Tag: silver
Is gold a good investment in 2023? – Robert Kiyosaki, Jim Clark, Charles Goyette
Jason 0 Comments Retire Wealthy Retirement Planning
(upbeat music) – [Narrator] This is "The
Rich Dad Radio Show." The good news and bad news about money. Here's Robert Kiyosaki. – Hello, hello, hello, Robert Kiyosaki, "The Rich Dad Radio Show." The good news and bad
news about this here. This is cash, and this trash. So today we're going to be
talking about the hottest subject on the market today, and it's not real estate, what it is here is this is gold, and this is silver, and of course there's Bitcoin. So those are the three things.
And the reason they're the
hottest subjects on the earth right now is because our money is fake. So this is one of my
favorite books here, "Fake." I'll tell you a quick story
before we get into why gold, silver, and Bitcoin is,
that I was at Safeway, and I'm kind of a guru at
the salad counter at Safeway. (Robert laughing)
All the women were coming up to me going, "Hey,
what should we invest in? What should we invest in?" And I just happened to be
having in my pocket here, this is a pre '64 US quarter, and it's given to you by
my friend, Dana Samuelson, he's in Austin, Texas.
He is American Gold
Exchange in Austin, Texas. Dana Samuelson. So he knows I'm a silver nut. So this is a pre '64, and
pre '64 means it's silver. After '64, it became fake money. It became this here. So I held this up here to the ladies, they want the hottest tip,
and I said, "Buy this here." They went, "Oh!" A quarter? I can afford a quarter." I said, "Yeah, but I'll
charge you $3 for it." And you should have seen their brains, the salad was flying all over the place.
(all laughing) (Robert speaking gibberish) I said, "Okay, I'll tell you what, $2." (Robert yelling) They were screaming,
not screaming, but just, "Why would I pay you $2 for a quarter?" And I said, "But this is pre '64." They just could not figure it out. Now, that's the lesson of today, is that people don't know
that our money is fake. And that's why Rich Dad
exists and all this. But the sad thing about it is, is that AARP turned on my article because I wrote a story of
my mother, I used to save real quarters, cause when
I was 17 years old, in '64, I saw the quarter go to copper. It was fake. It was an alloy. So I started collecting
dimes and then quarters and half dollars. I had this big bag of real silver. And my mother says, "What are you doing?" I said, "This is real money." So this is, '64, '65, I
go to school in New York.
'66, I come home, my mother spent it all. (all laughing) And so I wrote the story for
AARP, they turned it down. I said, "The lesson is
poor people are poor cause they don't know fake money." They don't know the
difference between real money and fake money. So this is a very important lesson here. I have some two friends here from years, and like I said, Dana Samuelson
of American Gold Exchange in Austin, Texas. This is a special category of silver. It's called numismatic. And numismatic means
collectible and antique. And the reason I respect
Dana is because he was head of the American Numismatics.
So I don't buy numismatic, I
don't buy collectible coins, I buy real gold, silver. But if I want numismatic,
like an antique Dodge or something, whatever it is,
if I want an antique coin, I see Dana because there's
a lot of fakes out there. A lot of fake coins. So you got to be very careful today. But like I said, this
is the hottest subject. I have two great friends here. So Jim, and this is Charles Goyette here. This is his book here, "Red
and Blue and Broke All Over." (men chuckling) So Jim, how long have you
been in this business of gold? – 50 Years. – 50 Years.
– Yeah. – Our time is coming
on this one, isn't it? – Well, I thought it was
coming in 1973 when I got in the business. And it was just a year
and a half or so after Nixon had removed the gold and we got everyone off the gold standard. – The dollar was backed by this here.
This is real gold. So in '71, this was pulled out too, right? – [Jim] Right. – Because you just print
as much as you like. – Well it was no longer
backed by anything. It was a Federal Reserve
note, which is no more federal than Federal Express. And we were required
to take that as money, whether we liked it or not. – Right. Right. Another thing too, I
was in Vietnam in '70. '71, I was on my way
over, '72 I was there, and '73 I returned and I
bought my first gold coin. It was a South African Krugerrand. And the Vietnamese woman, gold was $35 for years, and then in '71 it floated
to about 50, let's say. And so I thought, "Well,
I'll go talk to her." She was behind enemy lines, I
flew my helicopter in there, tried to negotiate with her. I said, "Look, I'll give you 40 of
these for one of these. And she's going, "Spot." I go, "Let me say it again. 40 of these. for one of these," she goes, "Spot." I said, "What the hell
is she talking about?" Well, she was saying spot that day was 50.
And all of a sudden here, I'm
a college graduate, hopefully, with my other college graduate,
two pilots standing there going, "We don't know
shit about money, do we?" So spot meant that on
that day, it was 50 bucks. And I thought because she
was behind enemy lines, I could get it for 40. No such deal. Gold is gold. Spot is spot. Silver is silver. This is real money. So Mr. Goyette, Charles,
why did you write this? Tell us something about your background, why did you write this book here? – Well, one thing is Jim and I
were in the business together a very long time ago that
he was talking about.
But you just reminded me about spot. I remember seeing the
"National Geographic" special, this is back in the 70s,
and they went to these guys, these kind of third worlders
in the Amazon rainforest, way deep in the jungle, and these people didn't have any clothes, didn't have any electricity, but they were panning for gold there. And the camera crew came up
and tried to buy their gold and they knew what the
London goldfish was that day. (all laughing) They totally knew what the
world price of gold was, spot price of gold,
cause it's international, it's all over the world, and it's a real price
for real money, isn't it? – Yeah, the sad thing about
it is I think Americans are the least to know about money. Because we have the Federal Reserve note. I'll tell you one last
story; I was in Peru, I bought a gold mine in Peru.
There's no rain, there's just baron hills, mountains up in the Andes. And I see these little
holes up there, I go, "What the hell's that?" And my little Inca guide says, "We've been drilling gold
here for thousands of years, asshole." (all laughing) I said, "I'm not the first guy up here?" "No, you're not the first guy up here." "My great, great, great,
great, great, great grandfathers were yanking
the stuff out for years." And Bizarro came to Peru
and killed them all, took their gold. – [Charles] Stole their gold. – And so that's why the
Spanish became the empire at the time. Someone from Spain, England, America, America's gone now.
So that's what we're
here to talk about today. And we're old enough, the
three of us, to understand that this here is real and this here is fake. But most people would rather have this. This is the problem. – Robert, I saw one of those
YouTube videos where the guys on the boardwalk in Santa
Monica, it's kind of like jaywalking, like what's
the name of the moon? But he's walking around
with a chocolate bar and a silver coin, and he says to the people, he said, "Would you rather have
this chocolate bar," or I think it was a silver bar.
– [Jim] A silver bar. It was Mark Dice. – Yeah. And the people go, "Mm, I'll
take that chocolate bar." (all laughing) So they get a $2 chocolate bar, or a- – It was a 10 ounce silver
bar, it was about $300. And they'd rather have the chocolate bar than the silver bar.
– [Charles] They know no better, it's Jaywalking America. – And I'll say this again, it's the most important lesson: poor people don't know the
difference between real money and fake money. And that is what it comes down to. So it was in '71, this used
to be a silver certificate, now it's a Federal Reserve IOU.
It used to be backed by gold up to, no, this was '67, '64, excuse me, it was silver. And then in '71, Nixon
took the gold out of it. Johnson took this out of
the silver certificate. – Yeah, I remember I was
telling you that story the other night. I remember in 1964 where
we're sitting around the TV, Johnson came on and said,
"Silver has become too valuable to be used as money." And just as I'm sitting here, my dad said, "That son of a bitch. They're going to take the silver out and they're going to leave
us this garbage coins." And he didn't really
understand it, but he got it. And from that point on,
he saved silver coins. He had about $8,000 worth by
the time he cashed them in in 1980. – Yeah. And I was in South Carolina
where I have a home, and this guy said that his
father ran the theater, and his father said, "There's
just yanking out all the silver coins." The lesson again, is poor
people don't know the difference between real money and fake money. And that's why in "Rich
Dad, Poor Dad" I said, "The rich don't work for
money because it's fake." So the reason I like to have
Jim here and Charles is because this stuff is getting
harder to find right now.
And I was panicking cause I
deal with a lot of guys who have gold and silver. So I called my friends up,
"We cannot get silver." I went, "What?" This is about what,
seven, eight months ago, we couldn't get silver. So you guys are Republic
Monetary Exchange. – [Jim] Yeah.
– Yeah. On Camelback. And I called these guys,
they said, "We got plenty." – Jim has been very,
very good over the years at making sure that the
inventories are high.
He could see when these
runs are starting and stuff and the premiums are
starting to go up and stuff. And he's always put his clients first. He makes sure, we're going
to commit a lot of capital to make sure that our
clients can come in the door and get their gold and silver. The worst thing in the world
is these companies that say, "Well, give us your money now and then we're going to deliver
your gold or we'll send you your silver in six months or something." Don't do that! Don't do that. So Jim's just really
created a name for himself in his ability to always
deliver to his clients. – Well I've always stayed ahead
of the curve, that you can anticipate needs after
50 years in the business. – Well, not everybody can,
because I was panicking, Okay, well step back.
You have the spot price.
So let's say today the spot's 20 bucks. There's a premium on top of this coin, or this coin, should I say. What does the spot and the premium mean? – On that particular coin,
it's typically between $4 and $5 an ounce over the spot price. – So spot is the price
all across the world? – Right. And then all of the
products and coins and bars and so forth, they will
be priced accordingly based on the availability, the demand, the cost of refining and
putting them in the coins and shipping and distributor
markup, dealer markup, our markup and all that.
So there's always a premium that you pay to get the finished product. – That's like the tip at
the end of the dinner. (all laughing) – No, it's worse than that. – Yeah! I was watching Fox News
this morning, Fox Business, and they were bitching
about how, she went, where did she go? Oh, she went to the dry cleaners and she charged her, she
put it on a credit card for her dry cleaning; it said, tip 20%. She goes, "Why do I have to
tip you for my dry cleaning?" (all laughing) People are so desperate to
money because this is fake.
It's terrible. – Well, and because they can print it so much that the value
is dropping every day. They print up billions every day. Look at the bills that they
signed of, 1.7 trillion. Where's that money coming from? Well, they've got to print it. Or they've got to create something through a keystroke entry. That means all the rest of
those Federal Reserve notes out there become worth just
that much less everyday. – Yeah, this is trash. So I'll say it again, the
difference between rich people and poor people; rich people
know the difference between this and this. And so the Republic Monetary Exchange, there's a lot of people out there. Dana Samuelson, my friend,
he's my expert in numismatic. And I was impressed because
you guys had inventory. My other friend, Jerry Williams was out. And I said, "What the
hell?" This is a while ago, "What the hell's going
on?" It was running.
So it must mean there's
something going on because people would rather have this than this now, except for
the ladies at Safeway. (Robert laughing) – But they know now.
(all laughing) – It fried their brains. "Why would I give you $2 for that?" And I said, "That's the
riddle of the day, ladies." We're laughing, we had a great time.
But it fried their brains. Said, "What, what, what, what?" And I said, "I have a book here for you, It's called 'Fake.'"
(Robert laughing) And this whole system is fake right now. So we come back, we're going more into how people lie, cheat and steal because anytime there's money,
there's a liar and cheater and stealer around there. I've been saying this for
years, this is God's money. This is fake money. I like Bitcoin. I call it people's money. Now I don't know much about Bitcoin, but I'm just glad I bought it at six. That's all I know right now. So when we come back with
going more how you can know real money from fake money.
Some of the other advantages of right now. I've been saying this for
years, I used to work for Lear, I still have Lear Capital Ads, I said, "Buy silver." And the reason is
everybody can afford this. I think this is about 30 bucks. How much is this today? – Just under $30 for one of those, yeah. – Everybody in the world
can afford 30 bucks. But they'd rather have this. And that's today's Rich Dad
lesson. We'll be right back. (upbeat music) – [Announcer] Robert knows
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The Rich Dad Radio Show." The bad news about fake money. And again, we're talking
about this stuff is fake and this is real money.
We have friends, dear
friends, this is Jim Clark from Republic Monetary
here in Phoenix, Arizona. And Charles Goyette, here's
his book, "Red, White and Blue and Purple All Over." And we we're going broke. And so you guys have been
in the business for a while. I've been in the business
since '72 when I first bought my first gold coin. I still have that gold coin. – [Jim] Wow.
– It's not stored in America though, it's
stored someplace else.
– [Charles] Where is that? Oh, you don't have to tell. – I'm going to open my
blabber mouth on TV. (all laughing) That's like my attorney
stands in front of this crowd, he says, "Yeah, I have a lot
of gold, I keep it at home." I said, "Why don't you just
tell everybody where to go? Why not just give them your address too." (all laughing) Attorney's aren't the
brightest guys on earth. (all laughing) – Well I have strangers that will ask me, "Now, where should I store this?" I said, "I don't know and I don't care." – [Charles] And don't tell me.
– Well don't tell me.
So the FBI come, "Did you know?" So Jim, tell us about
what you have right here. You have silver and you have gold. – So I have the kilogram of
silver, which is 32.15 ounces, and then I have a 10 ounce gold bar. And of course, when you
see something that big, how do I know that's real? So we have a device, it's a spectrometer, that we can put, that X-rays the bar. And I've got it all set up. So what I'm going to do
is I'm going to point the device at the silver and I'm going to get a reading. Put it on there maybe
four or five seconds. It will read right into the bar. It'll come back. And if you can pick that up, right on the screen it says
AG, which is the chemical sign for silver, 99.99% pure. You know that this bar is absolute. We can do the same thing with- – Is there such a thing as fake silver? (crosstalk) Not too long ago, they caught some. – There were some companies
years ago that were making the silver and gold and it
wasn't coming out exactly pure.
And what happens then is if
we find that, we just throw it in the melting pot and
then bring it up to pure. Cause you don't want to sell
a bar that's 94%, 95% pure. So it's out there, which
is why we spent $20,000 on this piece of equipment that we can find a counterfeit bar. If it's not pure gold, we know right then, and this is paid for
itself many times over. Because so many times
somebody will come in and say, "Well hey, I've got this big block of gold and I want to sell it." Okay, let's have a look at it. You go through it, it's pyrite, or it's copper, or it's zinc. – Jim Recer was telling
us, in the New York Bank, he says they found some fake silver. – The bigger the bar, the
better chance that there is. So I'm going to do the
same thing with this gold. Because that's really the valuable. With a $20,000 piece of
metal, you want to make sure that it's what it's supposed to be.
Same thing. We come up, AU, gold. 99.99% pure. Which is exactly what it's supposed to be. – So this is January, 2023. What would this cost me, if
I walked into your place, Republic Monetary
Exchange on Camelback Road in Phoenix, Arizona, What would that cost me? – Just over $900 for that. – For that?
– Yeah. – My God. And how much is this thing here? – That's going to be
around 2,000, over 2,000, 2,050 or more. – This is 2,000, this
is a gold, what is it? – Eagle.
American Gold Eagle.
– American Gold Eagle. And that's 900? – Right, that's a kilogram of over. This is going to be close to
$20,000 for this gold bar. – What is that now? – 10 ounces of gold. – [Charles] That feels like
real money doesn't in, Robert? – Can I trade you this for this? (all laughing) – Go get 20,000 more of
those and we'll do it. (all laughing) – You're a little light. (all laughing) – Actually, on that subject,
we were talking about this the other night, Robert,
about cash for gold.
I'm one of the few people
who absolutely despise cash for buying gold, and
you'd think just the opposite, that I couldn't wait to get cash. But banks don't want it. Try and deposit $20,000
or $50,000 in cash. They'll turn you away and
say, "Well, we got to do this, that and the other, and
we've got to file this form and we got to do that." Hey, I would rather have a
bank wire than cash anytime. – Jim's story really
illustrates something with- – Wait. He doesn't want cash. And I thought the reason is
because it might be dirty or it's hot money or whatever it is. It's just a pain in the butt. – Well, it's that, but you know what else? I'm thinking down the road, let's say I acquire $1
million or $2 million in cash that the banks don't want to take. When this currency is repudiated,
I'm going to be stuck. Just like the people in Germany were twice in the 20th century that they were hauling wheel borrows full of Deutschmarks for a basket of groceries.
– Fake money and brought Hitler to power. The the Weimar Republic and
the Reichsmark and all this. Every time there's fake
money, tyrants rise up. Because people know something is wrong. – Yep. So here we go in this country. – [Robert] Right. – But Jim's attitude now
about cash really illustrates that the government, the
deep state, has won this war without legislation,
without public debate, they have won the war against cash. They've been at war at cash
because it's anonymous, they don't track you,
they can't follow you when you use cash, and
they've won the war. And so, the only alternative
people have to be off the grid, not to be tracked, not to be surveilled, gold and silver. That's it. That's all. – So once again, this is 1964. 1964, I was 17 years old and I
started looking at that thing like this. It was copper. The Romans did the same thing way back in at the end of their empire. So what were they doing when
they put copper in this thing? It's a law called Gresham's Law.
What does Gresham's Law mean? – Bad money drives good
money out of circulation. – So this money went into hiding. So I had bags of it. They said, "Go caddy, take my dollars, go to the
bank and pull out all the real stuff and hide the real stuff." I didn't know what I was
doing. I was 17 years old. Wasn't the brightest kid on the block. But I just knew this was fake. This was fake now. And then I come back
from school a year later, my mother spent it. That was a powerful lesson. AARP turned it down, they said,
"You're cruel to your mom." And I said, "Okay." Anyway, poor people don't
know real money from fake money. So that's why we have Sara here. So what happened in '71, this became debt. So our company, at Rich Dad,
we encourage people to use debt. This is my other friend here. He's a financial planner who
doesn't recommend the 401k. John McGregor's, this is "The Top 10 Reasons
Why the Rich Go Broke." One of the reasons they go
broke is they have a plan for their money, but they
have no idea what money is.
– Well, and I've talked
to people all the time that are multimillionaires,
they sold their business, they did this, that and the other and came into all this cash
that's sitting in the bank and said, "Well, you think
I should buy some gold with some of this?" I said, "Well, you know what they're
doing with the dollar, you know that they keep printing them, they can't print gold. Now you tell me how much
you can afford to lose of all that money sitting
in the bank, and I would say leave that there and get
the rest of it in gold." It's a bigger risk having paper money.
It's depreciating.
– It's a guaranteed loss. – And eventually, these
are going to be worthless. And we're in the 51st year of
fiat money when Nixon closed the gold window. A currency has never lasted
more than 50 years until now. And we're in year 51. How are we any different than
anywhere else in the world? – That's '71- – To 2023. How are we any different? Look what they've done in Venezuela. They were one of the richest
countries in South America, in actually, the Western hemisphere. Look what they've done to Argentina. Look what they've done in Cuba. Look what they've done in Mexico. Same exact economic principles
that they broke there, we're doing the same things here.
– Somebody asked me once, "Charles, how many paper
currencies have gone broke, have gone worthless over time?" And the answer is all of them.
– [Robert] All of them. And the ones that people still
hold are only on their way. They just haven't arrived at
their final destination yet. – It's like I said, I'm 17
years old in 1964 going, "Something's wrong here." That's Gresham's Law. And I think that's one of the
reasons I'm a rich person, is I know real from fake. And then, so when Nixon
took the dollar off the gold standard in '71, I didn't
really know what that meant. But the first course, I
was in Vietnam in '73, I came back, '74, they made this legal. Remember that? It was illegal.
So I had to smuggle
that, I was in Hong Kong, I had to buy my South African
Krugerrand in Hong Kong. I had to smuggle it into the country. Why was that? – It was in '74?
– Yeah. – Yeah, because it was illegal
to own in bullion form. – Well, in '73 I brought it in. – It was a felony. It was a felony. They could put you in prison
for 10 years and charge you $10,000 fine. They made it a felony for
Americans, free people, to own monetary gold and silver. Or gold anyway. It was a felony. Was it dangerous? Was it going to blow up? Was
it nuclear contamination? Was it going to kill your
neighbors with poison? What was wrong? Well, it was of course,
you know the answer, it's always the same
answer, the government grabs all the gold cause it wants it for itself, so you can't be allowed to have any.
It's exactly what they did. – At that time there were
two very good senators, Steve Sims and Jesse Helms, who introduced the idea of
Americans owning gold because foreigners could own gold
and Americans couldn't. And if there's anything to be
said good about Gerald Ford, it was that he signed the
bill after it passed through both houses to make gold legal to own. Now unfortunately, at the
time, gold was around $200 an ounce, and over the
next year and a half or so, it dropped to 100. So a lot of the curiosity
of owning gold disappeared. But fast forward to the Jimmy Carter days, 1976, gold went to 100. And by the end of
Carter's term it was 850. And silver went from about
$3 an ounce to $50 an ounce in that four year period. – So during Carter's trend, this was 850? What is this today? – 2,050. – So why would you save this trash? (Charles laughing) That's what I'm saying here.
– It's fake. How about that to sum it up? That's fake. – [Jim] It's a trick. – Another thing I want to
say, cause I'm a history buff, it's about the only subject
I did well in school, the reason he doesn't like the 401k is in 1974 when Ford put us
back on, we could own gold, they put us on the 401k. (indistinct) And today, this is the biggest
reason you want to own gold. Because our pensions, as they
keep raising interest rates, our 401ks are going down. But not only this, my book
wrote with the Ed Siedel, is our pensions are broke. So as the firefighters, police
officers, school teachers, their pensions are gone. So the fed's going to have to print. That's my whole summation. – Well, and what's crazy
about it too is that you get your statement online
every month and it says, "Oh my god, look, I have
$500,000 in my pension plan. Boy, that's going to last
me till the year 2050." It's not going to.
The dollar's not going to
be there, first of all, and the pensions are gone too. But gold will be there forever. – This will be here. This is God's money. We used this as money
for about 5,000 years. But God put it here on the
earth, and that's when I was in the Andes with my old Inca friend, I said, "Geez, look at those holes." He says, "Yeah, we've been
digging longer than you have." And I was in Mongolia, same
thing, there's a place called the Checker Board.
They call it the Checker
Board because the Mongolians, this is thousands of years
ago, were digging for gold. Now they didn't have internet,
they didn't have iPhones and all this stuff. Humans intuitively knew to look for gold. That's what blew me away. – Well, and when you think about- – Except for the women at Safeway. They don't know gold from silver. – [Charles] They need a salad bar guru. (Robert laughing) – When you read the stories
about all the Spanish ships that have sunk over the years
coming across the Atlantic, and the explorers go down there, they're not going down there
looking for the currency of the realm of the day and
see if the paper survived; they're going down there
looking for the gold, they're going down there
looking for the silver.
And they find it. And what's amazing is
that if this bar had been in the bottom of the ocean for 500 years, it'll still be in this pristine condition. It doesn't rust. It doesn't erode. It will do the same thing
now 500 years later. And they've brought some
amazing coins that have been in the Spanish ships that
were in pristine condition, that have graded out
un-circulated, like it was the day that it came out of the mint. – What's that joke? Who's the guy in the fed? – [Charles] Ron Paul.
– Ron Paul, he said if a Spanish ship went down with gold, another ship went down with dollars, people would stop diving for dollars.
(all laughing) They still dive for gold. It's kind of a funny thing, but it's sad. But another thing too is I had a pile of extra
silver I bought from you, and I was handing them
on his Christmas gifts. It's $30 let's say. And one woman had four kids. I said, "Give each one of
your children one of them." One silver coin. I said, "It'll there when they
graduate from high school." "No, they'll probably have spend it." I said, "Yeah, they probably will." But that's the problem. I save this. I say in "Rich Dad, Poor
Dad," savers are losers because they save this. If you save this, and if you save this, what is this here? – $30.
– Yeah, well what? – Silver, it's a silver round. Just a generic silver one ounce piece. – It's a buffalo.
