Gold News

Gold Price Bounces as Dogecoin Surges, 'Enemies of the Future' Slate Crypto Casino

YESTERDAY's gold price gains of 1.5% were cut in half Tuesday morning as Shanghai stayed shut for China's Labor Day holidays but London's bullion market returned from the UK's May bank holiday.
Gold prices then regained half of that $15 per ounce drop from Monday's re-test of late-April's 2-month highs above $1797, rallying as the US Dollar slipped from 2-week highs on the FX market following a run of strong US economic data.
So-called 'meme' crypto Dogecoin – launched as a 'silly joke' in 2013, four years after original 'digital currency' Bitcoin – meantime leapt to a new all-time high, up 100-fold for 2021 so far, after it was added to online brokerage eToro.
Much wow! Chart of Dogecoin price in US Dollars, last 12 months. Source: Coindesk
Low-cost stock and crypto-trading platforms led by Robinhood have "become a very significant part of the casino aspect, the casino group, that has joined into the stock market in the last year or year and a half," said legendary fund manager Warren Buffett on Sunday at the annual general meeting of Berkshire Hathaway (NYSE: BRK.A) shareholders.
"No one should believe that Robinhood's trades are free," said his No.2, Charlie Munger, calling the platform's marketing " dishonorable and low-grade" and also adding that "Of course I hate the Bitcoin success.
"I think the whole damn development is disgusting and contrary to the interests of civilization."
Munger and Buffett have repeatedly disparaged gold investing in the past, calling it "unproductive", with a position in giant gold miner Barrick (NYSE:GOLD) bought in spring 2020 entirely sold by the end of December.
"There is an old guard that doesn't want average Americans to have a seat at the Wall Street table so they will resort to insults," says a reply from Robinhood, which tags its corporate comms 'Democratizing finance for all'.
Buffett and Munger are " adversaries of [the] future and of change," adds the brokerage's head of public policy communications, former Democrat Party staffer Jacqueline Ortiz Ramsay.
"[They] have enjoyed plentiful privileges in the past and don't want these privileges disrupted."
Robinhood said it added 6 million users in the first two months of 2021 alone, while its potential value – as judged by investment banks involved in a potential stock-market launch – doubled to $40bn.
With Japan's stock markets also closed like China for the 2nd of 3 national holidays, Asian equities slipped on Tuesday and European shares also struggled after hitting fresh all-time highs last week.
Priced in the Euro gold bullion was firmer, holding 0.9% higher for the week so far at €1484, while the UK gold price in Pounds per ounce edged near its highest since mid-February above £1292 per ounce.
Nearly 7 in 10 of respondents classed as the 'Millennial' generation are now more open to using crypto-currencies than they were a year ago, says a widely reported survey from global payments giant Mastercard.
"Shares of Berkshire Hathaway are up 50.5% in the last 52 weeks," says a post on crypto news and price site Coindesk.
"The price of Bitcoin is up better than 500% in that same time period."
April saw another month of outflows from gold-backed ETF trusts, albeit slowing to 2.0% at the giant SPDR product (NYSEArca: GLD) from 5.2% in March and 5.9% in February.
Competitor gold ETF the iShares Trust (NYSEArca: IAU) also saw shareholders cut their pace of liquidation, down from 3.1% in March to 1.6% last month.

Adrian Ash

Adrian Ash, BullionVault Gold News

Adrian Ash is director of research at BullionVault, the world-leading physical gold, silver and platinum market for private investors online. Formerly head of editorial at London's top publisher of private-investment advice, he was City correspondent for The Daily Reckoning from 2003 to 2008, and he has now been researching and writing daily analysis of precious metals and the wider financial markets for over 20 years. A frequent guest on BBC radio and television, Adrian is regularly quoted by the Financial Times, MarketWatch and many other respected news outlets, and his views from inside the bullion market have been sought by the Economist magazine, CNBC, Bloomberg, Germany's Handelsblatt and FAZ, plus Italy's Il Sole 24 Ore.

See the full archive of Adrian Ash articles on GoldNews.

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