Never in my 30+ years in the markets have I seen a monetary, precious metal and risk-asset setup more obvious yet more deliberately ignored than today.
Below, we look at the converging signposts screaming from the tech/AI sector and the equally obvious (yet deliberately downplayed) signals from a precious metals market entering a watershed turning point.
How the Whales Do Their “Magic”
As warned for years, and more recently here at the precious metals symposium in Florida, the insider whales (central and commercial banks, the BIS, the IMF and the shadow banking canyons of Wall Street) are clever little magicians.
They have a devious talent for manipulating (and destroying) the retail plankton by having the masses focus on their right hand while quietly gut-punching them with a banker’s hidden left hand.
Another Classic Tech Pump-n-Dump
Take, for example, the recent headlines from the tech sector in general and the AI rabbit hole in particular.
Despite a Fed-driven S&P which is historically over-valued by literally EVERY core valuation metric, all eyes of late had been salivating over the SpaceX IPO (trading at 100X revenues) and the Wall Street meme (and gambit) that AI will save the world.
This all-too familiar mania has been nothing short of hysterical—and for all the wrong reasons.
Behind this percolating, unprofitable and VC-funded madness lies (as always and as per usual) a cadre of over-levered banks sending/lending the markets at warp speed toward yet another debilitating credit (and then equity) crisis.
As warned in September of 2025, there’s much more to the AI “Great Dumbing” than just a wholesale slaughter of blue- and white-collar jobs.
In fact, a massive, contagious and AI-driven stock and bond bubble lies beneath the headlines which, with a little help from an equally toxic private credit and private equity threat, will soon send the global financial markets into yet another historical liquidity crisis.
As warned last year, the reckless over-investment by the Magnificent 7 “tech giants” (which comprise 1/3 of the US stock market cap) into the emerging AI mania “would soon move from over-bought to massively over-sold.”
AI: Hiding the Shameless Beneath the “Norm”
The nature of this over-concentrated mismanagement almost defies belief, as the AI bubble is driven by circular financing sins which deserve no redemption.
NVDA, for example, which makes the microchips that drive AI, invests billions in AI startups, who then buy AI chips back from NVDA, pushing its valuations moonward.
Microsoft, Google and Amazon are no less shameless.
Microsoft, for example, will place billions into OpenAI, who then sends that same money right back into Microsoft.
Google equally invests hundreds of billions into Anthropic, who then sends those same billions back into Google’s AI infrastructure. Amazon, playing the same game, tosses equal capital levels to Anthropic, who in turn invests that money straight into Amazon’s cloud servicing coffers.
These “magnificent” tech giants then have the gall to report AI-driven “revenue growth” on what is little more than an insider puff-job, the equivalent of me “investing” (giving) my son $1000 and then asking him to return the cash and calling that my “growth model.”
This Familiar Movie Doesn’t End Well
This, of course, is madness, and we (along with Apollo Research) are reminding YOU that there is in fact NO sign that the tech sector is making any real money at all from AI, other than from the companies selling to each other.
This incestuous pattern is eerily reminiscent of CISCO selling routers to dot.com startups in the late 90’s, which were funded by VC companies who were themselves funded by CISCO.
And we all remember how that -78% NASDAQ movie ended…
As of 2026, we now see a Mag-7 which has, with the help of those ever-wise TBTF banks in NYC, levered trillions into an AI gambit under the assumption that AI will make them more profitable in much the same way those same pre-08 banks thought ABS-packaged sub-prime mortgages would never fail.
And we all know how that -57% S&P movie ended too…
What’s even scarier, and not making the headlines today, is that those same banks have also seen that movie before. (Remember “Margin Call”?) After sending global markets to their knees in 2008, those same banks then issued themselves their highest bonus levels in history…
As for today, banks like Goldman Sachs are giving the retail plankton “research reports” on how undeniably significant technology like AI will save the world and the S&P.
Meanwhile, those same banks, and most notably the ever-clever JP Morgan, are quietly dumping their AI credit (junk bonds?) at a steady pace—you know, like profiteering rats leaving a ship before it sinks from their own lending practices.
Elon’s Bond Woes…
Folks, this is bad. But the hidden bad (as well as credit risk) doesn’t end in the oh-so magical AI sector. Elon’s SpaceX bonds are yet another tech-driven credit bug looking for a windshield.
Just after going public at a $1T valuation, SpaceX issued over $25B in bonds, and as of this writing, those bonds have already lost 10%.
We know that bonds are “boring” (and hence easily ignored). But as warned for years, the bond market is everything, and this latest credit signal from SpaceX is simply staggering in its implications.
Why?
Because those AI and SpaceX bonds (like those sub-prime ABS mortgages of the 2008 era) are likely part of your third-party-administered 401K and pension plans –just ticking away like a bad-debt time bomb as you read this.