– Yeah. I'll call up Jim and
say, "I want buffalos." So he knows what I'm talking about. There's different goofy
kind of coins out there. But I'd rather save this
cause this will be here 10,000 years from now. This won't. You can pass it on from
generation to generation to generation. – I'll be surprised if that
paper dollar is here even 10 years from now. – I doubt it. Yeah. So anyway, we're in very
serious, serious trouble here. And this is the hottest subject going. For years, I've been saying buy silver because everybody can afford silver.
When I offer them this
for $3, they went nuts. They went, "Why would I buy that?" Because they'd rather have this. That's the lesson. Final words there, Mr. Jim. – Well, we sure appreciate
all you do for the freedom movement, Robert. And speaking about gold and
speaking about the fake money that we're passing around, it's a great lesson
for the next generation whether we realize it or not. At our age, and doing all
this for 50 years or more, we've got a great legacy to
pass on to the next generation because they just don't know. And you are a patriot in the
true sense of the word, sir. Thank you for having us. – Thank you. – Robert, let me ditto that
too, because we're in for some really rough sledding in this country. There's some rough patch of road ahead and it didn't have to happen and
now it's going to happen. And as bad as it's going to be
for the people who understand the lessons that you've been
doing in your educational efforts and teaching them about money, the ones that take action
based on those kinds of recommendations and that
learn about this stuff, they will be so much better off.
And the more of them there are
the better off we'll all be because maybe we can have
some kind of commerce still continue when the whole
thing goes topsy-turvy. So thank you, Robert. – How many of the layoffs
are just starting right now? This is January 2023. – 10,000 at a crack by these companies. 10,000 here, 10,000 there. – [Robert] Because
they're working for this. – Yeah, and this is horrible stuff. These are people that are
living paycheck to paycheck like we've never seen before,
and their personal debt has never been so high as it is right now. – It's a disaster. – And there's now called
the working homeless.
They have jobs but they
can't afford to live. – [Charles] Sleeping in their cars. – Yeah. That's because this is fake.
– [Charles] Yep. – Well we have a lot more
information on our website by the way, Robert. – The reason I invited you guys
cause you actually do teach. If you were just promoting your company, you wouldn't be here. So what is a book you have
and what is your website? – Okay, the website is RMEGold.com.
– Dot what? Com? – .com, and then my- – I thought you said .gov, I was going, I didn't know you were a fed. (all laughing) – And my book is "Real
Money for Free People, the American Gold Story." – In fact, people that are in
the Phoenix area can stop by, Jim will sign a copy of the
book and give it to him.
But his book is a really good book. And there's a ton of
information on the website too to bring people up to
speed, to learn the lessons that you teach, like
the lessons about fake. And we have a new post
going up, for example, about your book, about pensions. – [Robert] Oh, thank you.
– Cause it's so important right now, especially now the
Congressional Budget Office just announced that Social
Security's finished at 2033. – Yeah. And the reason I wrote this
book was because in '74, that's why McGregor wrote this book here. That was a 401k. But that's when the pension
started getting looted.
And now our generation,
the Boomer generation's in serious trouble for retirement. Cause I don't think
it's going to be there. – The American people lost
26% in their 401ks in the last year, through October, so it's very grim. – And that doesn't even
take into consideration the depreciating dollar to go with it too. – So, okay, watch's your website again? – RMEGold.com. – RME. And then your book here is, Charles Goyette, Red, Blue. – "Red and Blue and Broke All Over: Restoring America's Free Economy." – You're an optimist, aren't you? – My publisher said, "Write
that book about how to put it back together, I said,
"You know they're not going to do that." And they're not, but it's there anyway.
– They're going to keep
printing this because this gets more valuable. – We're beyond the point of no return. – [Charles] Yeah. – The sad thing about it is,
as the price of gold goes up, everybody else gets poorer. That's what breaks my heart. I love those girls at Safeway
serving me their salad and coleslaw and all this. It just blew their mind, they said, "$2 for this?" But that's what America
has sold the world there.
That this is valuable and this is fake. This is real. This is fake. – I'll give you $2 for
it, Robert, right now. – I know you would, that's
why I'm keeping it tight here. Here's my silver; the Lone
Ranger had the silver bullet, this is my silver bullet
from Dana Samuelson. Bite the bullet. (all laughing) So thank you, gentlemen.
Thanks for being teachers. And they have inventory. When things were really tough
I was scrambling because- – We were never without anything. – I'll tell you why I was panicking, if I waited a few more
days, the price would go up. And then when I ran in
there and then you guys, not you guys, but my other friend couldn't deliver me silver, I went. And I said, "What am I going to do?" So I bought it that day
anyway for future delivery.
So it was a gamble, so
basically a future delivery. – [Charles] Right. Yeah. – [Jim] it sounds like you did all right. – Yeah. Two last things: there's a thing called distribution and accumulation. Price of gold and silver is low, and silver and gold and
oil, I'm accumulating. I've been accumulating since '72. I own more gold than most people. Most of the gurus on TV. I own gold mines, silver mines because I believe in this stuff,
cause this is God's money. This is fake money. Thank you, gentlemen.
– [Jim] Thank you, sir. – [Charles] Thank you Robert.
– Pleasure to be here. – And when we come back, Sara
be back with a final word here.
So thank you, gentlemen. (upbeat music) Welcome back, Robert Kiyosaki,
"The Rich Dad Radio Show." Thanks to Jim Clark, the
Republic Monetary Exchange, RME, and Charles Goyette of
Republic Monetary Exchange. Because this is the hottest
subject of all today. It's silver and gold because this is fake. So Sara, if you have friends and
family who are still hoarding this stuff here, haven't
listened to this program and discuss it with them,
because I'm now called the Salad Bar Guru. (all laughing) I thought it was hysterical,
but it fried their brains.
What's the difference
between this and this? One's fake, one's real. So Sara, what questions do you have? – [Sara] Yeah, well,
just wanted to mention, my brother for my niece,
she's 11, he said, "No more presents. From now on we only want
you to get her silver." So every year, each sibling
gets her some silver coins. And I was like, "Man, he's so smart." Anyway, I just wanted to
point that straight out. But my questions to you
are, can you briefly discuss the different markings? What does that identify on the bars? – Okay, so this has the size of the bar, which is one kilogram. Valcambi is one of the
worldwide known refiners of silver. It has their logo on it. It's been stamped with the serial number and the finest of 3.999 fine silver. The gold, a little different.
It lists the number of ounces and this is four nines fine. Also with the serial number. And as you saw earlier, we
put the spectrometer to it to show that indeed, both of those are pure silver and pure gold. And if there's any doubt with anybody buying silver
and gold, is it real? We can put the spectrometer to it and show that it is exactly
what the purity should be. – [Sara] Awesome. The second question I have
is, Robert had held up his buffalo and you called it
a generic one ounce coin. What's the diff? – So the US Treasury
and various governments around the world, Canada, South Africa, make a coin of the realm,
meaning an American Eagle for the United States. So the treasury makes that coin. The premium is significantly
higher for that than it is for this, but it's
exactly the same properties, same weight, same size and everything. – Wait a sec, so if
this was a Silver Eagle, but this is, I call this a buff, what's the price difference? – It's going to be $6, $7 and ounce more to have the name brand,
but silver's silver.
So it depends if you, "Well,
I only buy a name brand, I won't buy Costco brand of
something, but I will buy the real ones that you hear
on television all the time," even though it's exactly the same thing. So you get more silver for
fewer dollars if you buy it in the buffalos or what we call generic. But recognized as being
a coin of the realm and something that you can be
sure that it's the purity that it's supposed to be. So reputable private,
refineries make the buffalo, the US Treasury makes the
American Silver Eagle. – Why would somebody pay the difference? – Why do they? – No, I mean-
– [Sara] Why do they buy- – Money's is no object
and they don't mind paying $6 an ounce more, and it's
a US Treasury stamped coin.
But you get more when you sell it too. – I bought considerable amounts from Dana in Austin, Texas, and he traded out my Gold
Eagles for regular gold. And I said, "Why?" He goes, "I don't know,"
but he says, "You just made a lot of money." So instead of having 10
ounces of gold, I now had 15 ounces of gold.
But just because one from
Eagles to something else. All I want is the ounce of gold. And as long as it's pure,
I don't really care. But some people do, right? – Yeah. And either one of those,
it's all recognized for them. So it's personal preference at that point. – [Sara] That was a big
question, cause Robert, if you remember back in
October, the team made a big silver buy, and
that was a big question, when we got the price sheet, we were like, "Why would we pay, if it's
the exact same thing," but that makes sense. Just a name brand difference. – This is when we couldn't take delivery, we're buying a lot, so we
bought it from Andy Schectman. It was a lot of silver and gold we bought. – [Sara] The last question is, in the beginning of the
conversation we had talked about why you didn't want to
take cash, and you said it's a hassle.
Is it also true because cash is devaluing so fast,
it's not really a fair trade. I mean, not fair, but
you know, even trade? Do you feel that way at all? – Well, it's cumbersome. And banks typically
don't want to take cash, and ironically, they don't
want to give cash out either. So we've had situations,
people wanted to go withdraw $100,000 in cash
at the bank, they'll say, "Come back in three or four
days and we'll accumulate it for you, but we don't have it here." I say don't even do that. Just
wire the money over to us. It's just boom, boom, boom. Simple, we don't have to worry
about any counterfeit cash, although our machines pick it up anyway. It's a cumbersome thing
to do, but I look at the big picture; some point down the road, this cash is going to be worthless.
And if the banks don't want
to take it in deposits, I don't want to be stuck
with $2 million or $3 million in cash and lose that. I would rather have money in the bank. Not money, but I mean fake
money in the bank that I can buy real silver and gold with
and have that on the shelf rather than cash sitting there
that is devaluing every day. – [Sara] Yep. Good. Great. That was it. – Final word, Mr. Goyette. – Hey, thanks for having
us on again, Robert. – And this is your book here. Got to plug the book. – One of one of several. And it's about "Red and
Blue and Broke All Over" and how the country is broke all over and the exact story you've been
trying to explain to people for a very long time, and now here we are.
– Another thing we do, Sara, is I send out a newsletter every week, my blog basically, that gives a synopsis of
what's going on the past week and maybe what we're seeing down the road. And just keeping clients and prospects informed of
how we see the market. And whether I'm smart or
not, it doesn't matter, I've been at this 50 years,
I've got a lot of experience and I can share a lot of information that I've acquired over the years. And I encourage people to go
to our website RMEGold.com, and you can sign up for the newsletter. There's no charge, we email
it out every Sunday afternoon or Monday morning, whenever we
put the finishing touches on. And I would encourage
people to sign up for that at RMEGold.com – And that's why we
invited Charles and Jim, because they are educators like Rich Dad. I buy, I don't sell this stuff. (Robert chuckling) I do trade occasionally. But anyway, so thank
you very much, gentlemen and thank you all for
listening to "The Rich Dad Radio Show," and remember, this is fake and this is real.
How much is this today? – That's about $5, so
you were really cheap when you were saying $2 or $3. – Oh my god! I was going to get taken. The salad bar ladies
were going to take me. (all laughing)
– [Sara] That's why he said, "I'll give you $3 for it." – They were trying to cheat
me at Safeway. My god. – You're behind the times, Robert. You forgot how quick
this dollar is devaluing. – And they're raising
the price of the coleslaw on top of that.
(all laughing) So thank you, gentlemen. – [Jim] Thank you.
– [Charles] Thank you. (upbeat music).
Wealth Creation Course: How To Invest In Gold Like The Top 1% | Jerry Fetta
Jason 0 Comments Retire Wealthy Retirement Planning
Alright, welcome to our FinanceFriday weekly course. I'm Jerry Feda, the owner, founder, CEO of Wealth Dynamics and I'm coming to you live as I've done every Friday and I've been doing this course actually four years on the. Okay, so four years ago, Friday, today, was the first time I ever did a finance Friday course. Isn't that cool? So, we've been doing this every week since then but the goal of this course, if you're just tuning in, the goal of this course is to spread financial literacy. Okay, the goal is to help you understand the truth about money, to be able to apply it in your life, to be able to build wealth and financial freedom, and so when I first started doing these, that wasn't something that really existed for me as a kid growing up, as a entrepreneur, as a business owner, that wasn't something that I naturally had access to, right? And so, as I started learning more and more about finances, I was like, man, more people need to know these.
So, my company, what we do is we help families, individuals, entrepreneurs, business owners, it doesn't matter, we don't care what shape, skin color, size, country income, whatever. We're going to help you. We want to help you learn about finances and and improve your life financially, right? So, we're going to talk tonight about gold and silver and how to buy those the right way, how to buy those like the top 1% by them. Um and it's something that I've been doing for for several years now. Before I dive into it, some things I hit every week I'm going to cover really quickly.
First thing is I want you to make sure you got a reason for being here tonight. Okay? What is your purpose for being here? Right? We're talking about gold and silver on a Friday night. It's 10 PM on the East Coast. Like you gotta have better things you're going to be doing with your time. Why are you here? Okay and if you don't have a reason, you might as well not be here. You might as not well not be watching. So, what made you come onto this webinar tonight and if you don't have that, I want you to pick that. If you do have that, I want you to look at it really quick. Make sure you've got it. Friend of mine as we go through this. Second thing is, I want you to get rid of the idea that this can't be learned about.
That money is complicated, finances are too hard. Guys, it's all just basic math and vocabulary. So, if you can add, subtract, multiply, divide, and use a dictionary. You can finances. right? The only time finances become complicated are when banks on Wall Street get involved in financial institutions get involved and they add these million dollar words on top of basic mathematical concepts so that we feel like we need them. Right? That's a manufactured process. That's not really how money works.
The wealthy people that I know, they speak about money like they're five years old. Simplest concepts in the world, right? So, I want you to get rid of the idea that money is hard. It is just basic math and vocabular on that note, if I go over anything tonight that doesn't make sense to you, I want you to ask me right away. Okay, you can ask me in the chat, you can ask me in the comment, if you're watching the replay, still ask. We'll answer the comments on YouTube and Facebook and wherever after the fact, we'll still help you out. So, make sure that you're asking questions. We will go live throughout and answer your questions. If you're on Zoom, if you've got the microphone, we'll mic up and we'll talk, right? So, we'll go over your questions live on Zoom.
Second thing is, you've gotta get rid of the idea that you know it all already I can't learn something if I don't think there's anything for me to learn. Right? Nobody likes to know it all. Okay and there's no such thing as a know it all. The reason why nobody likes a know it all is because nobody likes a liar. I know it all is a liar. There's no such thing as somebody that knows everything. And anyone that tells themselves that is foolish **** Right? And I know that's not you guys. So we gotta get rid of the idea that I know this all already. I've heard this already. You know repetition is is where certainty comes from. The more times I do something the better at it I become. Okay so then might be part of that for you tonight. If you're brand new, this is probably going to be information you've probably never heard before. If you're a client, this might be a spin on it that you've never heard before, right? Okay, and then the final thing is I want you to think about how am I going to apply the information here tonight, right? I'm a producer, not a consumer.
Right? So, I'm here tonight to get information, not just to get mentally obese, and, and, and consume but never use, right? But for me to actually use and apply the information, to burn it off as fast as I can, as soon as I can to use it and put it to work, right? So I want you to think about that as we're going through this, okay? So, I want to talk about and silver. Now, this course is not going to be about why you should buy gold and silver.
I've done that course already and and I'll just quickly in a few sentences, I'll tell you why. Number one, it's the oldest, most reliable store of value known to mankind. Gold has been around for 6000 years. It's been valuable to mankind for 6000 years. Um we still use it today for banking, investing, all sorts of things. You can't say that about any other store of value.
Right? Especially when it's versatile as gold. It doesn't expire. You can you can sort the gold that we have today. It's the same gold they had 6000 years ago. Right? You can't say that about oil. You can't say that about anything. Okay so so that's one of the big reasons we use gold. The second thing is it's literally the most useful metal on the planet.
Right? If you're watching this on an iPhone your iPhone wouldn't work without gold. Every iPhone has gold in it. Right? If you have if you have internet connection. That satellite up in outer space that that that they use for that type of thing wouldn't be up there if it wasn't for gold. Gold is used in aerospace. It's used in electronics. It's used in technology. It's used in dental. It's used in so many it's the most useful metal on the planet. Okay? Not only that, it's used in banking. Our United States Federal Reserve Bank currently owns half a trillion dollars worth of gold. They're the number one owner of gold on the planet. Number one issuer of debt and number one owner of gold. Want you to think about that? Right? We and and right now the statistic is only 12% of Americans own any gold at all.
So it's not even like like most people have a little bit. No no no. Only 12% have any at all. Right? So, we're talking about the oldest store of value, the most valuable and useful metal on on the planet and something that, that, that, you know, the, the number one owner of it is the Federal, the Federal Reserve Bank of the United States of America, okay? So, like I said, I'm not going to go into tonight on why we should own gold. I'm going to talk about how? What are the mechanics? Okay, what are the things you should know? I bought my first silver back in 2016. Okay, I actually bought it from Matt on this webinar. Okay, from, from Mint Builder. Back then, it was called a different company but that's where I bought my first silver.
Okay, and then I started buying gold. So, this was back in 2016. It's now twenty twenty-two. That was what is that? Six years ago? Right? So, I've been buying gold and silver for 6 years. Now, when I first started buying it, one of the things that I was confused about is what should I be buying? Okay, and I'm going to some of these things out tonight. I remember one of the first conversations that I ever had with somebody about gold. It was from one of my mentors and he said, hey, when you're buying gold and silver, there's two different kinds, okay? And I'm going to sketch this out on the screen. So, the first thing I want to teach you about gold and silver tonight and how to buy it is you have two different sides of the house. You have what's called bouillon. and you have what's called numismatic Num Numesmatic. Okay? Now, one of my mentors when I first started, he told me one of the most helpful things in the world.
He said, there's a difference. There's this stuff called Buy an and there's this stuff called pneumismatic, okay? He said, numismatic is gold and silver in the form of art. Okay, collectible coins, commemorative pieces, things that are rare and and they have a value to them, not just the gold and silver but the art value of them. Right? So, there's like the and he said then there's also buoyan. This is literally just pure metal.
Nothing special about it. You're literally just buying the the gold because it is point nine nine nine pure. Right? It's ninety-nine point ninenine nine% pure gold. There's no collector's value. It's not special. There's nothing great about it. It's not rare. It's not unique. Right? Same same gold you get. Excuse me. Same gold you get anywhere. So he told me and this was something that I learned earlier and he told me when I first started I didn't know the difference. So I thought I was buying booyan but I was actually buying pneumismatic. And so you know For those of you that are are in the gold and silver, new mismatic typically is going to be a higher initial price. Okay, and the reason why is you're paying for not only the bullion, you're paying also for the significance of the art, right? For the, the, you know, the significance of it, for the rarity of it, right? Whatever those unique factors are that make it commemorative or a collector's item.
So, you're paying for that in addition. The medal, you're only paying for the medal. So, he didn't know the difference between the two, someone told them, go buy gold, go buy silver. So, he went to a coin shop and the guy was like, well, buy these and the reason why is you could sell them at a higher price, okay? So, my my mentor at the time, he was like, you know, I I didn't know this, not to say pneumismatic is bad, but when I went to go sell it, I was selling it in the new mismatic market, and I didn't know that. So, he was buying what he thought was buoyan, but really it was a new mismatic. It was a collector's piece. He was selling what he also still thought was Buy in, but really it was a new mismatic.
So when you do numismatic, you're paying a bit more to get in, right? And then you're also going to sell it for a little bit more because it has the potential to be more important, more significant, etcetera. He didn't know that. So, he bought an expensive coin and then he sold it at the cost of bullion because he was selling it at I would say that this middle category looks like this. right? So, the middle category, let's say this is down here. This is like minted, right? And when I say minted, technically, yes, all of it's minted but I'm saying buying it from the United States Mint, buying it from the Canadian mint, buying it from, it's not numismatic, but it almost is.
Right? Cuz I could go to like, for, for example, if I'm buying bullion, I could go buy silver coins, silver rounds from Sunshine Mint. They're not government regulated, they're not, they're not housed by a country, it's a private mint. Now, they still sell good product. It's still pure. It's legitimate but because it's not the United States man and it's not a US Silver Eagle. I'm not paying the premium for it. You see that? So this is pure buoyan.
Then we have numismatic and then we have specially minted which is kind of in the middle. I'm going to pay more for a silver eagle even though it is just a piece of silver. It's created by the United States men. I'm paying for the brand. I'm going to pay more for Canadian maple leaves. Why? Because I'm paying for the brand. Okay so when I first got involved I didn't know these things either. Right? And so a lot Luckily, you know, I I got hooked up with Matt and Mint Builder and so he, you know, I got directed immediately, okay, this is Booie and you want Booyan. They sell newismatic but they were clear like, this is numismatic. You know, and so you, if you want to do the collector thing, you get the new asthmatic. If not, you do the bullion or there's the minted stuff. And so, I learned this upfront but those are the three categories you need to know about first if you're buying precious metals.
Now, the purpose of buying precious metals, the purpose of it is to store value. Okay, so the number one thing you need to know as a a precious metals purchaser is this is not an investment. Okay, it's not investment. it's not going to pay you an income. It's not something that you you buy like a stock or or a piece of real estate and you trade it around. It's a store of value. Okay, the reason why people ever first started using gold is they were sick of bartering. So, they needed a medium of exchange that would retain its value that everyone agreed upon was valuable. If you take gold to the the Amazon Desert or the Amazon Jungle right now and you show it to someone down there that's never seen it before, they're immediately going to see that it's valuable. we just know, right? You look all the way back at at Pharaoh's. They collected gold.
You look at kings, they collected gold. Everyone has always agreed on the value of gold, right? So, even today, like if it wasn't valuable, why does the Fen have half a trillion dollars in it? Why? Why is Russia loading up right now, right? So, everyone agreed it was valuable. Think about this. Everyone liked it. Everyone used it. Everyone that was willing to accept it. It didn't expire. You couldn't create more of it. Still true to this day. Like, it's the medium of exchange. And so because of this, that was the purpose of gold. I produce wheat when I go to the market. I don't want the wheat to expire. I'm going to trade it for gold. Right? And then when I go to the market, I've got gold.
I can go buy everything with the gold. Anyone that I talk to will want the gold. Right? Instead of the the coincidence of needs. If I bring the wheat to the market, I'm only going to be able to get a deal if you want wheat. If you don't want wheat, I'm out of luck. I need to go home with my wheat and hope that I can use it before it all goes bad. Right? So got rid of that because I could just take the gold and everyone was willing to have it. right? So, so that's what it is. It's a store of value. It's something I buy. I keep for the period of time that I'm going to keep it for and then I I put it to use. So, either exchange out of it, we'll talk tonight about being able to borrow against it, being able to lease it out for income.
There's a lot of things you can do with it but it's not an investment, okay? It's a store of value, okay? So, I want to I want to drill this in. Now, here's the process I want to go through. I'm going to just draw this out. Now, when we're buying gold. Um it's important to know where it comes from, right? So, I'm going to clear my screen here and just kind of type this sequence out. So, the first thing is gold gets mined, right? It gets mined out of the ground, okay? And so, people will dig for it. They'll, that's, you know, I'm from Alaska, the the Alaskan Gold Rush, the Klondike, right? Everyone found out Alaska had gold and they're like, man, that's when back when when gold was the the Bitcoin of the day, everyone's like, man, I'm going to get rich mining gold.
Most people didn very few did, right? But everyone rushed up and they mined it. Today, people still mine gold. So, this is where it comes from. Now, you have to realize when gold gets pulled out of the ground, it's in a bunch of rocks and dirt and residue and other metals, right? So, a miner, when they pull gold out of the ground, they're going to pull it out and they're going to sell it to a refiner. Okay? Now, you have to realize, I'm just going to change this to minor. We'll just go with the titles here. You have to realize that every time someone touches gold in the in the sequence of it going from its destination into the hands of you and I, the purchasers of it, the ones that are in a store of value in it.
