GOLD: This Short Squeeze is Historic | Alasdair Macleod

This episode explores the current state of the gold market and the implications of a potential credit crisis. Host Kai Hoffmann interviews Alasdair Macleod, expressing concerns about gold's recent price surge and whether it's overhyped. Macleod counters by arguing that focusing on gold as a tradable investment is misguided; instead, he emphasizes gold's role as a hedge against the declining value of credit. He points to the Comex market, where a significant bear squeeze in January and February led to a price increase despite falling open interest, indicating manipulation and a potential crisis of confidence in credit. More significantly, Macleod highlights the massive short positions in the gold swaps market, approaching $80 billion, as a major source of instability. For instance, he describes the pressure on bullion banks to cover their positions, leading to premiums over spot prices and increased bullion flows into Comex warehouses. The discussion then pivots to the role of the US dollar and geopolitical factors, with Macleod arguing that the dollar's strength relative to other currencies (the DXY) is not directly correlated to gold's price and that Trump's trade policies pose a significant threat to the global economy. Ultimately, Macleod concludes that the risk lies not in gold but in credit, advising listeners to "stack" physical gold as a safeguard against an impending credit crisis, rather than treating it as a speculative investment. What this means for investors is a shift in perspective from trading gold to securing it as a safe haven asset in the face of a potentially collapsing credit system.