Gold Selling Rises While Cryptocurrency Market Drops

Daniel Marburger, manager of European-based online gold dealer CoinInvest, claimed in an interview with Bloomberg on Wednesday (January 17th) that the company sold around 30 kilos (more than $1 million) in just the day of January 16.

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This week has been pretty volatile for Bitcoin and even the cryptocurrency market in general, and some sources like Bloomberg believe investors are starting to look for slightly more stable assets during this time.. On Tuesday, January 16, Bitcoin was hit hard, along with a lot of cryptocurrencies, and the market fell more than 40%. This decline lasted almost until January 18, during which time there was a surge in gold investment.

During the interview, Marburger said that on January 16, the day when cryptocurrencies fell, gold sales increased fivefold.

“It was a very crazy day on Tuesday,” said Marburger, adding that “emails and phones did not go silent while customers were asking how to convert their crypto money into gold.”

A similar situation happened at Ireland-based GoldCore LTD.. According to the Ireland-based company, investors have been selling their cryptocurrencies and switching to gold for the past three months. >

“They told us that the massive price increase is unsustainable and they are nervous about it. We think that people are increasingly realizing that these digital assets pose a much higher risk than traditional safe havens (gold).”

In December 2017, as crypto prices hit record highs, ACG Analytics in the US Larry McDonald, head of macro strategy, said in an interview with CNBC that investors were selling gold to buy Bitcoin in the November-December 2017 time frame.. At that time, McDonald spoke:

“Cryptocurrencies are definitely eating away at the gold industry.”

We know that there is a constant rivalry between gold and Bitcoin.. The fact that investors flock to Bitcoin when Bitcoin is rising and gold when Bitcoin is falling also shows that there is a strange relationship between gold and Bitcoin.

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