Gold wins over bitcoin

GOLD advocacy group the World Gold Council has joined the throng of voices in cautioning against the use of cryptocurrencies.

  • Staff Reporter
  • 02 February 2018
  • 05:04
  • News
Gold wins over bitcoin

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The WGC says bitcoin's parabolic price rise was the big story of 2017 - putting the spotlight on the cryptocurrency market.
 
"While gold's performance was a solid 13%, it was a fraction of the 13-fold increase of bitcoin by the end of the year. Some commentators went as far as to claim cryptocurrencies could replace gold. Cryptocurrencies may become an established part of the financial system.
 
"But, in our view, gold is very different from cryptocurrencies, as gold is less volatile; has a more liquid market; trades in an established regulatory framework; has a well-understood role in an investment portfolio; and has little overlap with cryptocurrencies on many sources of demand and supply.
 
"These characteristics underpin gold's role as a mainstream financial asset that will likely continue to resonate in today's digital world," the WGC said.
 
Overnight, the gold price was fixed at $1339.86. 
 
The WTI crude oil price was slightly up overnight at $66.11 per barrel.
 
In softer commodities, cocoa increased $21 per tonne or 1.05% to $2017/t yesterday from the $1996 in the previous trading session, tradingeconomics.com reported. Historically, cocoa reached an all-time high of $4361.58/t in July of 1977 and a record low of $211/t in July of 1965.
 
Coffee decreased 0.35c per pound or 0.29% to 121.50c/lb yesterday from 121.85c/lb in the previous trading session, tradingeconomics.com reported. Historically, coffee reached an all-time high of 339.86c/lb in April of 1977 and a record low of 42.50c/lb in October of 2001.
 

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