NEW YORK (TheStreet) -- Gold prices are sideways after two consecutive days of losses. TheStreet's Joe Deaux spoke to Jon Najarian, senior economic analyst at Capital Gold Group, about the yellow metal in relation to bitcoin, the digital currency.
Regarding gold prices, Najarian said the technicals don't look very good for the precious metal. The sentiment has been pretty bearish as well. By India nearly banning gold sales on credit, demand from the country is also being crimped, which is another negative for prices, he noted.
Turning to bitcoin, Najarian said that unlike gold, which can have large or small amounts of supply hit the market depending on how much is dug out of the earth, there is a relatively small supply of bitcoins and so the price has been rapidly driven higher.
He called it a "great speculative ride for now" that has been very volatile, running from the low $500s to $900 and then falling back down by the end of the week.
Najarian said he's shocked how big bitcoins have gotten in such a relatively short period of time, but warned investors there are a lot of security flaws with the alternative currency.
-- Written by Bret Kenwell in Petoskey, Mich.
Bret Kenwell currently writes, blogs and also contributes to Robert Weinstein's Weekly Options Newsletter. Focuses on short-to-intermediate-term trading opportunities that can be exposed via options. He prefers to use debit trades on momentum setups and credit trades on support/resistance setups. He also focuses on building long-term wealth by searching for consistent, quality dividend paying companies and long-term growth companies. He considers himself the surfer, not the wave, in relation to the market and himself. He has no allegiance to either the bull side or the bear side.