Are Bitcoins Killing Gold’s Price?

I think this is a worthwhile premise. As I’ve said now for 3 years; Gold, Silver and Bitcoin – ‘hard money’ is where you need to be – with the big difference being that of the three BTC is the only one that is free to move against the dollar. But I don’t think we’re at the stage yet where BTC is stealing money-flow from Gold and Siver. The market cap for BTC is still too small at $1.2 bn. I do think that BTC’s market cap will – on its way to much higher levels – surpass the market cap of Silver (approx. $30 bn.). On its way to this level then we will see some money-flows redirected away from Silver and Gold toward BTC – but only if the price of Gold and Silver are successfully kept suppressed by the cartel. The likelihood of this happening seems less than great because what I see in the Gold and Silver charts is consolidation, not breakdown. And from a consolidating pattern we’ll see a sharp move higher. At that stage… if you are still following me; we might see a correction in BTC and then bloggers will ask: is the move in PM’s taking the steam out of BTC? But my guess at that stage would be ‘No’ for the same reason: small market cap (even if the price of BTC happens to be $200).

Source: http://maxkeiser.com/2013/04/02/are-bitcoins-killing-golds-price/


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