As a long time gold, silver, platinum, and palladium bug I will say that it is a good thing that I caught on to bitcoin $24 ago. It seems that everything has done well recently with the exception of metals. Bitcoin however is another story as its impressive rise continues.
Gold tried to make a rally this week making its way up to $1617 before being taken down and finishing off the week at $1575.00. Oddly enough silver did not have as miserable a time as gold did, starting and finishing the week within cents.
Platinum like gold tried to make some headway but fell along the same lines starting off the week at around $1590 and finishing at $1573.
Palladium, although being the best performing metal in the last six months, also came up short losing around 2% to take a much needed weekend break at $723.
Ah but then there is bitcoin, which the central planners cannot manipulate. Bitcoin started off the week at $34.40 and finished at 35 showing a 4% increase. This week turned out to be pretty extraordinary for bitcoin as, not only did it continue its bullish rise despite other hard assets being taken down but, it also took out its all time high.
Again the talking heads will claim that gold’s recent demise was the product of a strong dollar and yen. How anyone can say that the dollar is strong in our present currency war is too much to bare. That being said, the best way to take advantage of this artificially strong dollar is to buy those hard assets that are blatantly suppressed. The chart below outlines this beautifully by showing the half-life of the U.S dollar since 2001, which shows that USD is currently 17% overvalued.
As for bitcoin, that it is going higher is not even a question but what better way to take some profit now by changing it into precious metals? Since August of 2012 bitcoin has gained over 240%! For those that have bitcoin it would be wise to take a look at silver’s performance in the first half of 2011 where the devil’s metal gained upwards of 60% before its manipulated take down.
An argument can be made that there are no “regulators” that can bring down the price of bitcoin like they could with silver. The real value of bitcoin is being discovered naturally as it should be but, trading a portion in now for clearly undervalued metal on an overvalued dollar is a wise choice.