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Gold Tariffs!? vs Crypto🔥Andy Schectman INTERVIEW · The Paul Barron Crypto Show

• 0:00
  Speaker 1: Chaos coming into the gold markets. Today, we're going to
• 0:02
  Speaker 1: be breaking it down with a special interview. You don't
• 0:04
  Speaker 1: want to miss it. My name is Paul Baron, Welcome
• 0:05
  Speaker 1: back into the show. I do want to thank our
• 0:07
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• 0:10
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  Speaker 1: It's going to give you a one hundred dollars funding
• 0:33
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• 0:35
  Speaker 1: to go over a clip that is going to recap
• 0:40
  Speaker 1: where the gold market is based on what happened Friday,
• 0:43
  Speaker 1: which of course was the announcement.
• 0:45
  Speaker 2: Of gold tariffs. And this is going to be good.
• 0:49
  Speaker 2: Watch this one come back.
• 0:50
  Speaker 1: Gold price is hitting all time highs this morning, amid
• 0:54
  Speaker 1: reports that the Trump administration plans to put tariffs on
• 0:57
  Speaker 1: gold bars.
• 0:58
  Speaker 2: The White House announced plans you an executive order addressing
• 1:01
  Speaker 2: what they're describing is misinformation.
• 1:03
  Speaker 3: Well, all I know is what we've been reading.
• 1:06
  Speaker 4: And then they got a letter and they fall under
• 1:08
  Speaker 4: the thirty nine percent terraces for Switzerland and that's also true,
• 1:12
  Speaker 4: by the way, for all the other countries.
• 1:13
  Speaker 2: All shipments are on hold.
• 1:15
  Speaker 4: So basically there's no trading of gold bars between between
• 1:20
  Speaker 4: the Atlantic So yeah, I guess that we can call
• 1:24
  Speaker 4: that a massive, massive disruption to global gold trade. People
• 1:28
  Speaker 4: are now trying to find out what the follout from
• 1:31
  Speaker 4: this is going to be.
• 1:32
  Speaker 3: Were you surprised to see tariffs trump taxes if you
• 1:35
  Speaker 3: will on gold?
• 1:38
  Speaker 5: Yes, Ultimately this is going to end up making all
• 1:40
  Speaker 5: those costco bars a lot more expensive than are being sold.
• 1:43
  Speaker 3: In the States. There's various fundamentals that are pushing this.
• 1:46
  Speaker 3: A lot of uncertainty helps it.
• 1:48
  Speaker 5: Do you want to relate this to what's going on
• 1:50
  Speaker 5: in crypto gold?
• 1:52
  Speaker 3: Has this seventy five year kegar of nine percent? Cryptos
• 1:55
  Speaker 3: brand new and all over the place.
• 1:56
  Speaker 1: All right, so a lot happening out there. I wanted
• 1:59
  Speaker 1: to bring in our resident gold expert, and of course
• 2:02
  Speaker 1: that's Andy Scheckman coming in from Miles Franklin.
• 2:04
  Speaker 3: How are you, Paul good to see you brother, Thanks
• 2:06
  Speaker 3: for having me.
• 2:07
  Speaker 2: Yeah, So what do you make of all this?
• 2:09
  Speaker 1: Get me up to speed on how it's affecting not
• 2:12
  Speaker 1: only your business, what will you think in terms of
• 2:14
  Speaker 1: the gold industry as a whole.
• 2:16
  Speaker 5: Well, you know, they've since walked back from this tariff
• 2:20
  Speaker 5: legislation and said no, the Customs and Border Protection agencies
• 2:24
  Speaker 5: spoke out a turn. It was for industrial bars and
• 2:28
  Speaker 5: other commodities. It is not applicable to precious metals. One
• 2:35
  Speaker 5: of the things that I saw that really kind of
• 2:38
  Speaker 5: shocked me. However, when this news came out on.
• 2:41
  Speaker 3: Thursday, gold was at about thirty four.
• 2:43
  Speaker 5: Hundred bucks, and I've never seen in my career where
• 2:48
  Speaker 5: the futures price exploded to thirty five hundred. You had
• 2:52
  Speaker 5: one hundred dollars gap between cold spot and gold futures.
• 2:56
  Speaker 5: And what I take away from this is that even
• 3:01
  Speaker 5: though the tariffs on gold are off the table, this
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  Speaker 5: shows to me how sensitive the global plumbing is and
• 3:08
  Speaker 5: can be for gold, and how quickly a political risk
• 3:11
  Speaker 5: can distort prices and trade flows like that. Now it's
• 3:16
  Speaker 5: backed off, but just how fragile it is, and in
• 3:20
  Speaker 5: relation to the massive amount of gold that's coming into
• 3:25
  Speaker 5: the United States. I can't even explain to you really
• 3:27
  Speaker 5: how much gold is coming in.
