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Could Central Banks Dump Gold in Favor of Bitcoin?

If gold continues losing value, could central banks dump their gold in favor of cryptocurrencies? Yes, I realize this is anathema to those who anticipate a gold-backed currency becoming the dominant form of centrally issued currency, but the idea of governments that have debauched their currencies building reserves of decentralized and limited-in-issuance cryptocurrencies may not farfetched.

Bitcoin Prices will Collapse once the Supply of Greater Fools is Exhausted

While bitcoin & its blockchain distributed-ledger technologies are amazing & will indeed likely change the world, they don’t justify bitcoin’s extreme vertical gains. Plenty of past bubbles were based on great new technologies too, but those prices still collapsed once the supply of greater fools exhausted itself. After skyrocketing so darned fast, bitcoin is certainly the riskiest major investment in the world.

Will Bitcoin make things Worse for Gold before they get Better?

While new, smaller cryptocurrencies and “initial coin offerings” continue to gain attention, the market’s more speculative gold mining stocks are taking a beating. Bitcoin is killing gold right now. We have no idea how long crypto-mania will last. But if the excitement surrounding bitcoin continues through the holiday season, we suspect things will get worse for gold before they get better.

A Closer Look at Gold & the US Dollar - Do They Tell us Something?

Commodities are priced in dollars. Global trade is done in dollars. And the majority of international funding is in USD. The dollar is important. Dollar trends impact markets and assets around the world in various ways. Hence why the dollar is the fulcrum. But if the dollar is the fulcrum then gold is the foundation on which that fulcrum sits. Now let’s take a closer look & see if they tell us anything.

Exiting Bitcoin to Enter Gold and Silver - Right? Why would You go the Other Way Around?

Sound money advocates who love the concept of cryptocurrencies but don’t want to abandon precious metals have been trying to clarify their thoughts of late. Selling out precious metals might be unwise if we consider that gold and silver prices are closer to their lows, and Bitcoin and the cryptos are reaching new highs. Analyse whether or not Bitcoin, the US Dollar or physical gold will remain money.

Gold Remains Preferred - Wild Volatility & Internet Dependency Weigh Against Bitcoin

Internet shutdowns and cybersecurity attacks compromise our democratic freedoms. When our democratic freedoms are threatened it means our financial ones are also at risk. So many investors spread the risk & hedge their bets against such events. However it can be rendered pointless if your management of your assets is reliant on internet access. Gold is as relevant here as it always has been.

Think AGAIN! - Is Bitcoin a Better Store of Value than Gold?

The bitcoin story has grabbed the trading and investing world’s attention like nothing else, hence the huge rise in its price this year. The root cause of the recent price plunge is a long-running conflict over Bitcoin’s failure to fix its most obvious flaws. But if we get a period of market stress then it could be time for the gold bugs to step up a gear as no one knows how bitcoin will react to a market panic.

Gold Plated Yuan & Cryptocurrencies will soon attack the US Dollar

Some 70 hedge funds have bought bitcoin. The crypto currency’s price volatility provide something traditional markets are lacking…action. China has wanted to unshackle itself from the dollar for a long time and now they’re giving yuan-denominated gold contracts a third try. The dollar will soon be under attack: both from a gold-plated yuan and the cryptocurrencies.

Cryptocurrencies will Never Replace Gold for a Number of Good Reasons

Would the gold price be higher today if massive amounts of money weren’t flowing into bitcoin? Both assets, after all, are sometimes favored as safe havens. They’re decentralized and accepted all over the world, 24 hours a day. Transactions are anonymous. Supply is limited. But I don’t think for a second that cryptocurrencies will ever replace gold, for a number of good reasons. Here’s why.

King Dollar Doomed - Massive Collapse Looms as Rally Fizzles, Rush to Gold

Countries around the world would soon stop trading commodities like oil in the US dollar, something we’re already seeing with China, Russia, Iran, and Venezuela, all of which are preparing non-dollar, gold-backed mechanisms of exchange. After a near term bounce, the US dollar is going to be very weak… and then it’s going to go much, much lower while you see a massive rush for gold.

