Daniel Marburger, Director of the European dealer company CoinInvest specialises in gold, in an interview with Bloomberg stated that the company has sold about 30 kilograms of gold worth more than $ 1 million in just one day.
This week was very volatile for bitcoin, and a few industry insiders, which refers to Bloomberg, believe that the investors were in search of more stable assets around the same time. Bitcoin, along with most of other cryptocurrencies experienced a drop by about 40% this Tuesday, January 16, which lasted until January 18, and potentially caused a surge of investment in gold.
Marburger told Bloomberg that the sale of gold coins has increased five times on 16 January, just at this time, when the price of bitcoin plummeted.
Tuesday was a crazy day. Customers called and wrote with the only question how they can turn their cryptocurrency into gold.
A similar situation is reported by the Dutch firm GoldCore LTD., its clients for the last 3 months moving from one cryptocurrency into gold.
GoldCore Director mark O Byrne told Bloomberg via email that:
Customers are worried that the huge jump in the price of cryptocurrency has been volatile. We believe that more and more people realize that digital assets have a much higher level of risk than traditional assets, such as gold.
Earlier in December 2017, when the price of bitcoin has reached record heights, Larry McDonald, head of U.S. macro strategy at ACG Analytics said in an interview with CNBC that investors sell gold to buy bitcoin in November and December 2017. Then MacDonald said:
Cryptocurrency is definitely gradually take a bite out of the gold market.
This reverse dynamics is further evidence of the potential negative correlation between the interest of investors to gold and cryptocurrencies.