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Financial news I consider important, with my opinion, which is worth as much as you paid for it.
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Tuesday, March 4, 2014

Gold, Bitcoin, US Dollar, and the Ruble

Below is a summary of stores of value that is in the news, gold, Bitcoin, USD, and Russia's ruble.
The moral of this story is all storage of wealth is relative.
To the charts!

Gold Miners

Back on January 26th I posted Gold at a Crossroad. As readers know, I don't buy gold or gold paper, but gold miner stock. Since that date, GDX has risen from about 23 to 26, a little over 10%, at best 15% from low to high in that period. So while 10% is not that big in the scheme of life, its pretty big for a sector beaten to a pulp since 2011. Of course, the magic question is, will it continue.

Bitcoin

Bitcoin ran into major issues when gtmox started to fail a couple of weeks back, with bitcoin spiraling from 820 to about 540 a coin.  Bitcoin shaken to the core has held up pretty well, considering it is not even a currency!
I should have my first bitcoin tomorrow, already up 20% in a few days.  Reports of bitcoins death is insane, its here to stay.  Overstock predicts before years end, $20M in sales through bitcoin.

US Dollar

The US dollar is under constant attack from arm-chair economists, I see nothing of concern according to the charts.

Ruble

Well, the Ruble is not having a fun time, there is active intervention just publicly announced to stop (yea, right)  to hold the ruble's value.
Who could have seen there may be issues?  Well lets look back to my post Global Currencies Showing Strain.  Granted, the Ukraine issues have accelerated Ruble problems, but its no shock to me there is an issue here.  Lets look at the Ruble value over last 10 years, there is no question the Ruble is under strain vs USD, hitting lows not seen 2008 crisis.


1 comment:

  1. Bitcoin has emerged as one of the hottest investments around. Now, as Bitcoin trading continues to evolve, it is also being linked up with another hot investment market, Forex, which involves the trading of currencies.

    ReplyDelete