Bitcoin has been on a parabolic surge.
And people are telling all kinds of stories to justify the sharp move in the digital currency. They’re claiming that it’s a response to central bank intervention. And Cyprus. And all that kind of stuff.
But if all that were true, wouldn’t we see a rise in gold, which tends to do well on those impulses?
Anyway, here’s a chart of gold, which continues to be weak and boring.
In his ‘Bedtime With BTIG’ note last night, Dan Greenhaus had this to say about gold:
What hasn’t worked during that timeframe has been the perceived safety of Gold and Silver; the GLD is down by 12.2% since October while the generic silver contract is down by nearly 23% over the same time frame. As we have advocated long gold positions in the past and remain long gold now, we can only paraphrase Dennis Gartman by saying “when something cant rally on perceivably bullish news, it aint in a bull market.” We’ll have more to say on this front another time but simply, we have not been fast enough in reacting to the decline in European CDS since June, an important indicator of gold prices.
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