The RSI has reached its highest level in two decades. If you have a short-term mentality, you might even think the gold market has gone bearish.But as World Gold Council chief market strategist John Reade pointed out in a piece he wrote for the December issue of WGC , 2017 has been good for gold.Ten year later, it took 120,000 denarii to buy a pound of gold and by 337, that figure was 20,000,000.What had occurred in a mere 400 years was that a slow and agonizing erosion in the purchasing power of the Roman currency accelerated to full fiat disintegration and that complete and total disregard for the denarius was attributed as one of the underlying causes of the Fall of the Roman Empire. It’s not very often we get to witness a full-blown speculative mania, and Bitcoin is just that.That’s why it was surprising that not even another ballistic missile fired by North Korea was enough to rally gold prices.
The pause in 1997 was not a top because the market rally extended into early 2000.
Over the last few days, I’ve been approached by several friends and acquaintances interested in Bitcoin.
Most, know nothing about cryptocurrencies, but their excitement is palpable.
Stories include: Gold’s time to shine will be at the end of 2018, how gold could fix Turkey’s troubled currency, and Russia and China could set global price based on trading.
Gold’s time to shine will be at the end of 2018 JP Morgan’s outlook for gold in 2018 is markedly positive, especially in the second half of the year.