Central Banks Are Hiding This Truth About Gold & Silver (Uncut) 03-17-2025

ALERT! Central Banks Are Hiding This Truth About Gold & Silver – Alasdair Macleod

There is absolutely no doubt that China has accumulated huge amounts of gold off balance sheet. And not only that, but she’s encouraged her citizens to accumulate gold as well. And I think they know that at some stage, they’re going to have to protect their currency by putting it on a gold standard.

But they don’t want to do that too soon, because if they do that, they will destroy the Western financial system, because immediately everybody in BRICS will go and do the same thing. So the situation, I think, is actually quite delicate. And this is one of the reasons why I think the timing, if you like, of the collapse of the currencies could be, you know, a bit closer than we think, rather than a long drawn out procedure.

In a recent interview with Liberty and Finance, Alasdair Macleod discusses the fragile position of the global economy as the US continues to dominate the financial system. Yet, its economic policies drive risks that could destabilize the dollar’s position. While the US has long maintained global economic supremacy, rising inflation, trade wars, and the overall weakening of the dollar are beginning to challenge the strength of the world’s leading currency.

The BRICS countries, including Brazil, Russia, India, China, South Africa, and other emerging economies, are strategically positioning themselves for a future where they may no longer rely on the dollar. Macleod argues that these nations are cautiously accumulating gold as a safeguard against the declining value of fiat currencies, particularly the dollar. India, for instance, has recently started accumulating gold reserves after recognizing the inherent risks of relying on a weakening dollar, which has been historically exacerbated by US monetary policy.

Traditionally, India has relied on Keynesian economic approaches influenced by the West, particularly the US and the Bank of England. However, the country has been cautious, not wanting to destabilize its trade relations with the West. Still, Macleod emphasizes that India, like other nations, understands the need to build up its gold reserves as financial insurance, as the risks of relying on fiat currencies increase in this uncertain economic climate.

Similarly, China has emerged as a particularly aggressive buyer, increasing its official gold reserves for 17 consecutive months. This sustained accumulation by the world’s second-largest economy has significant implications for global gold demand and pricing dynamics. Macleod highlights that China has not only been building its gold reserves, but has also encouraged its citizens to invest in gold, amassing over 26,000 tons of the precious metal.

However, China is hesitant to implement such a system too soon, as it could trigger a chain reaction among other BRICS countries and even Western nations, potentially collapsing the financial system that heavily relies on fiat currencies and their interconnectedness with global debt. We present the clips of Alastair’s latest video. Before we continue to discuss this, please subscribe to our channel and activate the bell icon for timely updates.

That’s what we account in and nothing else really matters. And the idea that the Fed, if you like, should try and manage things in the light of the effect on the dollar is wholly alien, I think, to individuals in America. They don’t understand, I’m sure this is right, they don’t understand the dynamics that drive the dollar against other currencies, except to the extent that so long as the dollar is the numero uno of currencies, then what are we going to worry about? So, I think it’s quite simple.

As far as the BRICS countries are concerned, they’re in a very difficult position because America is extremely powerful. They owe money in dollars where they owe money, or currency rather. And consequently, they don’t want to upset their bankers.

So, they’re not in the business of running around and you know, telling everybody how awful the American government is and how they’re destroying their currency and all the rest of it, and we’re going to sell it off. No, they would rather keep quiet at things. A very good example of this is India.

India does a huge amount of trade with the West, and it’s not in its interest to rock the boat on currencies at all. And it’s only recently actually that India has sort of decided to start protecting itself by accumulating gold reserves. And, you know, they haven’t finished doing that.

I mean, it’s quite clear to me that they need to get their reserve position up even further. I mean, you know, the reason I think that India’s got left behind is that it’s gone through a period of Keynesianism informed by us because we’ve been responsible for the appointment of reserve, you know, governors of the Reserve Bank of India. That’s, you know, that’s something which the Bank of England has always been consulted on, in other words, you know.

It’s someone who we approve of or the Bank of England approves of ends up being governor. And by definition, that’s someone who follows the same sort of economics, if you like, that the Bank of England and the UK Treasury follows, which is Keynesian, or neo-Keynesian, if you want to put it that way. So countries like I do think have a problem.

