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Cramer’s Charts Reveal Bitcoin Is Not Replacing Gold Anytime Soon - CNBC

Cramer’s Charts Reveal Bitcoin Is Not Replacing Gold Anytime Soon - CNBC

Release Date:  Thursday, December 21, 2017

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Cramer’s Charts Reveal Bitcoin Is Not Replacing Gold Anytime Soon - CNBC
“Mad Money” host Jim Cramer and technician Carley Garner determines why gold can hold its own against bitcoion.

"With a Bank of America Merrill Lynch survey casting bitcoin as the world's most crowded investment, CNBC's Jim Cramer weighed the idea of the cryptocurrency replacing gold.

"'Has bitcoin started to replace gold as a repository of value, a place for rich people to hide their money when they get worried about inflation or government confiscation?’ the ‘Mad Money’ host wondered. ‘With the recent decline in the precious metal and the incredible paraboa that is the run in bitcoin, this idea keeps popping up.’

“To determine whether the idea has merit, Cramer called on technician Carley Garner, the co-founder of DeCarley Trading and the author of Higher Probability Commodity Trading.

"'Long story short, bitcoin's not going to replace gold anytime soon, and I'd say that even if it hadn't started pulling back over the past couple of days,’ Cramer said.

“Garner began by saying that bitcoin was supposed to be an experimental currency that allowed people to anonymously move money around the internet, not an investment vehicle.

“The digital currency also isn't backed by anything physical. If the internet shut down tomorrow, bitcoin owners wouldn't be able to access their assets. A bitcoin owner being hacked or forgetting his password would garner the same result.

"’Put it all together and Garner believes bitcoin's astronomical value is the result of perception, not reality,’ the ‘Mad Money’ host said.

“Gold, on the other hand, has some inherent value. Even though most of its value is symbolic, the precious, non-corrosive metal can still be used to make jewelry, conduct electricity or cap teeth. Plus, the $2.4 trillion global gold market is very deep. Millions of investors own a piece of the pie in the form of bullions, jewelry, coins or other investments. In comparison, the entire digital currency market is worth $600 billion, with bitcoin only accounting for about half.

“As such, Garner was skeptical that gold is falling because bitcoin is soaring. Gold pulled back below $1,250 an ounce four times this year and managed to bounce back, and no one blamed the declines on bitcoin, she said.

“Moreover, gold's charts suggest its value could go higher. Historically, gold tends to decline in early December, then buyers come in and drive the precious metal to rally until March.

"’If that seasonal pattern holds up, Garner says you should be buying the dips in gold, not freaking out about its relationship to cryptocurrencies,’ Cramer said.

"’Bottom line? Look, I know the jaw-dropping run in bitcoin has been very exciting,’ Cramer said. ‘But gold is not being supplanted by bitcoin as the go-to alternative to actual currency, and the charts, as interpreted by Carley Garner, suggest that gold might be ready to make a comeback. And while I won't discourage anyone from buying bitcoin — just know the risks, know your limitations — I'm with Carley when it comes to the precious metal, not the precious keystroke.’" (“Cramer’s chart reveal bitcoin is not replacing gold anytime soon.” CNBC 12.19.17)

Get Ready, Gold Showing Signs It’s Heading To $1,700 or Higher – Analyst – TheStreet
December’s volatility has been a nail biter for gold but we have seen the greatest clues as to where the metal is heading in 2018 over the last three days.

“Something very telling has happened in the last three days of the gold market - this according to longtime commodities trader Vince Lanci, founder of Echobay Partners.

"’The last three days have reconfirmed by commitment for a much higher gold price in 2018. We are making higher lows for the year - the recent behavior made me nervous, but something very telling happened in the last three days,’ Lanci said in an interview on Thursday.

"’On Tuesday we had a short covering rally. And Wednesday there was a 10,000 contract increase in December - that's very unusual, that is an over 2.3% increase in open interest,’ Lanci explained. The point Lanci stresses is that gold is now back in a "safe area" between $1250-$1275 an ounce. ‘The $1,700 call I believe in is going to come to fruition- [if gold gets] above $1275 I will double down on a momentum bet.’

“Gold prices rose on Friday and were set for their first weekly gain in four weeks as uncertainty over the passage of U.S. tax reform pushed the dollar to a nine-day low against the yen. Spot gold was up 0.4 percent at $1,257.76 an ounce and set for a weekly gain of 0.8 percent. U.S. gold futures were 0.3 percent higher at $1,260.50 an ounce.” (“Get Ready, Gold Showing Signs It’s Heading to $1,700 or Higher - Analyst.” TheStreet 12.18.17)