Precious metals are the new crypto

The more things change, the more things stay the same.

We have two asset classes, precious metals (Gold, Platinum, Silver), and cryptocurrency (I will narrowly define this as Bitcoin, Ethereum, Solana and XRP as they are the only ones trading on the CME at present). They share some features in common – they are perceived to be a store of value and (using a crypto phrase) represent “proof of work”. They both have a yield of zero unless ‘leased’ or ‘staked’ in other parallels.

There’s now another characteristic in common – they are volatile. The chart of platinum, for example, has gone all over the place in the past week of trading. As I write this it down over 10% from 12 hours ago. There’s an obvious amount of speculation, day-trading, short covering, and media hype now covering the ascent of precious metals.

I am wondering whether we are entering in a phase where tangible is going to outdo digital, more broadly than what we are seeing with this trivial comparison. My level of general concern with the whole monetary system is also rising. I keep thinking about to my reflections on my brief attempts of being a corporate raider with Slate Office REIT, except instead of dealing with a borderline-insolvent REIT, we are all “financial flea” participants in our own national economy where there is no way to “win”, or even “staying even” – in real terms, not nominal. Even deciding what the measuring stick (which historically used to be the sovereign currency of the nation you live in) is going to be obscured – perhaps linking to Maslow’s Hierarchy of Needs is a better measure.