The Inverse Relation Between Bitcoin & Silver, Gold Persists
Today the inverse relationship between gold and silver and bitcoin persists, as silver continues its doldrums flirting with the $26 handle and gold stands around $1578.00, whilst bitcoin continues its stealth 2012 rally. The Mt. Gox Bitcoin index has the digital currency up above ฿9 after last week reaching the high ฿7 handle. The Bitcoin-silver ratio sits today at ฿3 per ounce of silver. The gold-bitcoin ratio sits at ฿175 per ounce of gold. Currently, it seems changing bitcoin into silver or gold bullion is a good trade, although patience is a must considering the pressure gold and silver have been under by the powers-that-be. Bitcoins seems to be poised for a break in their run-up, as this chart hints:
The silver chart, on the other hand, is all fucked up, but thanks to its overwhelming price appreciation over the last ten years, a trendline can still be established. Silver will escape these doldrums, but it will take serious dislocations in the geo-economic sphere and brave, massive silver buying from large investors to break this range and get up past $36 USD.
Here is silver’s YTD:
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Danny Key
