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Government Overreach vs Gold & Financial Liberty · The Bullion Advantage | Wealth Protection, Politics and Finance Insights From The #1 UK Gold Dealer

• 0:00
  SPEAKER_01: Could the government have more control over your money than you realised?
• 0:04
  SPEAKER_01: Over the last few years, we've seen terrifying changes in the financial system.
• 0:09
  SPEAKER_01: Banks have become increasingly digital, governments have gained greater powers over our finances, and discussions around central bank digital currencies are switching their narratives from if to when.
• 0:22
  SPEAKER_01: For many of us, this raises an uncomfortable question.
• 0:26
  SPEAKER_01: How much control do we really have over our money?
• 0:29
  SPEAKER_01: At the same time, more people are turning to physical gold because it represents something increasingly valuable in today's world.
• 0:37
  SPEAKER_01: Financial independence.
• 0:39
  SPEAKER_01: We'll also be looking at a new gold price prediction of$40,000 an ounce, and ask whether gold's role is evolving from simply being a store of value to much more than that.
• 0:50
  SPEAKER_01: By the end of this podcast, you'll have a clear understanding of the risks and opportunities ahead and why, for so many people, protecting wealth is becoming paramount.
• 1:01
  SPEAKER_01: Before we begin though, please do remember to like and subscribe if you're watching on YouTube.
• 1:05
  SPEAKER_01: And if you're listening on Spotify or Apple Podcasts, please do follow the show so you never miss an update.
• 1:11
  SPEAKER_01: Right, let's get into the topic.
• 1:16
  SPEAKER_01: Welcome back, Harry.
• 1:18
  SPEAKER_01: Good to have you back on the podcast.
• 1:20
  SPEAKER_00: Hiya, Jake.
• 1:20
  SPEAKER_00: Yeah, thanks for uh having me back on.
• 1:22
  SPEAKER_00: It's uh it's been another good week.
• 1:24
  SPEAKER_01: Yeah.
• 1:25
  SPEAKER_01: Another interesting week.
• 1:26
  SPEAKER_01: How much control do governments already have over our money, would you say?
• 1:31
  SPEAKER_00: Yeah, I think this is the the big talking point at the moment, especially with Andy Burnham looking the most favourable to come in for Labour.
• 1:38
  SPEAKER_00: I I think it's really important to take into account where can they control money really?
• 1:44
  SPEAKER_00: I mean, in the UK around 95% of the money already exists digitally, so it shows you how much is commercial bank deposits, whatever it might be, rather than just physical cash or tangible assets.
• 1:56
  SPEAKER_00: So that shows you it's open to manipulation.
• 1:59
  SPEAKER_00: Maybe less government, but when I just talk about counterparty risk in general, 95% of it is open to exposure, essentially, that's what we're saying.
• 2:08
  SPEAKER_01: Exactly that.
• 2:09
  SPEAKER_01: And we've been we've been warning people about government's direct recovery powers.
• 2:13
  SPEAKER_01: Could you just explain what they are to the listeners for a second?
• 2:16
  SPEAKER_00: Yes, the dreaded DRD, the direct recovery of debts.
• 2:20
  SPEAKER_00: Um it was introduced in 2015 and it allowed it to uh to recover unpaid tax bills, essentially.
• 2:26
  SPEAKER_00: Wow.
• 2:26
  SPEAKER_00: And what it meant without HMRC having to go to court, they could just go into your bank account and actually take the money out.
• 2:33
  SPEAKER_00: They need at least£5,000 uh across the debtors' accounts, and and then ultimately, yeah, they they had the right to challenge, but it was the fact they were giving the access in the first place, which was the the the crazy part of it.
• 2:46
  SPEAKER_00: So could more people find themselves affected by these powers in the future?
• 2:49
  SPEAKER_00: Uh potentially.
• 2:50
  SPEAKER_00: I I think obviously that's uh it's the way the government want to go.
• 2:54
  SPEAKER_00: They need to find as much revenue as possible.
• 2:55
  SPEAKER_00: I mean, we know what a bloody Labour government's like, they like spending and not not recouping.
• 2:59
  SPEAKER_00: So I mean the UK's tax gap is around 40 billion a year, so it shows you the the the money that there is there for them to have to go into it.