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  Speaker 3: It's so far off the table.
• 3:31
  Speaker 5: I'll try my best just to give you the first
• 3:33
  Speaker 5: three days example, for the month of August. Now, since November, Paul,
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  Speaker 5: we've been a net importer of gold, and my whole
• 3:40
  Speaker 5: career thirty five years. There might be a month here,
• 3:43
  Speaker 5: month there where we're importing gold, but in general we
• 3:45
  Speaker 5: are net exporters of gold. But the amount of gold
• 3:48
  Speaker 5: that's been coming in is off the charts. I mean,
• 3:51
  Speaker 5: you're talking one hundred plus billion dollars, and I.
• 3:53
  Speaker 3: Would argue a lot of gold is.
• 3:55
  Speaker 5: Coming in through unofficial channels, not through the Comex being
• 3:59
  Speaker 5: delivered into vall on behalf of proxy banks like JP
• 4:02
  Speaker 5: and City and Goldman. With all of that being said,
• 4:06
  Speaker 5: I used to say as a standard statement that less
• 4:09
  Speaker 5: than one percent of COMEX contracts.
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  Speaker 3: Ever stood for delivery, which is a truism.
• 4:14
  Speaker 5: They never did, and most COMEX contracts were used to
• 4:17
  Speaker 5: hedge exposure, where if I have five thousand ounces of
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  Speaker 5: gold in my warehouse, I'll sell five thousand on comes
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  Speaker 5: So if the price of those five thousand ounces drops
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  Speaker 5: by one hundred bucks. I'm not down a half a
• 4:28
  Speaker 5: million dollars because what I sold on comex went up.
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  Speaker 5: It's a way for myself or producers gold mines, etc.
• 4:36
  Speaker 5: To offset exposure and risk. It's also a casino of
• 4:42
  Speaker 5: sorts for people to speculate and gamble. But very little
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  Speaker 5: ever stood for delivery. So let's use the first three
• 4:47
  Speaker 5: days or four days of the August contract to give
• 4:51
  Speaker 5: you an idea of just what I'm talking about. On
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  Speaker 5: top of the copious amounts of metal coming into the country,
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  Speaker 5: which the mainstream media is completely missing and ignoring. I'm
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  Speaker 5: talking billions and billions and billions and billions every single month.
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  Speaker 5: In the first three days, we saw twenty thousand, one
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  Speaker 5: hundred and sixty contracts post, meaning they're posting right, they're
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  Speaker 5: going to settle. Of those twenty one hundred and sixty contracts,
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  Speaker 5: one hundred percent of them, not one percent like it
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  Speaker 5: always used to be, one hundred percent stood for delivery.
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  Speaker 5: You're talking seven billion dollars worth of gold stood for delivery,
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  Speaker 5: and one hundred percent of those contracts that posted stood
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  Speaker 5: for delivery. This is a trend we are continuing to see,
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  Speaker 5: and so this would have really disrupted things where all
• 5:37
  Speaker 5: of the short positions would not have been able to
• 5:40
  Speaker 5: easily rely upon bars that they would bring in if
• 5:43
  Speaker 5: they weren't American made that thirty nine percent tariff would
• 5:47
  Speaker 5: have blown the whole thing sky high. So that's probably
• 5:49
  Speaker 5: why rates on the exchange for physical and the following
• 5:53
  Speaker 5: month or the December contract blew out. But I guess
• 5:57
  Speaker 5: this just goes to show how tight and how fragile
• 6:00
  Speaker 5: this whole ecosystem truly is. Right now, disaster averted, But
• 6:04
  Speaker 5: I think the thing to focus on is the most
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  Speaker 5: well funded and more importantly well informed traders on the planet,
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  Speaker 5: not just the central banks who have been doing this
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  Speaker 5: for years, but now entities within the United States are
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  Speaker 5: showing the importance of physical delivery over cash settlement and
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  Speaker 5: paper promises.
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  Speaker 1: Well, I think the physical delivery is still one that
• 6:23
  Speaker 1: is a bit challenging. I think also the uncertainty if
• 6:26
  Speaker 1: you look at and we all know Trump's been all
• 6:30
  Speaker 1: over the place in terms of these terraffs.
• 6:32
  Speaker 2: But what it does do is it kind of.
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  Speaker 1: Sets up the issue of a gold investor looking at
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  Speaker 1: this and saying, well, if they could do it, or
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  Speaker 1: even attempt to try to do this, does it mean
• 6:41
  Speaker 1: they could actually pull this off and try to stick
• 6:44
  Speaker 1: in tariffs in the future. If you look at this
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  Speaker 1: right here, this was the amount of weight times to
• 6:51
  Speaker 1: withdraw gold from the Bank of England. This jumped from
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  Speaker 1: four from days to four to eight weeks.
