News & Opinions About Gold & Silver

February 25, 2024

Gold vs Silver vs Bitcoin 50% Bust

Gold vs Silver vs Bitcoin 50% Bust

Sun May 23 Update— Bitcoin was down 12% on Sunday from its Saturday price, it is off 50% from its 2021 high. On April 14, Bitcoin closed at $64,895.22, a little over a month later on mid-day Sunday, the price was $32,601. 

Chinese Vice Premier Liu He promised Friday to “prevent and control financial risks” to the country’s monetary system. He warned China would “focus on reducing credit risks, strengthen the supervision of platform enterprises’ financial activities, a crackdown on Bitcoin mining and trading behavior, and resolutely prevent the transmission of individual risks to the social field.”

Original story…

Amidst the wild gyrations of a year+ of the Covid Pandemic, we’ve stopped to look back at the charts to give us a quick history of Gold prices vs Silver prices. Before we get to that, a quick comment on Bitcoin cryptocurrency. The crypto hype and crazy prices are going through another severe correction. Days ago there were forecasts of a $140,000 price ahead for Bitcoin. Today’s trading fell through $40,000.

Katie Stockton, founder and managing partner of Fairlead Strategies, said that bitcoin and the broader crypto complex is seeing one of its worst selling stretches since March 2020, with bitcoin down 40% from its April high. On Marketwatch today, she estimates that the next support for bitcoin may be around $34,000.

By the end of the day Wednesday, Bitcoin plunged to its lowest level since February hitting a low of $30,200, down by more than half from an all-time high of $64,829 it reached just last month.

Ether, the second most valuable cryptocurrency, was down 21% as well on Wednesday. First, the sell-off in bitcoin, ether and altcoins wiped away $460 billion in crypto markets. Then, BTC rallies some 30%.


Bitcoin is a Gamble

Many newbie investors have rushed into cryptocurrency like others did into the Dot Com craze. Sadly, the more you see and hear about these investing fads, the more you believe they are real. Too many of these crypto-things are just another get-rich-quick scheme. First guys in may make billions, everybody who comes later gets left holding the bag or worth less or worthless cryptocurrencies.

Beware of cryptocurrencies, be careful investing in companies who’ve never made a dime of profit, and trust Stocks of real corporations that produce things. Never ignore the commodities it takes to make them. Remember that when things go crashing down, two forms of wealth always outlast inflation and paper money. These are physical Gold and Silver, hard money, historical forms of money, and the exact opposite of cryptocurrency.

Physical Gold and Silver Have Lasting Value

Today, the world has been flooded with $5 Trillion Dollars of newly created money in the form of U.S. Dollars. As a result, Stocks rebounded from the Covid Pandemic Crash of a year ago. Some 1,400 forms of “pretend money“ called cryptocurrencies have also been created out of thin air and flooded the market.

This article is about really about investing in Gold vs Silver.

We’ve long held to the belief that hoarding away half Silver and half Gold in a precious metals’ mix makes good sense. There are often times when one metal is sharply undervalued and waiting for the other to play catch up. By investing in both, you can have a better balanced metal’s portfolio.

Silver Doing Well in 2021

For example, loading up on physical Silver over the last six months has been the better choice as we see here with Silver gains 17.82% through May 18th.

Gold Not Taking Off Quite Yet

Gold has been a little behind the Silver rise. Clearly, the hype and b.s. surrounding cryptocurrencies has stolen the limelight away from Gold in 2021… so far. The truth is that Gold remains the foundation of the world economic system. Gold has been money, Gold is money, and crypto is not. The recent collapse of Bitcoin is a sharp contrast to the stability we’ve seen in Gold in 2021 (more below.)

Over the past year, Gold has been a stable measure of value during wild market gyrations. As the newest generations to invest come to realize the high risk of every crypto, we feel more money will flee this latest investment fad and move into Gold. To us, crypto feels like just another get-rich-quick scheme. Gold is not.

Gold Will Benefit from Inflation

As inflation topped 4% in April and inflation fears rose, the reality of Silver and Gold as TRUE INFLATION HEDGES awakened investors. We see money already flowing out of cryptocurrency and back into metals this month. We feel there’s more demand headed into precious metals as we can see over the past 30 day.

Gains of 9.66% for Silver and 5.5% for Gold are just the beginning of the rotation cycle.



Crazy Bitcoin Prices

Over the last few days, there’s been another mass exodus out of Cryptocurrencies and Bitcoin. The graph below is downright ugly for anyone holding this pretend form of money. Here’s how Bitcoin reacted to the recent combination of negative news triggered by Elon Musk’s reputation of Bitcoin’s incredible waste of energy and contribution to greenhouse gases.


Money Moves to Gold from Bitcoin Exodus

Here’s how Kitco News reported the events on May 19th…

While gold rallied, the crypto space saw a sizeable correction. This comes after months of bitcoin stealing investors’ attention away from traditional safe-haven assets like gold.

The quick rise and popularity of the crypto space held back gold this year.

When bitcoin took off, people who were looking to trade alternative currencies and precious metals went into bitcoin instead. Now, we’ve got bitcoin coming back off, and some of that money is finding its way back to precious metals.

Hard Money vs Paper Money vs Electronic Money

With the Federal Reserve hell-bent on destroying the U.S. Dollar by inflating away its value, we are all left to take our pick of ways to hold wealth over the long haul.

Companies who sell physical Gold and Silver directly to individual investors say pent-up demand and excess savings are flowing into hard assets and business has been soaring.

Ryan Denby, CEO of Austin Rare Coins, tells us, “Old clients we haven’t heard from in years are calling us and buying up more Gold and Silver. Many sold Stocks, made a lot of money, and want to hold Precious metals. Fear of inflation is driving demand for physical Gold and Silver. I’m having my best month ever!”


Gold Beats Stock Gains This Century


Gold Outperformed S&P 500 Since 2000

In the 21st Century, you may surprised to see that investing in physical Gold has been a far better choice than the S&P 500 Stock index. Too many crashes, too many wild gyrations in U.S. Stocks have proven disheartening to many investors just looking for some safety and security long-term as they move into retirement.

Today, Gold may be the safer choice to protect buying power. Banking savings pay almost no interest and U.S. Bonds are now paying less than half the interest needed to overcome last months 4% inflation. Yet, Gold still trades below it’s all-time high. We feel the best gains this year are still ahead of us for Gold. As we push through $1,880 resistance, taking out the $2,000 price for Gold will take time, but prove quite rewarding if inflation persists as we believe it will.

Meanwhile, Silver gains are looking to be great this year, we still will see significant resistance at the $30 level. Once we pop through that, there’s no forecasting where Silver will end up two to three years from now. The all-time high of $50 an ounce May again be on the horizon as shortages of physical Silver continue to drive the market.