Market Weekly: The Pivot to Gold Has Begun, by Tom Luongo

Buying either gold or cryptocurrencies is a vote of no confidence in governments, their central banks, and their fiat currencies. From Tom Luongo at tomluongo.me:

For the past few weeks I’ve incurred the wrath of what I’m now calling “Gold-Only” bugs for constantly haranguing them about bitcoin and cryptocurrencies. These are the folks which state only gold can beat the central banks.

I’ve made my position very clear, in a world of digital money and accelerating technology there is room for both assets as stores-of-value for different types of investors and taking a ideological position for either is stupid as well as arrogant.

Like all things, there are reasons why putting all of your eggs in one basket in markets as cocked-up and purposefully manipulated as these is simply bad asset management. Risk is, ultimately, not someone else’s problem no matter how much Wall St. tries to convince of this otherwise.

Risk is your problem.

The gold and crypto communities have been at each other’s throats for months now, as bitcoin continued rallying off the Coronapocalypse low from last March while gold peaked in August and has ground out a truly demoralizing eight-month bear market.

The envy coming from Gold-Only bugs has them missing one of the great opportunities for wealth creation in anyone’s lifetime. You don’t have to love bitcoin to make money from it. Just like you can hate Facebook but own its stock and cash it in when it’s too expensive versus another asset, say… I don’t know? Gold?

But that inverse relationship is finally changing. Bitcoin and gold are getting back into phase. And it’s right on schedule.

Continue reading→

2 responses to “Market Weekly: The Pivot to Gold Has Begun, by Tom Luongo

  1. I posted a reply on the linked site and got an emotional reply. I simply asked the author how to value Bitcoin so I could know when it is undervalued (buy) and overvalued (sell). He called my question bullshit.

    This is me being not surprised: https://youtu.be/y80EL6d2peI

    Liked by 1 person

    • SWRichmond

      It took me over twenty years to learn how to keep my emotions out of my trades and trade recommendations, although I never completely mastered it (nobody does). There’s always an opposite case, and traders and investors should try not to feel so strongly about a trade or instrument that they get high on their own supply. Sounds like Luongo is too committed.

      By the way, some of my biggest losers were trades I was absolutely convinced were going to be big winners.

      Liked by 1 person

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