The gold volatility continues knocking gold back down towards (shudder) $4800. Still, double where it was a year ago. But with no change in the fundamental story which begins with the central banks of the world buying as much gold as they can source. China's gold binge is only accelerating with Chairman Xi posting to the government website a proclamation maintaining that China's strong currency will be backed by GOLD which will serve as the underpinning of China's strong economy.
So why the continued volatility? Michael Burry of the Big Short fame, opines that much is due to institutions that unwisely "invested" in Bitcoin being forced to cover losses by selling profitable gold and silver positions. This can only continue so long though, as the US corporate institutional support for gold is but a tiny fraction of the Central Bank support.
It does, however, point out a falicy in the Bitcoin as "digital gold" argument. Because bitcoin has no use value other than as a means of money laundering by the criminal class of both private and government varieties. Private and government criminals can get money out of countries to safe havens, and government criminals can set up meme coins (validated by the bitcoin narrative) as a means of accepting untraceable bribes.
But otherwise bitcoin is a digital pet rock. (though a rock has some use value as a weapon or a bookend or a doorstop.)
Gold is used by the central banks of the world as a reserve currency and by Eastern and Mideastern and BRIC goverments ever increasingly as a settlement currency for commodity trades.
So as crypto implodes there will continue to be some volatility in precious metals, but as the "digital gold" falacy becomes increasingly obsolete that money will shift into gold as the only efficacious monetary debasement trade. So over time the crypto implosion can only benefit the gold price.
As an aside: Zero Hedge posts this analuysis of bitcoin: Richard Farr, chief market strategist and partner at Pivotus Partners, has issued a stark prediction for Bitcoin (BTC-USD), setting a price target of zero for the cryptocurrency.
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