The Limits of Gold, Oil and Bitcoin

When any asset class grows large enough—achieving systemic relevance—the government inevitably intervenes. Historically, we’ve seen this with gold and oil. Once an asset surpasses a critical threshold, say reaching a trillion dollars in value, it becomes not just economically significant but geopolitically sensitive. At that point, it transitions from a free-market instrument to a tool of policy—essentially, it becomes weaponized.

This pattern isn’t new. Governments have a consistent track record of asserting control over resources once they become too big to ignore. Gold was once the foundation of monetary systems and eventually regulated; oil, the lifeblood of industrial economies, has been manipulated through supply controls, alliances, and sanctions.

Cryptocurrencies appear to be following a similar trajectory. Once seen as decentralized and untouchable, they’ve now grown to a size that warrants government scrutiny and eventual regulation.

Whereas, US equities absorb and reflect the outcomes of government policy, monetary direction, and fiscal strategy. And over time, equities have consistently outperformed and outscaled every major commodity. They are, in essence, the highest expression of economic power—both private and state-influenced.

This is why seasoned investors keep returning to US equities. Because despite interventions, distortions, or regulation, equities have proven to exceed all commodities in size and influence—time and time again.