about loosing.

  30. Silverwillwin says:

    @ Alistair…and I’ll bet my bottom dollar that there’s silver – REAL SILVER being used in the processes that you are describing. Without physical silver civilization would cease to exist !

  31. Silverwillwin says:

    correction >Alastair

  32. StackEm'High says:

    Ok Max. I thought it was Silver before Gold! Now its Gold, Silver and BITCOIN! Enough with the bitcoin already. Silver is real. Now I really don’t know what you are all about. If you were for “the people” you would support silver and most people on the planet don’t even know what bitcoin is or have a cellphone. I think I’ve had enough of this site.

  33. Robespierre says:

    @gussy
    Price discovery of an electron is less than zero. You are all kidding yourself exactly like with tulip bulbs in Holland. Price discovery of a concept that you can imitate ad infinitum with a couple of good programmers and a little bit of good promotional bullshit. Instead of wasting your time insulting you sack of irish rotten potatoes, you should answer my questions. What’s is so rare, precious, pristine or limited with electrons and dont give me the usual bullshit that it’s going on up in price. It means nothing and you know it.

  34. Robespierre says:

    Circular reasoning that is. If a thing is going up it means necessarly that it’s worth more and is more valuable. Stupid momentum investing based on a worthles electron but a sexy concept that however anybody can imitate and will imitate considering the infinite mass of guillible electronic tulip buyers. Who wants my tulips. My kingdom for an electron ! :)

  35. The Underdoug says:

    Can I fuel my car with bitcoin?

    Before you go on (or start) about how cars aren’t green, let me rephrase:

    Can I charge my electric car off the grid with bitcoin?

    Nearly all energy (with perhaps the exception of domestic solar for water heating – trickle solar electric grid feed-in is usually heavily/stupidly state subsidised) is in the near-direct control of governments. Since energy supply in most nations is takes the form of state-sanctioned (or state-owned) monopolies or oligopolies, it will not be difficult for a state (or states in concert) to prevent bitcoin being used for this purpose. A single petrol station accepting bitcoins for fuel will not count as evidence of a turning tide. however, maybe one supermarket brand, or one of the major forecourt chains (BP, Shell or Esso) doing so, would.

  36. Vonda Bra says:

    .

    Dr. J. Berninger – 1.4.2013 ! ! !

    Predicting the Bitcoin bubble to burst in 2013 ! ! !

    http://youtu.be/5yrQ0_Z2tAg (13:05)

    what a sane and objective guy !

    .

  37. gussy says:

    Mr. Bitcoin, nope I got in realatively late, a combination of idleness and loafin’ saw to that, but I’m happy to give it another few years. Discovery of the silkroad did it for me, I think of it as the drug trade put.

  38. gussy says:

    The way I look at it M&S were talking about gold when it was $250, I managed to buy at $500, similarly silver was $5 I got it when it hit $10, I now have a stake in bitcoin, I’m content. Plus I’m sure Max will pull out another winner over the course of the next 20yrs, or else…

  39. Rioting like a chimp says:

    The new world trade from the east will be gold and possibly silver backed. They have had enough of 0% USTBonds and QE. Expect differing currencies be back ie German will be Gold-Mark, Russia (the biggest energy supplier) will be Gold-energy, China Gold-yuan, Iran will be Gold-resourse. They plan this trade to also be Peer to Peer.

    I don’t know how Bitcoin fits in since the limit on coins is like gold (until some very clever dude cracks the code and does self QE).

    I expect it’s worth just getting enough Bitcoins for day to day buying but having PM’s as savings. Bitcoin value is worth as much as the people feel it’s worth without any real worth. PM’s can be used for useful purposes as well as being desired for 1000’s of years.