• 3:09
  SPEAKER_00: So I I think the more important thing there's a huge incentive for the government to start trying to do this.
• 3:14
  SPEAKER_00: We argue that the the taxes are higher than ever and ridiculous, and unfortunately, anyone who's a savvy businessman seems to be fleeing the country and taking their not only their money but their business elsewhere as well.
• 3:24
  SPEAKER_01: It's looking that way.
• 3:25
  SPEAKER_01: Why are governments so interested in in reducing the use of cash?
• 3:29
  SPEAKER_00: I mean cash cash usage in general has has dropped dramatically.
• 3:32
  SPEAKER_00: Uh cash cash encountered around 12% of all payments in 2023, uh, compared with more than 50% a decade earlier.
• 3:39
  SPEAKER_00: So it shows you the the movement in times and and how much digital payments are easier to process, easier to audit, harder to use tax evasion.
• 3:48
  SPEAKER_00: It it's so clear, JJ, it's the big brothers watching you, right?
• 3:52
  SPEAKER_00: They know where your money is, they know how you're spending it, they know what you're spending it on, so on and so forth.
• 3:57
  SPEAKER_00: It's non-stop.
• 3:59
  SPEAKER_01: And another thing many people are worried about are central bank digital currencies.
• 4:04
  SPEAKER_01: If you could just explain what they are and then we can get into the topic a bit more.
• 4:08
  SPEAKER_00: Yeah, so the the the CBDC word, as we always hear, uh, is a digital version of the national currency.
• 4:14
  SPEAKER_00: So it's it's the same currency but digitally issued by the bank.
• 4:17
  SPEAKER_00: So stopping them having to print obviously cash and so on and so forth.
• 4:21
  SPEAKER_00: The Atlantic Council say about 130 ish countries representing over about 98% of the GDP to give a bit more of an accurate uh idea are currently exploring it.
• 4:33
  SPEAKER_00: So pretty much all of them in one way or another are going, well, let's move on from the the old days of printing cash, let's just track everything from the word go, which kind of then goes back to the previous point of power.
• 4:45
  SPEAKER_00: This is yeah, power, and then watching you and being able to manipulate it.
• 4:48
  SPEAKER_01: So, how would a digital pound differ from the money that we use today currently?
• 4:53
  SPEAKER_00: Um well, the money we hold today is is predominantly holding deposits at commercial banks.
• 4:59
  SPEAKER_00: A digital pound would be a direct claim on the Bank of England, so potentially making it one of the more safer forms of digital currency, but it's it's hard to say without being biased.
• 5:10
  SPEAKER_00: Obviously, I'm as you know, I'm a huge advocate for keeping money out of the system and and trying to protect what we have and and avoiding any counterparty risk.
• 5:18
  SPEAKER_00: It's not far back.
• 5:19
  SPEAKER_00: We have to go and we see these bank crashes, and it feels like we really are on the on the cusp of another big crash.
• 5:26
  SPEAKER_00: So the point they want it to do is make it safe by tying it to the Bank of England.
• 5:31
  SPEAKER_00: The issue of tying it to the Bank of England is oh, we are we gonna be more under the spotlight?
• 5:36
  SPEAKER_00: Are they gonna scrutinize our every move?
• 5:38
  SPEAKER_00: Are we just opening ourselves up to more exposure?
• 5:41
  SPEAKER_00: That's the issue.
• 5:42
  SPEAKER_01: Right, I see.
• 5:43
  SPEAKER_01: And are you worried that digital money could come with restrictions on how we spend it, where we spend it?
• 5:48
  SPEAKER_00: I do know what I compare it to, something like the ICEs where when they first bought them out, it was yep, perfect, and there's no tax, you can put money in it, it's it's all safe, there's no fixed terms, fixed rate, and then we had fixed rate ICES, and then we had higher interest ICEs for longer periods, and then we had and now we've got Rachel Reeves changing the policies on it.
• 6:07
  SPEAKER_00: So, yes, what the government says, what the Bank of England say is no, this is the safest way your money's gonna be.
• 6:12
  SPEAKER_00: Don't worry, it's not gonna be tied to the government.
• 6:14
  SPEAKER_00: Well, that's today's policy, whilst they're trying to get everyone on board.
