Additionally, the US Mint has posted figures for its key products, all of which experienced lessened demand throughout the month of November.
The Perth Mint sold 23,901 ounces of gold throughout last month, a drastic drop from October, which saw steady gains. In fact, it was down by 46.4% from October, and 56.3% from November 2016. A stunning reversal from the previously seen strong demand.
But why, why is this happening? Have precious metals suddenly lost their luster, has their 10,000 year history as a store of value suddenly evaporated within the matter of a month? Of course not, this is absurd and ludicrous and sounds like a copy and pasted line from any MSM financial outlet.
What is happening is simple. Bitcoin is stealing the show. Bitcoin is decimating the demand for precious metals and will continue to do so, until it experiences a massive correction, or becomes out of vogue.
The miraculous rise in the price of Bitcoin has contrarian investors backing up in horror. While the crypto currency enthusiast continue to HODL at all cost, foregoing the huge gains they have experienced in the hope that they will continue to see parabolic gains.
Perhaps they are correct, as the price of Bitcoin has blown through first the $10,000 dollar mark, then $11,000, then $12,000, then $13,000, then $14,000, and then the $15,000 price point. Yes, this all occurred in one week. You can't make this up!
This is one of the greatest wealth transfers we have seen in centuries, and for those who are ringing the register, you can't blame them, as long term holders have likely experiencing gains that they will never again see in their lives.
Still, some in the industry continue to "clutch" their digital coins, as they state Bitcoin could reach $40,000 by the end of this month. A wild predication and one that if proven correct, is truly historic.
I have no idea how much higher Bitcoin is going, nor do I believe anyone else does. This is a totally new asset and one that is impossible to evaluate, especially given its very brief history.
What I am more certain of, with each growing day, is my predication that precious metals are going to experience a dramatic and sharp reversal. A move that is going to be propelled forward throughout the duration of 2018 and one that will eventually see the "barbarous relics" test and break their old highs. A move that is going to be propelled by the eventual top in Bitcoin.
Take heart gold bugs, better days are coming, and take some advice from your cryptocurrency cousins. HODL!
- As Originally Seen on the Sprott Money Blog
