Monday, November 13, 2017

Contrary to the rhetoric, very few investors are dumping their physical gold to buy Bitcoin

There has been quite a bit of rhetoric going forth in the alternative financial media that because of the declining demand in the gold markets, investors are selling their gold to then put their cash into buying Bitcoin.  However according to a number of analysts in the gold sphere, very few if any have heard of individuals selling their physical gold to move into a cryptocurrency.

Bitcoin’s surge to nearly $8,000 in recent weeks has led some analysts to speculate that it is taking interest and capital away from gold, which has languished in a tight range between its 100-day and 200-day moving averages. However, George Milling-Stanley, head of gold investments at State Street Global Advisors, said that this theory is nothing but the latest urban myth. 
“It’s a myth of epic proportions on the same level as alligators in New York sewers,” he said. “I have talked to many financial advisors and investors and no one has said that they are selling their gold to buy Bitcoin.” - Kitco
Recently there was an interesting sea change as google searches for Buy Bitcoin surpassed keyword searches for Buy Gold.  And while there have indeed been some investors who have sold off gold holdings to invest in cryptocurrencies, the majority appear to be holders of paper gold (etf's) versus those investors who buy physical gold for wealth protection.

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