Gold Gold Daily Video, February 17, 2021

Brett Reynolds

Sergeant Major
Messages
875
I have been 'Bearish on Gold for last 2 months. I still hold short positions from $1850 and took some more profits yesterday! :cool: As well as fundamental factors mentioned i think that it is being realised among 'general investors that the 'Returns' on Gold compared to the potential of Crypto Currencies is going to be a major factor going forward! All the older generation who have purchased Gold in 2020 during the adverts on TV etc have been 'Sold a Pup'! All these people who are older and don't understand the potential of Crypto in the future are now seeing their investments 'stagnate' under $2000 an ounce for perhaps the next year or 2 yrs or More! What is more..it looks like we could have a 'Double Repo Sell Lookalike on the Monthly chart when February closes! This could indicate 'much deeper retracement for Gold....perhaps back down to $1300 -$1500 area! :oops: This could take 'Months'!? In the meantime...Crypto's and other investments are 'Rocketing'!! ;).Bitcoin $50000 and climbing.!?? :oops:
 
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gpeter991

Private, 1st Class
Messages
41
I have been 'Bearish on Gold for last 2 months. I still hold short positions from $1850 and took some more profits yesterday! :cool: As well as fundamental factors mentioned i think that it is being realised among 'general investors that the 'Returns' on Gold compared to the potential of Crypto Currencies is going to be a major factor going forward! All the older generation who have purchased Gold in 2020 during the adverts on TV etc have been 'Sold a Pup'! All these people who are older and don't understand the potential of Crypto in the future are now seeing their investments 'stagnate' under $2000 an ounce for perhaps the next year or 2 yrs or More! What is more..it looks like we could have a 'Double Repo Sell Lookalike on the Monthly chart when February closes! This could indicate 'much deeper retracement for Gold....perhaps back down to $1300 -$1500 area! :oops: This could take 'Months'!? In the meantime...Crypto's and other investments are 'Rocketing'!! ;).Bitcoin $50000 and climbing.!?? :oops:
I think both markets deserve some rest ;)
 

Sive Morten

Special Consultant to the FPA
Messages
14,858
Crypto's and other investments are 'Rocketing'!! ;).Bitcoin $50000 and climbing.!??
Agree on gold, but crypto... I still have concern of rising interest rates and inflation expectations. Too many institutional investors now control the market. They bring their trading rules as well, suggesting that when interests high - you have to invest in interest-bearing assets which is bond market. And for me it is interesting to see how BTC will behave as it is non-interest bearing asset.
By far it looks great showing high correlation with 10 year US yields. Another problem is unregulated supply. If, for instance some strong sell-off starts - there is no Fed around to contract supply and stop the collapse. Who will absorb liquidity? It means that sell-offs on BTC could be very strong.
 

Tryingtrader

Sergeant
Messages
193
there is no Fed around to contract supply and stop the collapse.
This is true but Bitcoin is really just another 'share' in a 'market', which can go up or down like any other share. Most shares have risk attached to owning them, but the steady destruction of the US$ by the Federal Reserve and huge overspending (deficits) by successive US governments brings greater risk to owning US$ as well. I believe we are heading for another "World currency reset", in the meantime we can only play the market as we see it. :)
 

soul rebel

Sergeant
Messages
139
Agree on gold, but crypto... I still have concern of rising interest rates and inflation expectations. Too many institutional investors now control the market. They bring their trading rules as well, suggesting that when interests high - you have to invest in interest-bearing assets which is bond market. And for me it is interesting to see how BTC will behave as it is non-interest bearing asset.
By far it looks great showing high correlation with 10 year US yields. Another problem is unregulated supply. If, for instance some strong sell-off starts - there is no Fed around to contract supply and stop the collapse. Who will absorb liquidity? It means that sell-offs on BTC could be very strong.
I hope you are right Sive, for the sake of being able to buy some Bitcoin when it drops ;)
But what if more institutional investors and others (who are close to the new money supply) decide to borrow the newly printed money at next to zero interest rate and in effect buy Bitcoin to hedge against long term inflation of fiat? We would do well to remember Bitcoin is a game changer, so maybe the old rules are being re-written.....reminds me of the adage: you don't change Bitcoin - Bitcoin changes you.
 

Brett Reynolds

Sergeant Major
Messages
875
This is very true! Bitcoin and Crypto is 'De-Centralised' assett! No Government can control it..! As Fiat currencies become weeker and Debts continue the grow..people will eventually realise that it is all one Big Ponzi scheme of 'Boom & Bust'..which creates Bigger Wealth Gaps!
The only way Crypto and Bitcoin can be 'controlled' is through Governments and Banks bringing in legislation against it'! I have already heard that HSBC Bank here in UK are saying that they will NOT accept any Deposits from Crypto Exchanges!!? :(:oops:
 

Brett Reynolds

Sergeant Major
Messages
875
Agree on gold, but crypto... I still have concern of rising interest rates and inflation expectations. Too many institutional investors now control the market. They bring their trading rules as well, suggesting that when interests high - you have to invest in interest-bearing assets which is bond market. And for me it is interesting to see how BTC will behave as it is non-interest bearing asset.
By far it looks great showing high correlation with 10 year US yields. Another problem is unregulated supply. If, for instance some strong sell-off starts - there is no Fed around to contract supply and stop the collapse. Who will absorb liquidity? It means that sell-offs on BTC could be very strong.
$ Smile....!? But for how long..!? :p
 

Tryingtrader

Sergeant
Messages
193
Gold is historically a store of value, an ounce is an ounce. However in 1900 an ounce of Gold was still an ounce and is still an ounce today - 1 US$ in 1900 was worth 1 US$ but that same dollar today is only worth 5c or less. I think I would rather have the 1US$ worth of gold.
 
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