They know that, you know, the Western system is dying on its feet, but they can’t sort of just break away from it completely. I think that this, if you like, feeds into the problem that China has, because there is absolutely no doubt that China has accumulated huge amounts of gold off balance sheet. And not only that, but she’s encouraged her citizens to accumulate gold as well, which they have to the tune of something like 26,000-27,000 tons.

I mean, these are huge numbers, not very much on a per capita basis, but huge numbers nonetheless. And as far as the Chinese are concerned, I think they know that at some stage, they’re going to have to protect their currency by putting it on a gold standard. But they don’t want to do that too soon, because if they do that, they will destroy the Western financial system, because immediately, everybody in bricks will go and do the same thing, if they’re able to, or they will try and link themselves to the Chinese Yuan, again, to protect themselves against the accumulation of follies that we’ve perpetrated on ourselves, and therefore, on everybody else.

So the situation, I think, is actually quite delicate. And this is one of the reasons why I think the timing, if you like, of the collapse of the currencies could be a bit closer than we think, rather than a long drawn out procedure. I mean, we’ve seen the purchasing power of our currencies decline over huge amounts over long periods of time.

And I would say, if you look at the relationship between the pound and the sovereign, I mean, originally, one pound was one sovereign, and you could exchange a paper pound for one gold sovereign. There are now 550 paper pounds for one sovereign. Now, that is a huge, great loss of purchasing power for the sovereign, sorry, for the pound.

And other nations have had exactly the same experience. I mean, if you look at the way in which the purchasing power of the dollar has gone down, since it was 35 to the ounce, it’s now close to 3,000. You’ve got the yen has gone way down, the euro and its previous constituents has gone way down as well.

I think that’s around about 1% of where it was. So, you know, these losses are now likely to accelerate from here, which I think is really quite catastrophic. Well, it depends on the audience.

You know, where I’ve been invited into a central bank, I don’t actually say get the hell out of credit, which is what I would basically say to an audience, if you like, of investors or individuals. But really, I mean, the answer really is that if you agree with me that it looks like credit is going to decline in terms of its purchasing power at an accelerated rate, which if you like, conventionally, we would say inflation is going to pick up again, then, you know, you really want to get into something which is stable. And, of course, money in terms of its purchasing power, by which I mean gold has been stable over millennia, and will continue to be so.

I think it’s gold at the moment is beginning to discount some of the future collapse of the purchasing power of currencies. But you would expect that at a time like this. And this is certainly reflected in the fact that gold is leading by quite a margin, the rise in commodities and particularly metal.

So, if you look at, I mean, copper has begun to move higher, for example. But if you look at many other commodities, I mean, you know, the sort of commodity complex is only just sort of beginning to turn around and is to look sort of interesting in investment terms, as it were. But the fact that gold is so far ahead, I think, is a clear indication that that is the direction in which everything is going to go, which, of course, reflects the fall in the purchasing power of currencies.

That’s really all that’s happening. I mean, you know, when you see copper rise, when you see nickel rise, and all the rest of it, and silver as well. It’s loss of purchasing power of the currencies being reflected in those commodities, not necessarily demand to those commodities.

And I think this is the point which analysts thinking in terms of constant purchasing power for dollars, because they account in dollars or sterling or whatever it might be. This is a point they all miss. They don’t understand that actually what’s happening is it’s not commodities going up, it’s the currencies going down.

And that’s going to be the major driver, I think, for commodity values in the coming years. The global economy is grappling with mounting risks as financial market volatility, currency imbalances, and economic tensions continue to grow. Alastair McLeod highlights that last week’s bond crash, which initially impacted Western markets, has now spread to Japan, further intensifying global instability.

Traditionally seen as a bastion of stability due to its ultra-loose monetary policy, Japan was not immune to the contagion, as Japanese government bond, JGB, yields surged. Meanwhile, the U.S. bond market is under pressure due to a massive volume of debt to be refinanced by 2025. Refinancing costs could skyrocket if high interest rates persist, triggering instability and a potential liquidity crisis.

McLeod highlights that U.S. treasuries, traditionally a safe haven, are no longer fulfilling that role, as rising public debt, inflation, and high rates prompt investors to question the reliability of sovereign debt. As Alastair McLeod points out, the dynamics in the bond market have shifted significantly. Traditionally, when equity markets falter, investors flock to U.S. treasuries as a safe haven, driving bond prices up and yields down.