Every time someone gets involved, it increases the price. Okay, no different than anything. Like, when you buy your your food at Costco, there was a bunch of middlemen that touched it before it ended up on the shelves at Costco. And the more middleman there are, the more costs you pay, because each one of those guys has to get paid for touching it, for being involved.
So, the mind they dig it at the ground. They have their cost. They want to make profit. They sell it to a refiner and they sell it at a profit. Okay, so the refiner pays more for the gold than the miner actually put into it so that the miners can be profitable. The refiners, what do they do? The refiners, they basically are refined. They purify. They get all of the other metals and dirt and and additives out so that there is just pure gold, okay? Now, they're just going to get it in in bricks. They're just going to get to the point where it's refined.
It's in these giant bricks. They're going to sell it, okay? The refiner is typical going to sell it to a mint, okay? Now, what does a mint do? A mint takes this giant brick and they turn it into little bars and rounds and coins and one ounces and ten ounces and five grams and all of these different things. Now, they also certify the purity of it. They use something called an assay for this. They certify the purity of it, the weight of it, and make sure that it meets market standards, okay? So, the mint buys from the refiner and they mince the gold like when you mint the coin, you're stamping it, you're putting your little logo on it, you're creating, you know, the coin that's the perfect circle and the perfect weight and it's got the perfect blend of material So, that's what happens at the minute.
Now, when the refiner sells it to the mint, the refiner also sells for a profit right? So, the mint pays more for the gold than the refiner paid. The refiner pays more for the gold than the miner paid. Tracking so far, each one of these guys brought the price up. Okay, what is the the mints do? Okay, the mint sells to a wholesaler. Right? So, this is another group. So, mints don't sell the consumers. When you guys are watching the gold market, who's ever seen the the it's called Spot when you see the pricing and it's called Spot Price, okay? The only ones that buy a spot is the mint. Right? The mint is paying spot. They're they're paying literally just the value of the month because that's all it costs them, right? Now, when a wholesaler buys it, they're going to pay more for the gold than the mint pin.
The mint is not going to sell the gold to a wholesaler at a loss. They're going to make money on the deal, right? So, the mint charges a little bit more. The wholesaler is required to buy gold in volume, right? So, for example, in the US Mint, I think the minimum to buy silver, I think is like a five-million-dollar minimum. They're not going to sell you silver eagles as a wholesaler if you're not going to spend that much money. That's how the mint makes the money because there's these thin, little, razor-thin margins on it. So, they're going to sell a bunch of it. They want to sell gigantic amounts. So, these wholesalers, they have requirements on how much volume they're going to purchase, okay? Now, the wholesaler when they buy it, they're going to sell it, typically to a distributor, okay, a distributor is typically going to sell it to a broker or a dealer, and then the broker or is going to sell it to a end buyer.
All these guys make money, right? So, the mint, they charge a little bit. The miner, they charge a little bit, right? The the refiner, they charge a little bit. The wholesale that they charge a little bit. The distributor, they charge a little bit. The broker, they charge a little bit, then the end buyer, they pay everyone's charge. That's why when you buy gold, you're not paying spot. You're paying spot plus one or two, or three, or four, or 5% on top of that. So, this is a, this is where gold pricing comes in. So, when I was buying, I was the end buyer and, and I would even I would even go further than this. I would say there's maybe even another step. Oftentimes, there might be a retailer, right? A retailer might buy from a broker.
You go to a coin shop, like a a physical location. A lot of times, they're buying from a broker, okay? So, if I'm paying retail, I'm literally buying the most expensive gold and silver that I can buy. Why? Because all of these people had to take a fee. Okay? Now, before we get into the fee thing, let me let me stop my screen share. Before we get into the the fee thing, and again, if you guys have Questions, dropping them in the chat. We'll answer questions periodically here.
Before we get into the fee thing, this is not a rant about never pay fees, okay? Never pay fees if you're not getting value. If you're getting value, great. Like the fee is is equal to the value you're getting? Awesome. Okay? So, so that's something I'm okay with. Now, I'm not okay for with paying a fee where I don't get anything. Nobody likes that. Right? So, so when I pay a fee, I want to make sure, okay, I'm getting value and so if I buy gold from a retailer or from a broker and they're charging a fee, other than the commodity of gold that I can buy anywhere on the planet. What else am I getting? That's what I'm asking myself. Because gold literally is a commodity. A commodity means it's the same across the board.
Everyone is going to have the same price. Everyone's got the same thing. And so if you're more expensive it's like why am I paying you more? Right? So that's what I'm looking at. So this is not poverty mode. Never pay fees. you know, screw profit. Everyone should lose money in business. No, this is not that. Right? That's stupid. Right? This is if you're going to pay a know what it's for and know what you're getting in in value and benefit, okay? So, I want to answer some questions really quick.
By the way, if you're on this webinar live, you're probably going to get reached out to from Nano. Nano works on my team. He's our our client acquisition manager. So, he's reaching out to connect with you, answer questions with you. One of the things that he'll discuss with you is my book, Blueprint to Financial Freedom. So, if you've not read this, this is a fantastic step-by-step pathway on, okay, how do I build wealth? Where do I start? Where do I go from from point A to point B. There's an entire chapter in here on gold by the way. Okay, so Nano is probably reaching out to you. Um if you would like to get a copy of this book, Nano can get it to you. He can also get you a free consultation and help you get through the book as well which is awesome. So, I want to open this up for some questions really quick. first one is from Mark. Let me bring Mark on live.
So we got a question from Mark Perry here. Alright, we should be live with Mark. How are you today, Mark? Hey, Jerry. How was nice to hear your voice on these trainings on Friday. I look forward to it every week. Uh my question is in regarding to gold and silver bullion bars. And I I've been noticing a lot more that the brand that that mince the bars. Is it big disparity in prices according to the brand and I'm I'm not sure why there is and it doesn't even matter when when purchasing if you know one brand versus the other and and why it's such a big price difference when buying bars especially in big amounts like 00 ounce silver bars or ten ounce gold bars. Yeah that's a really good question Mark. And I I saw the same thing. So when I first started buying gold and silver while Marcus saying is you'll see different brands right? Um so for example you know what what's one of them? Like like Pam Swe PAMP Suites like Pamp Swiss. They're going to be maybe a little bit more expensive and it it literally in most of these cases, I'm not going to say all of them.
In most of these cases, it literally does just come down to the brand, right? They're selling the same one ounce of gold. It's the same purity. They're just saying, you know, we're we're the Gucci of gold. You're going to pay more because of our brand. You're going to pay more because you know, you're doing business with us. So, that's that's really where that comes in. As long as you're buying from legitim and reputable, you know, dealers, and this is where it comes down to who you're buying from, because they, they can counterfeit. There can be false, you know, fake gold and silver. So, if you're buying from a, you know, a pawnshop and it's like, man, I could get that really cheap piece over there. There's a chance it could be fake, right? And the way that they do fake gold is they'll actually use tungsten.
It's a very cheap metal and they'll just coat it in gold and you'll have no idea, right? You'll think it's gold. Now, if you peel the gold coating off, you'll find out it's just tungsten, right? So, When you're working with a dealer, you want to make sure that that is a dealer that you know is reputable because the dealer is the one that needs to inspect for quality that they're not giving you bunk product and that you're getting something good. Now, if all of that's the same, then, go with the cheap stuff, right? I have a my buddy, Matt is on. So, Matt owns Mint Builder and we have an ongoing joke that that he goes for the cheapest like when he's looking to sell bullying to clients, he looks like, okay, what's the cheapest price we can get? Sometimes, they'll send out Christmas bullion, right? Like it's a gold coin and got a little Christmas decoration on it. Still point99 nine pure.
One ounce of gold, like one gram. Same everything. But because it's a Christmas decoration and it's like not the sexiest thing in the world. Right? Like it's cheaper. And that's simply because the aesthetic of it and it doesn't have the collector's value. I want the damaged stuff. I want the scratch stuff. I want the Christmas coins. I want the stuff that's got a little bit of that that brown residue because it got oxidized.
Because that's the cheap stuff. And at the end of the day it all melts down to one ounce and it's still point nine nine nine pu and so as long as I know that about it, then, I don't care who it's from. Now, Mark asked another question which is a good question about denominations. He said, you know, if you buy bigger bars, it gets cheaper, That actually goes back to, I want to go back to my my little drawing here. That actually goes back to the mint, right? So, if you think about when when a mint buys like, you know, a 400 ounce bar of gold from a refiner or one hundred ounce bar gold from a refiner and they're like, okay, we're going to cut this up. We're going to melt it down and chop in the product. The smaller pieces they're making, the more money it costs, right? Because it's more, it's more doing this. They've gotta chop it up into more, it takes more resources, it takes more machinery, and so, when you buy like a one gram or a five gram, that piece of gold is going to cost more per gram than buying a, you know, ten ounce bar and the reason why is that ten ounce bar doesn't take as much, as much resource to make.
It's a larger cut, and so they, they can do it quicker, and it's a lot less work, and it's a lot less money for them, right? So, that's one of the tricks of the trade that we'll get into is how do you buy the right denominations? By denominations, I mean the right amount of ounces. Okay, if I buy more ounces, I'm going to save more money and it's not just more ounces like like if I buy ten, one ounce bars instead of twenty, it's it's if I could buy A 20-ounce single bar. Instead instead of 21 ounce bars. That single bar, that twenty ounce single bar is going to give me a lower overall price because it cost them less to manufacture it. So, that's an excellent question for Mark And that's that's a seasoned question. You can tell Mark is a a gold and silver guy. Um just by knowing to ask that question. Good question from Mark there.
Let me see what else we have in the chat before we jump back into this. Good to see everyone on tonight Looks like some good good communication going on with Nano. Um and it looks like Matt actually has more of a comment. Let me bring Matt on really quick. Hey, Matt. What's up? Hey, hey. Yeah, I know I was just making a comment about, you know, when he was, that was a really good question he had. You know, he was talking about the, you know, the the bullying, higher prices, and this has been something in the last 15 years that we've dealt with as a wholesaler and that is that, you know, should I pay premiums especially when it comes to government minute versus private minute. You know, I feel like I can trust the government more than I can trust the private minson and you know, it really does come down to what are you looking for but I think what you, I think you covered it pretty good but just an example the the Gold American Eagle is literally only ninety-one point I think six 7% Yeah.
Gold versus the private man. We there's tons of highly reputable you know private mens you can trust and they're like 9-9. 9 or 9nine pointnine nine percent pure gold. So for me personally I'd I'd be going for for that versus just to be able to pay that higher premium. Same with silver. The the Silver American Eagle. Uh you know right now the premiums are skyrocketing. You're you're talking like sixteens you know dollars over spot for an ounce of silver just so you can get you know, an American Silver Eagle. Well, that kind of starts to lean towards more towards the new Mismatic side. We were talking earlier. So, yeah. Yeah, that's a good comment. Um and and actually, Matt's, Matt's totally right on the Silver Eagle and the American Eagle. So, what Matt was saying with that is, when you buy a a gold eagle from the US Mint, you're only actually getting about ninety-one, 92% actual gold. The rest of it's alloyed in with other metals versus, you know, buy like a if you bought one ounce of gold like from us for example where it's like you know Valkambi or it's one of these other brands.
Sure it's not US men but you're you actually are getting 99. 99% gold. You're getting more gold than you actually get at the US Mint. So it's starting to become more of a collector's item of commemorative piece. Um and and so that's that's something especially in twenty twenty. We saw the US mayor really get you know hit. They started to go by the wayside as far as quality, purity, speed, all of those things that matter when buying bullion. So, good point from Matt there. Let me see if we have any other questions here before we jump into the next part of this. Good. I think that that's all the questions right now and again, if you have more questions, go ahead and drop those in the the chat Uh Mark adds, I noticed that the more attractive bars are are sold at a higher premium than the non-attractive, Asahi, Englehard.
Yeah, exactly. Um Mark, you want the ugly stuff? You want, you want the the red-headed stepchild of the litter because at the end of the day, like, if you're buying it as a store of value, it's not jewelry, it's not collectors, it's kind of like we talked about with the lending last week, like if I am buying a a home that I know I'm going to sell or finance out, I don't care that it's not pretty. I'm not going to live there, it's not mine I'm not I'm not the landlord. It's I don't have any pride of ownership. It's literally just an interest payment, right? And so, same thing with gold, it's just a commodity. It's something that I'm just looking at. Where can I get the, the best deal for the right premium, for the right product, and also, there's other factors we'll jump into as well.
Justice as I'm improving my situation by watching FinanceFriday while making adjustments to my Glock 19 and Bergara 6. 5 Creedmoor basic dude stuff. Those those are the other kind of precious metals Justin. Um that's Justin on on our Facebook, our Facebook feed. Um good. So, let me jump into the next part of this. So, we're talking about how do we, how do we get the best pricing, right? So, I was buying here. I was an end buyer, right? And I was buying from retailers and I was buying from brokers and when you buy from a retailer, you're typically going to pay 3 to five percent more than than market.
If you buy it from a broker, you're going to pay about market, mean all brokers pretty much are going to be the same. Like you're you're arguing over half a percent better on one versus the other, right? So, at the time, I was like, man, how do I buy cheaper gold? You know, how do I buy cheaper gold? I was storing it at home so it wasn't like I had all these storage costs. I wasn't really going to sell any of it. So, I was like, I need to figure out how do I get a lower entry price, okay? So, what I did is I bypassed the broker, the retailer, the dealer, and the distributor. I got rid of these guys. And became a wholesaler. Okay, I started buying at wholesale pricing, right? And and so, what this does for me is it saves me, you know, one, two, three, 4% on the purchase versus what I had been paying at, right? Because I know that gold is going to make, you know, what, 8 to 10% per year over the long haul.
That's what it's done but if I can save, you know, one to maybe 3% in fees on purchasing it because I don't have to pay the distributor to touch it. I don't have to pay a broker to touch it. I don't have to pay a retailer to touch it and I can just bypass them and get the same price that the wholesal are paying. Like when a wholesaler buys it from a mint, they're paying a little bit more than Spot. They're paying, you know, like, like for example, ounce a gold, right? An ounce of gold, they might pay 30, 40, $50 over spot. Versus retail, you might pay like 2% over a spot, which is a lot more, right? So, I want to look at how can I get wholesale pricing.
So, that's what I ended up doing and so I I did that actually through, it's funny that Matt's on the webinar, through Matt's company, Mint Builder. Okay, so what this is, is basically, the way that you do this, is it's a membership right? So, it's a membership. Just like for me to be a wholesaler in the industry, it's a membership. It costs money. I have to go through an application process.
I have to get approved. So, what Matt's company does, what my company does is we took our wholesale status 'cuz we actually are buoyant wholesalers. We're in the buoyant industry. We buy from, you know, wholesale connections, mints, like all these different relationships. So, we're able to get the best pricing and we basically said, pay us a membership and we'll pass our pricing through to you, right? Like, you can go into our shop, you can pay the same thing we would pay, and, and you're going to be able to get the best pricing, and so that saves me that one to 3 percent on the front Right? That's a big deal, right? Because here's the thing is before I was doing this, I was trying to shop around and get the cheapest thing and I talked about this a couple weeks before, right? I was trying to shop around and get the cheapest thing.
Well, when I'm shopping around a bunch of different online dealers, like I said, they're all like, you know, five bucks, 10 bucks, 15 bucks, 20 bucks, a difference. And so, if I'm spending hours and hours and hours and hours and hours trying to find the best deal to save $20 on an ounce of gold, like, that's not worth my time, and so I found myself getting caught up in that as a gold buyer, I was spending a lot of time trying to find the best deal on this and that, and then I would be like, man, I just spent an hour and I saved 20. I might as well be delivering pizza again, right? Like, that's the equivalent of what was happening. So, what I do now is I just have a membership. I pay my monthly membership and I go into my wholesale shop and and I basically, I just go in and I buy whatever I want to buy and I pay wholesale pricing.
Right? So, that's the first component of this. Like, you want to obviously understand precious metals and then, you want to be able to buy at the very best pricing. These are the first two points of being a gold and silver purchaser, right? So, if I'm buying a store value, I want to know how it works. I want the education, I want the information, I want the connections, and then, I want the best introductory pricing the best purchase price, okay? Now, the other aspect of this is, okay, well, I've bought it.
Now, what? Right? Now, what? And so, when I buy it, I have to store it. It's not digital. It's not a piece of paper that goes into, you know, some some custody company in New York and they never give it to me. No, no, they're going to send it to me and I'm going to store it or they're going to send it to a vault for me and I'm going to store it there and I'll pay for storage.
So, gold appreciates, meaning it can go up in price. Later on, it can sell at a profit but it does not pay me an income and this is this is why I say it's not an investment. It doesn't pay you an income. This is one of the fundamental flaws with with trying to treat gold as an investment. It doesn't pay an income. Now, if it doesn't pay an income, but I have to store it, that means it does have a cost. Right? It's either going to have a cost or it's going to have a risk. And what I mean by that is I'm either going to store it myself, which is free, but there's risk there. It could get stolen, it could get, you know, I could have a fire, and it could get melted and damaged, you know, it can get misplaced. Um, all sorts of and so there's going to be a risk there.
Even if I store it at home, I'm going to pay for a for a safe and I'm probably going to pay for insurance. So, there's still a cost there. If I send it to a vault, there's no risk. There's nothing is going to happen to it but there is a cost of storage, right? So, what this means is while I'm holding the gold and it's appreciating, there's going to be a holding cost. And that holding cost is not being covered by income. So, it's a negative cash flowing asset in that regard, okay? So, it might be appreciating at eight to 10% a year but in storage, it might actually cost me 1% a year in actual dollars that I have to pay to somebody for them to store it, right? And that or that 1% of in in in dollars is not being compensated until after I sell it on the back end, right? So, this is the other thing is, okay, so when I'm storing, I also want to be able to get wholesale pricing.
This is one of the keys. I want to be able to get wholesale pricing when I sell. I want to get wholesale pricing when I store. I want to get wholesale pricing when I buy. So, we talked about buying. We talked about selling. We or we haven't talked about selling. So, we talked about storing now, okay? So, when I store, I'm also then looking at where can I get the best deal on storage? Okay. Now, when I'm storing gold, if I'm sending it to a vault, which is what we're going to talk about here, there are couple of things that I'm looking for, okay? So, I want to make sure that I'm sending it to a legitimate depository vault. Meaning, it's actually a a regulated actual deal. It's not somebody's basement, right? It's not just this, you know, my buddy down the road has a has a retail office space with a safe downstairs, right? Like, it's evolved. So, what does this mean? This means that it is secure, right? It actually has a vault.
A lot of these vaults are state-of-the-art. They've got, you know, like, like so much security that, that, you know, like, earthquakes and different things and these different, you know, even even or a a sorry, these, these, factors of, of, you know, just the atmosphere around it can be detected with the vaults. Right? So, it's, it's something like, you know, secure, it's not going to be able to be broken into, it's not going to be able to be, you know, compromised, they're not lending out. It's something that actually has to be a legitimate storage, right? The second aspect of this is it needs to be allocated, right? Meaning, when I send them my medals, they're actually keeping them. They're not lending them out. They're not leasing them to other people. If I give them 10 ounces of gold, somewhere in their vault, there's ten ounces of gold that says Jerry Feda on it.
Right? And I say this because not all of them are allocated. Right? This is this is the the unallocated bullying is the fractional reserve system at work. I gave them my bullion to store and they're going to loan it out to other people. They're going to lease it out. They're going to make on it. I'm going to pay them fees.
I get nothing. I don't want that. So, it has to be allocated, right? I also want to make sure that it's insured and then, I also want to make sure that it is audited. And usually by a third party. right? So, these are the big ones. Now, the other one you could do is also called segregated. Okay, this is more important if you're doing collectors items. If I send them a very significant piece of of gold or silver, it's important that they give me that exact piece back, right? That's called segregated. Now, if I just send them ten ounces of of gold and it's a generic bullion, personally, I don't care if that's the one they give me back. As long as they give me 10 ounces back, right? So, segregated means they're literally going to pull your gold and hold it separately from everyone else's and when you ask for it back, they're going to give you your very piece of gold Now, again, that's not something I personally care about.
One ounce of gold is one ounce of gold. I don't care if it's a different brand or if it looks a little bit different when I get it back. It melts down to the same thing, right? So, segregated is not as important but it is on there but these are the big form. Secure, right? Allocated. You want it to be insured. You want it to be audited, okay? So, these are the big ones you're looking at. Now, generally speaking, you're going to usually pay retail one to maybe one and a half percent per year of what you're storing. This can vary from everybody like but the thing is is you don't want to pay that much.
If you can get it down below that number, you're going to be able to save money and you're going to have less cost to hold, right? This is no different than paying a management fee on a mutual fund. The longer I pay this fee, the the more the price of bullion goes up, the higher dollar amount that fee becomes. So, I want to get that fee down as low as I possibly can, right? So, that's the storage piece of things, okay? Now, the other aspect of this and and I'm going to jump into some questions again soon as selling.
Okay, this is the dirty little secret of the bullying industry that I didn't know about in till I actually spoke with Matt and his company and they're like, hey, we don't charge sellback fees and I was like, what? What do you mean sellback fees, right? And so, when I started looking around, most dealers charge sell back fees. Okay, a sellback fee means that when I buy booyan, right? Like, think about it. If you buy gold, how many people in your life are going to buy it from you when you're ready to sell? Okay, for me, like my friends and family, they're not people that are like, you know, yeah, yeah, we have 20 grand, we'll buy your gold from you at at spot price, Jerry. Go ahead and sell it to us. That's not, that's not them. Right? So, I have to out who I sell it to. It's not going to be a pawnshop. I know that they're going to rip me off. So, I would generally speaking, I would go back to the place I purchased it from or whoever the the big name is in the market.
I'm going to find online like Best Buyin or whatever. I'm going to look there and I'm going to say, hey, well, you guys buy my boot, okay? So, this is the thing that nobody knows because they don't tell you upfront until you go to sell, okay? These bullion companies usually charge sellback fees. okay? So, a sellback fee looks like this.
When I go to a sell, they're going to look at the market and they're going to say, okay, what's the market? Is there a lot of of bullion available and if there is, then, you know, it's plentiful. We don't really need it that bad and so, we're going to charge a really high fee 'cuz we can go buy it from anyone.
So, if you want us to buy yours, you know, make us an offer, you know, pay us a good fee and they're usually going to charge one to 3 percent. of the sale price. right? Now, that might not sound like a big deal. You're like, oh, that's not huge. Okay, but think about this. When you sell it, you're selling it for more than you pay, right? Why would you want to tax the the harvest? Why would you want to pay fees on on the higher price at the end? You already paid fees to purchase it.
Right? Why would you, why would you also pay fees on the back end? Okay, and this is why the bullion shops do this. If they can buy, they buy a spot, right? So, they're looking at paying spot. If they can buy a 97% a spot, meaning they're buying at a 3% discount and then when they sell they're going to sell it for 3% more than Spot. They just doubled their profit on the same bullion. Same amounts of gold, they're going to make 6% now instead of three. This is how used car dealerships work. Same exact system, right? You turn in your car, you already know you're not going to get a good price for it. You already know that they're going to pay you under market value because that's how they make the profit and then when they sell it, they're going to market up and they're going to charge way more than it's actually worth and that's how they make their profit on the sale. Bullion is the same exact way, okay? So, I don't want to pay those sellback fees ever, right? To me, that's stupid.
Why would I pay to purchase and then also pay to sell. When I'm selling, I'm helping them. I'm giving them inventory. Even if I sold it to them at Spot, that's already a deal because they can't even buy that spot from a Wholesale it. The wholesaler is going to charge them spot plus a fee, right? So, so I don't want to, like, I'm already going to give them a deal at Spot.
