The Next Big Catalyst for Gold will be a Stock Market Crash
Mike McGlone: The Next Big Catalyst for Gold will be a Stock Market Crash
Palisades gold Radio: 12-26-2024
Tom welcomes Mike McGlone, Senior Commodity Strategist at Bloomberg Intelligence, to discuss commodities and their prospects for 2025.
McGlone acknowledges challenges such as lower oil and grain prices, harming producers due to a global surplus and decreasing Chinese demand driven by electric vehicle adoption. He anticipates continued declines in industrial metals like copper and explores geopolitical risks, particularly market implications of tensions between the US and adversaries - China, Russia, North Korea, and Iran.
McGlone suggests gold as a prudent investment due to its performance during volatile markets when stocks and Bitcoin underperform.
McGlone discusses technological advancements and their impact on the economy. He suggests an investment strategy of rotating between gold and Bitcoin at highs and lows based on their current divergence in performance.
McGlone expresses concerns over Bitcoin's excessive ETF inflows as a sign of market speculation.
Regarding silver, he suggests the silver-gold ratio should be higher based on volatility and historical patterns, with potential implications if China buys silver through ETFs to address economic challenges.
Anticipating potential corrections in the US stock market, increased unemployment, and bond yield issues could lead to a different silver-gold ratio.
Time Stamp References:
0:00 – Introduction
0:47 - Commodities in 2025
3:22 - Global Demand Decline
5:08 - U.S. & China Deficits
10:38 - Commodities & Tariffs
16:34 - Bitcoin 'Indicator'
20:22 - Tether & Treasuries
26:07 - Gold/Bitcoin Ratio
30:28 - ETF Demand & Flows
33:16 - Market Correction?
37:04 - 2025 Gold Target
39:42 - Thoughts on Silver
42:25 - Concluding Thoughts
43:45 - Wrap Up