• 6:17
  SPEAKER_00: Yeah, what's tomorrow's policy?
• 6:18
  SPEAKER_00: What's it look like in 10 years when they've got everyone's money and then they can start to change that?
• 6:23
  SPEAKER_00: Yeah, that's more the point.
• 6:24
  SPEAKER_01: Absolutely.
• 6:24
  SPEAKER_01: I mean, can conspiracy theories still have a bit of a stigma around them, but I feel like my Tim Foil hat is getting uh bigger by the day.
• 6:32
  SPEAKER_01: Do you think people's concerns over financial privacy is justified, or is there a bit of paranoia in there?
• 6:38
  SPEAKER_00: No, definitely not.
• 6:39
  SPEAKER_00: The debate isn't whether the data exists and and and it's there, it's just who can access it for what purposes and with what safeguards.
• 6:46
  SPEAKER_00: I mean, that is the fundamental.
• 6:48
  SPEAKER_00: They're paranoia.
• 6:50
  SPEAKER_00: No, I I I I I think the days of everyone being a kook and worrying about it and and not sure what's happening is gone, mate.
• 6:57
  SPEAKER_01: I think we're all in the same boat.
• 6:58
  SPEAKER_01: Yeah, 100%.
• 6:59
  SPEAKER_01: And if trust in these institutions continues to decline the way it does, how do you think people are going to respond to that?
• 7:06
  SPEAKER_00: History suggests people diversify, they they come out of the systems, they they look at not only something like gold, silver, precious metals, property, uh, assets in other countries, whatever it might be, diversity.
• 7:18
  SPEAKER_00: That that's the main thing.
• 7:19
  SPEAKER_01: Yeah, why are these physical assets becoming more important to people now?
• 7:24
  SPEAKER_00: I think people with high inflation really reminds them of what the purchasing power is.
• 7:29
  SPEAKER_00: I think when we go through these cost of living crises, when we see how tough times are, when people aren't even struggling to get the luxuries anymore, they're just struggling to get the the day-to-day goods.
• 7:39
  SPEAKER_00: I mean, UK inflation peaked in 2022 at 11%.
• 7:44
  SPEAKER_00: 11% it peaked at.
• 7:46
  SPEAKER_01: Crazy to think about.
• 7:47
  SPEAKER_00: Which then prompted a huge amount of investors to go, hang on a second, we need to get our money working hard, because not only are we just seeing the same figure in the bank at the moment, it's going heavily backwards.
• 7:57
  SPEAKER_00: Just lost 11% of trending power.
• 8:00
  SPEAKER_00: Exactly.
• 8:00
  SPEAKER_01: So uh diversity always always the way.
• 8:04
  SPEAKER_01: Why are so many people beginning to view gold as a form of financial liberty?
• 8:09
  SPEAKER_00: No counterparty risk, it isn't something someone else promises to pay.
• 8:12
  SPEAKER_00: That that's that is the bottom line.
• 8:14
  SPEAKER_00: I mean, I've said that a million times on this podcast now.
• 8:17
  SPEAKER_00: I I can't reiterate that point enough though.
• 8:19
  SPEAKER_00: It is it is the truth.
• 8:21
  SPEAKER_00: Central banks are the same the same banks that they're trying to make these digital currencies with, where they bought more than a thousand tonnes of gold uh in both 2022 and 2023, and that was among some of the highest levels on record.
• 8:32
  SPEAKER_00: So the inflation was at an all-time high, and then the central banks match that by buying more assets outside the system.
• 8:40
  SPEAKER_00: That makes sense if you don't think gold's a good option.
• 8:42
  SPEAKER_01: Yeah, absolutely.
• 8:43
  SPEAKER_01: But getting more into gold, obviously, it's still no secret, gold has become more affordable than it was six months ago.
• 8:50
  SPEAKER_01: The pullback is still ongoing.
• 8:52
  SPEAKER_01: What's the biggest misconception you would say people have about gold today in today's market?
• 8:57
  SPEAKER_00: Um, I think many think gold only rises during crisis, but in reality, gold's also perform well during periods of falling real interest, uh central bank buying, long-term currency depreciation, it's its stability, it navigates, it moves, it's free-flowing.
