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(Kitco News) - The recent bank collapses after a string of interest rate hikes are deeply foreboding for the U.S. monetary system, said Egon von Greyerz, founder and managing partner at Matterhorn Asset Management.

Earlier this month Greyerz spoke to Kitco at Deutsche Goldmesse in Frankfurt, Germany.

This year there have been a series of bank failures as the Fed quickly raised interest rates, making it hard for financial institutions to adjust. In March SVB Financial Group, the parent company of Silicon Valley Bank (SVB), filed for bankruptcy. Signature Bank, a New York-based regional bank also went under, the third-biggest bank failure in U.S. history.

Greyerz argued the moves portend a larger move.

"[We have] reached the end of this monetary era," said Greyerz. "It doesn't happen overnight and it's taken longer than I expected nevertheless it's happening's starting to accelerate."

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Investors have been fleeing the banking sector. Year-to-date the SPDR S&P Bank ETF is down 22%.

Gold has benefited, trading above $2,000 an ounce for much of 2023. The fear trade has also benefited the gold miners, which are up 10% year to date.

Coverage of Deutsche Goldmesse 2023 sponsored by Defiance Silver.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.