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  Speaker 2: How do you even get away with that?
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  Speaker 3: Well, really crazy about that, Paul.
• 7:01
  Speaker 5: That exchange is a T plus one exchange, meaning T
• 7:05
  Speaker 5: is trade day plus one to settle on the third.
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  Speaker 5: Let's just pretend instead of Paul bearing the you owned
• 7:10
  Speaker 5: a multinational jewelry corporation and you manufacture.
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  Speaker 3: Jewelry all around the world, and you relied.
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  Speaker 5: Upon your contracts at the Bank of England or the
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  Speaker 5: LBMA to provide your metal, and you're on a tight schedule,
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  Speaker 5: and you send in your certificate and you say I
• 7:25
  Speaker 5: need my metal.
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  Speaker 3: Paul, or sorry brother.
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  Speaker 5: I know you're expecting your bars to be shipped to
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  Speaker 5: you in three days, but we're actually a shortage of
• 7:33
  Speaker 5: manpower and trucks here at the Bank of England. That's
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  Speaker 5: what they said to an eight week deliveriedly. But when
• 7:39
  Speaker 5: we look at silver at the Bank of England or
• 7:42
  Speaker 5: the LBMA, it might be easier to understand. So the
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  Speaker 5: LBMA has a free float of one hundred and fifty
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  Speaker 5: five million ounces of silver right now, they have roughly
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  Speaker 5: eight hundred million ounces there, but only one hundred and
• 7:54
  Speaker 5: fifty five million are unencumbered. The rest belong typically primarily
• 7:58
  Speaker 5: to the ETFs like SLV, So all of that one
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  Speaker 5: hundred and fifty five million ounce is that is the
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  Speaker 5: lowest float they've had since they started keeping records. It's
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  Speaker 5: one hundred and forty year old exchange now. David Jensen
• 8:09
  Speaker 5: is a guy you might want to have on your
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  Speaker 5: show someday. He's amazing, and he is an analyst that
• 8:13
  Speaker 5: analyzes the LBMA. He says, they're trading two hundred and
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  Speaker 5: ninety million excuse me, one hundred and ninety million ounces
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  Speaker 5: per day off of one hundred and fifty five million
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  Speaker 5: ounce float, so they're thirty five million ounces more than
• 8:25
  Speaker 5: the float. However, that's bad enough, but he's saying, no,
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  Speaker 5: that's actually wrong because they only post the final settlement numbers.
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  Speaker 5: They're actually, according to the lbma's own statistics, trading ten
• 8:37
  Speaker 5: times more than that per day. But the final settlement
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  Speaker 5: numbers come out to one hundred and ninety million ounces,
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  Speaker 5: so and they're trading one point nine billion ounces up
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  Speaker 5: to one point nine billion ounces per day off of
• 8:49
  Speaker 5: one hundred and fifty five million ounce float. That's three
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  Speaker 5: and a half times annual global mind supply and fifteen
• 8:55
  Speaker 5: times or so the float.
• 8:57
  Speaker 3: This is a problem.
• 8:58
  Speaker 5: When you get more delivery requests, then there are bars available.
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  Speaker 3: Now it's manpower and trucks. We're sorry.
• 9:04
  Speaker 5: Yeah, in that essence, is almost as if it's a default,
• 9:07
  Speaker 5: and it's certainly something people should pay attention to. Happening
• 9:10
  Speaker 5: in platinum as well, where the head of the Tokyo
• 9:13
  Speaker 5: Metals Association says there is no platinum in local London
• 9:17
  Speaker 5: or Switzerland, nun virtually zero, Yet they're trading three and
• 9:20
  Speaker 5: a half million ounces per day in spot contracts which
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  Speaker 5: are deliverable. This whole game has never been so close
• 9:26
  Speaker 5: to being exposed, this Western system, which I think will
• 9:30
  Speaker 5: then move to Shanghai, to Dubai, to Moscow, to the
• 9:33
  Speaker 5: exchanges around the world that will have a better understanding
• 9:37
  Speaker 5: of valuations, and that's where you'll see real price discovery
• 9:41
  Speaker 5: happen at some point. If we continue to abuse this
• 9:44
  Speaker 5: system through levered futures contracts and naked shorting.
• 9:48
  Speaker 1: Yeah, this is One of the things I think that
• 9:51
  Speaker 1: a lot of people look at is this uncertainty level.