I don't want to pay them 3%, or two percent, or 1 percent on top of that just to sell the bullion on a larger number, right? So, I want to show you guys the math on this really quick and then, I'm going to open this up for some more questions. So, let's say that I buy $20, 000 worth of gold. Okay, I'm just going to show you the difference here. Okay, so I buy $20, 000 worth of gold And we'll say, retail And then we'll say wholesale. Okay. I'm going to do this on my calculator so you guys won't be able to see all of the numbers but I'm going to type them out as they go. So both of them I put in 20000 dollars, right? I'm going to buy 20 grand worth of gold. Okay, on retail, let's say that I pay a 3% fee. Which means that I'm only actually going to be able to buy 19, 400 worth of gold, right? So I've got nineteen thousand 400 worth of gold.
Let's say that I sell it or or sorry, I store it in a vault, right? And I, and I keep it there for 10 years, and entire time it's earning an 8% annual rate, right? So, I've got, I put in 20, 000 and I did that times 10 years and it's earning eight percent per year while it's there. Okay, so we're all tracking with this so far, right? Now, 20, 000 in but I paid those fees because it's retail, right? Let's say that I'm also paying storage and my storage is one percent. Okay? And then, at the end of that 10 years, what do I have? Okay, so we're going to look at this whole equation.
So, I put it in twenty thousand, paid a 3% fee upfront, paid 1% annually in storage. I make 8% a year and when I when I sell it, there's a sellback fee of let's say 2%. Okay, they charge me 2% to buy my buoyan back, okay? So, that means that I'm only actually getting 98% of what I'm selling for because I'm paying them two percent to sell it back to them. So, at the end of this, I did make money right? But I'm going to have forty-two thousand one hundred and ninety-nine dollars and eighty cents. Okay, after 10 years, right? So, the difference here, let at Wholesale. Wholesale, same deal. I buy it, hold it for 10 years At 8% a year Okay, but on wholesale, there's no fees. I'm I'm getting my money's worth for bullying. They're not charging me extra fees, right? So, I'm actually getting the true value of what I'm putting in, okay? So, 20, 000 goes in.
Let's say that my storage is is, you know, point 75 instead of 1%. I'm able to save 25 basis points on storage, right? And you can get it down even lower. You can maybe even go. point 5 zero but let's let's just give the benefit of the down and say, I get point seven five percent storage cost instead of 1%, okay? So, what does that do for me, right? So, at the end of because I didn't have any selfies. Or sorry, yeah, yeah, no selfies, no, no, no buy fees, and then cheaper storage. At the end of this, this comes out to 44 thousand three hundred ninety-two dollars and eighty cents. right? So, I made over $2, 000 difference Okay? And that's that's on a very small amount. If you scale this out, this is on $20, 000 put in once. Imagine, like some of my clients, I had a guy send me a picture today and I can't post it here. I wish you could. Like, like, hundreds of thousands of dollars worth of gold. Okay, and this adds up. So, if you look at the, just the scale of this, on a tiny, little 20 thousand dollar purchase over a ten-year period, this came out to over $2, 000 difference.
Retail cost me two grand. Wholesale, I made more than two grand, just because I had lower fees, right Now, if we scale this out and we say, well, what if it was 1 00thousand? Okay, what if it was half a million? Like, what if it was some real serious numbers we're playing with at that point, okay? So, this is how you get the advantage on Bullion. This is, this is literally like you you you're making your money back on on literally just the savings. Right? Same exact purchase, same exact everything. The difference is I didn't have to pay the fees to get in. Okay, I didn't have the same storage costs, right? And then I didn't have the selling fees. Now, storage, let's, let's look at what if we could get that down to.
50% instead. so if I go point 5zero% instead Hope it doesn't look like my calculator will let me do that. I don't want to dink around with this. But you guys get the picture, okay? So, this is, this is how you save money on Buoyan. Now, the other aspect as well, and I'm going to open this up for questions in a little bit. When you're buying from these larger Mark says, you didn't include the membership fees in the wholesale price. Yeah, so membership fees and again, you only bought once, right? So, membership fees for 1 year is thirty-nine dollars a month times 12 months. So, you paid $468 in membership fees. Right? So, we can subtract that out but that's a, you know, if you just have the membership once because you're keeping it there, you're buying it one time and that's it, right? Now, if you're buying ongoing, that's different math but Mark has a point.
So, you pay $460 for one year of membership fees to buy that $20, 000 worth of gold. So, When we look at the other aspect, when you're buying from and this is the last thing I'm going to cover before we jump into more questions. When you're buying from these larger online dealers, right? You know, and I'll go ahead and name a few names, Jambuyen, right? You go there. Some of these bigger shops. When you're buying from them, a lot of times they're selling like, like, at the prices they're selling. You might compare it against them against others and be like, hey, this is this is cheap, right? This is very cheap. The reason why they're selling at some of the prices they're selling at, it's called a lost lead. They're willing to lose money on the bullion because that's not where they their money. Okay, they make their money when you sell it back to them like we covered. They make their money in storage and then, they also make their money by selling your information, right? So, they will sell your personal information to marketing companies and that's how they make a profit That way, information, no different than Facebook.
Why is Facebook free? They sell your information, right? You are the product. So, with a lot of these really big box discount online shops, you are the product. They're selling your information and that that can be personal information and then, that can also be your trade orders. Mean when when when they have a big enough client base, they can say, here's our orders, like, here's what people are buying and selling right now, they'll take that list and sell that to a hedge fund. The hedge fund will pay a really good money for that list because they now have insider information on what the bullion market's doing. Right? JP Morgan in twenty20, they paid a $2 billion dollar fine for rigging the silver market. And they still made profit after the fine, right? So if they can get information to rig a market or manipulate a market, these hedge funds are will to pay for that and so a lot of these bullying need not all of them but these bigger the bullying shops they'll sell your trade history, your order history for profit on that end as well.
Right? So if they can get you in purchasing, they can now sell your personal info, they can sell your trade history, and then when you sell it, you gotta come back to them and they're going to make fees when it costs more anyways. They're willing to be really cheap on the front end. They're willing to lose a little bit of money. So that's another thing like, for me, with Matt's company, Mint Builder, they don't do that. They're not selling your info, they're not charging you sell back and so I appreciate that.
We're the same way. When clients buy from us, all of that stays private, right? So, I'm going to open this up for some questions but the big thing that I want to get across from you is you know, when you're buying gold and silver, again, it is a store value. It's not an investment. It's not a speculation, right? And the main things you want access to is you want access to education. You want access to like low low front-end costs, low holding costs, and low selling costs and if you can get four of those things that's perfect And so that's what I do. That's what my company does.
That's what we encourage people to look for, right? Now, the final thing that I do want to touch on is the, the, the broker thing. So, if, if you're going to pay a fee, right? So, when you're paying a fee, if you're going to buy from a broker, sometimes our clients will buy from us as a broker where they're like, hey, well, you do the order. So, if I'm doing the wholesale thing and I'm paying for a membership and I'm just trying to get the cheapest cost, that said, do it yourself system. Meaning, I have a membership I'm going to log in. I'm going to shop my order.
I'm going to place my order. I'm going to pick what I want. I'm going to do it all by myself. And that's why that's cheaper. Is it self service? Right? You're getting wholesale pricing and you're self-servicing. Now if I need help or if if I'm looking for convenience that's where I would pay a broker. I'd say, hey, I don't know what I'm doing. So, I'm not going for the cheapest. I just want to make sure I don't get in trouble. I want to make sure that I get the right thing and I will pay you a fee to help. And that's where you'd hire a broker. Right? So where where would I hire a broker? I would I would pay a fee to a broker if A, I didn't know what I was doing yet, and they were giving me help.
I would pay for convenience like, hey, I just, I'm busy, right? I have some clients who are like, yeah, I know I could go do the wholesale but I would rather just have you guys do it every month, right? Just, just send it to me, bill my account, I don't want to think about it, I just want to have the gold show up. So, that's another time I would pay a broker.
The other thing is if they have access to like connections, information, things that I wouldn't get from anywhere else, right? And so, if I can get something like that where it's like, okay, I'm actually getting, you know, for example, we help our clients borrow against their gold. We help them lease their gold out for income. We help them set up IRAs. There's a lot of different things we do as a broker that other people might not do, right? And so, those are things that when I'm paying a broker, I'm justifying, okay, what if, what am I getting for the fee, which is what I said at the beginning. So, if I'm going wholesale, do-it-yourself system, I place my orders, I remind myself to place orders, I do everything myself If I'm going for a broker, I'm really leaning on their expertise and and I'm making them earn that fee is the point that I'm making. So, I'm going to open this up for some questions here. If you guys are on Zoom, go ahead and drop your questions in the chat and if you're on Facebook drop them in the comments and we'll we'll answer them that way too.
So, let me check Facebook first and see if we have any questions here. Alright, I don't think I see any new questions on on Facebook. Good. So, let me see Zoom here next. Mark has a good question about the about a the membership. Like if you if you have a membership fee and you're buying. Alright, so we have Mark back here. Mark, well, go ahead and ask you a question about the the just the cost benefit on the fee. Oh, yeah, yeah, Jerry. For, for me, like, I only purchase precious metals maybe at the most once a quarter, say four, four, at the most five times a a year. So, you know, I wish I knew you 30 years ago when I started investing in gold and I I would be a regular customer, that's for sure. But for me, I, I, I'm more interested, in, in the charismatic part. I I'm more of a collector than a storage of value type of bullying goal. Although I have both. So when I do buy, you know, gold and silver, I primarily buy it in the numismatic field, graded, proof, MS certified, and all, you know, all of that stuff.
Uh I I just love gold and silver. Um as the coin, numismatic part of it. Um more so than I do in the bullying part. only reason I started investing more in the Bullion part of it is because of the current economic situation that's going on. So I kind of changed my strategy as far as accumulating more precious metals but yeah I I think if any anybody's new in buying gold and silver you're you're environment is excellent and I I if I didn't have you know in an relationship from people over the years, I would definitely hop on and with with you Jerry. I spoke with Nano I think a week ago and I ordered your your book and you guys are top notch. That's all I got to say. You know, I love your training and I've been following you for a while though I'm not an active client.
I still wholeheartedly appreciate all of the information and value that you bring to the masses. Um I really appreciate that part of it. Uh Jerry. You're you're awesome. Yeah, thank you Thank you. and and Mark is right. So, when you're, when you're doing a membership system, you know, like, you do want to look at how frequently am I ordering, right? So, if I'm ordering like Matt's like, Mark said, I'm ordering once a year and it's like, I'm not doing a ton or I'm ordering twice a year, then, you know, sometimes it might be cheaper for me to pay retail on that one or two orders if they're just one-off type deals. So, that's again, where I would go like Matt, like Mark said, having, having, you know, having established relationships.
I would go to my broker and just say, hey, I want to by this and I'm going to do it twice this year and and I'll pay 3% because that's cheaper and and it's not going to be the same as the membership, right? Now, if I'm buying every month, then, it's like, okay, you know, like, like Costco, right? I'm going to go buy cheaper groceries at Costco. Although, I don't think they're cheaper anymore.
I think they just say they're cheaper. Same thing with Amazon, right? But these are the membership things. If I'm buying frequently or if I'm buying a large quantity. So, if we do the math on it, let's say that I'm paying, you know, 2% more on gold retail versus buying wholesal right? So, a membership with with Mint Builder with us is $39 a month. Um if we do the backwards math on that, thirty-nine dollars divided by point zero two means that I would need to be spending at least nineteen fifty a month, right? In in gold. So, that's basically one ounce of gold a month and that one ounce I'm making back my membership already. Um that might be several ounces worth of silver. Now, that's just on the buy. The other aspect is the storage. Um with with Mark, I don't know if Mark is throwing at home or not. I I saw him comment which I agreed.
Never store in a in a safety deposit box at a bank. The bank is the enemy. Like don't, don't, like, you've heard the phrase, what is the phrase, don't let the fox guard the chicken coop, okay? Don't put the chicken in the foxhole. Like, storing your your gold in a bank is putting the chicken in the foxhole. It's not even letting the fox guard the chicken coop. You're putting the chicken in the fox's home. What do you think is going to happen to the chicken? Right? So, that is the other aspect with the membership. Matt says banks don't even store their own gold, right? Like, what are banks even for at this point? This is ridiculous. Um but the storage is the other aspect. So, I'm I'm looking at, okay, if I buy one ounce of gold a month, I'm making my membership back just on that. If I'm storing and I'm getting cheaper storage, I'm making my membership back on that.
When I'm selling, same thing, I'm making my membership back on that. If I'm doing collateral loans and I'm not having to pay taxes on my gains because I borrowed instead of sold, I'm making my membership back there as well So, depending on your use but but Mark is totally right. If you're doing just a couple here and there, the membership might not make sense. Mark, I know we do numismatic and so that's something we can talk about if if you if you want to add that to your repertoire of of, you know, places you can go look at.
Mark says, banks are only good for Helox and paying monthly bills. Yeah, let me borrow against my house and and let me pay my bills and even then, it's like, you know, the the the bill pay thing is kind of arbitrary. I don't like paying money to you know, move paying fees to move money from my left pocket to my right pocket. Like that doesn't make any sense to me. But that's the business banks are in. So, Mark is right on those points. Good. So, let's see what are the questions we have here. Daniel has a question. Let me see if Daniel is still on. We're on with oh he's got the little guy on.
Hey, Jerry. Hey, Dan. How are you today? Awesome. Um, loving the webinar. Awesome. How's the little dude doing? Oh, man. He's getting big. So, the question here is you you know, you see the market. Uh there are a lot of inflation going on and we're we're seeing about 8% increase in gold per year but, what, what, what, what has to happen in the market for it to spike, to go above that. Yeah, that's a good question. So, gold is interesting because there's, there's, there's manipulation that goes on, it's also a tier 1 asset, which means it, it, it competes with the US Treasury for banks. So, like when treasury rates go down, banks buy more gold, then the price of gold goes up, treasury, treasury rates come up, and then like, oh, we want to own treasuries again, they get rid of gold or lessen their gold buying. So, there's a lot of factors. The biggest one is supply and demand, right? With any economic factors, supply and demand.
So, gold already has a limited supply. Limited quantity, there's only enough gold in existence for every single human being on Earth to own one ounce. That's it, okay? Now, the problem is the demand lies within financial literacy. I'm going to say this really bluntly. Stupid people won't buy gold. Right? Like people that don't understand money, they're not going to buy gold. They're they're just because they don't do smart things with their money. So, enough has to happen economically for the masses to be like, we're going to buy gold and when that happens, everyone rushes for gold and that jerks the price back up, right? So, in the nineteen 30s, everyone owned gold, right? By by definition, if you owned a dollar, there was gold underlying it.
People go down physical. We got off that system. We went to the Bretton Wood system where we had gold back dollars but they were fractional. People still owned some gold based on dollars and seventy-one. That was done. The dollar no longer was linked to gold and now only 12% of America owns gold which means the demand for gold on a consumer level is not there like it should be and that is due to financial illiteracy which is part of what we're solving, right? So, your question.
That's the aspect. There's always going to be industrial demand. There's always going to be banking demand. There's always going to be, you know, you know, like I said, the tier one asset aspect and all these different things but until the the American citizen says, that's a store of value. I'm done with the dollar and I'm not going to speculate. That's something that has to really click, I think, for us to see gold. You know, realize what it should be at and until then, it'll continue producing like it has been but I think what Dan is asking is when when do we see it, you know, like, exponentially, up. Um and I think that's the point where that would occur.
That's a great question too. I think we've got a maybe a couple more more questions here. So, Nana says, Jessica was asking what is meant by 19fifty. Was that, was that 1950 a month? Yeah, exactly. So, so the Mint Builder membership is 39 a month. Let's say that if I'm buying gold at retail, and I'm probably paying more than 2 percent. It's probably more like 3%. So, I'm paying 3% extra retail to buy gold and so, with that being said, if I'm saving that, I divide $39 dollars by point zero three. And that actually comes out to $1, 300 a month. So, so depending on where you're buying, what you're buying from, that's going to be your monthly order in order for your Mint Builder membership to basically pay for itself just on purchasing and then, again, the storage, selling, taxing, all these other things come into it as well but that's just done buying. Matt adds, you can also pause your membership for three months without losing your position.
Yeah, so that's another thing is if you, this is I think back to Mark's point. If you have, infrequent gold buying and you're like, I want the I'm not going to be using a ton. You can start it and then you can pause it for three months and then after 3 months, you can reup it again, make another purchase. I don't know how many times you can do that. Maybe Matt can answer that for us. But that's, that's something you can do if you're kind of an intermittent gold buyer, but I don't like the intermittent thing. I think if you're going to buy it, Mess says no limits.
You could literally start it, pause it for 3 months, start it again, buy some, pause it for 3 months, and just every quarter, you could be putting in gold orders, and that gives you access a membership. So, you pay for for the use of it, right? Mark says, that's a good aspect. Yeah and I'm literally four payments a year. Yeah, exactly. And I'm not a intermittent buyer. If you guys know me, what I recommend and I'll wrap up on this point is commit to just like with your sacred account, commit to a monthly amount that you know you can put in the gold and silver no matter what. And that's like your base. That's your base contribution. You're going to put that in. As you have more money show up, you start dumping in more. right? So, so what I do is I'll have a monthly amount where I know every month I'm going to kind of do X and I'll stay in that zone and then, as I have cash show up, then, I'll dump more in more on an unscheduled basis.
So, if you're a sacred account client, it's kind of like the paid up editions writer. Um Let's see here Nano says this would be a good practice regardless. It's a forced savings plan. Exactly. Yeah. So it's a forced savings plan and that that takes discipline out of it. It automates that process. Good. And then Jessica says she's buying a hundred dollars a month not including membership.
Yeah, so you're still saving on the hundred, to answer Jessica's questions. So, Jessica's saying she's buying a 00 dollarsa month of gold with a membership. So, she's still saving on the membership. Um, there are other benefits to it, that, that as you're, because you're a member, you have access to certain things. So, if you're smaller and you're not doing, you know, a thousand, 2000, 3000 a month yet, having that membership, having that relationship does give you access to things down the road that you wouldn't have otherwise. Um, so it's kind of an investment in that aspect too. But and then the other thing Jessica says to says cool things. The other thing too is you know the the the use of it.
So, it's, if I have a membership, what am I doing with it? If I'm never using it, it's kind of like a gym membership, right? I can sign up for a gym membership. I used to be a personal trainer. People do that all the time and they never use it and then, it's like, yeah. You probably shouldn't have one, right? But even if I go and you know, a little bit and I go on a little bit more than I would have because I have a membership. That That is like a a factor and it might not be mathematical. It's more behavior. If it causes me to buy more gold than I would have, had I not had the membership. If it causes me to go to the gym more than I would have if I didn't have a membership, then it's giving me a return on investment by creating behavior change, right? Cuz eight percent of zero is zero, right? So if it's causing me to buy more gold, it's causing me to use it more.
That's the other aspect of it too. And that's the, that's the part that I like. It's not like you have to do a 000 a month. Um, Good. I think that's all of our questions. Mark says the education alone is worth the membership. Yep, I agree. This is, this is, I keep saying I'm going to wrap up. Last thing, and then, I promise I'll wrap up. I could talk all day about gold. Um, and I think we just got a couple more comments on Facebook too. Okay, so, so gold, this industry is very old. Um, and so, what I mean by that is kind of a good old voice club, right? There aren't a lot of young people in it, there aren't a lot of women in it, there aren't a lot of other, other ethnic groups, and it's kind of like old white men. And I, and I don't mean to get to that that conversation but there's not a lot of, like, it's not open to a lot of people.
The barrier to entry was very high. I was talking to Matt about when he got his first wholesale relationship, and, and, like, you know, they, they did everything but script search him. To be like, okay, cool. We'll let you join our club and we'll we'll sell Bullion to you, right? Same thing with me, like we're going through a lengthy application process. So, just the fact that we can, you know, I hate to use the buzzword, decentralize or democratize, being able to get into gold, and get the information like this and it's not like you have to be in this, you know, country club or or know the right people.
It's like, no, you can, you can go log in and go train and go learn. That's, that's something that I love about this. Maya has a couple questions on on Facebook. Maya says, what happens if the bank stores it? Why is that bad? So, that's a great question. So, first things first is, the bank has ours, right? And so, if I need my gold and the banks not open or it's a holiday, I'm basically out of luck versus with a deposit whenever I request it, they're going to send it to me. So, that's the first thing. The second thing is the the deposit boxes in the bank are not covered by FDIC insurance. Okay, that's just your deposits. So, if something happens, your goal isn't protected.
Third, like, Matt was saying, the banks don't even store their own gold. So, if they won't even store their own product, use their own storage product, then, I don't, I don't want to trust them with my gold and silver and then, last is banks are able to do what's called a bail in. If a bank goes in solvents, they can keep their deposits and and not give them to their customers in order to stay afloat before the government will bail them out. Um and so that's something that puts you at risk there as well. And then finally they're expensive. Um I think the the couple times we've used depository boxes with banks and this was years ago. They were charging like three or four hundred dollars a year for like a fourteen square inch box. Um and so they're they're charging for actual space because it's a box.
You stick it in and pull it out. Right? Versus sending it to a vault. It's just a vault. They're going to stick it wherever it fits and it doesn't. It's not if I if I want more space, I'm going to, you know, pay for the space. It's based on the amount that I'm depositing. So, those are all of the reasons, there's probably more of them. All of the reasons why I wouldn't store in a bank. Maya says, you can pay bills for free on QuickBooks. That is true. Maya says Matt's not old. Justin says, I'm not old either. Uh yo, that's what I mean. Is is is Matt, Matt, and me and and people like us. We've made this into not the good old boys club. The other people that we've talked to and worked with in the past with gold and silver, they're all like 60 and 70 years old. They've been doing it since the 1980s and it's like, you know, like just that whole scene, right? So, that is a younger guy.
I am younger. Justin is younger as well. Justin exercises every day and stays young. Mark says I'm old. Mark just, Mark admits it. That's alright. Mark is is is young at heart I can tell. Mark asked, does the IRS, does the IRS track your precious metals? From a sales tax standpoint depending on your state, that can be a factor. So, if you buy in certain states, you do pay sales tax on your purchasers and that's going to be at the state level, not the IRS level. I don't think from an IRS level, I don't think on purchases they do. I think from anti-money laundering, there are some things there if you buy over a certain amount over, I think it's 10000 is usually a threshold with cash, that might trigger, trigger some, some record keeping on like anti money, money laundering, generally speaking, like, for example with us. We don't report your gold buying to the IRS. So, you buy it from us. Sure, we report our revenue and our profits but we don't say who bought what.
That's not their business. So, it does give you privacy in that aspect. You do need to report when you sell it at a game. So, that is your responsibility to report your taxes. don't commit tax fraud. Maya and I can't help you get out of that if you do that. So, be honest with that even though you're not being tracked. Okay, good. I think that that's it. I think we can finally say we're wrapping up for tonight Nano says I'm Latino and I'm young. Very true. Yeah that's it. Good. So guys we're going to wrap up for tonight. If you're watching and you have not got a copy of my book yet. Blueprint to Financial Freedom. Grab one here. Um Jerry Feda. com forward slash B2 F. If you haven't set up a call with Nano and you want to do a free consultation. Reach out. Get connected with Nano. If he sent you a DM in the comments don't be a weirdo and ignore it. Um and then lastly if you are a client of mine has at least a sacred account.