From Crappy Bonds to Solid Gold
If the foregoing disconnect between media hype and hard math wasn’t bad enough, a far more lasting sea change in the global monetary system is unfolding right before our collectively closed eyes.
As the media and tourists/speculators (i.e., plankton) in the precious metals trade haggle over “peak gold” and decry short-term bear corrections in an otherwise obvious and misunderstood gold bull market, the big whales are calmly stacking metal in a deliberately manipulated fire sale as retail investors panic in the fog of daily price action.
Same Tricks, Different Asset
But again, this magic trick of blinding the plankton with hype/fear while the insider whales feast is nothing new.
The big banks from Wall Street to Hong Kong, as well as the central banks from Brazil to China, know that a UST and USD sinking under the weight of a 7% current accounts deficit and $3B/day in interest expenses on its $40T debt pile is no longer the world’s neutral collateral in actual practice.
This explains why there are more sellers than buyers of USTs.
And this explains why sovereign bond yields are the highest in decades.
This explains why central banks now hold more physical gold than USTs.
This also explains why the COMEX has been seeing two years of physical gold (and silver) flying out its doors faster than $#!T through a goose to meet foreign delivery demands. This equally explains why central bank gold stacking has increased by 5X since Biden weaponized the USD in 2022.
Finally, this fully explains why Q1 of 2026 saw central bank gold stacking reach its highest pace in history, and why central banks net-purchased 41 tons of gold in May alone.
Love or Hate Em’—China Sees the Bigger Picture
And no one foresaw this incremental and now exponential decline in USD and UST hegemony better than the Chinese.
The PBOC just completed its 20th straight month of net gold-stacking, with a 15-ton purchase of gold in June.
Meanwhile, China imported more than 700 tons of the metal in the first 5 months of 2026 and over 14,000 tons since 2015.
Such farsighted preparation and strategic thinking (rather than flag-waving hopium) also explains why China’s largest bank, ICBC, along with four other major commercial banks, recently announced an end (effective July 24) of the paper trade (levered price fixing) of gold in favor of physical metal only—thereby undercutting (and giving a subtle middle-finger to) the paper-based farce of the NY COMEX exchange.
As the former head of the Shanghai exchange warned an overconfident West in 2014, soon China (with a partner in Hong Kong), rather than New York or London, would set the gold price, and this price will slowly become much fairer, and exponentially higher, when based on physical bars rather than paper claims.
In fact, much of that US gold is heading straight for China (see below), a nation that is essentially “de-paperizing” the gold market.
This obvious yet ignored direction of the golden “puck” also explains why Chinese citizens now invest more of their money into gold ETFs than stock ETFs.
In short, while Americans are being seduced by their “experts” into tech tops and scared out of gold-buys, the farsighted Chinese are encouraging their citizens to load up on real money rather than bad credit.
In short, each of the foregoing (and entirely media-ignored) signals confirm that China sees the longer-term direction of a gold-based monetary system(rather than gold-backed currency) far better than a debt-corned and media-misinformed West.
Rock Beats Paper
In this 2026 backdrop of trade, currency and now “hot” wars, China (and many other far-sighted nations and banks inside and outside of the BRICS+ coalition) are effectively loading their monetary guns with golden rather than paper bullets.
In other words, physical gold is no longer just another “asset,” “commodity,” or “metal” to compare against stocks, bonds or other “sectors.”
Gold is mathematically and objectively becoming the de facto global reserve asset and trusted collateral in a world now marked by an undeniable distrust in each other in general and the USD/UST in particular.
Building Their Arks Before the Rain
Stated even more simply, the central banks and central planners are preparing for a new monetary system which no one at FOX News, the WSJ or CNBC wants the US “plankton class” to see or understand.
As usual, the whales are quietly stacking precious metals in a self-made fire-sale while the retail plankton decry current price volatility as if gold were just another tech stock.
For now, and as warned even at gold’s highs in January, volatility can continue. Prices never move in a straight line, and bearish corrections are typical of secularly bullish turning points to shake out the minnows to enrich the bigger fish.
But for those who see the bigger picture (and direction) for gold, the question is not whether one times a bottom or waits for the perfect entry (a total mug’s game).
The real question is whether or not you see this generational turning point in the global monetary system and are building your golden ark before or after the rain?
Based on the signals above, the rain has already started, and the big boys are now busily building their arks. They are not looking at gold’s paper price today or tomorrow, but at gold’s physical and exponentially higher price, direction and role in the many years ahead.
Such knowledge confirms that if you grasp the history and math of gold, and posses the patience of an investor rather than a trader, this broke(n) world is literally handing you the greatest asset (and buy signal) in a generation—and one which will ensure and protect generations of wealth in the years to come.
This is not a “gold bug” fable but historical fact.
Period.
Very informative Egon - thank you
"the insider whales (central and commercial banks, the BIS, the IMF and the shadow banking canyons of Wall Street) are clever little magicians."
Now that is a very interesting - the magicians terminology.
I wish you well.