In a recent interview on the Commodity Culture, renowned precious metals expert Alasdair Macleod issued a stark warning: the global financial system is on the brink of collapse, and the only refuge for investors will be gold. Macleod, head of research for Gold Money and author of the McLoud Finance Substack, painted a grim picture of the current economic landscape, dominated by a monstrous credit bubble fueled by decades of reckless monetary policies.
"This is the largest bubble ever known in history," Macleod declared, comparing the current situation to the South Sea Bubble and the Tulip Mania. "This is twice as big. I mean this when this bursts, it is going to be… There is absolutely nothing any Central Bank can do about it."
Macleod singled out rising interest rates as a key catalyst for the impending collapse. "Interest rates are rising, and they're Rising for two reasons," he explained. "Firstly, governments are in debt traps… and the second thing is that with most economies stalling in 2025, Banks see increasing risk lending into the private sector." He further warned that a rise in the yield on the US Treasury note above 4.75% would be a major red flag, potentially triggering a cascade of events, including a crash in equities and cryptocurrencies.
"The level of bond yields if they're going to rise, they will undermine the credit bubble as a whole," Macleod emphasized. "Equities will crash… and I think this is a critical point… it will also remove the crypto bubble… I can see that collapsing along with equities."
Macleod stressed the importance of gold as a hedge against this impending crisis. "The whole purpose of gold is actually to hedge out of credit," he stated. "If the value of the dollar starts going down in terms of its purchasing power, then gold will appear to rise."
He pointed to the unprecedented demand for physical gold as a sign of growing investor anxiety. "Since Thanksgiving, 69 tons of gold have been stood for delivery on COMEX," Macleod revealed. "This is more than most countries' gold reserves… This is very very serious stuff." He attributed this surge in demand to a combination of factors, including a growing distrust in fiat currencies, particularly among Asian investors, and a recognition that the current monetary system is fundamentally flawed.
"This is a world which is moving towards gold while we've been moving away from it," Macleod observed. "We're as we're asleep if you're like, well this is going on."
While acknowledging the allure of silver, Macleod cautioned investors to exercise patience. "The idea I mean I can also another way to look at your comment… the number of times you know in my nefarious career where I have bought into say a Mining stock or something like that and I got impatient with the bloody thing… then what happens it goes to the moon," he said. "So I think you know um I don't give investment advice but I think this is one where patience is still required."
Macleod's dire warnings serve as a stark reminder of the fragility of the current financial system. As the world grapples with rising inflation, geopolitical tensions, and the looming shadow of a potential global recession, the allure of gold as a haven asset is likely to continue to grow.
Watch the full interview:
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