We're doing a get together in my house tomorrow night here in Tampa. Um 6 PM Eastern Time. We will have Matt's going to be there. I was I was going to say that. Matt will be there so you guys will be able to see Matt meet him as well. Um ask him questions about gold, silver, mint builder, whether he's old or young. He's one of those people you can't tell when you meet him. So I'm I'm going to let I'm going to leave that that interesting part of Matt up to you guys to determine his age. Um but that's it. 6PM tomorrow night. We will be back again next week. Um Nano says I'll dress up as Matt tomorrow. I don't think that's possible. Uh Matt's not Latino but Nano try it. I want you to try it and I would like to see how this turns out. This is a good idea. Um this is one of your better ideas.
Alright, Greg. Guys, we're going to tune out.
Read MoreThe Case for $20,000 oz Gold – Debt Collapse – Mike Maloney – Silver & Gold
Jason 0 Comments Retire Wealthy Retirement Planning
If you know how the world financial system works you know the game
that you're playing and if you don´t know the game
and the rules that we're playing by you are going to get slaughtered, you are going to get slaughtered. Ever since the Federal Reserve was born,
we have been living under a lie. In order for us to mantain the levels
we've got and to maintain the prosperity Obama has to be twice as far in debt
when he leaves office than when he came in, or the whole thing
is starting to collapse.
The Federal Reserve, they're buying
bonds directly from the Treasury. This is Quantitative Easing,
they're calling it, and that means there's
an emergency going on. I can see that there was not anything in history as far as finances goes, that was
as much as a sure thing as gold and silver accounting for the
expansion of the fiat currency supply. There is absolutely no chance
in hell that this won't happen, right now it takes about 15000 to
20000 dollars an ounce of gold. I believe that there's going
to be a deflation first and then all of the
world's central banks will start printing like crazy to get us
out of that deflation and Ben Bernanke will be leading the charge. You can´t have a debt that is 10
times the size of your economy. It's not posible. Everything comes
to its screeching halt first. I've got to show you the world's stock markets and real estate bubbles have to continue crashing because all it is is the market trying to seek fair value.
It's trying to seek equilibrium, this is what the markets do. It is their job. Basically, you know, our entire currency system is imaginary, it doesn't really exist. It's just that
we're all dreaming the same dream. If anybody chooses to wake up… it's over with. Thank you very much! I'm Mike Maloney author of the bestselling book
on precious metals investing, Guide to Investing in Gold
and Silver, is part of the Rich Dad series that
Robert Kiyosaki started, the original book. Robert
Kiyosaki says: write a book no other instructions: write a book, and so I start writing this book two and a half years of
research and writing probably 30 hours a week, every week for two and a half years.
It's a very well researched book.
The one thing I really worry about is perpetuating misinformation,
I want it to be accurate and then I tried to boil it down and
make it real simple. I read all these books by economists like Milton Friedman Murray Rothbard, Ben Bernanke, if you get a chance to
read some Ben Bernanke, don't! He is a horrible author, just horrible. They're all trying to write over each
other's head and impress each other And by doing so, they make
economy sound so complex that everybody thinks well,
I can't understand economics. It's really simple. Economics is very simple if you
boil it down to its essence and it's not that difficult to
understand and that's what I tried to do in my book.
For the people that
have not read my book, about 75% of it is not about investing in gold and silver,
it's some history of money and then how the world economy works
and what could potentially happen you know, where we came from,
where we are today and what could potentially happen. By the way, I really couldn't care less
about gold and silver, I don't want gold and silver, it's just in its
cycle right now, it's a stupid lump of metal that doesn't have cashflow or
spinoff dividend yields. And so I don't
want gold and silver, it's just that right now
I don't want anything else. They're just in their cycle right now
and they're going to be outperforming everything else, in my opinion
from all of my research, and they're going to be able
to buy a whole lot more other stuff.
A whole lot more real estate, whole lot more stocks, whole lot more oil wells, farmland, all the true wealth. It's in the buildings, the businesses,
the farmland that is out there, and people get this
picture in their head that if there is an economic disaster,
if there were some sort of collapse that it's going to be like this nuclear
wasteland afterwards, it's not. All the buildings still are going
to be there, the apartment buildings. It's just that they're all going to be on sale. The problem is when investments are
on sale nobody buys, the public comes charging in, and they
chase investments after they're going up.
Gold and silver get hot whenever they're going up and
as soon we see them take a dip, it's like sales turn off like a
light switch, most of the time. And I don't want anybody to get slaughtered. I really don't want these bad things
to happen, I just think that all the evidence is there. What our leaders have done
to the economic system is going to cause these things to
happen and it's inevitable, and I'm trying to warn
as many people as possible as quickly as possible.
My company has a mission, to get as much gold and silver
in the hands of the middle class as quickly as possible, because when there's great economic upheaval,
there is great political change, and usually goes along with it In the hyperinflation in
Weimar Germany in 1923, this hyperinflation ended on November 15th, 1923.
On November 8th, one week before the end of the hyperinflation, Hitler's storm troopers pointing machine guns at the front
door of the Burgerbraukeller where there was a political meeting,
this big beer hall where there about 3000 people
listening to politican speeches and on that night
he took the stage at gun point and to this literally captive audience
gave a speech that changed the world.
Nobody knew the name Hitler,
nobody knew who he was until he gave this speech to a newly empoverished middle class people that were scared and
looking for somebody to lead them, and here this charismatic guy takes
the stage, gives them a scapegoat and says "I know the way out of this". The next day, those
people in that beer hall followed him to try to do
a military… a coup to take over the government and it failed. He was imprisoned, he was tried for high treason, his trial went on for an entire month, and during that month he
had the ear of the nation. He was covered in every newspaper all across Germany, and the judges were
sympathetic to his beliefs so they let him go on for hours
on end with the speeches and that's when he gained power
was when the middle class was scared. The middle class defines a
country with their vote. The country, as the middle class
goes so goes the country, and so what I'm worried about is not the loss of my
financial well being, it's the loss of capitalism,
it's the loss of our quality of life, it's the loss
of our freedom of choice.
That's what I'm worried about, and I know that there are certain people
that I'm not going to be able to reach. Joe-six-pack, I refer to
the guy that comes out of his beer and
football induced coma at the very end of the bull market and
comes charging in and buys at the peak. I can't do anything for him.
I'm hoping that I can do
something for all of you. These are wealth cycles. If you have
two asset classes that are rising, you have for instance, let's say
that this is real estate on the bottom and on the top here
we've got precious metals. Precious metals in this last decade here, precious metals outperformed
real estate and stocks but everything went up. Stocks went up, bonds went up, real estate went up
and so did commodities and precious metals. Is that possible? Can everything go up?
Think about it for a minute. If we've only got so much stuff in
society and if you've got these 3 or 4 asset classes and everybody rushes toward one, pushing
it to a bubble shouldn't it be drawing currency away from the others?
Shouldn't the others be going down? Well, they didn't in the last decade.
And what's happening here if you've got
two things that are going up, if you're invested in this one down here, when you've got to sell, you can't
buy as much as this one. If you're invested in this one, when you
sell you can buy more of this one. They're both rising in price, this one is falling in value when you sell it you can't
buy as much gold, or food or oil. Your house is worth half as much
in oil, as oil was 10 dollars a barrel in 1999. So your house measured in oil has crushed,
the stock market measured in oil has crushed. If you start looking at your home
or all of your investments and you divide them by something
else, you measured them in the price of a bushel of wheat, a pound of copper, a ton of iron shares of the Dow or ounces of gold, you're going to discover something. These two things that
they're going up, eventually the people that are invested
in this one realize that the smart investors realize that
it's going into a bubble,they sell and they buy undervalued asset, and then this trend reverses.
It can't go on for ever, and if it did, if gold outperformed real estate
for ever, there would come a day where one ounce of gold would buy
the entire planet and we all know that that can't happen.
Right? So, eventually one becomes overvalued
and the other one becomes undervalued and the cycle reverses, and then it reverses again, and what is happening is that they're
printing currency about this rate and that's the reason you can't see it.
People would say: "well, at least my house is worth a
100.000 dollars more than it was in the year 2000", or "it's worth 20 per cent more" Well, in fact if the inflation was 40 per cent
it actually went down in value.
They'd say that, you know, they looked
at the stock market and the Dow right know is just
barely above its 2000 high. In the last decade stocks
have gone sideways for a decade. We've had inflation during that time,
they inflated the currency supply. So, if you start measuring one thing with
another thing, so you're measuring stuff against stuff instead of using
currency, what you discover is that everything is trapped
in this valuation channel, where it goes from overvalued to undervalued
to overvalued and undervalued again, and the thing that you're
measuring it with is doing the exact opposite mirror wave. The trick is sell the overvalued asset near the peak if you can, find the undervalued asset
and I call this wealth cycles.
And if you can do that, it's a road to true wealth, you're
escaping that valuation channel. Here is a real example,
this is the Dow measured in points. And what are points? Points are derived by the dollar value of the
underlying stocks, so basically its points are dollars, and one of the reasons that
they measure it in points is just like when you go to Las Vegas, they take your
currency and they give you chips. Now they're pieces of plastic, so
you don't care, you're just having fun. So change it to points, and it's not as bad as if
"Wow, you lost so many dollars" "it went down so many points". Anyway, that's the Dow
measured in points, but if you go every month during this
entire graph from the year 1900 to today, and each day you take the points on the Dow
and divide it by the price of gold you get how many ounces of gold one
share of the Dow is worth, and this is what it looks
like measured in gold. It's not going anywhere, it's got a mean of about 4 ounces of gold,
which means that the price of gold should be one quarter of the
points of the Dow and then things will sort of be in equilibrium.
It's fair value when the Dow is only four
times the price of gold, but what you see here is that it goes into, it goes from fair
value into a bubble 18 ounces of gold, it crashes down to 2 ounces,
another bubble of 28 ounces of gold because the bubble was bigger, because they print more currency in
the meantime, when it crashed it went down to one ounce of gold. There was a
day in 1980 when gold was 850 and the Dow was at 850 points, one ounce of gold bought the Dow.
Conversely, if you cash out you could only buy one ounce of
gold with the proceeds of your stocks, and then we're going on to the
biggest bubble in history. There's no time in history,
this point in 1999 – 2000 there's no time that gold
was as unloved and ignored as in that time period. It was no
nation's money and it had gone down for 20 years, it was "the worst investment
you can possibly make", nobody wanted it.
Take this, This is the price of the Dow measured
in gold. Flip it upside down and you've got the price of
gold measured in the Dow. Put these two things together, and what you find is
that there's a cycle here and if you've written
stocks up to 1929 and then sold your
stocks and bought gold, and then in 1932 gone to gold … and then, gone
back to stocks I mean, and then in 1980 go back into gold, and so on, uh… this is the road to true wealth,
I mean, you're making massive gains here. I show two hypothetical
families in my book and one goes from 35 bucks to
11.000 bucks over that time period and the other one goes
from 35 bucks to 11 million and that is the difference,
one family creates a dynasty the other one didn't even break even.
This is the Gold-Dow ratio instead of the
Dow-Gold ratio, so you're measuring gold's value per ounce measured in what
percentage of a share of the Dow that it would buy, and what is showing is that gold is nowhere near a bubble,is very
undervalued here and still has to go up, the mean should be 25 per cent or more. and in every bubble in history
and in nature, I used to be an electronics engineer in physics, when something is out of whack, when it
reverse back to the mean it overshoots. if it's more out of whack, when it
reverses to the mean, it overshoots further, so I'm expecting the day where the price of gold would be
double or more the points on the Dow.
This is the Silver-Dow ratio. Silver has just I mean, the gains here
should be immense. This is just gold
for the past decade. I just challenge anybody to go and find
an index or stock or anything, that looks that good over
the last 10 years. This is a perfect chart, it's very bullish, there's nothing here saying gold, in this information that you're looking at,
this is what technical analysts look at when they're trying to figure out whether
to buy an asset or sell an asset, and this is saying that gold is probably going to continue
rising, there's nothing bearish in that signal. This is the SP 500 over the
last decade, so representing stocks of the 500 largest companies
in America and there is gold. uh… Here we have silver and I recently spoke at the 8th annual
banking conference in Socci Russia, this is the big banking conference
for all of Europe and Russia. And I was showing them this
at the very end, they cut me off it was really interesting.
I was running out of time, and you hear this voice
come over the loudspeaker and it is their Finance
Minister in their parlament, telling me: "mister Maloney, mister Maloney,
you've got to stop now mister Maloney" they were trying to cut me off,
I was presenting this information they did not want presented
at this conference, and then he comes up to me afterwards, he's got
a copy of my book that he bought, he wants it signed! Oh, by the way, please visit our
table afterwards, we're giving away, these are 100 trillion dollar bills, they are real,
they are from Zimbawe, we are giving away 20 quatrillion dollars at my table, so…
Uh… come and get your 100 trillion! OK, so… what I showed here was that
there is an inverted head-and-shoulders and this works just as well upside down,
as it does rightside up, you can see the head hanging,
it's like this guy hanging from his feet. This is the head and shoulders
that I'm tracing out here in blue, and then, you draw across the neckline, and you invert that
head in a predicted move and you see this, if you watch my…if you google "10 dollar oil" you'll see a video where he's cutting me off, and
I'm sort of flashing through this, I don't get a chance to describe it, but
I was predicting that silver would make a big move and guess what? That's what silver did. It doubled from where it was. This is the spot price of silver.
This is the price of silver IOUs,
the price of gold and silver is determined by people going:
"I owe you 5.000 ounces of silver, I owe you 5.000 ounces of silver, I owe
you 5.000 ounces of silver and handing this things out, and they're trading this IOUs
on the Commodities Exchange and that's what determines
the worldwide spot price. Now you can do this naked…it's called the
naked shorts. If you don't have the silver to cover it, if you're not sitting on a
pile of silver and you are writing IOUs, you can still sell them. And some big banks do this, like
J.P.Morgan and they crash the market and then come in and cover their shorts,
they buy those IOUs back at a lower price than they sold them for
and they get to make the spread. They fleece the public and
some funds that invested in silver for hundreds of millions
of dollars by doing this, and they do it, they've
done it on a regular basis. But Silver fell too low this
time and so did gold, and investors that were looking for physical
realized that it was just too cheap, and they all had to get some
and shortages developed, and all across India, Europe
and North America the cupboards were bare.
There were 3 months
where we can only get one silver product
at a time, and we had no gold. We didn't have gold and my
dealer shipped for 3 months and I deal with 4 of the world's largest
wholesalers and they could not find gold for us. People don't realize how much gold
and silver there is on the planet. There are 6.6 billion
people on the planet, there are only 2.2 billion
ounces of gold. That's a third of an ounce per person. Silver is even
more rare. There's only about 14th of an ounce per person.
That means that 14 people have to
share that same one ounce of silver. And right now, you can get a whole lot for your currency. uh… I'm going to take a little detour here. I did not define the difference
between currency and money, and you will hear me say: currency, currency,
currency, over and over and over again. Back…before World War One, uh…
Each note the Treasury issued,
each dollar in existence in the United States would say that there have been deposited
within the United States Treasury 20 dollars in gold coin, and payable
to the bearer upon demand. The money was in the vault, the currency was a note they
gave you, it was a claimcheck, only a claimcheck on
the money. The same as if you go to the dry cleaners
and give them your shirt, and they gave you a
claimcheck for your shirt.
The value is that shirt at the
dry cleaner's, not the piece of paper that says that
you own that shirt. So our currency that circulated, was the paper US dollars,
and they were claimchecks on money, and people do not understand that
money has to be a store of value. Only gold and silver
qualify as money. They have all the attributes that
you need. They are portable, durable, divisible, fungible… and then money
is a store of value over long periods of time. One of the things that
I always start with is how currency is created, because if you know
how the world financial system works you know the game
that you're playing.
And if you don't know the game
and the rules that we're playing by you're going to get slaughtered, you're going to get slaughtered. So this, just by knowing this,
increases your odds just a hundred fold of winning. So…uh… "When you or I write a check
there must be sufficient funds in our account to cover the check, but when the Federal
Reserve writes a check there is no bank deposit
on which that check is drawn. When the Federal Reserve writes a check it is creating money". And that is "Putting it Simply" from the Boston
Federal Reserve's website. Basically, the way this works is: the trader of the
United States is the US Treasury.
Uh… but every country has the
equivalent to our Treasury so the Treasuries around the world uh… create a bond and, what is a bond?
A bond is just an IOU: Loan me a trillion bucks and I promise
that over a 30-year period, I'm going to pay you back 2 trillion That's basically a bond, an IOU. And there's something in the middle
here called open market operations, that I'm gonna just show
you real quickly, but the open market operations
is just a shell game that obscures what is truly going on. So banks show up at the
Treasury Auctions, primary dealers they're called, and then the Federal Reserve comes along
and through open market operations, they write a check to the bank
and they buy that bond from the bank, so the Federal Reserve
ends up with the bond but then the next month those banks show at the
Treasury Auctions again. Now the Treasury has the dollars and the Federal Reserve has the bond,
and this process repeats itself over and over and over again. And there is a build up of
dollars at the Treasury and bonds at the Federal Reserve, So, we borrow currency into existence
with an IOU, that bond, and the Federal Reserve opens
up the bigger checkbook that doesn't have a single penny in it, and writes a bad counterfeit check and hands that to the Treasury, dollars spring into existence, then the Treasury deposits that in
the various branches of the government and the government does
some deficit spending, on social programs, public works and war, and then they pay those government workers, the contractors
and the soldiers.
And all of those people deposit
in their private banks, "Banks create money by 'monetizing'
the private debts of businesses and individuals". Federal Reserve Bank of New York. So, now the miracle of fractional
reserve lending comes in to play. Fractional reserve lending
is just what it says. They reserve a fraction
of what they've got, if you go to the bank
and you deposit 100 dollars, the bank is allowed to keep 10 dollars
in your checking acount in case you want some
of that 100 dollars, and they get to steal 90
dollars of it without telling you.
Your checking account never has
the balance that it says it's got in there. They have borrowed most
of that currency out of there, and they're going to
loan it to other people. When those people sign their loan,
currency actually gets created because you had a 100 dollars on deposit, and they have 90
so now there's 190. Then, they go and buy something, that's
the reason they're taking out a loan. And they buy a house or a car, or someyhing like that, and when they buy that thing, the seller then deposits it in his
bank account so that 90 dollars get deposited and then they get to go
and steal 90 per cent of that meaning 81 dollars, so now there's 271 dollars
on deposit. Can everybody see how the currency supplies is getting
magnified by the banks here? And that process happens over
and over and over again, and under a 10 per
cent reserve ratio, every dollar deposited
can create another 10.
So if you deposit a trillion in base
money, you can create 10 trillion, uh… And that is basically it, there is nothing else.
Our entire currency supply is either IOUs or receipts for IOUs. That's all that it is. It's all an imaginary agreement
and it is all giving value because you experienced yesterday
that the dollar purchased you something, so you expect that is
going to tomorrow. So you have this agreement that is, basically, you know, our entire currency system is imaginary. It doesn't really exist, it's just
that we're all dreaming the same dream. If anybody chooses to wake up, it's over with. So it's really just a couple
of bucks that is whipped up in this little voodoo hocus pocus
scheme here, where the Treasury and the Federal Reserve
write IOUs for each other, a check is an IOU,
a bond is an IOU, and they swap IOUs: dollars
spring into existence.
A dollar is a receipt
or a claimcheck: an IOU! Then the rest of the currency supply is a bunch of numbers that the
bank type in their computers. They don't exist. In my book, I call things money until I get to the point
where I define what money is. And the difference between money and
currency and from that point forward, I only call gold and silver money, and I call everything else currency, but in the original manuscript, when I start talking about the massive
currency creation that is going on, and how banks are just debasing their
currency supply all over the world and how this Mandrake
mechanism works, I start referring to it as
the numbers supply. the M3 number supply, uh… the base number supply because they're just numbers that somebody made up.
I can write numbers on a post-it and hand them out like this. They make them up, they type them
in a computer, it is nothing but a supply of numbers, How many numbers are there? It's infinite! So it's nothing but a number supply.
But it becomes real when you work for some of that currency supply, that number supply, and at that point, it now represents your blood,
sweat, labor, ideas and talent. You are what gives the
currency supply value. It would have no value without you. And the way that that value is enforced
this is the really cruel joke here. Let's say you save a part of that
currency supply, so you can pay tax to the tax collector in the
United States, that is called the IRS, so that they can turn that over to
the Treasury so the Treasury can pay the principal plus the interest on that bond which was paid for
with a check from nothing. So, you can see that, right? Everybody sees how this works? Now, there's another joke. There was interest
due on that bond.
Let me ask you, if you borrow a
dollar into existence and it's the only dollar that exists on the entire
planet but you promise to pay back 2 dollars, Where do you get the second dollar? Has anybody got the answer on that one? You borrow it into existence. When people say they're
just printing money, they're wrong. First of all, they're printing currency,
but they're borrowing currency into existence. The Fed doesn't just print money, what they do is they
indebt us in the future.
Everyone of these loans that we
took out of the bank that created the vast majority of our currency supply,
95 per cent of our currency supply, roughly, has been created by the banks uh… i think actually is 93
percent now and the Federal Reserve
created about 7 percent but uh… before the financial crisis the actual physical paper dollars
are what the Federal Reserve and the Treasury creates it's known as base, they call it
base money, I call it base currency uh… and then we create the rest of the currency supply by going to the bank and borrowing for home or something like
that or buying dinner and sign our credit card. When you sign a credit card receipt
you've expanded the currency supply of the planet. The problem with this system is that every single month
there is a payment due on that bond for the principle
plus the interest and there's payments due on your home
mortgages and on your cars and on your credit cards every single month you've got to make a payment on that currency that you borrowed into
existence and on the balance sheet that payment extinguishes the currency
that you borrowed into existence, so the currency supply
starts to collapse.
This system requires that we go deeper into debt every month
than were the previous month, we have to always borrow more
currency into existence than we are extinguishing
every single month or the whole thing
starts to collapse, and I'll show you what that
collapse looks like in a minute but first I'm going to show you the
base money, this is the these are the physical paper dollars
uh…
It's basically cash in circulation plus the deposits that the big commercial
banks have at the Federal Reserve uh… all of the banks have a checking
account at the Federal Reserve and their deposits are redeemable in
paper dollars so it's a measurement of how many paper dollars exist. It took 200 years to go from
zero dollars in existence to 825 billion dollars, then came along, came
the financial crisis of 2008 and it has only taken two and
a half years to triple that. We are now at about uh… 2.4 trillion dollars of base money from 825 just two-and-a-half years ago, so this looks like the currency supply
of the planet is just exploding when you look at this and most economists and newsletter writers
are talking about inflation, inflation inflation is right around
the corner, this is going to happen.
I believe that we're going
to have, I wrote in my book we would have the
threats of deflation followed by big inflation which we have already
had, that's what this is, followed by a real monetary deflation
which is the collapse of the currency supply: inflation, deflation are properly referred to as an expansion
or contraction of the currency supply prices follow but there's a delay, uh… and so uh…
consumer price inflation keeps your eye off the ball.
If you can look at what's
happening in the currency supply you're seeing into the future. And I believe that there's
going to be deflation first and then all of the
world central banks will start printing like crazy to
get us out of that deflation and Ben Bernanke will be
leading the charge, and so back in March of 2006 uh… the Federal Reserve hid the broadest measure of
the currency supply, the currency supply
that is M1, M2 and M3 uh… M1 is uh… cash in circulation uh… plus checking, checking accounts uh… M3 was the broadest measure that
incorporated the most different types of of bank deposits and so on, not at all the entire currency supply,
the entire currency supply is actually total credit so about 53 trillion
today and it's uh…
Stalled and started to shrink. But M3, they used to
publish it every month it was the uh… measurement of the
currency supply that most newsletter writers and uh… on the news
that they would report and the Fed hid it from us
in March of 2006 claiming that it was too expensive
to compile all this information and that it was useless anyway that you
couldn't glean anything from M3 that you couldn't get from M2. Now, here's the real kicker. There is a… uh… M3 is… you take a whole bunch
of different monetary aggregates that the Fed publishes and you add them
together and you get M3. The only one that they don't publish
I believe it's uh… uh… euro-dollars I can't remember,
I believe it's euro-dollars, it was 0.6 percent of M3 so you can still reconstruct M3
off of all the other monetary aggregates plus minus
0.6 percent accuracy and there are several companies that do this,
shadow stats, shadow government statistics or shadowstats.com, is one of them, it's by John Williams. He's
one of the people that does and all the people that do their data agrees, so I'm like 99.4 because is there a 0.6
percent plus minus, I'm 99.4 percent sure that this information is correct, and what you see here is that
there's a little collapse going on of the currency supply up here, and it's not huge we've gone from
you know this would be 15 so about 14.7 trillion dollars down
to just under 14 trillion dollars in M3, but base currency is a component of the M3 that red part
on the bottom is part of it, and they've been pushing
that up like crazy Why? Because there's a credit
collapse going on right now.