• 9:54
  Speaker 1: Also the complexity of the market itself now being exposed
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  Speaker 1: just with the threat of a tariff, and now we
• 10:02
  Speaker 1: haven't seen the full EO complete clarification. Everybody's saying, we're
• 10:06
  Speaker 1: still waiting on this for gold bar imports, and it
• 10:10
  Speaker 1: still could possibly happen. We don't know what the president
• 10:12
  Speaker 1: is going to do. But one thing you can compare
• 10:15
  Speaker 1: to is what happened with digital gold.
• 10:17
  Speaker 2: This is, of course tether.
• 10:19
  Speaker 1: Gold right there, and this spike right there, guys, just
• 10:22
  Speaker 1: overnight in a period of time when we had this
• 10:25
  Speaker 1: kind of rally come to play into this. Wouldn't that
• 10:27
  Speaker 1: make the case for digital gold a much bigger scenario
• 10:32
  Speaker 1: for investors in the future to say, simply give me
• 10:35
  Speaker 1: tokenize gold versus the real stuff, because I know it's
• 10:39
  Speaker 1: going to be held, or at least I'm hoping that
• 10:41
  Speaker 1: it's going to be held in places where I can
• 10:44
  Speaker 1: at some point call for delivery. But don't you think
• 10:46
  Speaker 1: that's going to be a movement We're going to start
• 10:49
  Speaker 1: to see.
• 10:49
  Speaker 5: Now, well, that's what you just said right there is
• 10:52
  Speaker 5: the catalyst is the key just to expand upon what
• 10:55
  Speaker 5: I just said and then answer that question. In the
• 10:57
  Speaker 5: first five days of trading for silver, there was one million,
• 11:01
  Speaker 5: seven hundred and twenty one thousand plus ounces received into comex.
• 11:05
  Speaker 5: There was one point eight nine million ounces withdrawn leaving COMEX.
• 11:09
  Speaker 5: To your point, delivery, that's what's really weird. It's one
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  Speaker 5: thing for the delivery to come into comex to actually
• 11:15
  Speaker 5: leave the ecosystem. Who's taking possession of one point eight
• 11:18
  Speaker 5: nine million ounces. That's several semi trucks worth. Well, to
• 11:23
  Speaker 5: your point on the token is system, Yes, that in
• 11:27
  Speaker 5: theory sounds great, but if there are tariffs on imports
• 11:30
  Speaker 5: of gold and silver, first of all, this better be
• 11:32
  Speaker 5: held in the United States. If it's not taking possession
• 11:35
  Speaker 5: is all but impossible. And when you talk about the
• 11:40
  Speaker 5: noose closing around the ability to move things easily without
• 11:44
  Speaker 5: reportability in the physical realm, Brinks was just fined fifty
• 11:49
  Speaker 5: million dollars by the Justice Department for not acting or
• 11:52
  Speaker 5: not filling out paperwork to become a money services provider.
• 11:55
  Speaker 5: They said, We're not a money services provider. They said,
• 11:58
  Speaker 5: the hell you're not. You've been bringing metal cross border.
• 12:00
  Speaker 5: So because you've been bringing legal tender cross border, you're
• 12:04
  Speaker 5: a money services provider, and they settled.
• 12:06
  Speaker 3: For forty some million dollars.
• 12:08
  Speaker 5: So the point of it is is that getting metal
• 12:10
  Speaker 5: back ain't going to be easy anymore, whether it be
• 12:14
  Speaker 5: through tariffs or even the reluctance of these these entities
• 12:18
  Speaker 5: like brings to who now have to be characterized as
• 12:21
  Speaker 5: a money services provider to bring it back? So the
• 12:24
  Speaker 5: real issue with a tokenized form of gold would be
• 12:27
  Speaker 5: who's storing it, where is it, who's auditing it, and
• 12:31
  Speaker 5: can you take physical possession of it easily? If the
• 12:34
  Speaker 5: answer is yes, then that's the secret sauce. In other words,
• 12:37
  Speaker 5: if you were able to do this in it brings
• 12:38
  Speaker 5: vault in Salt Lake City, where it's completely audited, completely transparent,
• 12:42
  Speaker 5: and yes you can take possession of it, you've hit
• 12:45
  Speaker 5: the home run.
• 12:45
  Speaker 3: That's a trifecta. Contains to that.
• 12:47
  Speaker 5: Short of that, it's got issues regarding redeemability here in
• 12:51
  Speaker 5: the United States.
• 12:52
  Speaker 1: Well, and you look at you mentioned Brinks. I was
• 12:54
  Speaker 1: looking at their stock price up dramatically from just last
• 12:57
  Speaker 1: week significant. I mean for that move this is over
• 13:01
  Speaker 1: the past year that you guys can see right there.
