Is bitcoin replacing gold?
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
On Friday, we mentioned Gold could be in trouble, and although we were long and in an uptrend, we were looking for proof that Gold could hold support. We also mentioned that a lower close would trigger and reversal, and it has. We are now short Gold and Silver, while long Platinum.
The bigger story for the week was the cryptocurrency world, which saw Bitcoin trade to $42,000 and was joined in the big rally by Ethereum and many of the others. It appears that Bitcoin may be replacing Gold as the place of stored wealth.
Although we believe that nothing will replace Gold, Silver, and Platinum, the Cryptocurrency world is real. We have no idea if the Cryptocurrency will last although we are very small players there, we do believe they will be a regular investment class.
We would not be buyers at the current levels believing the latest run-up has been built on the fear of missing out. Bitcoin is in bubble territory and should have a major pullback, which might create a buying opportunity. We don’t trade Cryptocurrency, although we own some. Going into this week, we are now short Gold and Silver, long Platinum.
Here is the recording of Options Training Session 1 – The Basics. We have also included a registration link for session 2 on Saturday January 16th at noon est.