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The Bull Case For Gold As Bitcoin Captivates America - CNBC

The Bull Case For Gold As Bitcoin Captivates America - CNBC

Release Date:  Friday, December 15, 2017


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The Bull Case For Gold As Bitcoin Captivates America - CNBC
For those who think there is no need for gold anymore, they may find themselves wrong.

“Sure, the yellow metal has declined nearly 7 percent since September, now trading below its 200-day moving average for the first time since July, the Fed is about to hike rates and, finally, tax reform legislation is in the works.

“It's easy to forget that gold, now facing pressure ahead of the central bank's meeting, was up as much as 18 percent this year.

“This year, we expect a less hawkish or even a potentially dovish Fed, coupled with overshadowing political issues heading into the new year.

“The final piece of the bullish puzzle is gold's strong seasonality for the month of January; gold has finished the month of January higher in nine of the last 12 years.

“Of those years, the first it failed to do so was in 2010, when it rose by more than 6 percent in January before finishing about 1 percent lower. The second year gold ended lower was in 2011, when it gained as much as 35 percent when it hit all-time highs in September.

“We believe that gold, should it move lower over the next three weeks, should not be a death sentence for the metal, but instead should be viewed as a buying opportunity.” (“The bull case for gold as bitcoin captivates America.” CNBC 12.12.17)

Lindsey Graham: There’s A 30 Percent Chance Trump Attacks North Korea – The Atlantic
Lindsey Graham did something different on Wednesday when speaking about the chances of the United States and North Korea going to war, he estimated the odds.

“’I would say there’s a three in 10 chance we use the military option,’ Graham predicted in an interview. If the North Koreans conduct an additional test of a nuclear bomb—their seventh —“I would say 70 percent.”

“’War with North Korea is an all-out war against the regime,’ he said. ‘There is no surgical strike option. Their [nuclear-weapons] program is too redundant, it’s too hardened, and you gotta assume the worst, not the best. So if you ever use the military option, it’s not to just neutralize their nuclear facilities—you gotta be willing to take the regime completely down.’

“’We’re not to the tipping point yet,” he noted, but “if they test another [nuclear] weapon, then all bets are off.’

“Graham takes the possibility of war seriously enough that, to prevent it, he would support direct talks with the regime “without a whole lot of preconditions.” It was a noteworthy statement coming from one of the foremost North Korea hawks in Congress. He wouldn’t rule out a Kim-Trump summit. ‘I’m not taking anything off the table to avoid a war. ... When they write the history of the times, I don’t want them to say, ‘Hey, Lindsey Graham wouldn’t even talk to the guy.’’

“Many experts think North Korea has essentially reached this milestone already through its increasingly sophisticated nuclear and missile tests, while others argue that the North is still months or years away from that goal. But Graham bypassed these technical debates to focus on a central tension in the Trump administration’s approach to the issue: The Kim regime is sprinting toward breakout, while the Trump administration’s diplomatic campaign to persuade China and other countries to impose stiffer sanctions and other forms of pressure on North Korea is moving forward, but slowly. It’s a race. And there’s currently a clear frontrunner. (“Lindsey Graham: There’s a 30 Percent ChanceTrump Attacks North Korea.” The Atlantic 12.14.17)

Bitcoin Isn’t Sapping Demand For Gold, Says Goldman Sachs Exec - Coindesk
Jeffrey Currie, a Goldman Sachs executive said that there is “no evidence” that bitcoin’s price gains have reduced the demand for gold.

“Amid investor concerns over the issue, Jeffrey Currie, global head of commodities research for the financial services giant, told the Financial Times this week that he believes investor pools for the two assets are different. Further, bitcoin's lack of regulation, he alleged, is an obstacle for traditional investors.

“Still, bitcoin prices have shown astonishing gains over the past month, particularly in the wake of bitcoin futures trading launched by CBOE Global Markets last Sunday, movements that coincide with the fact gold is witnessing a slump in price.

“Currie, however, asserted that gold and bitcoin have different characteristics and that the recent price action is due to the nature of demand for the assets.

“Saying that gold ETF holdings are at their highest level for over four years, Currie stated there is ‘no evidence of a mass exodus from gold.’

“And although the lack of liquidity and high volatility may make bitcoin ‘interesting,’ it will not likely be a draw for investors seeking the diversification and hedging benefits of gold, he remarked.

“The statements follow those by Goldman Sachs CEO Lloyd Blankfein 10 days ago when he said he believes it's still too early for the bank to consider a bitcoin strategy as it ‘doesn't feel like a store of value.’"(“Bitcoin Isn’t Sapping Demand for Gold, Says Goldman Sachs Exec.” Coindesk 12.12.17)