When you deduct the base money from the credit based portion of this part of M3, so the portion of what we
borrow into existence what happens is that it shows this enormous
collapse going on. This is M3 minus base money and there's a 1.7 trillion-dollar collapse of the currency
supply, it's about 13 percent, Now, there's no time in history that this has
happened, this goes back to nineteen sixty except the beginning
of the Great Depression, that was the last time the currency
supply contracted was, the beginning of the
Great Depression. Usually there's a time lag
between stuff like this happening and the public feeling it so the Federal Reserve is borrowing currency
into existence like crazy and they're now doing direct purchases
of bonds from… They don't even go through that open market
operations shell game, that keeps you from
seeing what's going on, they're buying bonds directly from the
Treasury, this is Quantitative Easing they're calling it and that means there's
an emergency going on.
They're telling us that
everything's fine, that, you know all of their emergency efforts cured
everything, and the economy is OK what the hell is this right here? why in just the past couple of months
this is part of the quantitative easing why is the currency expanding? from uh… 2 trillion to 2.4? If everything was fine, the Federal Reserve
would not be doing that! They're scared shitless,
so it's happening they're doing anything they can to
prevent this deflationary collapse that I predicted in my book uh… you know I first started buying gold
when it was 325 bucks an ounce, actually it was 315 uh… 326 for golden eagles uh… that was October 2002, by April 2003 I had discovered silver and I was all in. I can see, I was reading in 2001 and 2002 I was researching what was going on in
the global economy every single day, I was addicted to it. And by October of 2002 I
started making my commitment and by April of 2003
I was all in. In 2004 I started speaking on it.
In 2005 I incorporated goldsilver.com
and became a precious metals dealer and start writing my
book and that was published in 2008, so I didn't just bet my portfolio
on it, I bet my entire life on it. I can see that
there wasn't anything in history as far as finances go that
was as much of this sure bet, a sure thing as gold and silver accounting for the
expansion of the fiat currency supply.
Gold and silver are denominated in this fiat currency, these digital numbers
that they type into the computers and paper notes so they just run off the
printing press and it's all borrowed into existence. Periodically throughout history
for the past 2400 years they have done this. This is… the lower line is the value of
the gold held at the Treasury so the uh…
The number of ounces
of gold times the price. The upper line is the currency in
circulation, base money. And that this is from the
year 1918 and here we have the stock market crash in 29
and these are the bank runs of the 30 where people
were asking for gold. But they printed too many receipts for
gold. If you can go back to before World War One these two lines
would converge. They diverge there and we've
created this lie where we were creating all these receipts for gold,
these claimchecks on gold that didn't exist.
When people wanted it, Roosevelt had to make private ownership
of gold illegal because there was a run on gold, and in the United States
americans could not own gold. And then a year later they
unpegged the dollar from gold and the dollar's value plummeted, so that it took, it went from
taking 20 dollars to purchase one ounce of gold uh…it then required 35 dollars to purchase,
so they called it a change in the price of gold, they can't change the price of gold
when you're on a worldwide gold standard, and gold has, you know, it's got
a certain intrinsic value.
The dollar fell. And so… what's amazing is accounted for
the currency supply. This is the free markets in the will of
the public forcing the government hands forcing them to change the rules.
Here's the same chart again uh… but now I've taken the
dates out further, so you can see uh… World War Two, the expansion
of the currency supply then in 59 uh… Charles de Gaulle,
the president of France uh… says we want our gold, other countries
started jumping on board and gold started leaving the vaults. Then I'm taking it out further
because that one goes out to 1971 In 1971 we go off of gold
but there's another line here, a blue line. how many here would say the credit
cards are replacing cash in circulation? Credit cards are replacing
cash in circulation. I believe they are and when you sign
a credit card receipt and you paid that merchant, the merchant's checking
account does not know the difference between credit card currency
that you created and cash that the Federal
Reserve created.
It can't tell the difference and that
currency that you created circulates until somebody saves it up and
pays down credit card debt. And so uh… I add that to the currency supply. Once Nixon took us off of gold, and
gold became a separately traded commodity/currency uh… the will of the public and the free
markets drove the price of gold up until once again the value of gold
held at the Treasury exceeded the currency supply and there was
a year where we could have gone back on the gold standard and it also covered outstanding
revolving credit for an entire month. So all it was doing is the
same thing as it did in 1934 and in Weimar Germany and
hundreds and hundreds of times since the year 407 BC with the
first grade inflation in Athens. This is the same chart again but it shows Ben Bernanke panicking
over here and this is the increase of base money.
That's that first chart that I
showed you, not first chart, but one where there was a red area on the bottom, so that's the increase
in base money. Well, there's the outstanding
revolving credit piled on top of it, uh… here's gold and what this means is that gold has to
rise from here to way up there to do the same
accounting that it has already done twice in the United States and
hundreds and hundreds of times in history. This is a natural thing. It does this
automatically. The will of the public and the free market force
this to happen.
I'd believe that is there's absolutely no chance
in hell that this won't happen, right now it takes about 15000 to
20000 dollar a ounce of gold So, here is another way of looking at the
same thing, and it's a great way of looking whether gold is undervalued
or overvalued. If you take just the paper
dollars, that base money and you say there's a certain amount of
paper dollars, how much gold do we have as a percentage of those
paper dollars to cover them? And so gold is expensive when we've got too much gold,
more than uh… paper dollars, and it's cheap when we don't have enough,
and it's very cheap uh… when uh… when it's way down here. Well, this is where we are as far as just the paper
dollars. Here's when you add outstanding revolving credit. This is what a debt collapse or
currency collapse looks like. We borrow uh… two units of currency
into existence here uh… and uh… to do that we promise to pay back, we're borrowing
this currency into existence with the bond the bond is over here,
say you've got uh…
These two units
of debt plus interest, so you owe back more than you're borrowing into
existence but then each month you're going to pay off a small portion of that debt, and so the next month we go
on borrow more into existence and we pay off, we keep on hang
off that debt every month and we always have to borrow more into
existence than we're paying off, but notice something. You notice how the debt is now growing
faster? It was only fifty percent higher but now it's a double,
it's a hundred percent. It grows faster than the currency supply. There comes a day where
this is unsustainable. If the public gets scared and they
stopped borrowing currency into existence and they save
up and pay down debt, the whole thing goes
into a deflationary collapse. This is what I was predicting and this
is what is happening right now. Thank you. uh… This is how much debt we owe
compared to the size of our economy.
If you owe fifty cents and
your economy is a dollar you owe fifty percent of
the size of the economy. If you owe five hundred billion and your
economy is one trillion you owe fifty percent the size of your economy. It's the same either way so uh…
this what this chart shows, is how much debt
the United States has, the National Debt, compared to the size of its economy, and it goes back to 1792, which was
when the original coinage act of the United States was created, and there was debt leftover from the revolutionary war and,
so that's this debt here at the very beginning of the chart, right there and what you see is that it never
exceeded the fifty percent level, until World War Two, this includes the Civil War, World War One and the
establishment of the Federal Reserve, uh… the Great Depression. You see that during the twenties we were
growing the economy faster than the debt, and so the debt compared to the size of
the economy is a smaller and smaller uh…
Portion because we were having the roaring
twenties, the economy was growing and the debt wasn't
growing as fast, so on this chart the debt is shrinking
through the twenties but then suddenly in 1930 it goes up. Why? It wasn't because we were borrowing a
whole bunch of currency and going into debt, it's because
the economy shrank and our debt
stayed the same, so that was the last great deflation
that got us into uh… a deeper debt because we couldn't afford to
pay the debt that we owed, uh… the economy shrank faster then we do the deficit spending for
World War Two and we can exceed this level of fifty percent because now we
have this fiat currency system, where we could just borrow
currency into existence but when you do that a bond, bonds range from like a month to
thirty years out into the future that you're going to pay them back, that means we're borrowing prosperity
out of the future.
You remember how I said you save up some of the currency
supply and you can pay tax to pay the principle plus interest. So the prosperity that we're
enjoying right now, this moment is owed back in the future. We have to pay a principle plus interest
for the privilege now of having currency that we can use. Somebody is skimming off
the top basically, this is the way the banking system sort of skims
off the top, is through inflation there's people that get
rich off of this without having to do any work and putting their value into the
system, they get to skim purchasing power out of the
system through inflation. But every dollar that we borrow into
existence puts us in debt in the future, so we are every year borrowing
prosperity out of the future and we spend it today.
The average roll over for all the bonds
is about four-and-a-half years, so the prosperity that
we're enjoying right now we owe back uh… we've got to pay for
four-and-a-half years from now. And right now the taxes
that you're paying are paying for prosperity
during the Bush administration, We have already
spent it, it's gone. So then we started growing the economy
faster than we were doing deficits spending, so our debt compared to the size of the
economy goes down during the Korean War, in Vietnam, and then we have the end of the gold
standard and then Reagan says: "deficits don't matter" we can just go ahead and
spend as much as we want. uh… The debt increases. Just before
this era of the financial crisis, there's a little slope where it starts to go
down, that's the Clinton era.
They said that we had surpluses, it was uh… bullshit. If you look.. I don't look at the
government's accounting of whether or not they say we have a
surplus or deficit, what I look at is the National Debt. Did it go up? If it went up it meant we
spent more than we had. If it went down it means we had a surplus, we had excess
income above what we're spending and during the Clinton years
there was never a year where the actual national
debt went down. I don't know of the people in the United
States, from the United States here, remember when uh… Gore and Bush
were running against each other they're both telling us how they were
going to spend all this currency that was flowing in.
You know, they were each trying to compete on all the free crap they're
going to give us in the future, and uh… you know, that's how uh… actually that
isn't how Bush won… but that's another story. Anyway, These statistics are from the
congressional budget office. This is what our government is going to tell us,
is going to happen in the future, and it's not pretty. It's completely unsustainable,
it is impossible, it cannot happen,
you can't have debts that is ten times
the size of your economy. It's not possible. Everything comes
to a screeching halt first, and so something has to change. Right now, uh… I don't know if it got passed or
not, but the government I dont't keep up with the news,
I consider it all short term noise, it distracts you from what is
really going on, so I'm not sure did uh…
They settle on some sort of
budget and is the government gonna keep on running? Does anybody know this? Yes, they did? Did the republicans, who were trying to get
this thing passed whose gonna pay down the debt that they win? There's some sort of compromise. You see, it's deflationary. It would cost a financial collapse to try
and pay down this debt, you have to go into.. In order for us to maintain the levels we've
got and to maintain the prosperity Obama has to be a…
We have to be twice as far in debt when
he leaves office than when he came in. Or the whole thing is
starting to collapse. uh… so, more proof that we are
going into a deflation first. This is what a dead cat
bounce looks like. This is the stock market.
The stock rises uh… it peaks, takes a little dip, a bunch of investors come in, thinking
that they're scooping up deals and they start buying and it rises again and then
the crash continues because when they started buying it hadn't
reached fair value yet. It had just rollover taken a little bounce in
the market that's still uh… looking for a fair value so there's
the dead cat and it bounces.
There's the Nasdaq, so that's uh… uh… what a dead cat bounce
looks like. The initial crash on the Nasdaq was
38 percent. The total crash was 78 percent. This is the Dow in the 1929 crash
and the dead cat bounce, uh… the initial portion of
the crash was 48 percent, and the total crash was 90 percent, so in the first examples was
38 percent, 78 percent. 48 percent, 90 percent, so if
the initial crash is larger the rest of the crash
is going to be larger. We are going through a giant
version of the 1929 crash or the Nasdaq crash. We just had the biggest
crash in history: the Dow which is supposed to be the biggest,
safest, securest. The 30 largest companies in the United States uh… just crashed by 56 percent and we are in a
dead cat bounce, meaning that ultimately the total crash should be greater
than 90 percent from its high. This is the best way of measuring the value of a stock, and I'm sorry if I'm going
fast and this isn't sinking in, I've got lot of stuff here and
I've got to cover it, only got twenty minutes left, I gotta show you that the world's
stock markets and real estate bubbles have to continue crashing because all it is is that market trying
to seek fair value, it's trying to seek equilibrium, this is what the markets do, it is their job.
The SP 500, these are PE ratios,
how many here knows know what a PE ratio is? OK, how many do not? It's OK, raise your hand
and say that you don't. OK, it's the price of a share of stock divided by the earnings
of the company. So it's basically how much is this
stock costing me, compared to how much is the company making. And one of the best ways, the entire industry stock market, the
industry, the financial industry agrees that this is
probably the best way of measuring the true value of the stock,
whether it's overpriced or underpriced when you're buying it.
The S&P only goes back to the
year 1950 but professor Robert Shiller of Yale University uh… reconstructed the S&P and took the
500 largest companies in America and took it all the way back to the year 1880. So you have a hundred and twenty years or two hundred
and twenty one years of data here. Fair value is when PE ratios are about
12, meaning you're paying twelve times the
earnings of the stock, so if you buy a stock its going to…
if nothing else changes and the company continues making the same amount
every year, it's gonna take you 12 years to make your uh…
Money back and be in profit. Undervalued is anything under 10,
overvalued is 15 to 18, anything over 18 is a bubble, and so here's the data
going back to the year 1880 and what you see here is that there is no time in history that
we go from fair value to overvalued, once it hits overvalued, it does not stop, it bounces
on the way down, and visits undervalued, overvalued,
undervalued, overvalued, undervalued, overvalued, undervalued. The greatest bubble in history, the year 2000 PE is at almost 45, absolutely insane
investing in a stock and having to wait 45
years to be in profit. This was nuts and people were chasing
stocks like crazy. This is the tech boom and so on. Well, it crashed down the fair value
during the market crash of 2008 and it bounced back
into a bubble, where PE is about 23 or 24 right now. The stock markets seek equilibrium. They
seek fair value over the years. This is their job, that is what they do. There's a famous trader
named Bernard Baruch who said in the short term the stock
market is a voting machine, is like a stock machine, I mean, it's
a slot machine or voting machine it does what the public
thinks it should do.
The public chases after
something, it goes into a bubble, but in the long term
it's a weighing machine, it balances, its scales balancing each other. That's what the stock market is
always trying to do: seek fair value. It's only there for brief
moments in history, but the point is that every
time we are in a bubble, it visits severely undervalued and the
greater the bubble, usually the greater you overshoot fair value. uh… This is the second best way of
measuring a stock's value: the dividend yield. If you
buy a stock for a buck and that company pays you six cents every
year into your brokerage account you're getting a six-percent yield. I have inverted this chart because uh… the higher the yield the more
undervalued the stock is, the lower the yield more overvalued it is. So I inverted it, so
the bubbles are up and undervalued is down, uh… so fair value is uh… four and a half
to almost six uh… so there you see the
same pattern as before, but here's what's alarming.
It's that there is no time in
the first 118 years of data that we have been
in a bubble this large. This is absolute insanity
and it can not last. There are two ways that the
market can seek equilibrium. One: the market goes sideways for a decade
while we have raging inflation that will balance this out and then bring
dividend yields and PEs back into line. Two: it crashes, the markets go down, the currency supply is collapsing, therefore this has to be a
deflationary collapse, this can't be an inflation in what they
call an invisible crash.
Uh… these are the
world stock markets, so there you have the US stock market,
the England stock market, Germany stock market, this is Singapore and Japan. Notice that before the year 2000 Singapore and Japan used to trade in
different direction than the United States. The United States could be going up
while their stock market was going down. But before the year 2000 all of the markets
of all the major economies trade in the same
direction at the same time. Here is Brazil and here is Russia and in about the year 2003 they started trading in the same
direction and since the market crash of 2008 all markets,
all world markets go the same direction
at the same time. The S&P, the Dow they're way,
way overvalued in a bubble, we're having a deflationary
collapse of the currency supply, the markets have to go down, when they do, the rest of the world's,
where the United States goes so goes the rest of the world. These markets all have to collapse.
Now, we have some real estate bubbles going
on. The real estate bubble in the United States uh… took it basically burst in
the year 2007-2008 and it's been falling but I measure something
called the mortgage rent ratio, uh… fair value on a home is
if you're paying about a uh… uh… a dollar to a dollar five for the mortgage, the monthly
mortgage on a thirty-year mortgage plus your carry cost
like insurance and stuff, for each dollar that you can rent the
house for, if you were going to rent it.
We went into a bubble of a buck
twenty five in 1989-1990, fair value is about a buck five, and then we had the recession and it
went to ninety cents, on national average in the year 1995 uh… real estate cash flow by ten
percent, a single-family medium price home in the United States except you couldn't get a loan
back then, credit was tight, the economy was lousy, then we went into this real estate
bubble that was the greatest bubble in world history, where people are paying a buck
eighty-five, a buck ninety, almost two bucks for each dollar they
could rent the house for. uh… And then that bubble popped, and it came back down not to fair value but
to a buck twenty five and bounced, so it came back
down to the height of the previous bubble, it bounced, and we are right now at a buck twenty
five, so valuations on real estate are still as high as they were
in the bubble in 1989.
They have to come down or rents have to go up. This is all deflationary, which means
that rents are not going to go up, real estate is gonna come down. All of this travels
together, like I said. Now, when the world
stock markets crash, does anybody know about the bubbles that
are going on, the real estate bubbles that are going on in
the rest of the world? How many here are watching the videos
that we produce each week on Youtube and so on? OK, do you enjoy those videos? Yes, good. Are they informative? Yes. Do we try to sell you anything? No. All we do is we educate. So here is a video that we made in
Las Vegas uh… this is our driver very well-informed
man, very educated. uh… he was very informed on world
finance, the stock markets, real estate, he really knew what
was going on in Las Vegas and behind him there is a
uh…
Big casino project I can't remember the name of this one uh… there's the… Venetian in the background and
there's a building going up in front of that. this is the the casino project
that they were developing uh… and that's another shot of it. See that tall building behind it? That's a hotel called the Fountainbleu. If you go to the other
side of the Fountainbleu what you notice is that there's a bunch
of windows that are boarded over, this thing is skinned on the outside,
it's not finished on the inside, they've got a billion and a half into
it, now looking for another three billion dollars to finish this thing, and this stuff is all over Las Vegas, it's not
just in Las Vegas, it's all over the world.
This is in Moscow, this is a development called
Moscow's City Center, there's the project, you can't read it
unless you read Russian, uh… but all of these beautiful
buildings here, there's nine buildings one of them was completely in the
framing stage, another one was uh… half way completed of the others there are two that are
occupied and one that is one-third occupied, the rest are just skinned over, and they're not
completed on the inside. The project is at a standstill, uh… and then in front of this project there's
this giant hole in the ground and this is where the centerpiece
was supposed to be. This was Russia's bragging rights, this was going to be the
tallest building in Europe, Federation Tower, and it's
a hole in the ground, and it'll remain a hole
in the ground, that will never be finished.
Does anybody know what the Singapore
flyer is? I've only got ten minutes and I'm not gonna be able
to finish this thing, It's a big ferris wheel in Singapore, it's
one of the tallest in the world if not the tallest, I think it is the tallest, and here I am looking at
their real estate bubble and if you noticed there's cranes on top
of all these buildings here, uh… there's cranes everywhere. Look at
all those buildings being built uh… All bubbles burst, we are in
a worldwide credit bubble, when these markets rollover the giant real estate bubbles that were going up and then took a
little breath when our markets crashed their bubbles kept on going after
pausing, when our real estate bubble uh… popped and started
reverting back to fair value. The markets are just trying to seek fair
value, that's all they're doing. But people and the world
central banks go: "Oh, my God!" every time there's a little crash "we gotta do something about it!" It doesn't feel good to be in a recession
so they try and pump everything up but they don't realize that they're
just making everything worse later.
Everything they do is gonna come
back to haunt them as more uh… inflation eventually uh… or this deflation I'm talking about
is the expansion of credit contracting. Here's another thing that is going on that is going to mean that this decade
is different than anything else that you have known. uh… People don't realize
that every 30 to 40 years the world has an entirely
new monetary system. It changes every 30 to 40 years. In 1873 Germany started
the Classical Gold Standard uh… and by 1900 pretty much every developed country
on the planet was on the standard where every note in circulation that was
put out by their treasury was backed by an equivalent amount of gold, so it was 100 percent backing, uh…
Then World War One happened, all the combatants in Europe went
off of the Classical Gold Standard and started printing, and between the wars we had something called the gold
exchange standard where it was a mixture of debt and uh… gold backing the currency uh… then that was a very poorly
constructed man-made system, and anything man-made
cannot last, so basically they were uh… the Federal Reserve, under the Federal
Reserve Act there was a 40 percent reserve ratio and they were allowed to put uh…
A fifty dollar bill into circulation
for each twenty dollars worth of gold that they had
backing the fifty dollars, so they're putting claimchecks on gold
in excess of the amount of gold that they actually had. Ever since the Federal Reserve was born
we have been living under a lie. And if people say that we've got free
markets in the United States, they're wrong. You cannot have free markets
without free market money. Your currency is fifty percent
of every transaction, all of the transactions
are the free market. If there's a small group of men
deciding what currency is and how much the cost of currency is
going to be, the interest rates, that isn't a free market.
We do not have free markets,
we haven't had since the year 1913, then we have uh… something called the
Bretton Woods system, the Classical Gold Standard broke down, the Bretton Woods
system was from 1944 where uh… all of the world's uh… currencies would be backed
by the US dollar at 35 dollars an ounce and foreign
central banks only could exchange those dollars
for gold at the New York Fed, for 35 dollars per ounce, so all the world's currencies were
pegged to gold but through the US dollar. uh… All of these countries started
asking for dollars and gold flowed out of the vaults and Nixon had to take
us off the gold standard in 1971, so you've got 30 to 40 years,
30 years, 28 years, 39 years plus what's next? In this decade there's going to be an
emergency meeting of the G7, of the G20 countries, and there going to be trying to hash out a
new world monetary system and they're already working on it, they're trying to figure out what they're going to do
when the dollar collapses.
Uh… Here's the differences between the seventies bull market and today and
this is the reason I say that you really can't compare them,
their isn't any comparison, and remember in eight years gold went up 24 times its price
silver went up 36, these are enormous winnings in such a
short period of time. uh… In the seventies it was basically
North America and Western Europe, that drove the price
of the precious metals, the exchanges were the
London Metals Exchange, and the Commodities Exchanges
in the United States, that's where the price of
gold and silver was set. All of the USSR they could not participate, there were no
exchanges there, there's no market for gold and silver and even if you could buy some, it was on
the black market, so your investment did not affect the worldwide price. Those
people were excluded in participating in this bull market and driving
the price of gold forward.
