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Central Bank Demand for Gold Rises at Fastest Pace in 55 Years, Analyst Says Silver Could Overtake Gold in 2023 – Bitcoin News

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According to countless reports, the People’s Republic of China has been buying large amounts of gold over the past year. Thus, statistics from the World Gold Council (WGC) show that demand for gold by central banks has risen at the fastest pace in 55 years. Meanwhile, John LaForge, head of real asset strategy at Wells Fargo, contends that when silver begins to outpace gold, it typically signals that it is “more like a precious metals bull market versus the other way.”

The world’s central banks stockpile large amounts of gold, China recently bought 32 tons of the precious metal

Precious metals such as gold and silver end the year at a much higher value than they did 56 days ago on November 3, 2022. Nearly two months ago, on that day, 0.999 troy ounces of pure gold traded for $1,629 per unit and today, prices are even higher. by 11.48% at $1,816 an ounce. An ounce of .999 pure silver was trading for $19.45 per unit on November 3, and was up 23.29% against the US dollar on $23.98 an ounce.

China’s State Administration of Foreign Exchange reported, for the first time in three years, that the country bought 1.03 million ounces of pure gold in November. China is the sixth largest country in terms of gold reserves, with about 63.67 million ounces of gold worth $112 billion.

World Gold Council (WGC) data shows that while there has been a rise in retail demand, so have central banks Hoarding gold very fast pace. Number of reports Citing WGC data showing that central banks’ current demand for gold has risen at the fastest pace since 1967. China recently a statement The state bought 1.03 million ounces of pure gold, or the equivalent of 32 tons of the precious metal. China’s State Administration of Foreign Exchange put the purchase cost to the country at about $1.8 billion.

China has 63.67 million ounces of gold, which is worth about $112 billion. Adrian Ash, Bullionvault’s Chief Research Officer Tell Financial Times correspondent Harry Dempsey said the flight of central banks to gold might suggest that “the geopolitical backdrop is mistrust, suspicion and uncertainty”. While China is among the giants of gold reserves such as Germany, the United States, Russia, Italy and France, a number of smaller central banks are also buying large amounts of gold. To highlight some specific examples, Turkey, Uzbekistan and Qatar accumulated significant amounts of the precious metal in 2022.

Real asset strategist at Wells Fargo says silver signals a potential bull market breakout for the precious metal

Wells Fargo’s head of real asset strategy, John LaForge, is looking for silver before gold, according to a recent report. comment With Kitco News on Dec. 29. “I’m more positive about silver now that we’re back at $23. It’s a high beta play. Silver is showing signs that whatever weakness we see in gold is likely to be short-lived.”

“When silver starts to beat gold, it’s more of a bull market for the precious metals versus the other way,” the Wells Fargo executive added. LaForge believes gold prices will be anywhere between $1,900 and $2,000 in 2023, and he insists that silver is very likely to outperform the precious yellow metal.

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“Over a miraculous cycle, which is more than 10 years, in percentage terms, silver is outperforming gold,” said LaForge. “This is what happened during the last cycle between 1999 and 2011. This is normal… You can feel that gold wants to go higher next year. Gold has been around two and a half years,” the Wells Fargo executive explained.

“In the past couple of months, with all the talk of the Fed pivoting, gold has started to pick up. Next year, both gold and silver will do well. Silver could do even better.” So far, with an increase of 23.29% compared to gold’s jump of 11.48% since November 3rd, silver is doing a lot better than gold against the dollar. Platinum also jumped significantly, rising from $915 an ounce 56 days ago to $1051 an ounce today.

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What do you think of central banks’ demand for gold in 2022? Tell us what you think about it in the comments section below.

Jimmy Redman

Jamie Redman is the Chief News Officer at Bitcoin.com News and a financial and technology journalist based in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about disruptive protocols emerging today.

Image credits: Shutterstock, Pixabay, Wiki Commons, editorial photo credit: VladKK / Shutterstock.com

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services or companies. Bitcoin.com It does not provide investment, tax, legal or accounting advice. Neither the Company nor the author shall be liable, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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New research suggests that baby boomers make better crypto investors

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As a millennial, this is hard to say, but baby boomers do the coding better. They’re taking research methods used in traditional markets and applying them to crypto projects, according to a new report from Bybit and consumer research firm Toluna.

The report says that 34% of Boomers spend “a few days” doing due diligence on a project before investing – 50% more than other generations. Even more troubling, “64% of North American investors spend less than two hours or not at all on DYOR.”

Boomers are also likely to focus their research on technical factors such as tokens, revenue, and the competitive landscape. Contrast this with their younger compatriots, who are more likely to appreciate reputation items like a charismatic founder and “website aesthetics.”

This goes to show that being a digital and hands-on native is not as much of an advantage as people think. It actually pales in comparison to some of the Warren Buffet-style skills that older investors have honed over the years.

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Related: 5 tips for investing during a global recession

Baby boomers are probably more likely to retire and therefore have more free time than younger generations. It’s hard to say, but it seems the best way forward for young people is to be humble and learn from their elders.

Although crypto has many distinct characteristics that set it apart from other capital markets, it still has enough in common to allow for a decent crossover in analytical skills. After all, the price of digital assets is highly dependent on the balance of supply and demand in the market, just like the traditional markets.

