Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
It is often said that history doesn’t repeat itself, but it does rhyme.
Bitcoin, in just nine months, has done something absolutely tremendous in that respect. While increasing in parabolic fashion, it also managed to match up exactly with the 40 year gold chart – even to the most recent correction.
Putting the two charts side by side is simply eerie:
In 1980, the gold price peaked at $850 USD during an inflationary environment where the Hunt brothers tried to corner the silver market, the Soviets intervened in Afghanistan, and the Iranian revolution was taking place. In March 2013, Bitcoin began to rally because of the Cyprus bank holiday and subsequent haircut of depositors.
Bitcoin and gold would both come back down to earth, and then start their biggest moves. Starting in 2000, gold had 12 years of consecutive gains. Bitcoin, in November 2013, was stimulated by Ben Bernanke’s comments to create the most significant price rally yet. At an interday high of the rally, one bitcoin was even momentarily equal to one ounce of gold in price.
Subsequently, they would pull back: gold corrected this year 25%. In early December 2013, China barred financial institutions from accepting bitcoin transactions. This prompted a correction as well.
Much has been said about the many similarities between bitcoin and gold. This goes even as far as to include supply, of which even those curves are almost of the exact proportions:
The main difference so far between bitcoin’s last nine months and gold’s historical chart: after bitcoin’s latest drop, it has now almost already recovered.
Meanwhile, gold has been consolidating for months – will it be next?
5 Comments
Laurent B
putting chart together and choose the scale so it fits what you wanna show..Wooho impressive….. -__- Am I the only one thinking this make no sense?
John
You are not alone. Is there someone who reviews these articles according to some publication standards?
lamb
Nice try – comparing Apples & Oranges just does not make sense. But what I see here is that the author is trying to relate BIT COIN to GOLD by comparing their time charts v.s. value. BIT COIN has no basis for VALUE since it is a FABRICATION of a computer GEEK who is ‘PLAYING WITH YOU FOLKS who believe that BIT COIN is something real. NOT REAL ! ! !
Jamie
Who ever said gold has any value??? I could just as well take some rare type of sand and then say it has value, exactly the same as gold. It has almost no physical use and its price is only supported by supposed “investors” who think (without base) that it has value. Can you go into a store and exchange an ounce of gold for a service / product??? NO!!! Can you do this with Bitcoins??? YES!!! Why then is gold at all relevant??? If you look at the scales, you’ll then not be surprised to see that the price growth of Bitcoins has far surpassed that of gold. Also, it is interesting to note that gold has not increased in value as monetary stimulus has increased – Contrary to popular belief of gold as a store of value… I believe that gold has no value. Not even as jewellery as it is possible to use a piece of copper to create exactly the same piece of jewellery. Where else could you actually use it??? Nowhere is the answer. Gold is dead. Full stop.
L Barrere
lol