However, in the current environment, this relationship no longer holds. With soaring public debt and inflation pressures, and the Federal Reserve’s forced decision to maintain high rates, investors are beginning to lose faith in treasuries as a protective asset. This shift is not just limited to the U.S. Japanese bond yields JGBs have spiked, forcing the Bank of Japan to intervene frequently to manage the volatility.

This broader trend of faltering sovereign debt markets reflects the strain caused by restrictive monetary policies and the increasing abundance of bond supply, presenting a growing challenge for global economies. You know, as you imply, people don’t worry about this terribly because they say, well, they can always print, you know, print more currency. That is obviously true.

And it’s been particularly true if you look at the situation with the Bank of Japan, whose equity is so far underwater. I mean, because the Bank of Japan owns roughly 60% of Japan’s debt, the JGB market. It’s and I mean, this is enormous.

And so the equity, I mean, last time I calculated, I mean, the figures are not that material, but it was something like 40,000 times underwater. I mean, you know, the equity was so insignificant compared with the losses. The second thing people say is, well, you know, there is always the other backstop.

And that is that central banks are owned by governments. They’re a government agency. And so they are backed by the, if you like, the tax revenues of government ultimately.

Now, that as an argument is pretty specious, because if you look at certainly the US, you look at most of the EU as a whole, the UK, and also Japan, these countries, these nations, these units are in debt traps. In other words, their economies are not growing sufficiently to pay down the debt, or if you like to cover even the interest on the debt. Now, under those circumstances, this is called a debt trap.

And inevitably, what happens is that the lenders, if you like, the creditors demand a higher interest rate in return for this extra risk. Now, this is particularly opposite at the moment, because if you look at the US economy, it’s stalling. It is actually, I mean, on any sensible calculation, it is actually going backwards.

The private sector is contracting. The reason I get there is quite simple. And this is on official figures.

The Congressional Budget Office’s own figures say that the US economy is growing at 4.5% in this fiscal year. But the budget deficit is 6.5%. Take 6.5% away from 4.5%, and so you’ve got a private sector which is contracting. By 2%.

Now, that’s in nominal terms, as well as that, but if you take the official rate of inflation expected by the CBO at 2.9%, you’re looking at a contraction of 5%. Now, we can calculate it for this year, you can also do the same calculation for the previous year and the year before that and the year before that. And of course, the COVID year was a real economic disaster for the private sector.

So, I think what’s happening is people are beginning to understand that this is the problem. So, in effect, you’ve got a contracting private sector GDP, which is meant to support this increasing level of government debt, which in the US case is increasing by roughly 2 trillion a year. And so, where is the revenue, if you like, to back all this? The revenue isn’t there.

So, on the one hand, you’ve got the revenue diminishing, you’ve got that debt to GDP ratio. This works out of the GDP actually contracting, if you look at it, taking that distortion of extra government inflation pushed into the GDP. And consequently, the idea that there is the backing for central banks is just not true.

The ultimate backing isn’t there. And we have to tie this in with the credit bubble. Now, most people don’t really understand they’re in a credit bubble, but you’ve only got to look at the other side of credit, look at debt.

Oh, yes, we’re in a debt bubble. We all know that. So, if we’re in a debt bubble, we are in a credit bubble.

And that credit bubble is the biggest ever seen in the history of the world. So, that is now beginning to topple over. The current gold rush comes at a time when the global credit bubble is on the verge of bursting.

With unprecedented levels of debt and rising interest rates undermining bond markets, confidence in sovereign debt, once regarded as the ultimate safe haven, is steadily eroding. Soaring yields are putting immense pressure on governments, businesses, and households, exacerbating fears of a liquidity crisis. Amidst this systemic risk, physical gold has again emerged as the quintessential safe haven asset.

Unlike bonds, which lose value as interest rates rise, and currencies, which are vulnerable to the repercussions of past expansionary monetary policies, gold remains independent of any single issuer and is shielded from counterparty risk, making it an increasingly attractive option for investors seeking stability in uncertain times. That’s it for today. Share your thoughts on Alastair’s analysis of gold price prediction in the comment section below.

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