The DeCarley Perspective...quick thoughts on BTC vs GLD (as seen on Mad Money)
Gold is Outperforming Bitcoin and we don't think it is a Temporary Market Glitch
Gold is Outperforming Bitcoin and we don't think it is a Temporary Market Glitch
Last Thursday we had the opportunity to join Jim Cramer on the floor of the New York Stock Exchange to film an episode of Mad Money. It was, without a doubt, the most amazing experience I've had in my commodity career. On the show, I shared the gold analysis published in a recent issue of the DeCarley Perspective on the price of gold and its ability to rally should the interest rate market settle down and the US dollar continue its downtrend. Click here to review the analysis - https://madmimi.com/s/1b6be61
Despite years of hoopla, cryptocurrencies, and Bitcoin, in particular, is a relatively new asset. Not surprisingly, the Bitcoin market has struggled with an identity crisis. We've seen the coin identify as a transactional currency, then the bigger and better version of gold. Later it traded as a tech stock, and most recently, it has found a home as a portfolio diversifier. It is no longer trading with high positive correlations with beta stocks nor is it trading inversely to gold or the dollar. For proponents of Bitcoin, its newfound stability and independence from other asset classes is a best-case scenario.
Nevertheless, it has yet to prove to be a speculative asset that can truly compete with the stock market (which often pays dividends with more reasonable levels of volatility) and gold, which can be physically owned and bartered if the world as we know it no longer exists. Technology is great, but it isn't failsafe. Nevertheless, with the crypto sector in its infancy, the jury is still out on the final verdict. In the meantime, gold appears to be winning the marathon in the race to a risk diversifier rather than a risk enhancer.
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Seasonality is already factored into current prices, any references to such does not indicate future market action.
These recommendations are a solicitation for entering into derivatives transactions. All known news and events have already been factored into the price of the underlying derivatives discussed. From time to time persons affiliated with Zaner, or its associated companies, may have positions in recommended and other derivatives. Past performance is not indicative of future results. The information and data in this report were obtained from sources considered reliable. Their accuracy or completeness is not guaranteed. Any decision to purchase or sell as a result of the opinions expressed in this report will be the full responsibility of the person authorizing such transaction. Seasonal tendencies are a composite of some of the more consistent commodity futures seasonals that have occurred over the past 15 or more years. There are usually underlying, fundamental circumstances that occur annually that tend to cause the futures markets to react in similar directional manner during a certain calendar year. While seasonal trends may potentially impact supply and demand in certain commodities, seasonal aspects of supply and demand have been factored into futures & options market pricing. Even if a seasonal tendency occurs in the future, it may not result in a profitable transaction as fees and the timing of the entry and liquidation may impact on the results. No representation is being made that any account has in the past, or will in the future, achieve profits using these recommendations. No representation is being made that price patterns will recur in the future.
Great post!