China under Mao, same thing, first of all everybody was making a
subsistence living, very few people even had electricity let alone being able to
go and invest in gold. India, Mexico, South America, these
countries were all very poor at that time, the world's richest man is Carlos Slim, and uh… he lives in Mexico City, uh… you have massive investors in all
of these countries now and in Shanghai investing is a sport, people will sit around in a room like this
and watch tickers go by and make their bets, uh… the rest of the world,
Africa, I mean, pretty much the whole rest of the world was excluded in
that bull market and gold went up 24 times and silver 36. So what…and back then too, news traveled very slowly, you turned on that old vaccum tube
TV set waiting 60 seconds for it warm up and then Walter Cronkite would
come on give you the price of gold and or you open the newspaper
the next day and uh…
Get your news 24
hours after it happened, and then you pick up the telephone and call
your broker and if you were lucky he can get an order onto the floor of the
exchange for you the same day, but possibly the next day. So, news and reaction
time was very slow. uh… Also the development
of the investor mindset. before the Arisa Act and before
Nixon took us off of gold, before 1971 when Nixon
took us off of gold if you went to work between your
late teens or mid twenties, depending on whether you went
to college or not, you could expect that if you saved ten percent of your
income every month then when we got into your sixties you can
retire and live off the interest in your savings account.
Can you do that today? Nobody
can live off the interest of its savings account, unless he got
twenty million bucks sitting there, fifty million bucks, that's the
only way you're going to get by. and you wouldn't leave in the savings
account because you're losing to inflation, your principle is
getting whittled away because of inflation. uh… So, my parents' generation were savers not speculators and investors. uh… What's different today? Today, the entire world
can participate. It's roughly ten times the
populations that can participate in this bull market. News travels at the speed of light over
a tremendous variety of media outlets. You can get the news on your cell phone, on your laptop, uh… And an investor crossing the Sahara, we're out filming in front of the
pyramids and there's this Bedouin guy sitting on the ground and he's
got some sticks and he's starting a fire to make some tea, and he's on his cell phone.
This guy crossing the desert can take his
Apple Iphone, check the price of gold and place a trade right there. Is this a different world or not? Yes? OK? uh… Then you have the development of the
investor mindset. Along comes the tech bubble, and Nasdaq and everybody got themselves a
trading platform and became a day trader, uh… and then they got
punished, the market crashed. Then you've got a real estate bubble that
happens and everybody starts chasing real estate, and then they get
foreclosed on, on real estate, the bubble popped at least
here in the US and England, the bubbles are still going on all down
the coast of China and Australia and New Zealand, those bubbles are massive and
they're about to burst.
Uh… And so they got punished, nobody has been punished on
precious metals for 30 years. Our memories just aren't
that long so the next great bubble is absolutely
destined to be precious metals. Nobody has been burned out on it, you
know, nobody that's chasing after an investment to either secure their retirement or to
buy them that new Lamborghini. uh… And so the development of the investor mindset,
this is really critical to try and figure out.
How many units of currency around the
planet are gonna come chasing the same tiny little pile of gold and a
pile of silver that's about one fifth the size that was in 1980? uh… It's at least ten times the
eligible populations, each one of them has at
least ten times the currency, and, you know, as I think about this it's
probably greater than these figures I was saying that there
was somewhere between ten and one hundred times
more investors but think about this: In all of the USSR and China, more that
half the world's population, there was not one investor, not one and today it's the sport in Shanghai.
So i think this is probably over a
hundred, it might be a thousand I don't know. So you can take these figures and
possibly add a zero to them and that's the potential amount of units of
currency that can come chasing the same… I mean we had 2 billion
ounces of gold back then, uh… on the markets, and today there's
2.2, so it's 10 percent more gold, but silver there's only about
600 million ounces of silver on the exhanges, 500 million
ounces, 600 million ounces. uh… Here's the 747, and here's a little man with very strong
legs that just dropped out of the sky, this is for scale, and if you took all of the
silver ever mined in history it would fit into a cube about that size
on the scale and all the gold ever mined in history would be a cube about that size,
however, gold has two basic functions: money and jewelry, and that's a pretty much it.
Only 5
percent of gold production gets used in industry. Silver is the second most useful
commodity known to man, oil is the first with about 30.000 uses, silver is second with about 10.000
uses but we use it in microscopic amounts. When you type on the keyboard you're
typing on silver, when you look at a DVD or a CD you're looking at silver, when you look
in the mirror, you're looking at silver. When you look through a thermal pane
window, you're looking through silver. It's everywhere, it's a biocide,
it's going into superconductors, it's going into RFID chips, but you know what?
None of that matters.
What's going to drive the price of
silver is investment demand, it's the public rushing into this and
when gold gets too expensive for the public, they switch their preference to
silver, this is what happened back in in late 1979 and early 1980, silver lagged gold and then uh… silver
just exploded because gold got too expensive. But silver has already been
outperforming gold, and there will come a day when there's
commentators on MSNBC, Fox News, CNN they're going to be showing with… Whenever you're in a bubble,
whatever is in a bubble and the public is chasing, they want to hear about,
and the news accommodates, they give you whatever you want to hear
about, they don't tell you what they should be telling you, they tell you what
you want to hear.
And there's going to be
people on air like me showing charts and saying: "Of course,
silver has been outperforming gold, there's less of it". "There's five times more gold for
investors to buy than there is silver" that's the reason is been outperforming
gold so, is it possible that silver could actually exceed the price of gold? Sure, it is. All you have to do is look at
these insane bubbles that have happened in the past like
the tulip mania of 1637. I don't know if it will, I don't
actually expect it to, but it definitely could because it's
more rare and the markets do something called the price discovery
mechanism where they try to find out, uh…
they set the price based upon
the equilibrium that's determined by the rarity of the two items. uh… That's been going
on for centuries, the price discovery mechanism
is not broken, it still works, uh… and I expect it to work, so we use up
the silver, so the result is, this is what they look like today. Now, cubes are deceiving that so
the gold cube's actually about four, five times larger than the silver cube. If you take a cubic foot,
that's a foot by a foot by a foot. And if you make it 2 feet by 2 feet
by 2 feet, it hasn't doubled, it's now 8 cubic feet. So, uh… as you double the measurements on
a cube, it goes up in volume eight times, so there's actually about four, five
times more gold than there is silver on the exchanges that
investors can buy, so when people come flooding into this,
I do expect this…
Right now silver's value is 1/35 of gold. I expect it to outperform gold
by at least a factor of 3.5, I'm expecting a 10/1 ratio
at an absolute minimum. uh… Silver being 1/5 of
gold's price is perfectly logical, if it's going up slow and it hits gold's
price then all the industry will just switched to gold because that's the
only other metal they can use in most of these instances. They can use platinum, rhodium,
paladium and gold but they only mine 5 million ounces each per year of
platinum, rhodium and paladium. They use 900 million
ounces of silver so there's not enough of those other
metals, the only alternative to silver in most of these applications, like
keyboards in electronics, is gold. uh… So if it was going up slowly and
it did hit the price of gold, gold can stop it in its tracks, if there's a
rush gold can go past, however silver is much cheaper to mine than
gold and it wouldn't stay there. uh… We are always trying to figure
this stuff out at our company, trying to measure it and see
when to buy, when to sell.
Now… Can you roll that… This is a clip from one of our Youtube videos,
and this is the insiders video that uh… our customers at Goldsilver.com,
they got to see this two months ago and then we just released it, and so this is the type of
information that you get, and when we're nearing a top, our
customers are going to be informed on what we are doing, so, can you roll that video, please? And what you see is that when you're
coming off the bubble, when it's overvalued it has never in 130 years, just gone back to fair value and gone
back up into a bubble, it always continues on its uh…
Way down in a
bear market until it goes to severely undervalued and then a new bull market
starts again and it start rising. Well, we are in a bubble, it has to seek equilibrium,
it's probably gonna blow right past it and go to severely
undervalued, just like it has every time for the
past 130 years. So real estate and stocks are
doing this at the same time, while we're in a bull market for
precious metals and there is a problem with currencies.
So we are going to be measuring all
these things very carefully, and then using some confirming
indicators that should flash to us when to get ready to sell and
we're going to be letting you know, so thanks a lot, I hope you have some
great holidays, I'll see you later. I was standing in front of a green screen just sort
of drawing this charts out of memory and our animator Adam had to sort of flow the charts
in front of me and move them around to match them up with my finger, but uh… uh… that is what you
get as a customer, it's on the Youtube channel "Why Gold
And Silver?" so if you do a search for "sell silver Mike Maloney", because it's when to sell your gold and silver
so "sell silver Mike Maloney" you'll get that video in its entirety,
and there are dozens of videos on "WhyGoldAndSilver" "GoldMikeMaloney" and "WealthCycles".
So those are the 3 Youtube channels that you can go to, and each one of them
has a few dozen videos on it. uh… This is the gold panic
in 1948 in Shanghai, if you wait until the last minute, I'm not very good at swearing,
Robert Kiyosaki is great at it so I usually don't swear much on stage, but if you wait until the last minute,
you are shit out of luck, up shit creek, without a paddle in a
barbed wire canoe, fucked! Thank you! Unlike the second
to the last frame here, here's one thing
people do not realize. It does not take Ben Bernanke to print the dollar
into oblivion for gold to go to 10.000 dollars an ounce,
50.000 dollars an ounce, 100.000 dollars an ounce. All it takes are a few very wealthy investors
to try to get theirs before the masses wake up
and the herd comes charging in, but this is the masses,
this is the people waking up out of their beer-and-football
induced comas, coming in at the last second, well,
this is sort of a different situation, because their currencies were going to
to go to zero because of war, but basically, you've to get in
ahead of the trend, and then get out when everybody
else is panicking like that.
Like I said, this is the greatest
wealth transfer in history, but you have no idea
of the scale until you think. If we do have a change
in our monetary system and if we have to go back to
some sort of asset backed currency that means that the people that are
holding non asset backed currencies, which is all the currencies
on the planet today, their wealth is transferred to
the holders of precious metals. This is the greatest wealth transfer in
history, therefore it is the greatest opportunity in history. By the way, is Stephanie Wing here? Stephanie stand up for just a second.
Stephanie's grandfather's sister was the Secretary during the
roaring twenties and through the stock market crash and then
in the depths of the Great Depression, she started buying stocks
when everybody else was selling and when stocks were like the bad,
and the poisoned investment that you did not want
to get involved in. Stephanie's grandfather's sister
started buying the stocks, she is an example of wealth cycles, she rode this stocks up and I
don't know exactly when she did it, but she must have sort of innate sense
that the stocks were overvalued, and she sold the stocks and bought real estate.
If you go to the French Embassy in Washington DC that was her hotel, thank you, Stephanie.
So, thank you very much, we'll see
out in the lobby where you can get Free 100 trillion bucks from us, thanks! So, I just came off
stage of the event, and you know, it's great, the event went great, all the information
was very well received, it was a great audience, but, you know? Even though it's so rewarding to talk to the people live
and hear their reaction still reaching a few hundred or a few thousand people at a time. It's not good enough any more,
we're really in an emergency and we need to start reaching
millions of people at a time, and that's why I'm trying to go more video oriented, than travelling around the planet
like I have been, country by country, telling 400 to 4.000 people at a time. So, you know, hopefully I'm hoping that I don't
have to make any more personal appearances, that I can just produce videos, write books
and get the information out there as fast as possible and reach millions instead of thousands.
Well, we've been working on a
documentary and we have been around the world, Taiwan, Singapore,
Australia, New Zealand Colombia, Peru, Ecuador, London, Saint Petersburg (Russia), Moscow Germany, Rome, Paris, Athens (Greece), and we shot in front of the pyramids in Egypt,
it's been a spectacular trip, trying to put together this documentary and I think that's going to be really enjoyable
for people and highly educational. No chance in hell that
it's gonna happen, as far as a one world currency
that everybody is going to use. But what you see here
is that in the XAU since the early eighties, on the average, gold and silver outperformed the
stocks, on the average. …you've gotta get started, that'why…
the free markets always overwhelm manipulations, it's a doomed plan, eventually it will fail, but, they've got to position so accordingly,
they've got to be ready, you can't wait… because you can see 200, 300 point gap days for gold.
Basically,you know, one
thing you find out is that all fiat currencies eventually
fall to their intrinsic value, because they ruin it by puttink ink on it.
It's the amount of energy you can extract from it, the amount of the BTUs, from combustion, when you burn it, and you saw
that during the Weimar hyperinflation, people used the currency as fuel to heat the house.
Currencies have been backed by oil, by gold and silver by land, but as soon as you remove
some things that you can't, some things that put financial constraint, where
you just can't print as much currency as you want, the currency is pretty much doomed. It's beyond astonishing… If it
wasn't for the horrific effects, it would be more ludicrous, it would be actually comical,
that we can stop and have some fun with, and it's actually horrific, if you look back
in history in the last 3000 years, every episode of this kind of silly crap ended very very badly…
Is gold a good investment in 2023? – Robert Kiyosaki, Jim Clark, Charles Goyette
Jason 0 Comments Retire Wealthy Retirement Planning
(upbeat music) – [Narrator] This is "The
Rich Dad Radio Show." The good news and bad news about money. Here's Robert Kiyosaki. – Hello, hello, hello, Robert Kiyosaki, "The Rich Dad Radio Show." The good news and bad
news about this here. This is cash, and this trash. So today we're going to be
talking about the hottest subject on the market today, and it's not real estate, what it is here is this is gold, and this is silver, and of course there's Bitcoin.
So those are the three things. And the reason they're the
hottest subjects on the earth right now is because our money is fake. So this is one of my
favorite books here, "Fake." I'll tell you a quick story
before we get into why gold, silver, and Bitcoin is,
that I was at Safeway, and I'm kind of a guru at
the salad counter at Safeway.
(Robert laughing)
All the women were coming up to me going, "Hey,
what should we invest in? What should we invest in?" And I just happened to be
having in my pocket here, this is a pre '64 US quarter, and it's given to you by
my friend, Dana Samuelson, he's in Austin, Texas. He is American Gold
Exchange in Austin, Texas. Dana Samuelson. So he knows I'm a silver nut. So this is a pre '64, and
pre '64 means it's silver. After '64, it became fake money. It became this here. So I held this up here to the ladies, they want the hottest tip,
and I said, "Buy this here." They went, "Oh!" A quarter? I can afford a quarter." I said, "Yeah, but I'll
charge you $3 for it." And you should have seen their brains, the salad was flying all over the place. (all laughing) (Robert speaking gibberish) I said, "Okay, I'll tell you what, $2." (Robert yelling) They were screaming,
not screaming, but just, "Why would I pay you $2 for a quarter?" And I said, "But this is pre '64." They just could not figure it out.
Now, that's the lesson of today, is that people don't know
that our money is fake. And that's why Rich Dad
exists and all this. But the sad thing about it is, is that AARP turned on my article because I wrote a story of
my mother, I used to save real quarters, cause when
I was 17 years old, in '64, I saw the quarter go to copper.
It was fake. It was an alloy. So I started collecting
dimes and then quarters and half dollars. I had this big bag of real silver. And my mother says, "What are you doing?" I said, "This is real money." So this is, '64, '65, I
go to school in New York. '66, I come home, my mother spent it all. (all laughing) And so I wrote the story for
AARP, they turned it down. I said, "The lesson is
poor people are poor cause they don't know fake money." They don't know the
difference between real money and fake money. So this is a very important lesson here. I have some two friends here from years, and like I said, Dana Samuelson
of American Gold Exchange in Austin, Texas. This is a special category of silver.
It's called numismatic. And numismatic means
collectible and antique. And the reason I respect
Dana is because he was head of the American Numismatics. So I don't buy numismatic, I
don't buy collectible coins, I buy real gold, silver. But if I want numismatic,
like an antique Dodge or something, whatever it is,
if I want an antique coin, I see Dana because there's
a lot of fakes out there. A lot of fake coins. So you got to be very careful today.
But like I said, this
is the hottest subject. I have two great friends here. So Jim, and this is Charles Goyette here. This is his book here, "Red
and Blue and Broke All Over." (men chuckling) So Jim, how long have you
been in this business of gold? – 50 Years. – 50 Years.
– Yeah. – Our time is coming
on this one, isn't it? – Well, I thought it was
coming in 1973 when I got in the business. And it was just a year
and a half or so after Nixon had removed the gold and we got everyone off the gold standard. – The dollar was backed by this here. This is real gold. So in '71, this was pulled out too, right? – [Jim] Right. – Because you just print
as much as you like. – Well it was no longer
backed by anything. It was a Federal Reserve
note, which is no more federal than Federal Express. And we were required
to take that as money, whether we liked it or not. – Right. Right. Another thing too, I
was in Vietnam in '70. '71, I was on my way
over, '72 I was there, and '73 I returned and I
bought my first gold coin.
It was a South African Krugerrand. And the Vietnamese woman, gold was $35 for years, and then in '71 it floated
to about 50, let's say. And so I thought, "Well,
I'll go talk to her." She was behind enemy lines, I
flew my helicopter in there, tried to negotiate with her. I said, "Look, I'll give you 40 of
these for one of these. And she's going, "Spot." I go, "Let me say it again. 40 of these. for one of these," she goes, "Spot." I said, "What the hell
is she talking about?" Well, she was saying spot that day was 50. And all of a sudden here, I'm
a college graduate, hopefully, with my other college graduate,
two pilots standing there going, "We don't know
shit about money, do we?" So spot meant that on
that day, it was 50 bucks.
And I thought because she
was behind enemy lines, I could get it for 40. No such deal. Gold is gold. Spot is spot. Silver is silver. This is real money. So Mr. Goyette, Charles,
why did you write this? Tell us something about your background, why did you write this book here? – Well, one thing is Jim and I
were in the business together a very long time ago that
he was talking about. But you just reminded me about spot. I remember seeing the
"National Geographic" special, this is back in the 70s,
and they went to these guys, these kind of third worlders
in the Amazon rainforest, way deep in the jungle, and these people didn't have any clothes, didn't have any electricity, but they were panning for gold there.
And the camera crew came up
and tried to buy their gold and they knew what the
London goldfish was that day. (all laughing) They totally knew what the
world price of gold was, spot price of gold,
cause it's international, it's all over the world, and it's a real price
for real money, isn't it? – Yeah, the sad thing about
it is I think Americans are the least to know about money. Because we have the Federal Reserve note. I'll tell you one last
story; I was in Peru, I bought a gold mine in Peru. There's no rain, there's just baron hills, mountains up in the Andes. And I see these little
holes up there, I go, "What the hell's that?" And my little Inca guide says, "We've been drilling gold
here for thousands of years, asshole." (all laughing) I said, "I'm not the first guy up here?" "No, you're not the first guy up here." "My great, great, great,
great, great, great grandfathers were yanking
the stuff out for years." And Bizarro came to Peru
and killed them all, took their gold.
– [Charles] Stole their gold. – And so that's why the
Spanish became the empire at the time. Someone from Spain, England, America, America's gone now. So that's what we're
here to talk about today. And we're old enough, the
three of us, to understand that this here is real and this here is fake. But most people would rather have this. This is the problem. – Robert, I saw one of those
YouTube videos where the guys on the boardwalk in Santa
Monica, it's kind of like jaywalking, like what's
the name of the moon? But he's walking around
with a chocolate bar and a silver coin, and he says to the people, he said, "Would you rather have
this chocolate bar," or I think it was a silver bar. – [Jim] A silver bar. It was Mark Dice.
– Yeah. And the people go, "Mm, I'll
take that chocolate bar." (all laughing) So they get a $2 chocolate bar, or a- – It was a 10 ounce silver
bar, it was about $300. And they'd rather have the chocolate bar than the silver bar.
– [Charles] They know no better, it's Jaywalking America. – And I'll say this again, it's the most important lesson: poor people don't know the
difference between real money and fake money.
And that is what it comes down to. So it was in '71, this used
to be a silver certificate, now it's a Federal Reserve IOU. It used to be backed by gold up to, no, this was '67, '64, excuse me, it was silver. And then in '71, Nixon
took the gold out of it. Johnson took this out of
the silver certificate. – Yeah, I remember I was
telling you that story the other night. I remember in 1964 where
we're sitting around the TV, Johnson came on and said,
"Silver has become too valuable to be used as money." And just as I'm sitting here, my dad said, "That son of a bitch.
They're going to take the silver out and they're going to leave
us this garbage coins." And he didn't really
understand it, but he got it. And from that point on,
he saved silver coins. He had about $8,000 worth by
the time he cashed them in in 1980. – Yeah. And I was in South Carolina
where I have a home, and this guy said that his
father ran the theater, and his father said, "There's
just yanking out all the silver coins." The lesson again, is poor
people don't know the difference between real money and fake money. And that's why in "Rich
Dad, Poor Dad" I said, "The rich don't work for
money because it's fake." So the reason I like to have
Jim here and Charles is because this stuff is getting
harder to find right now.
And I was panicking cause I
deal with a lot of guys who have gold and silver. So I called my friends up,
"We cannot get silver." I went, "What?" This is about what,
seven, eight months ago, we couldn't get silver. So you guys are Republic
Monetary Exchange. – [Jim] Yeah.
– Yeah. On Camelback. And I called these guys,
they said, "We got plenty." – Jim has been very,
very good over the years at making sure that the
inventories are high. He could see when these
runs are starting and stuff and the premiums are
starting to go up and stuff. And he's always put his clients first. He makes sure, we're going
to commit a lot of capital to make sure that our
clients can come in the door and get their gold and silver.
The worst thing in the world
is these companies that say, "Well, give us your money now and then we're going to deliver
your gold or we'll send you your silver in six months or something." Don't do that! Don't do that. So Jim's just really
created a name for himself in his ability to always
deliver to his clients. – Well I've always stayed ahead
of the curve, that you can anticipate needs after
50 years in the business. – Well, not everybody can,
because I was panicking, Okay, well step back.
You have the spot price. So let's say today the spot's 20 bucks. There's a premium on top of this coin, or this coin, should I say. What does the spot and the premium mean? – On that particular coin,
it's typically between $4 and $5 an ounce over the spot price. – So spot is the price
all across the world? – Right. And then all of the
products and coins and bars and so forth, they will
be priced accordingly based on the availability, the demand, the cost of refining and
putting them in the coins and shipping and distributor
markup, dealer markup, our markup and all that.
So there's always a premium that you pay to get the finished product. – That's like the tip at
the end of the dinner. (all laughing) – No, it's worse than that. – Yeah! I was watching Fox News
this morning, Fox Business, and they were bitching
about how, she went, where did she go? Oh, she went to the dry cleaners and she charged her, she
put it on a credit card for her dry cleaning; it said, tip 20%.
She goes, "Why do I have to
tip you for my dry cleaning?" (all laughing) People are so desperate to
money because this is fake. It's terrible. – Well, and because they can print it so much that the value
is dropping every day. They print up billions every day. Look at the bills that they
signed of, 1.7 trillion. Where's that money coming from? Well, they've got to print it. Or they've got to create something through a keystroke entry. That means all the rest of
those Federal Reserve notes out there become worth just
that much less everyday.
– Yeah, this is trash. So I'll say it again, the
difference between rich people and poor people; rich people
know the difference between this and this. And so the Republic Monetary Exchange, there's a lot of people out there. Dana Samuelson, my friend,
he's my expert in numismatic. And I was impressed because
you guys had inventory. My other friend, Jerry Williams was out. And I said, "What the
hell?" This is a while ago, "What the hell's going
on?" It was running.
So it must mean there's
something going on because people would rather have this than this now, except for
the ladies at Safeway. (Robert laughing) – But they know now.
(all laughing) – It fried their brains. "Why would I give you $2 for that?" And I said, "That's the
riddle of the day, ladies." We're laughing, we had a great time. But it fried their brains. Said, "What, what, what, what?" And I said, "I have a book here for you, It's called 'Fake.'"
(Robert laughing) And this whole system is fake right now. So we come back, we're going more into how people lie, cheat and steal because anytime there's money,
there's a liar and cheater and stealer around there. I've been saying this for
years, this is God's money. This is fake money.
