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Jim Cramer, the US TV investment commentator, recently said "Bitcoin is not going to replace the # "Gold soon," while doing a segment with Carley Garner, co-founder of DeCarley Trading, who analyzed the gold charts.
At the beginning of the segment, Cramer pointed out that Garner believes that the value of bitcoin is the result of perception, not reality, because "Bitcoin is not supported by anything." Cramer conceded that his viewers know what he thinks about cryptocurrency. – that he thinks his monopoly money, that is to say – and that those who understand the risks could buy it.
Comparing bitcoin to gold, Cramer added that if we "take away the symbolic value of gold", the precious metal remains a great conductor, which can also be used to make jewelry. In addition, he pointed out that the gold market was worth about $ 2.4 trillion and compares it to the $ 630 billion ecosystem of cryptocurrency, neglecting bitcoin, the first crypto currency to exist, which is not even ten years old.
The Cramer segment essentially leads to a conclusion. By the television host:
"The breathtaking race at Bitcoin was very exciting, but gold is not supplanted by Bitcoin as an alternative to real money."
The gold is ready for a return
During the segment, Cramer looked at gold charts, and indicated that gold has fallen below $ 1,250 per ounce four times this year, and that investor claims are turning to bitcoin only surfaced that the fourth time.
Garner's graphical analysis has highlighted various indicators that imply that the precious metal is about to explode. Over the last four years, gold has been found in the range of $ 1,300 to $ 1,000, after plunging $ 1,800 in 2013. Regarding the stochastic indicator, Mr. Garner made a return of gold. market was oversold, gold rebounded.
At the time of going to press, gold is trading at $ 1,260, and according to Garner, the precious metal can still fall back to the $ 1,200 level before bouncing back. If the support does not hold, the precious metal can then go down to $ 1,100 or $ 985 before bouncing.
At the end of his segment, Cramer concluded:
"The graphics … suggest that gold could be ready to make its comeback.And although I do not discourage anyone to buy Bitcoin, I just need to know the risks, knowing your limits, I am with Carley when it comes to the precious metal, not the precious hitting. "
As reported by CCN, Google's search for "buy bitcoin" surpassed "buy gold" searches, and as Adrian Ash, BullionVault's research director, pointed out at the time, some investors "are distracted by the noise around bitcoin and other cryptocurrences". Adding that "this has sparked the interest of new gold investors, the weakest since the price drop of the half-decade of the metal at the end of 2015."
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