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What are gold, silver and bitcoin doing to each other?

December 4, 2013 in Bitcoin, Digital Currency, Gold, Investing, News, Precious Metals, Silver, Virtual currency

Author: Jan Skoyles* 02, December, 2013 The Real Asset CO (http://www.mineweb.com/)

A momentous thing just happened. Bitcoin hit $1,000. (Note: By numismatica.com it is $ 1,200.00 as per the posting time 10:24 am EST)

Is it a bubble? Who knows, but one thing is for sure, you can buy a lot more gold and silver with one bitcoin than you could a year ago.

There are many parallels between bitcoin and gold, both are alternatives to fiat money, both are faceless currencies and both have limited supplies. However, in the last two years one has seen its price climb from $7 to $1000, the other has fallen from $1,900 to $1200.

Debating if bitcoin is the new gold.

We don’t see it like that. Instead, bitcoin is another alternative to fiat money. If it is a safe haven or a hedge against inflation, as gold and silver are so often seen to be, we won’t know for a long time.

However what we can see right now is that people are choosing to park their wealth in the virtual currency as they speculate on its continued rise. They can spend bitcoin and they can save in gold and silver. Both the precious metals and bitcoin seem to have one thing in common – they are viewed as sounder money.

So how much would it cost if you wanted to spend your bitcoin on the ultimate sound money?

Full article at source>

*Jan Skoyles is Head of Research at The Real Asset Company –www.therealasset.co.uk

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