How Gold’s Surge Could Signal a Global Financial Breakdown

A dramatic spike in gold prices may not be the victory for investors many might assume, according to NexMetals CEO Morgan Lekstrom.
In a recent interview, Lekstrom warned that a $5,000 gold price would reflect a collapse in financial stability — not economic prosperity.
Such a surge, he explained, would likely stem from collapsing debt markets, runaway inflation, and the end of a long-term credit cycle. While Lekstrom sees gold reaching these levels as plausible, he stressed that it would come amid widespread investor panic and a scramble for safe-haven assets — not from healthy demand.
“Once gold pushes beyond $4,000, that’s a clear red flag,” he said, suggesting the move would coincide with a global monetary reset and a sharp real estate downturn.
For now, gold remains elevated but stable. After a brief pullback following easing tensions in the Middle East, it’s holding above $3,200. Year-to-date, gold is up 24%, closing the last session at $3,274.
Lekstrom expects short-term consolidation in the $3,100–$3,300 range, followed by a gradual rise toward $3,700 over the next six months, fueled by persistent inflation and fiscal imbalance.