Alasdair Macleod - Why Gold and Silver are Crashing

About this video

• Video Title: Alasdair Macleod - Why Gold and Silver are Crashing
• Channel: Reinvent Money
• Speakers: Paul Bing, Alasdair Macleod
• Duration: 00:38:48

Overview

This video discusses the recent price correction in gold and silver, exploring potential reasons such as coordinated market manipulation, logistical challenges in the supply chain, and the broader implications of a potential shift away from the fiat currency system. Alasdair Macleod offers insights into the nature of precious metals as true money and advises retail investors on how to approach the current market conditions.

Key takeaways

• Coordinated Market Correction: The recent sharp decline in gold and silver prices may be a coordinated effort by market makers to manage their positions, rather than a simple technical correction.
• Retail vs. Professional Trading: The video emphasizes that the significant price movements are driven by wholesale and derivatives markets, not retail investors.
• Logistical Challenges: High demand for precious metals has led to significant delays in delivery, indicating strain on refining and supply chain capacity.
• China's Role in a New Financial System: China is actively positioning itself to potentially replace the US dollar as the global reserve currency, with gold playing a crucial role in backing a future gold-yuan system.
• End of Fiat Currency: There is a strong belief that the current fiat currency system is nearing its end, necessitating a return to a more stable monetary anchor like gold.
• Investor Strategy: Retail investors are advised not to trade precious metals but to understand their fundamental value as legal money without counterparty risk and to hoard them as a long-term store of wealth, especially during market downturns.
• Historical Parallels: The current situation is compared to Germany's hyperinflation after World War I, highlighting the potential for a credit bubble burst and the subsequent collapse of fiat currency.