Gold Punches Through $1,300; Bitcoin Tops $6,000
Gold found its legs on Friday, running through $1,300 and closing above it for the first time since Sept. 25. There is some strength in the metals, and silver had its highest close since Sept. 15. The dollar has also risen to its highest levels in that same period -- so much for a strong dollar weakening gold and silver.
What no one is talking about is the meteoric rise in Bitcoin, breaking the $6,000 level as the likes of J.P. Morgan try to talk it down. The fear of missing out has driven the cryptocurrency to new heights. The competition for dollars is heating up with gold, silver and Bitcoin vying for consumer dollars as all three rise nicely.
Fear is the biggest driver of alternatives, although equity markets are showing no fear on the surface they are hiding something. Complacency and margin debt is at record highs while the VIX is near record lows. Something has got to give in equities, metals or Bitcoin; we expect the equities to break.