Goal is the one asset which has survived every single panic in recorded history
Intact in 2008 Gold's price fell initially surprising many but the reality was that gold was providing liquidity
In an illiquid market place once market stabilized and QE began in earnest Gold's price soared
But how can we expect gold to act in the next financial crisis?
So I think it's very I think it's very difficult
To speculate on what is going to happen to gold and what's gonna happen to?
- how it's gonna happen
but I think what is safe to say is that gold is inversely correlated to
confidence in the financial system and the fact that gold is independent from
The government's from the banking system is what Creon scares is what creates a tremendous potential
Value, I don't think we're gonna have another 2008. I mean we're gonna have something that's
different from 2008 the reason I don't think necessarily that's going to be the same is because the problem that
2008 revealed which is excessive debts
and excessive leverage
Has essentially been kicked upstairs on the to the sovereign level. And so what was a private debt crisis
is likely
Will come back as a sovereign debt crisis
Which is a completely different animal with very different
Parameters, so whereas a lot of people are telling me now or I hear a lot of people saying well the banking system is much
Safer because the leverage is lower because there's less rehypothecation
The answer that well that may be true
but if the currency in which they measure everything is debauch is debauched or devalued and
That may happen overnight in a very different way that what happened in 2008 happened
We know the endgame we know that all of these debts cannot be paid
We know that the unfunded liabilities cannot be met in terms of real purchasing power
So then the question is how does that gets resolved?
Well, they're only a couple of ways it can get resolved is either through inflation or deflation deflation meaning defaults
in the likely event that we do have some form of situations similar to that of
2008 and no matter what form that event might take
Gold remains one of the few ways that you can protect yourself and preserve both your wealth and purchasing power
Men's connection to gold is not just a financial one. However
history is filled with deeply personal stories that demonstrate Gold's role as a store of wealth as
protection from government confiscation V inflation and debasement and as an insurance policy that when called upon
Pays out in ways that change the lives of those who own it. I know a person who grew up in Vietnam
His father was a translator for the US military during Vietnam War and when the u.s
left Vietnam they were unable to leave with the unite with the US forces and so they were left behind and
having been left behind they obviously were subjected to
Oppression by the communist regime it so happened that the family of fourteen one of the uncle's there
was a dentist and he was able to accumulate over the next whatever ten to twelve years a certain amount of gold so that
in the late 80s
This family was able to pay seven ounces of gold per person
So times fourteen over a hundred ounces of gold to get fourteen seats on a boat that left Saigon in the middle of the night
lost power and the next day drifted at sea for a few days and
Eventually was towed to a Malaysian coast by the Malaysian Coast Guard. They spend two years in a camp for displaced persons
They eventually made their way to Singapore where the father was able to go to the US Embassy
Present his credentials showed that he was a translator for the u.s
for interpreter for the US forces and the whole family of fourteen was given these visas to come to the United States and
That's you know, these people's lives were saved
And what did it do? It's you know, what did it take? It took seven ounces of gold
per person for a family of fourteen
and so I think that's as good an example of
Gold being Plan B as I can come up with a couple years ago. I was at a wedding and
Some friends of ours. I was talking with some friends of ours and they were
They were Russian and Ukrainian and had emigrated here. We're now American citizens and we got to talking about
What happened in the 1990s in Russia they described to me
the woman my
her father had been a doctor in her village in the Ukraine and
She said we'd had enough saved in the bank
He we were the richest family in the village and we had enough in the bank to buy five cars
which were apparently for that village was quite a bit and she said they they closed the banks for two weeks and
When they reopened the banks, we took the money out. We bought groceries for one month and
You know the her husband said yes similar story I was saving up to buy a motorcycle and
Had enough saved to buy a motorcycle. My dad wouldn't let me buy it closed the bank for two weeks banks open back up
I took the money out and bought up a carton of cigarettes
So I said to them I said, so I probably don't need to explain to you I said
How did gold do and they both laughed and they said anyone that had gold silver jewelry they did they did totally fine
I love the story of how the French
Spirited their gold out of France and off to Canada and various other places when that when the when the Germans arrive
It's a great story and they have to make a movie out of it
yeah, I mean it's really good and basically what I mean, they split up their gold reserves into
Into tiny little portions and they went off on, you know, mule carts and fishing boats and and they they got their nation's wealth
Out of the country and they did it before the advancing army
I mean it was it's a it's a story of derring-do and all of that sort of stuff fantastic. I once heard a story about
the Soviet Union
Where gold obviously was was forbidden. You could go to jail if you had physical gold, but you were allowed to have
Wedding rings gold wedding rings and that was a smart guy
And and he had like 50 wedding rings. So every month or every couple of month
He went to the market and and had just enormous purchasing power due to his gold ring and I think this
clearly shows that that
You just have to own at least some gold
You