Digging in Technologies This can prevent the kind of bad decision making that led to big losses in 2022. Several times I felt good about buying a token based on the project white paper and the solid narrative that drove it, but I found, upon further research, that there is a lot of capital involved. The investment unleashes imports so that selling pressure will influence prices for years to come.

Newborns who are used to analyzing company numbers and calculating price-to-earnings and price-earnings-to-growth ratios can apply these skills to data from CoinGecko or CoinMarketCap. Young generations need to know why “circulating supply” vs. “maximum supply” important and why size is critical.

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In fact, cryptocurrency projects that are similar to traditional value investments have held up relatively well in the bear market. Investors are becoming more aware of the difference between protocols that issue tokens as a glorious way to raise funds and those that generate revenue and share it with their holders. So-called “real-yield” crypto projects are not unlike dividend-paying companies — something boom investors may be familiar with and possibly drive some of their investment decisions.

This is not to ignore the importance of narrative and community in modern investing and cryptocurrency in particular. For example, perennial decentralized trading platforms such as GMX, Gains, and ApeX Pro benefited from the pro-decentralization sentiment after the FTX bankruptcy.

Researching this aspect requires a good knowledge of social media, especially Twitter, which is one of the main ways to reach crypto analysts, founders, and downstreamers. Investors use these tools to find the narrative, assess where the narrative is in its life cycle, and gauge overall market sentiment.

Related: Five reasons why 2023 will be a tough year for global markets

But Millennials and Generation Z don’t really have an edge when it comes to using social media to assess trends because it’s not that new anymore. it’s a Web 2Everyone already knows how to use social media. In fact, young adults are turning their familiarity with social media into a disadvantage by overestimating it as a research tool, while baby boomers are more likely to stick to the facts.

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Traditional investing due diligence continues to distinguish men from boys, just as it has throughout history. As long as that happens, baby boomers will outpace the younger generations because they do more research and tend to be more patient when it comes to investing, resulting in higher returns than the younger generations, who may jump into investing without fully understanding what they are getting into. If you are looking for someone who is reliable and knowledgeable about due diligence, look no further than your parents or grandparents.

Nathan Thompson He is the lead technical writer at Bybit. He spent 10 years as a freelance journalist, covering mostly Southeast Asia, before turning to cryptocurrency during the COVID-19 lockdowns. He holds a Joint Honors degree in Communication and Philosophy from Cardiff University.

This article is for general information purposes and is not intended and should not be considered legal or investment advice. The views, ideas and opinions expressed herein are those of the author alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

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Bitcoin investor sentiment remains steady with BTC stalling at $16,000

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Bitcoin investor sentiment is deadlocked amid price faltering in the market. While the digital asset continues to hold the $16,000 level, investors retreat from the market, ensuring that there is no big move either up or down, and as a result, investor sentiment has not moved.

Bitcoin investors are still in fear

the Encryption of fear and greed It shows that Bitcoin investor sentiment has not moved much in the past month. He finished November with a score of 29 which put him right in the fright zone but since then he has been unable to break out of that trend.

The score in this indicator over the course of December ranged between 26-30 mostly, maintaining an almost straight line trend over the period. So far, the Fear and Greed Index is at a score of 28 which is up one point from last week’s close of 27.

Bitcoin Fear & Greed indicator

Fear & Greed Index trends in an almost straight line | Source: alternative.me

What this trend in the Fear and Greed Index shows is that bitcoin investors are not willing to take any risk. This is why the indicator could not move into the greed zone. On the flip side, selling sentiment has not been as strong as one would expect during a time like this. If investors were to sell more of their bitcoins, it would be obvious given that the index would slide further. Instead, it continues to maintain a roughly consistent point level, which means that the hold sentiment is now dominating the market.

Will BTC See A Recovery Soon?

Bitcoin is still finding it difficult to regain the momentum it lost over the past month. This reluctance on the part of investors to do anything with the tokens has led to the price of the digital asset following the same path as sentiment. BTC has now refused to break out from the $16,000 price level.

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Bitcoin price chart from TradingView.com

BTC price maintains $16,000 level | Source: BTCUSD on TradingView.com

As a result, Bitcoin’s volatility dropped to all-time lows. So it is likely that the last two days of 2022 will follow the same trend. A recovery should not be expected in any way as the momentum will continue to decline as people take a break from the markets to celebrate with family.

Instead, it is important that BTC holds above $16,000 to close the year. Anything below this level would be very bearish and could lead to more declines in the market as the bears take control. But finishing above $16,000 strengthens investors’ resolve to hold on to their coins.

BTC is trading at $16,519 at the time of writing. Its price has decreased by 0.43% in the last 24 hours and 2.01% in the last 7 days.

Featured image by Finbold, chart from TradingView.com


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Valkyrie proposes to run GBTC – Bitcoin’s grayscale magazine

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Valkyrie Investments has submitted a proposal to take over the troubled GBTC Bitcoin trust.

“We understand that Grayscale has played an important role in the development and growth of the Bitcoin ecosystem with the launch of GBTC, and we respect the team and the work they put in,” said Stephen McClurg, Valkyrie co-founder and CIO. In a statement posted on the company’s website. “However, in light of recent events involving Grayscale and its family of companies, it is time for a change. Valkyrie is the best GBTC management firm to ensure that its investors are treated fairly.”

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