Bullion Dealer Claims a Large Amount of Gold and Silver Being Sold in Bitcoin

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Bullion Dealer Claims a Large Amount of Gold and Silver Being Sold in Bitcoin

ForexMinute.com – Agora Commodities, which had lately been in the news for offering gold and silver bullions in exchange of Bitcoin, recently revealed a newsworthy correlation between Bitcoin’s dramatic price fluctuations and the amount of precious metals exchanged during the period of these fluctuations.

The first of its kind bullion dealer bullion dealer showed how gold and silver owners have benefited from the Bitcoin price falls lately. These owners have traded heavily in their precious metals for the digital currency, when the latter was facing a major pullback in the markets. This pullback has certainly hinted to last at least a year – the period in which gold and silver value is likely to decline similarly.

Earlier in 2013, gold prices saw major declines, the time at which Bitcoin was trading over $1,000. Though in this year, the situation is completely reversed, as Gold prices have soared up until last week and Bitcoin prices have once gone to as low as $350.

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Although Euro Pacific Capital President Peter Schiff has predicted that gold will touch the $5,000 mark this year, owing to the continual inflation in fiat currency sector that has further led to lower interest rates. “And so I want to store my purchasing power in something that central banks can’t print,” Schiff said. “I think we’re headed much higher because they are not going to stop the presses. They are going to run them into overdrive.”

On the other side, Bitcoin is also subjected to similar speculation, with Chris Dixion, partner at Andreessen Horowitz, predicting the digital gold’s value to reach $100,000 in the near future.

Meanwhile, coming back to the basics with Joseph Castillo, CEO of Agora Commodities, the deeper correlation between Gold and Bitcoin seemed to have coming out of its shell. The CEO says, “While sales of bullion for Bitcoin have ebbed a little with the price decline, interest in Bitcoin as a store of value has not. Many sound monetarists have realized that Bitcoin is essentially digital gold and are seeking a way to diversify into all forms of real tangible wealth as opposed to fiat money.”

A commodity-ruling future ahead indeed.

To contact the reporter of the story: Yashu Gola at yashu@forexminute.com

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