Here's The Fundamental That Matters Most To The Price Of Gold

There are the positive geopolitical fundamentals & positive economic fundamentals (that we all know about) for the price of gold. In relative terms, none of these fundamentals count. There is one more important fundamental for the price of gold. Not only is it the most important fundamental, but it involves a variable which dwarfs all other fundamentals in magnitude — combined.

Gold and Silver Test Key Support Zones on Dollar Bounce

Gold and silver currently find themselves in the red for the month of Sept. But the dollar could very easily weaken again. If buyers manage to defend their ground around $1,276 in gold & $16.80 in silver & they go on to rise back, then the bullish trend would re-establish. Also a correction in US stock markets, tighter monetary conditions & raised geopolitical risks could boost the appetite for gold and silver.

Dollar Rebounds while the Yen starts it's Descend

On Sept 19th 2017, the dollar reached its highest level since July last year. On the very day that the dollar began to ascend, and the yen to descend, once more, the Trump Administration put the dollar into doubt again with Trump’s aggressive speech against North Korea at the UN. This is likely to destabilize the dollar once more and to cause traders to turn to the yen as a more reliable option.

World's Biggest Hedge Fund Manager: Bitcoin Is A Bubble, Gold Is Money

There are two things that are required for a currency. The first thing is that you can transact in it, it’s a medium of exchange. The second thing is it’s a store of value. Bitcoin today…you can’t spend it very easily. Unlike gold, let’s say, which reflects the value of money, its more stable than the value of money, bitcoin is a highly speculative market. – Ray Dalio.

Unwise to be Short on Gold or Silver as Dollar & Stock Market Crash Loom Large

Gold is already up by almost 15% so far in 2017, fueled by the falling dollar. A weak dollar, coupled with a technical breakout, should continue to push gold prices higher, possibly toward $1,600. A major international banking crisis is inevitable & likely to occur fairly soon. A stock market crash is likely to push many banks to that point of failure. So it would be very unwise to be short gold or silver now.

Will Yuan Priced Crude Oil Futures Backed by Gold be Appealing to Oil Exporters?

China is preparing to launch a crude oil futures contract denominated in Yuan. Backing the yuan-priced futures with gold would be appealing to oil exporters, especially to those who would rather avoid US dollars in trade. It is a mechanism which is likely to appeal to oil producers who prefer to avoid using dollars & are yet not ready to accept being paid in yuan for oil sales to China.

Is a US Dollar Rally Imminent or will Gold and Silver Continue Rising?

The past three weeks have seen a sharp increase in Commercial long liquidation coupled with accelerated shorting but the aggregate number of shorts is still well below the level seen at major tops in the summer of 2016 and with gold approaching U.S.$1,400 per ounce. The risk in this assumption that the U.S. Dollar index ($USD) is about to stage a reversal to the upside, forcing the algo’s to sell gold.

Gold Prices may be Slow to Rise, but the Direction seems Completely Certain

Gold is challenging the $1300 level for the third time this year. If it breaks upwards out of this consolidation phase convincingly, it could be an important event, signalling a dollar that will continue to weaken. The factors driving the dollar lower are several & disparate. Here is a summary of these trends & explains why the consequence appear certain to drive gold, priced in dollars, much higher.

Blockchain Revolution is Gunning for the $27 Billion Gold Market Trading

About $27 billion of gold changes hands every day in over-the-counter markets where settlements can sometimes take days, leaving price risk for buyers & sellers. Using blockchain promises more transparency, security & speedier deals. It also could attract new participants at a time when investors are souring on gold-backed ETFs, a key source of growth in physical demand over the past decade.

Why Cryptocurrencies Can Never Replace Physical Gold

Gold is rare enough to be a true store of value. There’s no danger of it becoming ubiquitous, even if a dozen super-high-grade deposits were discovered tomorrow. If ever the lights go out, due to an electromagnetic pulse, either as an act of war or through a strong solar flare, Bitcoin will vanish instantly. Physical gold, on the other hand, will still be there and ready to use as needed.

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