Gold Digger: Instos pour back into gold as Bitcoin loses spark
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Are large Bitcoin investors moving back into precious metals?
In a note to clients, JPMorgan said large institutional investors are dumping bitcoin in favour of gold, reversing a trend that’s played out over the last two quarters.
“The bitcoin flow picture continues to deteriorate and is pointing to continued retrenchment by institutional investors,” JPMorgan wrote in a note to clients.
“Over the past month, bitcoin futures markets experienced their steepest and more sustained liquidation since the bitcoin ascent started last October.”
As crypto fell into the abyss the international gold price rose to almost $US1,900 per ounce on Thursday, the highest since January 11.
Here’s a chart showing the relative strength index (RSI) of spot gold over the past year, which is ‘hot’ (RSI over 70) for the first time since January:
Meanwhile, the top performing ETFs this week, among those screened by MarketWatch, are those for gold and silver miners.
The ETFMG Prime Junior Silver Miners ETF is up 8.75% over the past 5 days, while the VanEck Vectors Junior Gold Miners ETF has gained 8% over the same period.
Here’s how ASX-listed gold & silver stocks are performing:
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Gains were led by explorer Great Northern Minerals (ASX:GNM), which surged on strong volume after a big high-grade gold hit at its Camel Creek project in North Queensland.
The stock is now up ~140% since Monday.
Manas Resources (ASX:MSR) announced project acquisitions in Cote d’Ivoire totalling 6,194 square kilometres.
At the ‘Boundiali’ project, shallow drilling has already returned outstanding hits like 30m at 8.3g/t gold across 2km of a 6km long anomaly.
And fresh drilling has kicked off at Gibb River Diamond’s (ASX:GIB) ‘Edjudina’ gold project in WA.
The stock spiked in October on a new discovery at Edjudina — near the historic Neta mine – with highlight intercepts including 36m at 3.97g/t, just 4m from surface.