• 9:13
  SPEAKER_00: It yes, did we think when the war started it was gonna go parabolic?
• 9:17
  SPEAKER_00: And it had come off the back of a very good run.
• 9:19
  SPEAKER_00: Yeah, but actually, gold's just showing us it does what it always does, it becomes reliable, it's it doesn't panic, it doesn't twitch.
• 9:26
  SPEAKER_00: It goes, well, yeah, there is a lot going on, let's just steady the fort right now.
• 9:29
  SPEAKER_00: We have seen a pullback, but guess what?
• 9:31
  SPEAKER_00: Since we've seen the pullback, it sat at its base rates, it sat where it should belong, and now it's just riding the storm.
• 9:37
  SPEAKER_00: That's why so many of these big institutions are still forecasting gold to grow another 25-30% by the end of the year.
• 9:43
  SPEAKER_00: That's Goldman Sachs, Deutsche Bank, UBS, JP Morgan, like these massive institutions.
• 9:50
  SPEAKER_01: Yeah, I mean some analysts are now talking about$10,000 an ounce.
• 9:54
  SPEAKER_01: We've all I've also read$40,000 an ounce at a certain point.
• 9:58
  SPEAKER_01: Do you think that's realistic?
• 9:59
  SPEAKER_00: Yeah, I mean look,$40,000 is certainly extreme.
• 10:02
  SPEAKER_00: I mean, may maybe towards the back uh back of our lifetimes we'll sort of see that figure.
• 10:06
  SPEAKER_00: But I I think what it is saying is gold is not it's here to stay, they're using it in financial instruments again.
• 10:14
  SPEAKER_00: America are trying to use it as part of their monetary systems again.
• 10:19
  SPEAKER_00: The growth and the forecast for gold is fantastic.
• 10:22
  SPEAKER_00: Definitely.
• 10:23
  SPEAKER_00: What do you see happening in the near future though?
• 10:26
  SPEAKER_00: I mean, well, look, gold's continuing to benefit from central bank demand and geopolitical uncertainty and persistent government debt.
• 10:32
  SPEAKER_00: So I mean, all of those things haven't changed anytime soon.
• 10:36
  SPEAKER_00: No, short-term pullbacks are normal, but long term, I think the trends are there, as as we've said, the the growth looks to be on the horizon.
• 10:44
  SPEAKER_01: Thinking about other markets around the globe, what what would you say?
• 10:47
  SPEAKER_01: Would you say they're becoming more fragile?
• 10:50
  SPEAKER_00: I I don't know how much more fragile it can get.
• 10:51
  SPEAKER_00: It's it's it's one of those ones where it's beggars' belief it's still going.
• 10:55
  SPEAKER_00: I mean the global debt is now three hundred and twenty trillion dollars.
• 11:03
  SPEAKER_01: I don't even know if that amount of money actually exists.
• 11:06
  SPEAKER_00: Yeah, I I'm I don't think I could write that figure out actually on paper, Jake.
• 11:10
  SPEAKER_00: I think for what it does show though is there's so much in play right now, that's why you're getting so many of these top-top analysts and and economists trying to keep it together, but it the tr the cracks are always showing.
• 11:23
  SPEAKER_00: Yeah, do you think another banking crisis is on the cards in the next few years?
• 11:26
  SPEAKER_00: I mean they're they're constantly a recurring event in history.
• 11:29
  SPEAKER_00: I mean, it doesn't if you study the the facts and the figures, they they always happen.
• 11:33
  SPEAKER_00: I I mean they're better to capitalize now than they were before 2008, yeah being the last big one, but the same issues and the same causes for the 2008 crash are still there today.
• 11:44
  SPEAKER_00: They haven't got rid of that.
• 11:45
  SPEAKER_00: So yes, I do think it.
• 11:48
  SPEAKER_01: Let's discuss a few more important developments in the news.
• 11:51
  SPEAKER_01: As many predicted, including myself, the war in Iran is not over.
• 11:56
  SPEAKER_01: How worried do you think we should still be about the tensions over there in the Middle East?
• 12:00
  SPEAKER_00: Yeah, I I don't want to bore the listeners because we we go over this time and time again.
• 12:04
  SPEAKER_00: One third of the world's seaborne oil comes from the Middle East, the Strait of Hummus is closed, put two and two together.