I like Bitcoin. I call it people's money. Now I don't know much about Bitcoin, but I'm just glad I bought it at six. That's all I know right now. So when we come back with
going more how you can know real money from fake money. Some of the other advantages of right now. I've been saying this for
years, I used to work for Lear, I still have Lear Capital Ads, I said, "Buy silver." And the reason is
everybody can afford this. I think this is about 30 bucks. How much is this today? – Just under $30 for one of those, yeah. – Everybody in the world
can afford 30 bucks. But they'd rather have this.
And that's today's Rich Dad
lesson. We'll be right back. (upbeat music) – [Announcer] Robert knows
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The Rich Dad Radio Show." The bad news about fake money.
And again, we're talking
about this stuff is fake and this is real money. We have friends, dear
friends, this is Jim Clark from Republic Monetary
here in Phoenix, Arizona. And Charles Goyette, here's
his book, "Red, White and Blue and Purple All Over." And we we're going broke. And so you guys have been
in the business for a while. I've been in the business
since '72 when I first bought my first gold coin. I still have that gold coin. – [Jim] Wow.
– It's not stored in America though, it's
stored someplace else. – [Charles] Where is that? Oh, you don't have to tell. – I'm going to open my
blabber mouth on TV. (all laughing) That's like my attorney
stands in front of this crowd, he says, "Yeah, I have a lot
of gold, I keep it at home." I said, "Why don't you just
tell everybody where to go? Why not just give them your address too." (all laughing) Attorney's aren't the
brightest guys on earth.
(all laughing) – Well I have strangers that will ask me, "Now, where should I store this?" I said, "I don't know and I don't care." – [Charles] And don't tell me.
– Well don't tell me. So the FBI come, "Did you know?" So Jim, tell us about
what you have right here. You have silver and you have gold. – So I have the kilogram of
silver, which is 32.15 ounces, and then I have a 10 ounce gold bar. And of course, when you
see something that big, how do I know that's real? So we have a device, it's a spectrometer, that we can put, that X-rays the bar. And I've got it all set up. So what I'm going to do
is I'm going to point the device at the silver and I'm going to get a reading. Put it on there maybe
four or five seconds.
It will read right into the bar. It'll come back. And if you can pick that up, right on the screen it says
AG, which is the chemical sign for silver, 99.99% pure. You know that this bar is absolute. We can do the same thing with- – Is there such a thing as fake silver? (crosstalk) Not too long ago, they caught some. – There were some companies
years ago that were making the silver and gold and it
wasn't coming out exactly pure. And what happens then is if
we find that, we just throw it in the melting pot and
then bring it up to pure. Cause you don't want to sell
a bar that's 94%, 95% pure. So it's out there, which
is why we spent $20,000 on this piece of equipment that we can find a counterfeit bar.
If it's not pure gold, we know right then, and this is paid for
itself many times over. Because so many times
somebody will come in and say, "Well hey, I've got this big block of gold and I want to sell it." Okay, let's have a look at it. You go through it, it's pyrite, or it's copper, or it's zinc. – Jim Recer was telling
us, in the New York Bank, he says they found some fake silver. – The bigger the bar, the
better chance that there is. So I'm going to do the
same thing with this gold. Because that's really the valuable. With a $20,000 piece of
metal, you want to make sure that it's what it's supposed to be. Same thing. We come up, AU, gold. 99.99% pure. Which is exactly what it's supposed to be. – So this is January, 2023. What would this cost me, if
I walked into your place, Republic Monetary
Exchange on Camelback Road in Phoenix, Arizona, What would that cost me? – Just over $900 for that. – For that?
– Yeah.
– My God. And how much is this thing here? – That's going to be
around 2,000, over 2,000, 2,050 or more. – This is 2,000, this
is a gold, what is it? – Eagle. American Gold Eagle.
– American Gold Eagle. And that's 900? – Right, that's a kilogram of over. This is going to be close to
$20,000 for this gold bar. – What is that now? – 10 ounces of gold. – [Charles] That feels like
real money doesn't in, Robert? – Can I trade you this for this? (all laughing) – Go get 20,000 more of
those and we'll do it. (all laughing) – You're a little light. (all laughing) – Actually, on that subject,
we were talking about this the other night, Robert,
about cash for gold. I'm one of the few people
who absolutely despise cash for buying gold, and
you'd think just the opposite, that I couldn't wait to get cash. But banks don't want it. Try and deposit $20,000
or $50,000 in cash.
They'll turn you away and
say, "Well, we got to do this, that and the other, and
we've got to file this form and we got to do that." Hey, I would rather have a
bank wire than cash anytime. – Jim's story really
illustrates something with- – Wait. He doesn't want cash. And I thought the reason is
because it might be dirty or it's hot money or whatever it is. It's just a pain in the butt. – Well, it's that, but you know what else? I'm thinking down the road, let's say I acquire $1
million or $2 million in cash that the banks don't want to take.
When this currency is repudiated,
I'm going to be stuck. Just like the people in Germany were twice in the 20th century that they were hauling wheel borrows full of Deutschmarks for a basket of groceries. – Fake money and brought Hitler to power. The the Weimar Republic and
the Reichsmark and all this. Every time there's fake
money, tyrants rise up. Because people know something is wrong. – Yep.
So here we go in this country. – [Robert] Right. – But Jim's attitude now
about cash really illustrates that the government, the
deep state, has won this war without legislation,
without public debate, they have won the war against cash. They've been at war at cash
because it's anonymous, they don't track you,
they can't follow you when you use cash, and
they've won the war. And so, the only alternative
people have to be off the grid, not to be tracked, not to be surveilled, gold and silver. That's it. That's all. – So once again, this is 1964. 1964, I was 17 years old and I
started looking at that thing like this. It was copper. The Romans did the same thing way back in at the end of their empire. So what were they doing when
they put copper in this thing? It's a law called Gresham's Law. What does Gresham's Law mean? – Bad money drives good
money out of circulation.
– So this money went into hiding. So I had bags of it. They said, "Go caddy, take my dollars, go to the
bank and pull out all the real stuff and hide the real stuff." I didn't know what I was
doing. I was 17 years old. Wasn't the brightest kid on the block. But I just knew this was fake. This was fake now. And then I come back
from school a year later, my mother spent it. That was a powerful lesson. AARP turned it down, they said,
"You're cruel to your mom." And I said, "Okay." Anyway, poor people don't
know real money from fake money.
So that's why we have Sara here. So what happened in '71, this became debt. So our company, at Rich Dad,
we encourage people to use debt. This is my other friend here. He's a financial planner who
doesn't recommend the 401k. John McGregor's, this is "The Top 10 Reasons
Why the Rich Go Broke." One of the reasons they go
broke is they have a plan for their money, but they
have no idea what money is. – Well, and I've talked
to people all the time that are multimillionaires,
they sold their business, they did this, that and the other and came into all this cash
that's sitting in the bank and said, "Well, you think
I should buy some gold with some of this?" I said, "Well, you know what they're
doing with the dollar, you know that they keep printing them, they can't print gold.
Now you tell me how much
you can afford to lose of all that money sitting
in the bank, and I would say leave that there and get
the rest of it in gold." It's a bigger risk having paper money. It's depreciating.
– It's a guaranteed loss. – And eventually, these
are going to be worthless. And we're in the 51st year of
fiat money when Nixon closed the gold window. A currency has never lasted
more than 50 years until now. And we're in year 51. How are we any different than
anywhere else in the world? – That's '71- – To 2023.
How are we any different? Look what they've done in Venezuela. They were one of the richest
countries in South America, in actually, the Western hemisphere. Look what they've done to Argentina. Look what they've done in Cuba. Look what they've done in Mexico. Same exact economic principles
that they broke there, we're doing the same things here. – Somebody asked me once, "Charles, how many paper
currencies have gone broke, have gone worthless over time?" And the answer is all of them.
– [Robert] All of them.
And the ones that people still
hold are only on their way. They just haven't arrived at
their final destination yet. – It's like I said, I'm 17
years old in 1964 going, "Something's wrong here." That's Gresham's Law. And I think that's one of the
reasons I'm a rich person, is I know real from fake. And then, so when Nixon
took the dollar off the gold standard in '71, I didn't
really know what that meant. But the first course, I
was in Vietnam in '73, I came back, '74, they made this legal. Remember that? It was illegal. So I had to smuggle
that, I was in Hong Kong, I had to buy my South African
Krugerrand in Hong Kong. I had to smuggle it into the country. Why was that? – It was in '74?
– Yeah.
– Yeah, because it was illegal
to own in bullion form. – Well, in '73 I brought it in. – It was a felony. It was a felony. They could put you in prison
for 10 years and charge you $10,000 fine. They made it a felony for
Americans, free people, to own monetary gold and silver. Or gold anyway. It was a felony. Was it dangerous? Was it going to blow up? Was
it nuclear contamination? Was it going to kill your
neighbors with poison? What was wrong? Well, it was of course,
you know the answer, it's always the same
answer, the government grabs all the gold cause it wants it for itself, so you can't be allowed to have any. It's exactly what they did.
– At that time there were
two very good senators, Steve Sims and Jesse Helms, who introduced the idea of
Americans owning gold because foreigners could own gold
and Americans couldn't. And if there's anything to be
said good about Gerald Ford, it was that he signed the
bill after it passed through both houses to make gold legal to own.
Now unfortunately, at the
time, gold was around $200 an ounce, and over the
next year and a half or so, it dropped to 100. So a lot of the curiosity
of owning gold disappeared. But fast forward to the Jimmy Carter days, 1976, gold went to 100. And by the end of
Carter's term it was 850. And silver went from about
$3 an ounce to $50 an ounce in that four year period. – So during Carter's trend, this was 850? What is this today? – 2,050.
– So why would you save this trash? (Charles laughing) That's what I'm saying here. – It's fake. How about that to sum it up? That's fake. – [Jim] It's a trick. – Another thing I want to
say, cause I'm a history buff, it's about the only subject
I did well in school, the reason he doesn't like the 401k is in 1974 when Ford put us
back on, we could own gold, they put us on the 401k. (indistinct) And today, this is the biggest
reason you want to own gold. Because our pensions, as they
keep raising interest rates, our 401ks are going down. But not only this, my book
wrote with the Ed Siedel, is our pensions are broke. So as the firefighters, police
officers, school teachers, their pensions are gone. So the fed's going to have to print. That's my whole summation. – Well, and what's crazy
about it too is that you get your statement online
every month and it says, "Oh my god, look, I have
$500,000 in my pension plan. Boy, that's going to last
me till the year 2050." It's not going to.
The dollar's not going to
be there, first of all, and the pensions are gone too. But gold will be there forever. – This will be here. This is God's money. We used this as money
for about 5,000 years. But God put it here on the
earth, and that's when I was in the Andes with my old Inca friend, I said, "Geez, look at those holes." He says, "Yeah, we've been
digging longer than you have." And I was in Mongolia, same
thing, there's a place called the Checker Board. They call it the Checker
Board because the Mongolians, this is thousands of years
ago, were digging for gold. Now they didn't have internet,
they didn't have iPhones and all this stuff. Humans intuitively knew to look for gold. That's what blew me away. – Well, and when you think about- – Except for the women at Safeway. They don't know gold from silver. – [Charles] They need a salad bar guru. (Robert laughing) – When you read the stories
about all the Spanish ships that have sunk over the years
coming across the Atlantic, and the explorers go down there, they're not going down there
looking for the currency of the realm of the day and
see if the paper survived; they're going down there
looking for the gold, they're going down there
looking for the silver.
And they find it. And what's amazing is
that if this bar had been in the bottom of the ocean for 500 years, it'll still be in this pristine condition. It doesn't rust. It doesn't erode. It will do the same thing
now 500 years later. And they've brought some
amazing coins that have been in the Spanish ships that
were in pristine condition, that have graded out
un-circulated, like it was the day that it came out of the mint. – What's that joke? Who's the guy in the fed? – [Charles] Ron Paul.
– Ron Paul, he said if a Spanish ship went down with gold, another ship went down with dollars, people would stop diving for dollars.
(all laughing) They still dive for gold. It's kind of a funny thing, but it's sad. But another thing too is I had a pile of extra
silver I bought from you, and I was handing them
on his Christmas gifts. It's $30 let's say. And one woman had four kids. I said, "Give each one of
your children one of them." One silver coin. I said, "It'll there when they
graduate from high school." "No, they'll probably have spend it." I said, "Yeah, they probably will." But that's the problem. I save this. I say in "Rich Dad, Poor
Dad," savers are losers because they save this. If you save this, and if you save this, what is this here? – $30. – Yeah, well what? – Silver, it's a silver round.
Just a generic silver one ounce piece. – It's a buffalo.
– Yeah. I'll call up Jim and
say, "I want buffalos." So he knows what I'm talking about. There's different goofy
kind of coins out there. But I'd rather save this
cause this will be here 10,000 years from now. This won't. You can pass it on from
generation to generation to generation. – I'll be surprised if that
paper dollar is here even 10 years from now. – I doubt it. Yeah. So anyway, we're in very
serious, serious trouble here. And this is the hottest subject going. For years, I've been saying buy silver because everybody can afford silver. When I offer them this
for $3, they went nuts. They went, "Why would I buy that?" Because they'd rather have this. That's the lesson. Final words there, Mr.
Jim. – Well, we sure appreciate
all you do for the freedom movement, Robert. And speaking about gold and
speaking about the fake money that we're passing around, it's a great lesson
for the next generation whether we realize it or not. At our age, and doing all
this for 50 years or more, we've got a great legacy to
pass on to the next generation because they just don't know.
And you are a patriot in the
true sense of the word, sir. Thank you for having us. – Thank you. – Robert, let me ditto that
too, because we're in for some really rough sledding in this country. There's some rough patch of road ahead and it didn't have to happen and
now it's going to happen. And as bad as it's going to be
for the people who understand the lessons that you've been
doing in your educational efforts and teaching them about money, the ones that take action
based on those kinds of recommendations and that
learn about this stuff, they will be so much better off. And the more of them there are
the better off we'll all be because maybe we can have
some kind of commerce still continue when the whole
thing goes topsy-turvy.
So thank you, Robert. – How many of the layoffs
are just starting right now? This is January 2023. – 10,000 at a crack by these companies. 10,000 here, 10,000 there. – [Robert] Because
they're working for this. – Yeah, and this is horrible stuff. These are people that are
living paycheck to paycheck like we've never seen before,
and their personal debt has never been so high as it is right now. – It's a disaster. – And there's now called
the working homeless. They have jobs but they
can't afford to live. – [Charles] Sleeping in their cars. – Yeah. That's because this is fake.
– [Charles] Yep. – Well we have a lot more
information on our website by the way, Robert. – The reason I invited you guys
cause you actually do teach. If you were just promoting your company, you wouldn't be here. So what is a book you have
and what is your website? – Okay, the website is RMEGold.com. – Dot what? Com? – .com, and then my- – I thought you said .gov, I was going, I didn't know you were a fed. (all laughing) – And my book is "Real
Money for Free People, the American Gold Story." – In fact, people that are in
the Phoenix area can stop by, Jim will sign a copy of the
book and give it to him.
But his book is a really good book. And there's a ton of
information on the website too to bring people up to
speed, to learn the lessons that you teach, like
the lessons about fake. And we have a new post
going up, for example, about your book, about pensions. – [Robert] Oh, thank you.
– Cause it's so important right now, especially now the
Congressional Budget Office just announced that Social
Security's finished at 2033. – Yeah. And the reason I wrote this
book was because in '74, that's why McGregor wrote this book here. That was a 401k. But that's when the pension
started getting looted. And now our generation,
the Boomer generation's in serious trouble for retirement. Cause I don't think
it's going to be there. – The American people lost
26% in their 401ks in the last year, through October, so it's very grim. – And that doesn't even
take into consideration the depreciating dollar to go with it too. – So, okay, watch's your website again? – RMEGold.com. – RME.
And then your book here is, Charles Goyette, Red, Blue. – "Red and Blue and Broke All Over: Restoring America's Free Economy." – You're an optimist, aren't you? – My publisher said, "Write
that book about how to put it back together, I said,
"You know they're not going to do that." And they're not, but it's there anyway. – They're going to keep
printing this because this gets more valuable. – We're beyond the point of no return. – [Charles] Yeah. – The sad thing about it is,
as the price of gold goes up, everybody else gets poorer. That's what breaks my heart. I love those girls at Safeway
serving me their salad and coleslaw and all this. It just blew their mind, they said, "$2 for this?" But that's what America
has sold the world there.
That this is valuable and this is fake. This is real. This is fake. – I'll give you $2 for
it, Robert, right now. – I know you would, that's
why I'm keeping it tight here. Here's my silver; the Lone
Ranger had the silver bullet, this is my silver bullet
from Dana Samuelson. Bite the bullet. (all laughing) So thank you, gentlemen.
Thanks for being teachers. And they have inventory. When things were really tough
I was scrambling because- – We were never without anything. – I'll tell you why I was panicking, if I waited a few more
days, the price would go up. And then when I ran in
there and then you guys, not you guys, but my other friend couldn't deliver me silver, I went.
And I said, "What am I going to do?" So I bought it that day
anyway for future delivery. So it was a gamble, so
basically a future delivery. – [Charles] Right. Yeah. – [Jim] it sounds like you did all right. – Yeah. Two last things: there's a thing called distribution and accumulation. Price of gold and silver is low, and silver and gold and
oil, I'm accumulating. I've been accumulating since '72. I own more gold than most people. Most of the gurus on TV. I own gold mines, silver mines because I believe in this stuff,
cause this is God's money. This is fake money. Thank you, gentlemen.
– [Jim] Thank you, sir. – [Charles] Thank you Robert.
– Pleasure to be here. – And when we come back, Sara
be back with a final word here.
So thank you, gentlemen. (upbeat music) Welcome back, Robert Kiyosaki,
"The Rich Dad Radio Show." Thanks to Jim Clark, the
Republic Monetary Exchange, RME, and Charles Goyette of
Republic Monetary Exchange. Because this is the hottest
subject of all today. It's silver and gold because this is fake. So Sara, if you have friends and
family who are still hoarding this stuff here, haven't
listened to this program and discuss it with them,
because I'm now called the Salad Bar Guru. (all laughing) I thought it was hysterical,
but it fried their brains. What's the difference
between this and this? One's fake, one's real. So Sara, what questions do you have? – [Sara] Yeah, well,
just wanted to mention, my brother for my niece,
she's 11, he said, "No more presents.
From now on we only want
you to get her silver." So every year, each sibling
gets her some silver coins. And I was like, "Man, he's so smart." Anyway, I just wanted to
point that straight out. But my questions to you
are, can you briefly discuss the different markings? What does that identify on the bars? – Okay, so this has the size of the bar, which is one kilogram.
Valcambi is one of the
worldwide known refiners of silver. It has their logo on it. It's been stamped with the serial number and the finest of 3.999 fine silver. The gold, a little different. It lists the number of ounces and this is four nines fine. Also with the serial number. And as you saw earlier, we
put the spectrometer to it to show that indeed, both of those are pure silver and pure gold. And if there's any doubt with anybody buying silver
and gold, is it real? We can put the spectrometer to it and show that it is exactly
what the purity should be.
– [Sara] Awesome. The second question I have
is, Robert had held up his buffalo and you called it
a generic one ounce coin. What's the diff? – So the US Treasury
and various governments around the world, Canada, South Africa, make a coin of the realm,
meaning an American Eagle for the United States. So the treasury makes that coin. The premium is significantly
higher for that than it is for this, but it's
exactly the same properties, same weight, same size and everything. – Wait a sec, so if
this was a Silver Eagle, but this is, I call this a buff, what's the price difference? – It's going to be $6, $7 and ounce more to have the name brand,
but silver's silver. So it depends if you, "Well,
I only buy a name brand, I won't buy Costco brand of
something, but I will buy the real ones that you hear
on television all the time," even though it's exactly the same thing.
So you get more silver for
fewer dollars if you buy it in the buffalos or what we call generic. But recognized as being
a coin of the realm and something that you can be
sure that it's the purity that it's supposed to be. So reputable private,
refineries make the buffalo, the US Treasury makes the
American Silver Eagle. – Why would somebody pay the difference? – Why do they? – No, I mean-
– [Sara] Why do they buy- – Money's is no object
and they don't mind paying $6 an ounce more, and it's
a US Treasury stamped coin. But you get more when you sell it too. – I bought considerable amounts from Dana in Austin, Texas, and he traded out my Gold
Eagles for regular gold. And I said, "Why?" He goes, "I don't know,"
but he says, "You just made a lot of money." So instead of having 10
ounces of gold, I now had 15 ounces of gold.
But just because one from
Eagles to something else. All I want is the ounce of gold. And as long as it's pure,
I don't really care. But some people do, right? – Yeah. And either one of those,
it's all recognized for them. So it's personal preference at that point. – [Sara] That was a big
question, cause Robert, if you remember back in
October, the team made a big silver buy, and
that was a big question, when we got the price sheet, we were like, "Why would we pay, if it's
the exact same thing," but that makes sense.
Just a name brand difference. – This is when we couldn't take delivery, we're buying a lot, so we
bought it from Andy Schectman. It was a lot of silver and gold we bought. – [Sara] The last question is, in the beginning of the
conversation we had talked about why you didn't want to
take cash, and you said it's a hassle. Is it also true because cash is devaluing so fast,
it's not really a fair trade. I mean, not fair, but
you know, even trade? Do you feel that way at all? – Well, it's cumbersome. And banks typically
don't want to take cash, and ironically, they don't
want to give cash out either. So we've had situations,
people wanted to go withdraw $100,000 in cash
at the bank, they'll say, "Come back in three or four
days and we'll accumulate it for you, but we don't have it here." I say don't even do that.
Just
wire the money over to us. It's just boom, boom, boom. Simple, we don't have to worry
about any counterfeit cash, although our machines pick it up anyway. It's a cumbersome thing
to do, but I look at the big picture; some point down the road, this cash is going to be worthless. And if the banks don't want
to take it in deposits, I don't want to be stuck
with $2 million or $3 million in cash and lose that. I would rather have money in the bank. Not money, but I mean fake
money in the bank that I can buy real silver and gold with
and have that on the shelf rather than cash sitting there
that is devaluing every day.
– [Sara] Yep. Good. Great. That was it. – Final word, Mr. Goyette. – Hey, thanks for having
us on again, Robert. – And this is your book here. Got to plug the book. – One of one of several. And it's about "Red and
Blue and Broke All Over" and how the country is broke all over and the exact story you've been
trying to explain to people for a very long time, and now here we are. – Another thing we do, Sara, is I send out a newsletter every week, my blog basically, that gives a synopsis of
what's going on the past week and maybe what we're seeing down the road. And just keeping clients and prospects informed of
how we see the market. And whether I'm smart or
not, it doesn't matter, I've been at this 50 years,
I've got a lot of experience and I can share a lot of information that I've acquired over the years.
And I encourage people to go
to our website RMEGold.com, and you can sign up for the newsletter. There's no charge, we email
it out every Sunday afternoon or Monday morning, whenever we
put the finishing touches on. And I would encourage
people to sign up for that at RMEGold.com – And that's why we
invited Charles and Jim, because they are educators like Rich Dad. I buy, I don't sell this stuff. (Robert chuckling) I do trade occasionally. But anyway, so thank
you very much, gentlemen and thank you all for
listening to "The Rich Dad Radio Show," and remember, this is fake and this is real. How much is this today? – That's about $5, so
you were really cheap when you were saying $2 or $3. – Oh my god! I was going to get taken. The salad bar ladies
were going to take me. (all laughing)
– [Sara] That's why he said, "I'll give you $3 for it." – They were trying to cheat
me at Safeway.
My god. – You're behind the times, Robert. You forgot how quick
this dollar is devaluing. – And they're raising
the price of the coleslaw on top of that. (all laughing) So thank you, gentlemen. – [Jim] Thank you.
– [Charles] Thank you. (upbeat music).
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