• 13:04
  Speaker 1: So I think this is the factor that everybody's looking
• 13:06
  Speaker 1: at because digital gold many people, when you look at
• 13:09
  Speaker 1: tokenized gold, many people are just there for the lift
• 13:12
  Speaker 1: in the market. They're not necessarily looking for a potential
• 13:16
  Speaker 1: of taking you know, physical gold into delivery. And I
• 13:20
  Speaker 1: think that is a factor going forward. Do you think
• 13:23
  Speaker 1: at this point that, especially with gold, the potential of
• 13:27
  Speaker 1: being more tokenized in the future, if in fact we
• 13:29
  Speaker 1: do have this, will companies like yourself and others.
• 13:33
  Speaker 2: Start to go this direction.
• 13:34
  Speaker 5: I think that the inevitability if it were really good.
• 13:38
  Speaker 5: The answer is yes, of course, and I've been I've
• 13:41
  Speaker 5: been approached by several people to look at the beginning
• 13:45
  Speaker 5: stages of that. But you know, look at the LBMA,
• 13:48
  Speaker 5: which is now completely losing its credibility. It has to
• 13:51
  Speaker 5: be in a place where it is trusted, where it
• 13:53
  Speaker 5: is validated, where it is verified, where it is deliverable.
• 13:56
  Speaker 5: Even if most of the people never wanted to take
• 14:00
  Speaker 5: possession out of these exchanges, the fact that these exchanges
• 14:03
  Speaker 5: are being in essence viewed as fagasy, viewed as bs,
• 14:09
  Speaker 5: viewed as a fractional Ponzi scheme. They've lost all their legitimacy.
• 14:15
  Speaker 5: So yes, if there was a system whereby we could
• 14:19
  Speaker 5: tell our clients you have immediate access, you have immediate settling,
• 14:22
  Speaker 5: you have immediate auditing twenty four to seven on the blockchain,
• 14:26
  Speaker 5: and the ability to take possession of it quickly. Then yes,
• 14:30
  Speaker 5: I think it would dramatically. It would change the gold
• 14:34
  Speaker 5: market as much as when I started this company in
• 14:37
  Speaker 5: nineteen eighty nine, Paul, there was no Internet.
• 14:39
  Speaker 3: I started before the damn Internet, making me feel old.
• 14:42
  Speaker 5: Before the Internet, people who dealt in securities were called stockbrokers,
• 14:46
  Speaker 5: and then the Internet rendered them obsolete. With Scott Trade
• 14:50
  Speaker 5: making nine dollars trades. That the advancement in technology could
• 14:54
  Speaker 5: very quickly change the ecosystem, but it all boils down
• 14:58
  Speaker 5: to transparency, trust and redeemability, at least in my mind
• 15:02
  Speaker 5: for the people who favor redeemability, or at least the
• 15:06
  Speaker 5: option to be able to do it when and if
• 15:08
  Speaker 5: they want, over just about anything else.
• 15:11
  Speaker 3: And I think that's.
• 15:12
  Speaker 5: Really the key for those who are building this ecosystem
• 15:15
  Speaker 5: out there who might be watching this, that's the key.
• 15:17
  Speaker 3: All right.
• 15:18
  Speaker 1: So you've got Packsoskull, that's a US origin. Then of
• 15:22
  Speaker 1: course you've got tether Gold, which is now British Virgin
• 15:25
  Speaker 1: Islands plus with defied the potential. Now to really kind
• 15:29
  Speaker 1: of shop this, I think is you know, to whatever
• 15:32
  Speaker 1: jurisdiction you guys end up wanting to go into. But
• 15:34
  Speaker 1: this just shows you the cross potential for multi chain,
• 15:38
  Speaker 1: and this is just showing any compatible chain what we're
• 15:42
  Speaker 1: going to see with xaut, interoperability, the whole idea around
• 15:46
  Speaker 1: this back to your point physical bars being the validity
• 15:50
  Speaker 1: of it. But a lot of these companies have been
• 15:52
  Speaker 1: so held to audits because of tokenized systems that it
• 15:58
  Speaker 1: sounds to me like it might they actually might be
• 16:00
  Speaker 1: better prepared to go this direction. Then what we're dealing
• 16:03
  Speaker 1: with right now, which apparently is kind of getting you know,
• 16:06
  Speaker 1: the king has no clothes scenario pulled out in front
• 16:10
  Speaker 1: of it right now.
• 16:10
  Speaker 2: So could be a big deal.
