Jim Cramer (Jim Cramer), a television journalist, specializing in investment, recently stated that «bitcoin in the near future will not replace gold.» The announcement was made in the report with Carley Garner (Carley Garner), a co-founder of DeCarley Trading, the analysis charts the price of gold.
In the beginning of the story, Kramer said the opinion of garner that the value of bitcoin is the result of perception, not reality, because «bitcoin is not backed by anything». Kramer said that everyone knows how it relates to bitcoin — he believes that this money is rapidly losing its value due to hyperinflation, and that those who understand the risks involved, can invest in them.
Comparing bitcoin with gold, Cramer added that if we «exclude the symbolic value of gold,» the precious metal remains an excellent guide, which can also be used for jewelry making. Moreover, he said that the gold market is worth about 2.4 trillion dollars, and compared it with the cryptocurrency market in 630 billion. However, he neglected the fact that even the first cryptocurrency, the bitcoin, there are less than 10 years, in contrast to gold, which is valued throughout human history.
«The rally of bitcoin was very exciting. But bitcoin will not become an alternative to gold,» said the presenter.
In the framework of TV news, Kramer commented on charts, gold prices, and noted that its value fell below $ 1,250 an ounce four times this year, and the responsibility for that decline lies with the investors who opt for bitcoin.
In his analysis of price charts gold garner pointed to various indicators, which suggest that the price of the precious metal here-here will start to grow. Over the past four years the price of gold ranges from 1 300 to $ 1 000, after in 2013 it fell from a high of 1 800 dollars. Pointing to the stochastic indicator, garner suggested that the gold begins to grow again, while in most cases, the indicator showed that the market is characterized by excessively low rate, but the price of gold to rise and fall.
At the time of publication, gold was trading at 1 $ 260, and, according to garner, the precious metal can still return to the level of $ 1,200 before you start to grow. However, it may be so that the metal will drop to 1,100 or even $ 985.
At the end of the TV news, Cramer concluded:
«Charts suggest that gold may be ready to re-start their growth. And although I do not hinder those who want to buy bitcoin, I want to say — remember about the risks, be aware of their capabilities. Personally, I support Carly – I for the precious metal, not precious keystrokes».
Earlier it was reported that the request to Google «buy bitcoin» has become popular «buy gold». As head of research, BullionVault Adrian ash (Adrian Ash), «some investors were a little confused about the hype around bitcoin and other cryptocurrencies». He added that «many gold investors have turned to cryptocurrencies, owing to the serious fall in the price of precious metals at the end of 2015.»