Market Update 7 Mar 2014


This week saw rallies in Coffee and Cotton, and a decline in Copper and long term bonds.

Bitcoin continues to hold at a fairly high level despite the failure of Mt Gox, once the largest Bitcoin exchange, but recently marginalized by problems with withdrawals of bitcoins and government currencies. It will be interesting to see what the underlying causes of these difficulties turn out to be – fraud, technical difficulties, hacker attacks, or something else entirely. In the meantime, the rest of the world's exchanges continue to operate smoothly. One of the key advantages of Bitcoin is that the users act as their own banks: there is no need to trust third parties to hold your money! By keeping your funds in your own wallet, you eliminate the risk of a third part failure like that of Mt. Gox.

I haven't seen anything that changes my opinion that one BTC will buy at least one ounce of gold by the end of 2015.  As I have mentioned before, Bitcoin could fall a long way from these levels and still be in an exponential uptrend; but it is also true that it is highly speculative as an investment. So have fun with it, use it in everyday transactions (which is getting easier every day!) and don't let it become too large a position in your overall portfolio.

Table of prices in gold for week ending 7-Mar-2014

Filed under Banking, Bitcoin, Bonds, Coffee, Commodities by  #

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