• 16:12
  Speaker 1: Guys, we could see this and remember there's still some
• 16:15
  Speaker 1: earnings out there, you know, right here, this is just
• 16:18
  Speaker 1: if you look at hyperbat right here, they're paying yield
• 16:22
  Speaker 1: on gold and right there on xaut. Then you go
• 16:25
  Speaker 1: into what's happening over here in some of the markets
• 16:28
  Speaker 1: continuing to explode. Look at the market cap all up
• 16:32
  Speaker 1: right now. It seems to be a little bit of
• 16:33
  Speaker 1: a challenge I'll kind of zoom in on that for you, Andy,
• 16:35
  Speaker 1: right there between paxos and tether gold. Also, we're starting
• 16:40
  Speaker 1: to see yields, and this is something that is completely
• 16:44
  Speaker 1: foreign to I think most gold holders imagine holding digital gold,
• 16:48
  Speaker 1: being able to gain yield and never sell your gold,
• 16:52
  Speaker 1: and being able to compound up on that. And at
• 16:54
  Speaker 1: some point you're going to see companies, whether it's these
• 16:58
  Speaker 1: DeFi exchanges, it's just one of them that's out there
• 17:01
  Speaker 1: starting to go into USDC, but they're going to be
• 17:03
  Speaker 1: introducing gold digital gold as well, tokenized gold, possibly where
• 17:09
  Speaker 1: you could even see rewards coming back to a holder
• 17:12
  Speaker 1: of this, which would be bizarre for the gold industry.
• 17:16
  Speaker 2: What are your thoughts on that?
• 17:17
  Speaker 5: Yeah, I mean it would be bizarre for the gold
• 17:20
  Speaker 5: industry certainly. You know, the whole argument again stone and
• 17:25
  Speaker 5: gold by traditionalists is that it doesn't pay any yield.
• 17:28
  Speaker 5: It doesn't really need to when you compare it to
• 17:31
  Speaker 5: all forms of traditional assets. But again, we here again
• 17:34
  Speaker 5: are moving into a new system, a new world where
• 17:38
  Speaker 5: these kinds of thoughts for the gold bug you have
• 17:40
  Speaker 5: to chisel away. Even for an old guy like me
• 17:43
  Speaker 5: to break free from it. Most of the people at
• 17:46
  Speaker 5: least in the people that I talk to. It all
• 17:48
  Speaker 5: centers around trust and if there is a system that
• 17:52
  Speaker 5: will allow complete and total transparency, the ability to earn yield,
• 17:56
  Speaker 5: the ability to take possession, the ability to move in
• 17:59
  Speaker 5: and out quickly, it sounds incredible, and it sounds amazing.
• 18:05
  Speaker 5: The yield part, I would argue, is probably not as
• 18:09
  Speaker 5: important to the people holding gold as many would think,
• 18:12
  Speaker 5: but what it would do maybe to the people on
• 18:14
  Speaker 5: the fence, the people who like the idea of gold
• 18:18
  Speaker 5: back see the value in owning something like weld. That
• 18:21
  Speaker 5: the central banks of the world are buying at levels
• 18:24
  Speaker 5: no one has ever seen, and the United States becoming
• 18:26
  Speaker 5: net importers. So sure, I'll have it some exposure to
• 18:29
  Speaker 5: the gold. I like the yield, I like the ability
• 18:31
  Speaker 5: to move in and out, and all of those things
• 18:36
  Speaker 5: I think are very bullish ultimately for the gold market.
• 18:39
  Speaker 5: As a business owner, you must learn to roll with
• 18:43
  Speaker 5: the changes. You must have an open mind or you
• 18:46
  Speaker 5: get rolled by them.
• 18:47
  Speaker 3: And so the banks are doing well, Yeah, I mean
• 18:50
  Speaker 3: I really started to watch.
• 18:52
  Speaker 5: I enjoy coming on a show like yours, and quite frankly,
• 18:56
  Speaker 5: I've been saying forever that our two communities are actually
• 19:00
  Speaker 5: more alike than not. My whole idea is to meld
• 19:04
  Speaker 5: the two communities together for sure.
• 19:05
  Speaker 1: And I want to kind of paint this out for
• 19:07
  Speaker 1: you because I feel like there's a huge opportunity here
• 19:10
  Speaker 1: for the gold industry, and you know that's one of
• 19:13
  Speaker 1: the reasons we of.
• 19:13
  Speaker 2: Course love to talk with you. I want to play
• 19:16
  Speaker 2: a clip for you.
• 19:17
  Speaker 1: This will get it back to the point of yields
• 19:19
  Speaker 1: and why I think maybe this is a hidden opportunity.
• 19:22
  Speaker 2: Listening to this.
• 19:23
  Speaker 6: One, users get everything thrown at them in the timer,
• 19:26
  Speaker 6: Like every bit of value that can be taken from
• 19:29
  Speaker 6: a chain from its partners gets thrown at the users
• 19:32
  Speaker 6: through yields. So something like AUSD AUSD is a stable
• 19:36
  Speaker 6: coin where a ton of foundation actually receives the revenue
• 19:39
  Speaker 6: and redistributes that out to users. That is off chain yields.