• 12:12
  SPEAKER_00: On the horizon.
• 12:13
  SPEAKER_00: Exactly that.
• 12:14
  SPEAKER_00: It is it it's it's a worry, it's always gonna be a worry, it needs to be addressed, it's gonna cause the markets to play up until it's addressed.
• 12:22
  SPEAKER_00: But oil in the Middle East is not a new new thing.
• 12:26
  SPEAKER_01: When it comes to the UK, what does the current political uncertainty mean for markets?
• 12:32
  SPEAKER_00: Yeah, I mean look, mark markets typically care more about fiscal policy than uh politics itself.
• 12:37
  SPEAKER_00: They're they're not here to hear about Andy Burnham wanting to move number ten up to Manchester or nonsense he's coming out with.
• 12:46
  SPEAKER_00: But they are watching the borrowing, they are watching the the taxation and the economic growth because those factors are what directly influence the inflation.
• 12:54
  SPEAKER_00: So let's see, Andy Burnham in my eyes is a socialist borderline communist, so yeah, let's uh I agree with that opinion.
• 13:01
  SPEAKER_00: Yeah, I mean, all we're hoping for is it causes a general election sooner.
• 13:05
  SPEAKER_00: Yeah, that's that's the the bottom line of it, but we we shall see.
• 13:09
  SPEAKER_01: Do you think he actually will fundamentally change the economy in the country?
• 13:14
  SPEAKER_00: Yeah, I mean look, it was only this morning I'm I'm watching the news and seeing an article about how his popularity's crashed already.
• 13:19
  SPEAKER_00: So I mean I I'm talking about being a shoeing and I'm like, the Prime Minister.
• 13:23
  SPEAKER_00: Exactly.
• 13:24
  SPEAKER_00: So he he loves employment rights, he loves regional investment, like we said, he wants to move stuff up north, he doesn't care about London anymore, he wants to expand public services, he wants to it could increase business costs, he he's all for the little guy, yeah.
• 13:40
  SPEAKER_00: Which don't get me wrong, Jake, there needs to be safety nets in this country, but I think for once a government needs to look after the 98% of people who sit in the middle working bloody hard, pay their taxes, and are trying to prop up the entire economy.
• 13:52
  SPEAKER_00: I don't think it should be about the one percent at the top, and I don't think it should be about the one percent at the bottom because both of those either have too much money or a big enough safety net, they don't have to work.
• 13:59
  SPEAKER_01: Agreed.
• 14:00
  SPEAKER_01: Do you think this these rising employment costs that you mentioned, do you think that could lead to fewer jobs in the long term then?
• 14:06
  SPEAKER_00: Yeah, I mean I I just don't ever think a Labour government's gonna inject uh a nice capitalist mindset, it's gonna encourage people to get out there and work harder and uh and get off benefits or whatever it might be.
• 14:20
  SPEAKER_00: I just don't see it.
• 14:21
  SPEAKER_01: I don't see that either.
• 14:23
  SPEAKER_01: With the businesses though, would they pass these costs, do you think, on to the consumer then?
• 14:27
  SPEAKER_01: And if they do, how can we mitigate this?
• 14:30
  SPEAKER_00: But you can't there is no mitigation.
• 14:33
  SPEAKER_00: I mean, it's uh a a business can wrap it and shape it however they want, they don't lose.
• 14:36
  SPEAKER_00: The the the person who loses the end consumer, it's it's the person buying.
• 14:40
  SPEAKER_01: Well, another cost potentially to businesses in the UK is Trump tariffs.
• 14:45
  SPEAKER_01: You know, how serious is the tariff threat to us over here?
• 14:49
  SPEAKER_00: What well it depends what Trump wakes up on ones.
• 14:51
  SPEAKER_00: I know what side of the bed.
• 14:53
  SPEAKER_00: Tari tariffs can obviously massively put scrutiny on supply chains and and make it struggle.
• 14:59
  SPEAKER_00: Again, a lot of that uh either means businesses go under, which is a great shame, especially British businesses and UK businesses, or the end consumer just gets priced out.
• 15:08
  SPEAKER_00: It's as simple as that.
