(Kitco News) - The world is on the verge of the “biggest economic boom since they invented the steam engine,” driven by an Artificial Intelligence revolution, but it will be preceded by an imminent “crypto winter” that could see Bitcoin’s price fall by more than half and expose the “FTXs of this cycle,” according to market veteran Clem Chambers.
In a wide-ranging interview with Kitco News on September 26, 2025, Chambers laid out a deeply contrarian forecast, calling for a surge in hard asset prices amidst a collapse in parts of the crypto ecosystem. Chambers' forecast is rooted in a worldview that assumes a major global shift from financialized 'paper' assets to physical commodities is accelerating, driven by geopolitical conflict and the immense energy demands of Artificial Intelligence.
His bullish outlook on the broader economy, however, contrasts sharply with data from the University of Michigan released Friday, which showed consumer sentiment falling to a dismal 55.1 as nearly half of Americans cited high prices eroding their finances.
A Crypto Winter Amidst a Coming Boom
Chambers, who accurately exited his Bitcoin position at $100,000, issued a stark warning to the crypto market, predicting that a significant downturn is imminent. “We will have another one and it will go back down to probably between 40 and 60,000,” he said.
He pointed to publicly traded crypto reserve companies as the primary source of risk in the next downturn. According to Chambers, “When this does come down, these crypto reserve companies, they're gonna be the next people to be hung upside down by their toes… some of them, not all of them, but definitely some of them will be the FTXs of this cycle”. His warning comes as data from CryptoQuant shows purchases from these corporate treasuries have plunged 76% since July, a development one report described as a buckling of the "institutional anchor" for Bitcoin.
Despite this, Chambers’ long-term outlook for the global economy is incredibly bullish, centered on the productivity gains from artificial intelligence. “This AI thing is absolutely Titanic,” he stated. “It's as big as when they invented the steam engine, and that was artificial muscles. This is an artificial brain”. He believes investors should be positioning for this boom, arguing, “there'll be untold opportunities to make vast sums of money if you can get on your front foot and see the big things coming”.
The Hard Asset Supercycle
According to Chambers, this new era will be defined by a scramble for physical resources. He sees gold, currently trading firmly above $3,830 an ounce, as having significant upside. “Four to five [thousand] is… is near now,” he said, adding, “I have high conviction that we're gonna be getting there”. For silver, which traded above $46 an ounce Tuesday, his prediction is even more dramatic. “Silver could double from here, could go to a hundred dollars an ounce,” he said.
Chambers also highlighted platinum and palladium, revealing what he described as a stunning loophole in Western sanctions against Russia. “America has got sanctions all over Russia… but America is buying all the platinum and palladium that Russia will sell it. There are no sanctions on platinum and palladium from Russia to America… because they can't do without it,” Chambers claimed.
He sees the most significant opportunity in copper, a view substantiated by recent events. Following a major accident at the world’s second-largest copper mine in Indonesia, Goldman Sachs is now forecasting the global market will flip from a surplus to a deficit this year. Chambers pointed to a massive, pending merger between Anglo American and a Canadian copper producer as a clear signal. “It's like being given an insider trade,” he said. “These utter insiders of the copper market… have gone, oh, we got, we've just gotta merge… because this thing is a monster”.
Geopolitics, Supply Chains, and U.S. Strategy
The driving force behind much of Chambers’ thesis is an intensifying geopolitical landscape. His comments came as headlines reported NATO has issued a direct warning to Russia that it is prepared to shoot down aircraft that violate its airspace. This, he argues, reinforces the role of gold as the ultimate “currency for war”.
This global tension is forcing a strategic rethink in the U.S., particularly in critical supply chains like semiconductors. Chambers sees the recent news of a potential partnership between Intel, Apple, and rival TSM as a matter of national security.
“There is an AI war right now,” Chambers stated. “And those chips that are gonna power American AI currently are made in Taiwan. Well, hello Intel?”. His analysis aligns with reports that the Trump administration is weighing a new plan to reduce U.S. reliance on chips made overseas.
To hear Chambers explain in his own words why he believes certain crypto companies are the 'next FTX', why the U.S. is buying Russian strategic metals despite sanctions, and which commodity he is rotating into now, watch the full interview here.