Are we heading towards another financial crisis in 2025?

This week, I’m diving straight in. No fluff, just what I believe you genuinely need to see, understand, and, more importantly, the potential consequences. 

As a young(ish) father, I find myself constantly thinking about the end result. 

What position will my son and family be in, based on the decisions I make now?

Let’s be honest, our lives now are for our children and family, right? When they need to raise funds, I honestly don’t think it’ll be ‘money’ they turn to, at least not how we know it at the moment. 

That’s just my personal opinion, not a guarantee. (And I hope I don’t go to prison for saying it. What a joke the world is becoming…) Anyway, I digress.

This past week, my conversations with clients have focused on something close to home: the traditional method of saving, banks, and some of the significant developments unfolding in the financial world around us, which so many people are oblivious too.

You might recall the 2007/08 financial crisis

Now, you might recall the 2007/08 financial crisis. A lot of people do. But what many forget, or never fully understood, was what caused it. 

It wasn’t just a bad day on Wall Street. It was 18 months of carnage caused by reckless banking decisions, greed, and over-leveraging, and the result of choosing to do nothing about what came next resulted in people hurting and taking a long climb back up to what they were used to.

Banks handed out subprime mortgages like sweets

Banks handed out subprime mortgages like sweets, bundled them into shiny mortgage-backed securities, and sold them as ‘safe’. 

Then it all collapsed. The house of cards came down, and the world suffered the consequences. Their mistakes became our burden (I do not think that is fair, but then neither is life, I suppose)

It’s happening again

So, why am I bringing this up again? Because it’s happening again. 

Right now- so clearly. The warning signs are everywhere; this time, they flash bright red. 

Banks are raising alarm bells on the chance of a recession, yet at the same time, they’re quietly revising their gold forecasts upwards.

Basel III regulations being fully implemented

Why? Because they know. They know what will happen and, more importantly, take old Fiat’s place (potentially). As I write this, we’re roughly 70 days away from Basel III regulations being fully implemented. 

This means physical gold, allocated and held outright, will be reclassified as a Tier 1 asset, carrying zero risk. 

Think about that for a second. Banks are now being encouraged to hold gold instead of cash. Why? Because gold isn’t someone else’s liability. 

It’s real. And it gets better, or worse, depending on your perspective.

The gold market in London? It’s cracking. 

Contracts that used to settle in two or three days now take over eight. That’s a silent default if you ask me, (My opinion). Gold has risen over £600 an ounce in the past nine months alone. 

Over the last 20 years, it’s outperformed even the mighty S&P 500. That’s not just a price movement, it’s a message.Germany is clawing back its gold reserves at pace. Central banks globally are stockpiling physical metal. Something is brewing. 

Let’s take a quick detour to the US. Will Jerome Powell be shown the door? Interest rate cuts are likely around the corner. And every time rates drop during a crisis, gold reacts like a dog to a whistle.

Still with me? Let’s touch on the idea that your money in the bank is ‘safe’. Go into a branch tomorrow and try to withdraw all of your savings. Watch how difficult it becomes. 

Who has control of your money?

Then ask yourself, who has control of your money? Do some research around the FSCS.

Imagine that instead, you walk into your safe and grab a few ounces of gold or silver. Which one gives you peace of mind? 

One is a number on a screen, the other is something you can physically hold.We’re entering an era where real, tangible assets will separate the prepared from the panicked. 

The global gold rush isn’t coming; it seems to be here already. China is leading it. 

So are the Middle Eastern nations. Even America is shifting gold from London back to New York. Something is clearly unfolding behind the curtain.

The markets know it. The central banks know it. The only question is, do you? If you are looking for a message, this is your message, yes, I am talking to you, be proactive rather than reactive and protect what is yours.

And look, I’m just sharing what makes sense to me. 

I’ve got a young family. I’m 29 years old. I’m not sitting on a yacht, but I’m doing my best to get ahead of what’s coming. 

Real money, gold and silver, is the way forward

I strongly believe that real money, like gold and silver, is the way forward, has been and always will be (personal opinion).

Higher inflation is potentially coming. Market volatility is increasing. 

The idea that your savings will be safe in the traditional system is becoming harder and harder to believe.

Ask yourself:- What’s backing your savings? A number on a screen?

Can you access your money when you need it? Go and try!-If the dollar drops, what happens to your pension or cash? Do the markets wobble?-And if gold keeps rising… will you be left behind, or will you have a seat on this train?

This isn’t financial advice. It’s a conversation, one I believe more people should be having. Drop me a line if I can help start that conversation for you. 

Drop me a line: kane@solomon-global.com please reference Gold and Silver UK. 

This article, ” In the Know with Kane,” is for informational purposes only and does not constitute financial advice. Investing in precious metals involves risks, and past performance does not guarantee future results.

Kane is a guest blogger for Gold and Silver UK.

Image by Gerd Altmann from Pixabay