  40. The Underdoug says:

    @Mr Bitcoin: Thank you for your thoughts. I agree with your sentiments regarding bitcoin’s usability where the other party will accept it. I’m not a hater, just a sceptic (skeptic for ye yanks). Energy (which if the ordinary pleb could store in quantity, would be money) is a big stumbling block for me. Oil is not known as black gold for nothing, that’s why governments expend so much blood and treasure (not bitcoin) to control it and its byproducts. By the way, can one make war (the physical shoot-bang variety, not the sci-fi film cyber stuff) paid for by bitcoin (I’m sure you can buy a gun using bitcoin, but I doubt that I could get anonymous delivery of the product)? The defence (defense for ye yanks) conglomerates aren’t exactly going away and governments (who are the suppliers’ welfare paymasters) aren’t going to pay in a currency that they can’t print themselves. Don’t get me wrong, I take off my hat to Mr (assuming that it’s a Mr in reality) Nakamoto in choosing to model the supply side of bitcoin on a time compression of the last 10000 years of the historical supply of gold. I also hugely admire the ideas for transaction processing and blockchain integrity. However, as a product designer who has some experience of observing the history of new product and new marketplace evolution, often the first in the marketplace is not always as successful as the second or third (yes, money is a product, even if we don’t always get to choose which we use). Just as I expect Apple to lose out to Android in the long run, I expect bitcoin as the first significant effort of its kind to ultimately fail – I expect that failure to be due to government interference, not any flaws in its design (bitcoin is theoretically government-proof). I expect people to succumb to pressure from governments not to use it: this could take many forms, but the local state breaking down the door of one’s home to directly confiscate assets in lieu of tax avoided by using bitcoin will be pressure enough for most people. I’m watching out for son of bitcoin (youngerer, prettierer, fasterer) replacement once bitcoin has been suppressed.

  41. Late to the party? Huh? Max has been talking about bitcoin from under a buck. We just hit 147 overnight. Go go go go Litecoin chicken :-)

  42. davem says:

    Right, I’ve decided to buy some bitcoins!
    Get ready everybody as this is where the price starts going down (really hope not but just watch!).
    Where’s the best place to buy bitcoins?
    Anyone used this site?
    https://bitbargain.co.uk
    Any others?

  43. davem says:

    I think I’m the only one here

  44. The Underdoug says:

    @Mr Bitcoin The fact that I didn’t know about the armory is because I wasn’t looking for guns. In the UK, even looking at some gun literature online can get the local police paying you a visit (ip anonymisers notwithstanding). You may think I’m an idiot (and you’d be right) for not arming myself, but if I did (which I’m not admitting), it’s not something I’d ever admit to. I said I regarded bitcoin as more-or-less government proof. I also said that people interacting in the offline world where state-sanctioned monopolies/oligopolies on essentials (water, fuel) and violence (police/army) are not government proof (are there bitcoin bribes yet?). I’ve said I think bitcoin is nothing short of brilliant, and I’ve been a close watcher of Max and Stacey’s calls for many years now. I know my bank account and pension are going to be destroyed: again, if I’m ready for it, I wouldn’t even come close to admitting it. I know that in reality I don’t live in a free country (UK). The only thing I’m admitting to is that I won’t touch bitcoin, for the reasons (which I appreciate that you regard as invalid, but I am a conspiraloon and look for the worst case) I’ve given earlier.

    One thing about life. I don’t mind being proved wrong. I may well be proved wrong about bitcoin. If I am (I dare say you would say ‘when I’m proved wrong’), I’ll just shrug my shoulders and give a toast to you and Max and Stacey and then get on with the rest of my life (which may be all too short anyway to get worked up about).

    I’m not a bitcoin hater, just a sceptic. Please find some room in your life for sceptics: they’ll still be there even if bitcoin takes over the world’s money supply.

  45. The Underdoug says:

    @Mr Bitcoin: As a UK resident (i.e. not living in a free country) some online searches for guns can get you a visit from the local police (ip anonymisers notwithstanding), so I’m not arming myself (and if I was, I wouldn’t admit to doing so). I’m not bashing bitcoin, I’m just a sceptic (please learn to tell the difference). I chose not to join in 2011 when I first heard about it: there were and still are other means of protecting myself against the fiat monsters. I’ll say it again, bitcoin is more or less government proof, people are not. Just ask anyone who’s had an Inland Revenue tax investigation.

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