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Wall St drops commodities for crypto

After 5,000+ years as money, gold and silver no longer relevant to fiat money debasement, at least for now. Unfortunately jewelers are amongst the biggest losers.

As a jewelry technology blog we have mentioned this problem before, and the problem keeps getting bigger.

Jewelers, who are sitting on millions of inventory of gold, silver, and diamond jewelry, are barely reaping the benefits of fiat money printing. Year over year, the price of gold is down and cryptocurrencies are up 5 to 10X's fold. The prices of diamonds and precious gemstones also have faltered when they used to be safe havens. Why and how is this happening? Two words. Wall Street.


“All the fun that used to be had 30 years ago in the commodity markets and is no longer fun -- that fun is now in crypto,” says the U.S. chief executive officer at GSR Markets in Houston."

While for New York and Wall Street crypto is clearly fun and games and another get rich quick scheme, the impact on the jewelry industry has been devastating. Additionally, it's shocking to see Wall St traders, flush with cheap Fed money, filtering it to "assets" that do not employ people, have no earnings, and have a very highly concentrated ownership structure. Is there any wonder why there is such inequality in America? We think not.

There is also clearly a huge disconnect between Bloomberg and the real world. While Wall Street traders talk about the "fun" of the 1970's, the stagflation of that era brought riches to Wall Street while middle America was destroyed by high prices. This disconnect persists as we are in the middle of a pandemic that has killed millions around the globe, and Wall Street is having "fun".

So besides the "fun", why has Wall St abandoned commodities for crypto?

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“I’ve been going through some of my old strategies and things that wouldn’t have worked in equities in decades have an edge in crypto still,” he says."

Apparently, the crypto market is easy to game while the commodity and equity markets are mature enough where Wall Street traders cannot manipulate. Straight from the horses mouth.

You can read the full Bloomberg article here

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