"Cryptocurrencies are eating gold"
In an interview with Bloomberg on January 17 Daniel Marburger, director of an online gold dealer CoinInvest, claimed, that the company had sold circa 30 kilograms of gold, which equals more than $1 million, in one day. The leap was potentially caused by the Bitcoin and other crypto currencies crash over 40% on Jan 16 — exactly the same day when gold coin sales increased fivefold
"[Tuesday] was a hell of a crazy day," Marburger said, adding that "emails and phones did not stand still with customers asking how they could turn their crypto into gold."
The Ireland-based GoldCore LTD describes the similar situation, when customers have been cashing out from cryptocurrencies and buying physical gold for the past three months. Mark O’Byrne, the director, informed Bloomberg via email about the voltage within their clients:
"They told us they were concerned that the massive price appreciation was unsustainable and they got nervous about it. We think increasingly people are realizing that these digital assets have much higher risk levels than the traditional safe haven asset [that is gold]."
In December 2017 Larry McDonald, the head of US macro strategy at ACG Analytics, formulated the following statement: "Cryptocurrencies are definitely eating into the gold play." The negative correlation between investors’ interest towards gold and cryptocurrencies has been proved.