Tom Bodrovics welcomes back gold market and finance expert Alasdair Macleod. Together they explore the escalating systemic risks in global gold and silver markets, driven by surging demand for physical delivery. Macleod highlighted the European Central Bank’s (ECB) warning about skyrocketing counterparty risks in gold derivatives, emphasizing that COMEX delivery demands have reached unprecedented levels, with an annualized rate of 1,500 tons—far exceeding post-pandemic trends. This surge reflects a growing scramble for physical metal which is exacerbated by delays in delivery fulfillment. Bullion banks, fearing tariffs and supply shortages, inflated futures prices to create arbitrage opportunities, further straining markets.

Macleod underscored a critical shift: central banks, once willing to lease gold to stabilize markets, now hesitate to renew leases, fearing irreversible loss of reserves. This trend, compounded by COMEX silver shortages, signals deepening liquidity crises. Demand is driven by sovereign wealth funds, Asian families, and Middle Eastern entities diversifying from the dollar amid geopolitical tensions and long-term currency devaluation fears.

The discussion pivoted to the U.S. debt trap, with deficits exceeding 6% of GDP and tepid demand for long-term Treasuries. Macleod compared today’s credit bubble and protectionist tariffs to the 1929 crash, warning of a potential debt deflation spiral. He noted China’s strategic accumulation of gold and silver, possibly prepping the yuan for gold backing, while avoiding abrupt moves to destabilize Western economies.

Amid these risks, Macleod stressed wealth preservation over accumulation, advocating physical gold as a hedge. He cautioned that markets underestimate the looming convergence of fiscal instability, currency crises, and geopolitical shifts, urging vigilance as structural economic fractures deepen. The episode closed with a stark reminder: today’s calm belies a gathering storm, mirroring historical precedents where credit excesses and policy missteps fueled systemic collapse.

Guest Links:
Twitter: https://twitter.com/MacleodFinance
Substack: https://substack.com/@macleodfinance
Website: https://goldmoney.com
Research: https://www.goldmoney.com/research/

Alasdair Macleod is Head of Research for GoldMoney. He is an educator and advocates for sound money thru demystifying finance and economics. His background includes being a stockbroker, banker, and economist.

Alasdair started his career as a stockbroker in 1970 on the London Stock Exchange. Within nine years, he had risen to become senior partner of his firm.

Subsequently, he held positions at the director level in investment management and worked as a mutual fund manager. Mr. Macleod also worked at a bank in Guernsey as an executive director.

For most of his 40 years in the finance industry, he has been demystifying macro-economic events for his investing clients. The accumulation of this experience has convinced him that unsound monetary policies are the most destructive weapon governments use against the common man. Accordingly, his mission is to educate and inform the public in layman’s terms what governments do with money and how to protect themselves from the consequences.