Supporting a central thesis here at Silver Vigilante, the US Dollar is becoming increasingly irrelevant. It is no mystery to anybody that the US Dollar is continuing its steady decline as American wages continue their forty year trend of stagnation and decline via the hidden tax of inflation, while the powers-that-be buy up the world’s resources since the stuff-and-things of the natural world – with their independent, scientifically discovered use-values – will outlast the dictatorial edict of fiat fantasy. (Read more…)
Since the US Dollar also, to a degree, backs each fiat currency of nation’s the world over – most of which have been restructured under the Washington Consensus and via US and western backed institutions like the International Monetary Fund and the World Bank – this then means that we will see a waning of all currencies. That’s the reason individuals want and need something more.
Today, albeit that the US Dollar is up in terms of most major currencies, bitcoin and silver have traded right alongside the world reserve currency, breaking trend with their historical antithetic to the dollar. Bitcoin, to be sure, has demonstrated enormous volatility today, with swings up to $9.10, back below $9, then back up near its day’s high. Usually, when the dollar goes up, then silver takes a dip more dramatic (usually) than does gold. Today that is not the case. And, right alongside poor man’s gold, bitcoin has also popped, trading today at essentially the top of its range sinceits fall from the $30 mark of June 2011. This has been marred by considerable volatility on the Mt. Gox chart, though. Below is the one-year chart for BTC Mt. Gox:
With gold and platinum trading near-even from their Friday closes, silver has broken out above $28 for the first time since early July (and despite a strengthened dollar this morning), while palladium has as well demonstrated considerable upward volatility, now nudging up against the $590 mark. The devil’s metals sees resistance at its July high of $28.50, and beyond that $30. Precious metals holders have had a satisfying day, and those with bitcoin have only added excitement.
Bitcoin’s Mt. Gox has traded up to $9.10 on the heels of forceful regulation by the Brazilian government.
New ratios look to be as such, although they are set to change quickly:
gold-bitcoin: 178.19 bitcoin per oz. gold
silver-bitcoin: 3.077 bitcoin per oz. silver
platinum-bitcoin: 155.57 bitcoin per oz. platinum
palladium-bitcoin: 64.62 bitcoin per oz. palladium
Bitcoin trading volume is up from the previous week, to 40k, although this is well-off its July high of 210k contracts traded. This is a takeoff on the BTC chart, followed by a waterfall below $9 and then a retrace back up towards $9.
Both bitcoin and silver are showing dramatic rises in the price since last week. Silver’s performance definitely formed a bottom for the day in the precious metals complex, while bitcoin has been as active today as ever.
[VIA Silver Vigilante]