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COMMODITY MARKETS | 25.02.2025

Banks as major casinos: Is a systemic financial collapse looming?

Banken Rohstoffe

The global financial system is facing profound challenges. Renowned market analyst Lynette Zang of ITM Trading warns that banks, through their risky dealings, could endanger the entire financial system. In an interview with Kitco News, she described financial institutions as “large casinos” that operate with speculative financial instruments. Should a systemic collapse occur, millions of investors and savers could be affected.

Banks and derivatives: A dangerous high-risk game

Zang emphasizes that banks are increasingly relying on complex financial instruments such as derivatives and leveraged products to generate short-term profits. The global derivatives market is estimated at over $600 trillion, which entails enormous risks. An imbalance or chain reaction could destabilize the entire financial system.

Is the 2008 financial crisis repeating itself?

“Banks are no longer what they once were. Today, they are nothing more than huge gambling casinos where money is speculated with that does not even exist,” Zang warns. The 2008 financial crisis already showed how risky transactions can push banks to the brink of ruin.

Central banks and the risk of losing cash

Another issue is the increasing control exercised by central banks. Zang warns that a banking crisis could be used to introduce central bank digital currencies (CBDCs), making cash obsolete and potentially causing citizens to lose their financial independence.

Banks are not a safe place for investors

“Anyone who believes their money is safe in the bank is gravely mistaken,” says Zang. Bank accounts are no longer a safe haven—especially when inflation rises or creditor bail-ins threaten.

The “special something” of rare earths (RE) and the like, as well as precious metals

Rare earths and technology metals such as gallium, in particular, offer strong protection against financial market risks.

These special metals differ fundamentally from traditional commodities—and that is precisely what makes them so valuable. While banks and stock markets struggle with uncertainty and volatility, physical rare earths and technology metals offer a forward-looking hedge that is independent of banks and exchanges.

? Limited mining & production

  • The extraction of these metals is limited to a few locations worldwide.
  • China controls around 90% of global refining capacity for rare earths and technology metals—creating a massive dependency for Western industries.
  • This scarcity makes rare earths and technology metals stable in value, strategic raw materials—and therefore a genuine alternative to bank-linked investments.

? Significantly higher demand from technology & industry

  • Technological progress is driving steadily rising demand.
  • Quantum computing, artificial intelligence, renewable energy, and e-mobility are not feasible without these metals.
  • The defense industry as well as aerospace also depend on them—from satellites and rockets to high-performance sensors.
  • SpaceX alone carried out over 130 rocket launches in 2024—each of these systems requires specialized technology metals.

A new commodity supercycle is beginning—and rare earths & technology metals benefit directly

According to analysts, the world is at the beginning of a decades-long commodity supercycle. Rising demand for commodities—especially technology metals and rare earths, but also precious metals such as platinum and palladium—is being driven by the global transition to green energy and technological innovation.

Investors are increasingly looking for safe alternatives outside of banks and stock markets, shifting the focus to physical commodities as a long-term hedge.

“We are in the early stages of a new commodity supercycle driven by structural changes in the global economy,” according to analysts at Kitco News. This cycle could last more than a decade and offers investors opportunities for long-term value appreciation, particularly in these metals.

Why rare earths, precious metals, and technology metals are the perfect hedge

While traditional financial markets are volatile, physical commodities remain independent, tangible, and stable in value over the long term.

✅ Independent of banks & exchanges – physical assets, not speculative paper

✅ Truly limited resources – rare, difficult to extract, strategically valuable

✅ Essential for future technologies – required for e-mobility, AI, renewable energy & aerospace

✅ Rising demand in the commodity supercycle – long-term potential for value appreciation< Investors who focus on rare earths & technology metals benefit not only from stable physical assets, but also from growing global demand for these essential commodities.

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