Ann: December 2020 Quarterly Report, page-87

Not that im a fan of these parasitic vulture capitalists even though I use them for a some deals to hedge with land banking....it seems we would have another 1% sell off to go from where we are with there mantra on short term gold volatility....how ever having said this...somebody in here brought up a chart with regards to the first 2 months of the last 3 calendar years with a slow gold down trend before their leverage against small incremental inflationary signals and of course what now seems a Democratic ignorance towards a Republican view on $1,000 instead of $1,400 along with a cessation of QE3 & QE4....Below is an exert from Bloomberg.....


The rise of cryptocurrencies in mainstream finance is coming at the expense of gold, says JPMorgan Chase & Co.

Money has poured into Bitcoin funds and out of gold since October, a trend that’s only going to continue in the long run as more institutional investors take a position in cryptocurrencies, according to the bank’s quantitative strategists including Nikolaos Panigirtzoglou.

JPMorgan is one of the few Wall Street banks that’s predicting a major shift in gold and crypto markets as digital currencies become increasingly popular as an asset class. The trend poses a problem for bulls in precious metals markets over the coming years if investors move, even a small slice, of their allocations away from gold and into crypto.

“The adoption of bitcoin by institutional investors has only begun, while for gold its adoption by institutional investors is very advanced,” wrote the JPMorgan strategists.

The Grayscale Bitcoin Trust, a listed security popular with institutions, has seen inflows of almost $2 billion since October, compared with outflows of $7 billion for exchange-traded funds backed by gold, according to JPMorgan.

Bitcoin’s Rally Spurs Wall Street to Question Future of Gold

JPMorgan’s calculations suggest Bitcoin only accounts for 0.18% of family office assets, compared with 3.3% for gold ETFs. Tilting the needle from gold to bitcoin would represent the transfer of billions in cash.

One way to play the theme is buying one unit of Grayscale and selling three units of the SPDR Gold Trust, the bank said.

“If this medium to longer term thesis proves right, the price of gold would suffer from a structural flow headwind over the coming years,” wrote JPMorgan’s strategists.

In the short term though, there’s a good chance that Bitcoin prices have overshot and gold is due for a recovery, the bank said. For Bitcoin, momentum signals have deteriorated, which will likely cause selling by investors that trade on price trends.

Bitcoin has fallen 6% since closing at an all-time high of $19,462.14 last week.