Topic: Gold Losing It's Shine? - page 2. (Read 6893 times)

I think gold still got the massive network effect, everyone in the world has the mental image of gold means wealth and luxury. What gold lacks and Bitcoin has, the excitement of novelty and revolution. Gold feels old and established and pretty boring, Bitcoin is an exciting roller coaster into the future. But remember that gold has its own importance in the world and it will be remain.

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.

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 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.

Well... gold can be used to increase your net worth as well. Gold prices will remain stable, if the demand is equal to the supply. In case the demand outpaces the supply (there can be many reasons, such as population growth, increase in the purchasing power of ethnic groups who purchase gold, central bank accumulation of gold.etc), your net worth will increase.

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.

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.

You're assuming things in that statement. I'm not saying whether the reason behind a market's existence is for profit making, true price discovery, or both. The point I'm making is that derivatives and their nature, even though they bring profit making to the market (or create a new market entirely), are detrimental to the "true" price of gold, regardless of whether discovering the "true" price of something is one of the main reasons behind a market's existence in the first place. Profit can still be made in the market without all of these inflated bogus promises, is all I'm saying. 

This statement is self-contradictory. Markets exist only as long as they can bring profits to their participants (at least, to some of them, lol). In fact, they are created just to make profits (through the exchange of assets), surely not to find out the "true" price of anything...

It is just a useful side effect

You stand to be corrected. Markets are created by the few, to make money off the many.

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.

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.

Gold is too long standing to ever lose its shine. It is the defacto standard of value for thousands of years. I wouldn't worry too much about it.

This statement is self-contradictory. Markets exist only as long as they can bring profits to their participants (at least, to some of them, lol). In fact, they are created just to make profits (through the exchange of assets), surely not to find out the "true" price of anything...

It is just a useful side effect

If the goal is to make a profit, then derivatives can be considered a boon. But are they a boon to creating a market that reflects the "true" price of gold? My point is that they're not, or at least not really

 
  
A national crypto is a flawed premise that is doomed to failure.  
  
Can you imagine if the entire value of the United States Dollar or Russian Ruble was held in a publicly attackable network?  Welcome to the wars of the future!  We would be torn between securing our own currency and attacking our rivals through all sorts of devious attacks.  
  
And guess what wins?  The neutral currencies that don't draw lines in the sand and welcome all members of humanity.

gold is nearly useless in the modern world

Yes, gold derivatives do affect the price of gold in the sense it would be quite different (sometimes... often times) had there not been paper gold around. But I still wouldn't call this influence negative, since the word negative has, well, negative connotation associated with it, wtf...

Really, how can it be negative if it allows to get more profits (more often than not)?