Bitcoins

grifferz wrote: »

I think that it is not the case because otherwise they would decide to set the price at say £20bn per ounce tomorrow.

Not exactly lol. More specifically, the price is set on the London Bullion Market for contracts exchanged on that market which is then used as a benchmark worldwide. Let's be sensible at least: If the price of gold per independent market was related to supply and demand on each independent market then the price on different markets worldwide would differ. The very fact that the price is much the same worldwide shows that it's fixed.

But if you believe that the price of gold and silver is not fixed then you most likely also believe that the banks work in our interests and not their own!

Anthorn wrote: »

Not exactly lol. More specifically, the price is set on the London Bullion Market for contracts exchanged on that market which is then used as a benchmark worldwide. Let's be sensible at least: If the price of gold per independent market was related to supply and demand on each independent market then the price on different markets worldwide would differ. The very fact that the price is much the same worldwide shows that it's fixed.

But if you believe that the price of gold and silver is not fixed then you most likely also believe that the banks work in our interests and not their own!

The fundamentals for silver are very simple. It is being depleted from the earths crust at a rate of 1 billion ounces every year and there are about 17 billion ounces left in known reserves.

Of that 1 billion ounces every year about half is used up in the over 10,000 uses and the other half a billion ounces every year, well here things get interesting.

A lot more than half a billion ounces is demanded from investment. At $20oz silver price that is just $10 billion investment silver available. But $5 trillion is the investment demand every year - EH!? How is this possible when all the silver stockpiles around the world have been depleted? There is only half a billion ounces available to meet investment demand? Answer - $5 Trillion of broken paper promises are given in place of the not available real silver bullion.

Argentinian Bitcoin Exchange Loses its Bank Accounts

LINK

If you stab an apple with a pin just through the skin then that is how much of the earth may contain silver. If you stab it all the way to the centre then that is how much of the earth may contain gold. The silver deposits are like an upside down pyramid with most being near the earth crust and easy to mine and get at. As the mines go deeper they find less quantity of silver. Gold is like an upright pyramid with the gold seams getting more plentiful as the mine gets deeper.
You may hear the mainstream media say the natural ratio as gold and silver appear in the earths crust is in the earths crust 15:1, but go under the earths crust and there is no silver but lots of gold. clear to the core.

I can't decide whether or not to invest

It would be a very speculative gamble - the bubble's obviously burst, but the possibility of it evolving into a standard digital currency mean you could even be looking at a single btc going over $500k long-term

The reason I haven't taken a punt yet is because I don't think it will ... It's not only got a number of usability issues to deal with, its biggest test will be not getting regulated into uselessness in the process (its own supporters are likely to reject it once its gone "corporate"; right now I think it's useless)

JPMorgan have their own digital currency in development - considering BTC's not exactly gaining momentum at the moment, I think the sector's wide open for others to get in

I'll just kick myself if I'm wrong ... Think there's a Bitcoin ETF in the wings ... I'd put £100 into it (but I'd expect it to be worth £5 when I come to sell)