RIP Gold. Killed by Bitcoin

Excerpt:

Can the store of value argument hold up for BTC without it being a medium of exchange? It has for gold for thousands of years so quite possibly. Gold is money but it’s not readily usable currency. BTC could be considered in the same light.

The artificiality of BTC’s value is a problem. It can be argued using cultural relativism that gold is no more intrinsically valuable than BTC. But it does have a long history, especially as a reserve currency, that must be worth something. Can we see central banks buying BTC? Certainly not if it develops as a parallel medium of currency that undermines them.

Likewise, gold is the outcome of production. BTC consumes resources to produce nothing. Not that that is necessarily a problem in a virtual world but it again weighs against the perception of BTC as a store of value. So does the fact that BTC is a truly useless item if some kind catastrophe befalls society which does underping the value of gold in some measure.

Author(s): David Llewellyn-Smith, Yves Smith

Publication Date: 4 March 2021

Publication Site: naked capitalism

Silver is surging but users on WallStreetBets say they’re not behind the rally

Link: https://edition.cnn.com/2021/01/31/investing/silver-price-squeeze-reddit-wallstreetbets/index.html

Excerpt:

Silver futures surged as much as 13% to Monday, touching eight-year highs. That follows a 6% rally last week when some posts on the WallStreetBets group on Reddit called for betting on silver as a way to hurt big banks they believe are artificially suppressing prices.

Meanwhile, retail sites warned customers over the weekend they could not meet skyrocketing demand for silver bars and coins. The Commodity Futures Trading Commission said it is monitoring the silver markets and “remains vigilant in surveilling these markets for fraud and manipulation.” And “#silversqueeze” is trending on Twitter.

However, it’s not clear who the Reddit users are — nor whether their market moves match the claims online.

Author(s): Matt Egan

Publication Date: 2 February 2021

Publication Site: CNN