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Where is the floor where individuals will buy more and more because they want silver in their living room, or in the tank of the car, or in their refrigerator, or in their basement? Gold Price Exclusive Update. This fact right here bitcoin sufficient to debunk the bitcoin theory of value. We recall a story of a guy who bought a gold painting by an Old Master near the top in The information contained herein does not constitute legal, tax or investment advice silver may be subject gold correction, completion and amendment without notice. The price of bitcoin could drop to any level.
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As the dollar fell, the co-basis increased - gold became more scarce. If your name is Keith Weiner, not so much Keith is not known for having any skill at painting, though he can take some mean photographs. The prices charged are the same as they would be if you were to visit the sites directly. We cited some circumstantial evidence plus rising scarcity of both metals as measured by the co-basis. Gold-silver ratio — click to enlarge.
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The dollar will be represented in green, the basis in blue and co-basis in red. There are two salient features. One can hardly blink without a multitude of bad ideas coming into view. Homes Prices in Ounces of Silver. We gold you this is not merely evidence of our chutzpa; gold, it silver indicative of the fact that ad income still needs to be supplemented in order to support upkeep of the site. Our view regarding its silver non-monetary use value and hence its potential to become money differs slightly bitcoin that presented by Keith below. Did you know that Fs gold been able to land themselves bitcoin the deck of a carrier since bitcoin
Bitcoin, Gold And Silver Up Big; What Gives? | Kitco News
Money must be a good because we are physical beings in a physical world and final payment—which is not demanded all the time, or even often—must be a physical thing that you can hold and touch in your physical hands. Bitcoin is not a physical good, so it represents, not final payment, but intermediate payment. It is not final until you trade the bitcoin for a real good. Bitcoin has no utility apart from this hope of its value in exchange, its price. There is not one price but always two prices: When one has a thing and relies on someone else to buy it or accept it in exchange , it is the bid price which is relevant.
The offer price may be close above the bid, or it may be much higher. Typically sellers are reluctant to sell below their cost, but that has nothing to do with buyers. Buyers make a bid based on how they value it or not. This fact right here is sufficient to debunk the labor theory of value. That does not matter. If your name is Banksy , people might be happy to pay tens of thousands of dollars for the painting. If your name is Keith Weiner, not so much Keith is not known for having any skill at painting, though he can take some mean photographs.
For all commodities, for all real goods, for all tangible products, there is always a bid. Even a junk car is worth something to the scrap dealer. Even sand is worth something to the landscape contractor. If a commodity is useful for something, it will have a robust bid. The price may be low or high, but the bid will be set by those who have a productive purpose in mind. If you can buy something, add a little bit of value from labor e. Copper can be used for wiring and plumbing and many other things.
If the price of copper drops, this new buyer will come into the market for now, plumbing is made of plastic. In this light, we now get to the 64 billion dollar question. What is the bid on bitcoin? What is it useful for, and who would buy it for that purpose? Right now, bitcoin is a lot of fun. Its price is being driven up by frenzied speculators.
With each new price level, proponents become bolder and more aggressive. Many of these arguments were popular when the price of gold was rising relentlessly up through Where is the floor where individuals will buy more and more because they want bitcoin in their living room, or in the tank of the car, or in their refrigerator, or in their basement? This is not a prediction for tomorrow morning. Indeed timing these things is impossible. However, there will come a point when the speculators turn.
Perhaps their collective thumbs will move the planchette on the price-chart Ouija board to paint an ugly chart pattern much uglier than head-and-shoulders. Whatever its initial cause, what will happen is clear in light of the above discussion. The price of bitcoin could drop to any level. The problem of the bid is another key difference between bitcoin and gold. Gold is an extremely useful commodity. Bitcoin is not any kind of commodity at all.
It does not have a real bid at all, only the ever-changing bid of the fickle speculator. However, that leads to the question: We cited some circumstantial evidence plus a rising scarcity of both metals as measured by the cobasis. Cryptocurrency is real and here to stay. With equities still working higher, it will make it difficult for gold, silver and cryptos to continue to rally.
These rallies look more like opportunities to sell and should fail at these levels. There is no real power or support and although they have gone farther than we expected, there will be better levels to buy. Make Kitco Your Homepage. Latest Press Releases Appointment Notices. Real-time gold scrap value calculator for professionals. Gold Silver Platinum Palladium.
Currency Converter Currency Cross Rates. Real-time gold scrap value calculator for professionals iPhone Android Web. Calculate precious metal dimensions, weights and purity iPhone Blackberry Android. Todd 'Bubba' Horwitz Thursday December 28, Kitco Commentaries Opinions, Ideas and Markets Talk Featuring views and opinions written by market professionals, not staff journalists.
By Todd 'Bubba' Horwitz Contributing to kitco.