• 19:42
  Speaker 6: So when you are in a bear market and DeFi
• 19:47
  Speaker 6: yields draw significantly, what will actually happen is that that
• 19:51
  Speaker 6: yield on the AUSD is actually going to be much
• 19:53
  Speaker 6: more desirable than the on chain yields. And that is
• 19:55
  Speaker 6: something that allows like disproportionate earnings for users in a
• 19:59
  Speaker 6: bear market that you don't actually get in a just
• 20:03
  Speaker 6: anywhere else because they're not built for it.
• 20:05
  Speaker 1: All right, So Andy, my question is this you've got
• 20:08
  Speaker 1: we'll call it traditional finance investors and have been probably
• 20:12
  Speaker 1: for twenty thirty years. That is generational wealth that's getting
• 20:15
  Speaker 1: ready to get transferred.
• 20:17
  Speaker 2: Most likely it's.
• 20:18
  Speaker 1: Going to be a gen z or a millennial that's
• 20:21
  Speaker 1: going to now control this wealth in the next five years.
• 20:23
  Speaker 1: Right now, that's the window many of which have started
• 20:26
  Speaker 1: to already venture into these high yield DeFi scenarios. Now
• 20:30
  Speaker 1: we're getting digital and tokenized gold, all this playing into
• 20:34
  Speaker 1: it and yield generation. They understand because it's compounded, which
• 20:38
  Speaker 1: of course would be unbelievable if you had something like
• 20:41
  Speaker 1: an asset in terms of gold.
• 20:43
  Speaker 2: That's what they were talking to right there.
• 20:45
  Speaker 1: That's one of the Polygon former leads Mark Boyern talking about.
• 20:48
  Speaker 1: That is that ecosystems like this are going to continue
• 20:51
  Speaker 1: to propagate. It's what we're seeing in the banking industry.
• 20:54
  Speaker 1: It's what we've seen with stable coins, and most likely
• 20:57
  Speaker 1: it's going to I mean, it's already happening in the
• 20:59
  Speaker 1: money market of things where they're having to become much
• 21:01
  Speaker 1: more competitive. Why not gold Man, It just seems like
• 21:04
  Speaker 1: there should be a company, maybe even like you guys
• 21:08
  Speaker 1: or others, maybe a consortium that would come in and
• 21:11
  Speaker 1: develop a system for you know, tokenizing a physical asset.
• 21:17
  Speaker 2: Who would be.
• 21:19
  Speaker 5: Even better if that would be yield in physical metal?
• 21:23
  Speaker 2: Well, absolutely for sure.
• 21:25
  Speaker 5: To me, the logical place really would be to completely
• 21:29
  Speaker 5: disintermediate the entire bullion bank ecosystem and come right from
• 21:37
  Speaker 5: the mines where the gold in the ground is actually tokenized,
• 21:41
  Speaker 5: where you have proven reserves, geological studies and proven reserves,
• 21:45
  Speaker 5: and then tokenize that and deliver it the ability to
• 21:49
  Speaker 5: deliver it to the public directly. Do you look at
• 21:52
  Speaker 5: a company like First Majestic Silver that has kind of
• 21:56
  Speaker 5: vertically integrated their entire system where they are a large minor,
• 22:02
  Speaker 5: they also now have a refinery and a mint.
• 22:05
  Speaker 3: So they pull their own silver out, they.
• 22:07
  Speaker 5: Send it to the refinery where it's refined, they mint
• 22:10
  Speaker 5: it and send it out.
• 22:11
  Speaker 3: Now they would be perfect for that. Now, that to
• 22:13
  Speaker 3: me is the way to do it.
• 22:15
  Speaker 1: Well if you had okay, so maybe you had someone
• 22:18
  Speaker 1: like that, but I think the model is one that's
• 22:21
  Speaker 1: similar to what's here on screen of using something like
• 22:25
  Speaker 1: interest rate differentials. So you'd basically just borrow at low
• 22:28
  Speaker 1: rates on something like xaum.
• 22:30
  Speaker 2: This would be back loans.
• 22:32
  Speaker 1: You'd lend stable coins against that, and then that would
• 22:35
  Speaker 1: be on bocifi or DeFi, and you could do that
• 22:38
  Speaker 1: even if you did that at ten to fifteen percent.
• 22:40
  Speaker 2: Those are some good examples.
• 22:42
  Speaker 1: Then go into yield farming and then a liquidity provision
• 22:45
  Speaker 1: of that.
• 22:46
  Speaker 2: So this is.
