Silver & Gold: Precious Metals Tapping New Highs Bodes Well For Bitcoin

Tony "The Bull" Severino

5 years ago

2 mins read

bitcoin gold silver btcusd xauusd xagusd

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This week, silver saw a 5% gain and revisited a 3-month high. Gold set a new eight-year high, reaching over $1,750 per troy ounce. The boost in precious metals also bodes well for Bitcoin, which has been rising in tandem.

With both gold and silver each setting new local highs, will Bitcoin price finally take out $10,000?

Supply Struggle Drives Price of Silver and Gold to New Local Highs

A massive supply crunch on silver and gold has pushed precious metals to new local highs. Silver reached over $17 an ounce, up over 14% since the start of the month.

Gold started the week trading above $1,750 and is expected to reach prices as high as $3,000 over the next year, according to Rich Dad, Poor Dad author, Robert Kiyosaki. Bank of America points to $2,000 per troy ounce for the precious metal.

Others aren’t as convinced by the demand.

Precious metals gold and silver rising aren’t too surprising, as these assets have historically acted as a safe haven for capital during times of economic distress.

The scarce supply of these assets combined with stimulus money both inflating the dollar and being rerouted into investments could be responsible for the added momentum.

Can Bitcoin Outshine Precious Metals As a Safe Haven Asset?

Gold and silver rising in the face of economic crisis due to their limited supplies, bodes extremely well for Bitcoin. While gold and silver are indeed scarce, there’s no telling how much supply remains to be mined from the earth or elsewhere.

Bitcoin, however, is hard-capped to only ever allow 21 million BTC to exist. This extremely limited supply gives the asset similar attributes to precious metals. It’s earned the moniker digital gold as a result.

The same stimulus money, recipe for hyperinflation, combined with digital scarcity has created an environment in which Bitcoin can thrive.

Investors are taking note, and the asset has increasingly snagged the attention of institutional investors, and even the likes of legendary hedge fund manager Paul Tudor Jones.

Bitcoin‘s growth and interest are closely following gold and silver, further proving the asset’s potential value as a safe haven asset.

In the below chart, following the Black Thursday crash, each asset has made a strong climb since and shows similar price action and correlation.

Silver is pacing slightly behind gold and Bitcoin, with gold acting as the clear front runner. Gold is an asset that’s been trusted for centuries and in use for just as long. Cryptocurrencies are a brand new, untested asset class, yet are still showings strong promise alongside these two precious metals.

Is this Bitcoin‘s time to shine brighter than gold and silver?

Tony "The Bull" Severino

Tony "The Bull" Severino, CMT, is a distinguished figure in the cryptocurrency analysis sector, renowned for his in-depth technical expertise and innovative approach to market trends. As the Head of Research at NewsBTC, Tony leads a team dedicated to providing cutting-edge insights and forecasts, helping both novice and experienced traders navigate the complexities of the crypto market.
A seasoned Chartered Market Technician, Tony's prowess in identifying and capitalizing on market patterns is unmatched. His academic and professional journey in market analysis has firmly established him as a leading authority in technical trading strategies. Tony’s approach is heavily influenced by the principles of Elliott Wave Theory, a method known for its rigorous assessment of investor psychology and price movements.

Beyond his role at NewsBTC, Tony is the visionary founder of CoinChartist.io, an educational platform aimed at demystifying the nuances of cryptocurrency trading. CoinChartist.io serves as a valuable resource for traders seeking to enhance their technical analysis skills. The platform offers a range of learning tools and resources designed to empower traders with the knowledge to make informed trading decisions.

In addition to his educational initiatives, Tony is a prolific author and a dominant voice in the crypto community. He writes the CoinChartist VIP newsletter, a weekly dispatch that has become a staple among crypto enthusiasts, revered for its insightful analysis and actionable trading advice. This newsletter has consistently ranked as a best-seller on SubStack, boasting thousands of subscribers who rely on Tony’s expertise to guide their trading strategies.

Tony is also celebrated for his literary contributions to the field. He is the author of the highest-rated Crypto Trading Journal on Amazon.com, a testament to his ability to communicate complex trading concepts in an accessible manner. This journal is widely regarded as an essential tool for traders aiming to track their progress and refine their strategies.

Before his ascent in the financial analysis world, Tony honed his skills in journalism. His background in this field has endowed him with a unique ability to present intricate market dynamics in a clear and compelling manner, making his insights highly sought after by a broad audience that ranges from casual readers to professional traders.
His professional affiliations underscore his commitment to excellence and continuous learning. As a partner of Elliott Wave International and TradingView, Tony collaborates with other leading experts to enhance his knowledge and skills. His active membership in the CMT Association further aligns him with the highest standards of industry practices and ethics.

Tony’s nickname, "The Bull," aptly reflects his aggressive and optimistic outlook on the cryptocurrency markets. His forecasts often anticipate significant upturns, earning him a reputation for bullish predictions that have frequently led to lucrative outcomes for those who follow his advice.

In summary, Tony "The Bull" Severino, CMT, is more than just a technical analyst; he is a mentor, educator, and innovator whose influence in the cryptocurrency space continues to grow. His dedication to advancing the understanding of market forces and his commitment to providing high-quality, reliable analysis make him a pivotal figure in the world of cryptocurrency trading.