I've heard some sentiment that crypto -- broadly speaking, not so much a specific coin -- has had an effect on gold. This theory is offered up in partial explanation for why gold's price has not behaved as might be expected in these times of inflation.
So, 1st, I'd be interested in any expansion on why that is -- or isn't -- the case.
2nd, for those NOT planning on investing in crypto, are there impacts in broader markets that should be considered going forward? Are there metrics that might carry over?
There is a narrative floating around that younger people are buying crypto as an inflation hedge rather than buying gold. I have not attempted to verify the volume of gold transactions to see if it has changed lately. This narrative posits that the boomer generation who has bought gold as an inflation hedge is dying off and their heirs are dumping the inherited gold and buying crypto instead.
Another narrative I have heard recently, which is probably older, is that the price of gold is being suppressed by activity in the futures market where "paper gold" can be sold much in excess to the actual supply.
A couple things I have been wondering about is whether a drop in the stock market will trigger a flight to the safety of bitcoin as some pundits predict and also if a blow off top in crypto might trigger some diversification into stocks among the young crypto buyers.
I saw another article saying that in 2020 and 2021 there was quite an increase in the number of younger people opening brokerage accounts. I wonder if this group will be more receptive to crypto and perhaps swing trade between stocks and crypto.