Topic: Gold Losing It's Shine? (Read 6893 times)

Gold is a metal not a mineral.

Yes bitcoin is code,  but whatever encryption man can make another man can break.

Gold has no third party risk.  You hold it and its yours, what you class as a weakness is in fact a strength.

Gold is a fact, bitcoin is a dream. Gold has its consolidated place in the world of values for thousand years, bitcoin has only 6 year of life and until today is ignored and not known by almost 3/4 of all the countries of the world. I love bitcoin but must give the gold its real place and value. Those are all I can add to my previous post.

Edit: I had a mistake in one my expressions used in my previous post: it must be "might not be" and not "cannot" (as it was before) the possibility that bitcoin replace the gold.

Gold is not so popular due to many factors, except may be in Switzerland bank sector   But many private investors are keeping their assets in gold anyway  

Gold is just all network effect, other than that it's an useless piece of mineral. Sure it can be used here and there but that's all. Meanwhile Bitcoin outdoes every other form of money we've ever seen:



It's all a matter of fighting the network effect in favor of Bitcoin. Bitcoin already won every other battle, it just lacks the popularity and acceptance

Yes, gold may be phased it's superlative jump in value appreciations in last 6 to 8 years comparing last 2 or 3 years. Some people claim it's just due to the raise of bitcoin. But we need to rethink for replacing gold with bitcoin it would definitely take more time. Till then gold will be shining more.

It is hard for me to think that gold loses its value. It must be manipulation of them to pull gold's price to lows.
It is one of the most trusted things of economy. It won't lose its shine.

I don't think that hold will lose its shine in the future. Gold has survived 5,000 years, why would it dissappear now. Surely not because of Bitcoin.

If you look at the historical charts of the gold, you will notice that gold goes up and down in the long cycles. When I say long, I mean 2-4 years long. At the moment we are just in a downward long cycle. Experts do think that the gold will continue its decline in the near future. But one day, gold will climb back again.

According to Mark O'Byrne of GoldCore, gold is slowly losing it's shine. And things like bitcoin and cryptocurrency are stealing the spotlight.

Wilfred Frost of CNBC:

Do you think markets are adequately pricing in the risks that are present around the world today, particularly in Europe and the gold price itself?

Mark O’Byrne of GoldCore:

No, I don’t think so. I think in light of the “Grexit”, which you just mentioned, and also the “Brexit” and the overall debt positions globally — we would have a concern that there is a global financial bubble with stock markets at all time record highs, bond markets at all time record highs.

Meanwhile, gold prices have traded sideways, as you said, for a long period of time. We have had a serious correction and we believe there is consolidation. It looks undervalued. At the same time it could go lower before it goes higher. I think technically there is a weakness there and I think there is support at $1140 so short-term there is weakness, quite possibly, but medium to long term the fundamentals look very sound.

Wilfred Frost of CNBC:

Do you think that’s because we have had a breakaway from the idea that gold remains a great hedge towards any risk that’s out there — whether that’s inflation, deflation or just big geopolitical crises or is it just because markets don’t understand that those risks are present and they are ignoring them?

Mark O’Byrne of GoldCore:

I think the latter…for the moment.

Recently gold prices have been fluctuating.  Some time in July the price of gold went down to its lowest but then it rose again, but it went down again. So we can never really say that gold is losing its shine

I think it’s very like the 2003 to 2006-2007 period. The imbalances were building up in the system – meanwhile stock markets kept gallivanting higher and gold was a very under-owned asset and there wasn’t an appreciation of gold as a safe haven asset.

I think you are right.. I think that perception of gold … it has fallen out of favour. Sentiment towards gold is as bad as we have seen it since the 2003/2004 period.

Bitcoin is the more sexy thing. People want to talk about bitcoin and anything with “bit” in the name seems to be doing very well.

Whereas gold is very much less sexy. It’s less on the radar because it has performed quite badly in the short term. But, I suppose past performance is no guarantee of future returns and you have to look at the long-term store of value characteristics of gold as a proven hedging instrument and safe haven asset… over the long term. Not in the short term, obviously.

Carolin Roth of CNBC:

Mark, there simply is no inflationary pressure… I don’t see why gold should be moving higher at all. We are in a disinflationary or low inflation world. I don’t see why gold should be moving past the $1200 level that we’ve been bumping around over the last couple of months. And then we’ve got a dollar that’s moving higher. It’s a bit of a rough patch for the dollar right now but it’s still moving higher. I don’t see why anything we are seeing in gold is more than a dead cat bounce, essentially…?

Mark O’Byrne of GoldCore:

You’re right — there [are] no inflationary pressures … right now.

The question is “is that inflation building up?” And I think it probably is.

At the same time gold is not just a hedge against inflation — it’s actually not a really a hedge against inflation per se, it’s more of a hedge against serious inflation and stagflation. It’s also a hedge against deflation.

So when you have a Lehman Brothers moment or a potential “Grexit” there is that significant counterparty risk. And gold — because it has no counterparty risk if you own the actually physical asset — it is actually a hedge against deflation as well.

There is a huge body of academic research that shows that.

I am agree with your perspective. The Gold price is quite fair for now.
And gold will always remain in future, same as diamond, ruby, and any other gem.

Btw i'm not sure about BTC can always shining like gems or not? There many alt coin too nowadays who want to follow BTC wins.

I think that gold is very precious and most trusted asset through out the history of mankind.It will always remain an important player to measure the value of the currencies even in future when only digital currencies will rule the financial system. Gold's shine can never be dimmed not even little.Recent decline in price of Gold was after effect of price hype which was created by elite now price is very fair in my opinion.

Gold may lose its shine but it is only temporary, bitcoin and cryptocurrency
may take the spot light but it will only last for atleast 20-30 years IMO,
and in the end gold will still have its value even after a several century or more,

Last two and half years gold could not find upward movement. The slow down in economy also a reason for slow gold movements. But gold will shine is future for sure as long as world countries accept it as medium of exchange.