The price rally of Gold faltered in the last two months specially due to strengthening of dollars and global equities setting new record. This caused more and more people to switch over to Bitcoin as a financial safe haven as Catalonia’s push for independence and concerns over Brexit also failed to push up the demand for the yellow metal.
Google Trends have revealed that people are increasingly searching how to “buy bitcoin” over related searches of buying gold and silver.
BullionVault, an online trading platform had reported that the amount of gold changing hands last month has significantly dropped by one third in comparison to the twelve month average.
Adrian Ash, the research director of London-based BullionVault said that, “With the U.S. stock market setting fresh all-time highs day after day, it’s no surprise gold prices have retreated. Some investors are also being distracted by the noise around Bitcoin and other cryptocurrencies. Altogether, that’s made interest from new gold investors the weakest since the metal’s half-decade price lows of end-2015.”
Since touching its year’s high on September 8th, gold price has dropped by 6% diminishing the entire fiscal’s gain to 11%. In contrast Bitcoin price skyrocketed seven times to score enormous profit figures and turning investors in millionaires. Goldman Sachs predicts Bitcoin price to touch $8000 soon and stay there for some time.
Users of BullionVault own gold worth $1.5 billion, silver worth $373 million and platinum worth $9 million. Its Gold Investor Index measuring the number of buyers as set against sellers edged a bit higher to 54.6 during October whereas its silver buying fell from 52.3 to 51.6. The industry for precious metals is also increasingly relying on Blockchain Technology to bring upon ground-breaking innovations. UK’s Royal Mint has started off with a gold tracking system based on blockchain technology with 50,000 verified blocks set up for trail before its actual operations launch.
Chicago Mercantile Exchange (CME) Group made the announcement of launching the trading of Bitcoin Futures by this year-end which is deemed to bring upon greater legitimacy to cryptocurrency dealings. However some voiced their concern over the same since the market for cryptocurrencies is not fully regulated as of yet. Leo Melamed, the chairman of CME group said on Tuesday that Bitcoin will soon take the shape of being an individual asset class like stocks and gold.
He told Reuters that, “we will regulate, make bitcoin not wild, nor wilder. We’ll tame it into a regular type instrument of trade with rules,” he told Reuters. However CME shall need to gain approval from regulators before proceeding with their plan.
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