• 15:09
  SPEAKER_01: Yeah, some scary hypotheticals in this in this pod today, but if you had to leave the listeners with one action that they should take to be better prepared for this uncertainty, what would you say it would be?
• 15:20
  SPEAKER_00: Um I think after what we've looked at over especially this year so far, Jake, stop trying to predict every headline, build resilience instead.
• 15:31
  SPEAKER_00: Keep an emergency fund covering a period of time, make sure you've got money that's accessible, and I mean accessible outside of a bank, not not just in a bank itself.
• 15:41
  SPEAKER_00: Diversify whatever you're looking at, make sure you're diverse.
• 15:44
  SPEAKER_00: If you've got ICEs, look at gold, if you've got gold, look at ISES, so on and so forth.
• 15:48
  SPEAKER_00: Just make sure you're diverse, um, and then review it regularly.
• 15:53
  SPEAKER_00: I think people just set this up like pensions.
• 15:55
  SPEAKER_00: How often do we talk about pensions?
• 15:56
  SPEAKER_00: Yeah, yeah, I'll set up my pension.
• 15:57
  SPEAKER_00: Great.
• 15:58
  SPEAKER_00: When was the last time you checked the value worth, how much is in it?
• 16:01
  SPEAKER_00: Yep.
• 16:01
  SPEAKER_00: People don't.
• 16:02
  SPEAKER_00: It's something you've got to constantly come back to.
• 16:05
  SPEAKER_00: And again, that's what we try and do here at Direct Bully and Jake.
• 16:08
  SPEAKER_00: I talk to you a lot on these podcasts, and hopefully listeners uh have now seen and heard who I am a fair bit.
• 16:13
  SPEAKER_00: My job is to do what I'm doing with you on a daily basis with clients, keep them updated on current affairs, exactly.
• 16:20
  SPEAKER_00: Let them know how their gold's doing.
• 16:21
  SPEAKER_00: I do the dog work for them, I look at what the plans are, that's the whole point.
• 16:26
  SPEAKER_00: And we very much appreciate it.
• 16:28
  SPEAKER_00: Cheers, Jay.
• 16:29
  SPEAKER_01: As we've discussed during today's episode, the world of money is definitely changing.
• 16:35
  SPEAKER_01: Governments seem to be trying to gain greater oversight of our finances.
• 16:39
  SPEAKER_01: There have been discussions that digital currencies could continue to gather pace, and many people are questioning how much control do we really have and how much longer will we even have it?
• 16:50
  SPEAKER_01: At the same time, physical gold is viewed as something far more valuable than a safe haven asset.
• 16:56
  SPEAKER_01: It could be the key to independence, privacy, and ownership outside an increasingly concerning financial system.
• 17:03
  SPEAKER_01: We don't know exactly what the future of money will look like, we don't know whether a digital pound will become a reality, or how financial regulations may evolve in the years ahead.
• 17:13
  SPEAKER_01: But we can see that people who prepare early are often in a far stronger position than those who wait for crisis to hit.
• 17:19
  SPEAKER_01: Whether you own gold for wealth protection, financial privacy, or as a long-term insurance, in this increasingly uncertain world, having some of your wealth beyond the reach of a greedy government is something many people are finding increasingly valuable.
• 17:33
  SPEAKER_01: For more information, please do go to guide.directbullion.com where you can download our guide's tax-free gold.
• 17:41
  SPEAKER_01: It's packed with information you won't find anywhere else.
• 17:44
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• 17:49
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• 17:55
  SPEAKER_01: As always, do please leave any questions in the comments below and we'll have to see them in the next podcast.
• 18:01
  SPEAKER_01: Thank you so much for listening to the Bullion Advantage.
• 18:03
  SPEAKER_01: Stay informed, stay prepared, and most importantly, stay gold.
• 18:07
  SPEAKER_01: The purchase of gold does not constitute an investment or offer financial returns.
• 18:12
  SPEAKER_01: Gold is considered a store of value and not an investment product.
• 18:16
  SPEAKER_01: Past performance of gold is not indicative of future performance.
• 18:20
  SPEAKER_01: Prices and values of precious metals can fluctuate and are influenced by various market factors.
• 18:25
  SPEAKER_01: Direct William does not provide investment or tax advice and recommends that you conduct your own independent research before making any purchasing decisions.