Should Bitcoin Bulls Fear Gold’s Unexpected Rally?

Gold has been rallying alongside bitcoin the past few months, and with this move in gold, there has been an increase in traffic at precious metals sellers as consumers unload expensive watches and precious metals.

Pawnshops have existed for centuries. Stores that specialize in buying gold cropped up during the financial crisis. With unemployment soaring and gold pushing $2,000 per ounce, citizens across the country flocked to pawn shops to sell their jewelry, precious metals, and expensive brand-name watches.

Eventually, gold prices dropped, the supply of sellers was exhausted, and the plethora of gold shops closed up. Domestic pawn revenues returned to their secular norm of 1-2 percent annual growth.

Reference: https://www.ccn.com/op-ed/bitcoin-gold-rally-2019/2019/07/07/

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Author: Neo Anderson

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