Gold is the 'North Star' in a World Drowning in Debt - Sprott’s Ryan McIntyre

Gold is trading at a one-month low below $4,300 an ounce amid expectations of a Federal Reserve rate hike. Sprott Inc. President Ryan McIntyre argues investors are missing the larger issue of rising sovereign debt and fiscal instability, where gold remains the monetary “North Star.”

Despite this year’s gains, gold stays underowned by U.S. institutional investors. McIntyre sees catalysts in climbing bond yields or equity weakness that could trigger reassessment. He warns that once U.S. interest expenses exceed the roughly 4% nominal growth rate, the economy cannot grow out of its debt burden. “My view is once the interest expense exceeds the nominal growth rate in the United States, then you run into trouble because you literally can’t even pay off the interest. The economy’s not growing itself out of the interest.”

McIntyre forecasts record ETF inflows as gold becomes the key release valve without sovereign liabilities. Near-term Fed decisions may cause brief volatility, yet the long-term path depends on worsening fiscal conditions. “I think people should just focus on the North Star,” he concluded.