Bitcoin, Gold And Silver Up Big; What Gives?
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Tuesday was an interesting day in the alternative asset class. Gold and silver continued the rally that they started two weeks ago, recovering most of the loss, and pushing well above the key breakdown level of $1,265. The rally is in the height of the holiday season on declining volume and is probably more short covering than new money buyers.
Bitcoin recovered all of Friday’s losses and closed much higher on the day. The volume was heavy and looked more like new money and short covering, all a part of the Bitcoin bubble. Make no mistake -- Bitcoin is in a bubble, but that can happen with any asset class. Cryptocurrency is real and here to stay.
With equities still working higher, it will make it difficult for gold, silver and cryptos to continue to rally. These rallies look more like opportunities to sell and should fail at these levels. There is no real power or support and although they have gone farther than we expected, there will be better levels to buy.