Bitcoin Value Not Replacing Gold Anytime Soon

Cassie Bastien

12/20/2017 11:59:08 AM

Daily Gold & Silver Market Report – 12/20/2017

"Mad Money" host Jim Cramer is confident Bitcoin will not replace the value of physical Gold anytime soon. Cramer said, "Long story short, Bitcoin 's not going to replace Gold anytime soon, and I'd say that even if it hadn't started pulling back over the past couple of days." Carley Garner, the co-founder of DeCarley Trading and the author of Higher Probability Commodity Trading, said Bitcoin was supposed to be experimental for people to anonymously move money around the Internet rather than be an investment vehicle. CNBC Editor Elizabeth Gurdus explains, cryptocurrency "isn't backed by anything physical." What happens if the Internet crashed tomorrow or a Bitcoin owner got hacked? Garner believes Bitcoin's astronomical value is the result of perception, not reality. Physical Gold, on the other hand, has inherent value, says Cramer. "Even though most of its value is symbolic, the precious, non-corrosive metal can still be used to make jewelry, conduct electricity or cap teeth." These uses help the demand factor for Gold. In conclusion, many market analysts including Mr. Mad Money says now is the time to buy in the dips of the Precious Metals market. Of course Cramer does not discourage anyone from buying Bitcoin, he simply recommends to understand the risks associated with digital currency.

Silver Price Charts Trying to Rally

The price of Silver did rally during early trading Tuesday morning, but failed to hold its stance. Wednesday, the market has held levels above $16 for an ounce of Silver. However, many investors and traders are cautious if it will sustain at that level and possibly produce a rally. FX Empire Reporter Christopher Lewis says, “I think that the markets will go higher given enough time, but I think also that the market will be choppy. After all, this is the holiday season in liquidity will be an issue. ... Longer-term, I think that the market is going to reach towards the $18 level, perhaps by the end of the year.” With the help from volatility and inflation, many market analysts feel the Precious Metals market will react in a good way for prices.

At 12:59 p.m. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,270.00 Up $6.30
• Silver, $16.34 Up $0.15
• Platinum, $923.80 Up $6.70
• Palladium, $1,035.90 Up $6.30

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