Baby boomers hold over 70 percent of investable assets. This one figure explains more about #gold the year 2024 than any macroeconomic thesis.
Here is the frame of reference that most analysts overlook:
When fear of currency devaluation rises, capital flows to where capital holders have confidence. And right now, this is not a philosophical question, but an actuarial one.
Gold = boomer capital. The generation with accumulated wealth, a wealth of institutional experience and fifty years of coinage according to the motto: "Gold = security". They don't need to be convinced. They simply allocate.
$BITC (-2,88%) = Capital of the millennials and Generation X. Growing conviction, but wealth accumulation is still in progress. Smaller aggregated pools of capital. Many are convinced - but convinced with mortgages.
Altcoins = Generation Z capital. Venture-like risk appetite meets the smallest capital base. High conviction, low firepower.
The demonetization thesis is not wrong. Capital just hasn't changed its address yet.
It's not about which asset is the "better" hedge. Gold and #bitcoin can both fulfill this function. The simpler question is: who has the capital to invest - and what do they trust?
Today, the answer is in favor of gold. But wealth does not stand still. The largest intergenerational transfer of wealth in history is underway: over 70 trillion US dollars will pass from boomers to younger generations in the coming decades.
The real question for allocators is: what happens when the demonetization trade meets demographic change?
