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
Guest Links:
Twitter: https://twitter.com/mikemcglone11
LinkedIn: https://www.linkedin.com/in/mike-mcglone-a8442513/
Mike McGlone is a senior commodity strategist for Bloomberg Intelligence, a unique research platform that provides context on industries, companies, and government policy, available on the Bloomberg Professional service at BI(GO). Mr. McGlone specializes in the broad investible commodity markets. Mr. McGlone joined Bloomberg in 2016 with over 25 years of futures and commodity trading and investing experience, beginning at the Chicago Board of Trade. Prior to joining Bloomberg, he was a head of US research at ETF Securities. Prior to ETF Securities, Mr. McGlone headed the commodity business at S&P Indices. His previous roles included head of futures research at ABN Amro and VP research, analyst, trader, sales at Aubrey G. Lanston / IBJ Futures.
Mr. McGlone has an MBA from DePaul University in Chicago and bachelor’s of science and arts degrees from Illinois State University. He is a CFA Charter holder and has earned a Financial Risk Manager designation.
