Odd Lots Raghuram Rajan on Surging Gold and Growing Risks to Financial Stability
151 snips
Oct 20, 2025 
Raghuram Rajan, former Governor of the Reserve Bank of India and a distinguished professor at the University of Chicago Booth School of Business, shares his insights on the financial landscape. He discusses why gold is surging, driven by geopolitical distrust and low real rates. Rajan warns about the risks of frothy markets and the potential disconnect between rising equities and safe-haven assets. He also highlights concerns over systemic risks from private credit and urges central banks to monitor investments carefully amidst evolving political pressures.
AI Snips
Chapters
Books
Transcript
Episode notes
Gold Rallies From Distrust And Low Rates
- Gold's rally reflects geopolitical distrust, reserve diversification, and lower rates making it easier to hold.
- Rajan also warns that froth is lifting gold alongside other risky assets, so prices may overshoot.
The Logistics Of Moving Gold Reserves
- Rajan recalls RBI's reserve diversification and logistical issues of physically moving gold stored abroad.
- He highlights the practical challenge of relocating vaulted gold, joking you'd need to 'rent a 747'.
Seized Reserves Spark Reserve Diversification
- The seizure of reserves after Russia's invasion highlighted custodial risk and spurred reserve managers toward gold and alternative payment systems.
- Trust in a single foreign custodian has weakened, prompting diversification efforts.