• 22:47
  Speaker 1: Possible to be done right now to where I'm surprised
• 22:51
  Speaker 1: that we haven't seen this model in the gold industry
• 22:55
  Speaker 1: to date, especially with all the stable coin news and
• 22:58
  Speaker 1: the regulation everything that's happening. I'm just quite surprised that
• 23:02
  Speaker 1: we haven't seen it yet. That's why I was asking
• 23:04
  Speaker 1: who would be the companies out there that you think
• 23:07
  Speaker 1: might be able to come in that direction.
• 23:09
  Speaker 5: Last couple, I honestly think it would be the mining
• 23:11
  Speaker 5: companies more than more than the retail companies.
• 23:14
  Speaker 3: I really truly do.
• 23:15
  Speaker 1: Do you think that we're going to see goldbugs now
• 23:18
  Speaker 1: start to differentiate or I shouldn't say differentiate, but diversify
• 23:23
  Speaker 1: their asset base, maybe into tokenized systems. You know, Sailor's
• 23:28
  Speaker 1: been on many times saying, hey, there's no tariff on
• 23:30
  Speaker 1: digital assets, no teriff on cyberspace. You know, it's not
• 23:34
  Speaker 1: a physical transaction. Granted it doesn't mean there couldn't be,
• 23:38
  Speaker 1: but right now nothing of that nature. Do you think
• 23:41
  Speaker 1: we're going to see goldbugs start to say, yeah, we're
• 23:44
  Speaker 1: going to whether it's tokenized gold, bitcoin, ethereum, XRP, whatever
• 23:48
  Speaker 1: it might be. Do you feel like there's going to
• 23:50
  Speaker 1: be a movement there now because of this tariff scare.
• 23:54
  Speaker 5: My honest opinion would be no, not yet. The gold
• 23:57
  Speaker 5: bugs are pretty set in their way, the older folks. No,
• 24:01
  Speaker 5: I don't think they will. But when it becomes obvious
• 24:04
  Speaker 5: that it has proven that it is legitimate, that it
• 24:08
  Speaker 5: is safe, then yes, ultimately you will. But I still
• 24:11
  Speaker 5: think we're early. I'm more open to this than than
• 24:15
  Speaker 5: just about anyone in my space. You'll get a guy
• 24:17
  Speaker 5: like Peter Schiff, who's one of the smartest guys in
• 24:19
  Speaker 5: the world, but he is completely antithesis of anything digital,
• 24:24
  Speaker 5: and I think that's more along the mentality of the
• 24:27
  Speaker 5: of the traditional gold Bugget.
• 24:29
  Speaker 1: All right, perfect, Well, I just want to validate that.
• 24:31
  Speaker 1: You know, what you were taking talking about was shift.
• 24:33
  Speaker 1: He's more anti bitcoin than anything or you know, in general,
• 24:38
  Speaker 1: not necessarily anti you know, tokenized gold, because I think
• 24:41
  Speaker 1: he is he believes, yes, that that the blockchain is
• 24:44
  Speaker 1: good for that purpose, especially with physical assets such as that.
• 24:49
  Speaker 1: Two questions real quick. One is if you think about
• 24:53
  Speaker 1: tokenized gold that has true gold backed assets one to one,
• 24:58
  Speaker 1: does that start to gate, especially when it's as stable
• 25:01
  Speaker 1: coin oriented platform. Does that start to negate the need
• 25:06
  Speaker 1: for bricks to where it just simply puts them off
• 25:10
  Speaker 1: the table.
• 25:10
  Speaker 2: What are your thoughts?
• 25:11
  Speaker 3: No, not even a little bit in my opinion.
• 25:15
  Speaker 5: The bricks bridge system which is now being integrated. First,
• 25:20
  Speaker 5: it's already been integrated into the eleven Asian countries in
• 25:25
  Speaker 5: Southeast Asia and five Middle Eastern countries, which is thirty
• 25:28
  Speaker 5: eight percent of global GDP. They're also now integrating it
• 25:32
  Speaker 5: into the Belt Road, which is seventy five percent of
• 25:35
  Speaker 5: human population fifty percent of global GDP. Forbes just came
• 25:39
  Speaker 5: out with the report last week that said those Asian
• 25:42
  Speaker 5: countries now represent China's largest trading partner by far. And
• 25:47
  Speaker 5: then the extension of the Shanghai Metals Exchange into several
• 25:51
  Speaker 5: multi jurisdictional vaulting systems, starting first ones done in Hong Kong.
• 25:56
  Speaker 5: Next one is under construction. Now in Saudi Arabia, and
• 25:59
  Speaker 5: they're going to build them all through the belt Road.
• 26:01
  Speaker 5: The system will allow them to trade cross border without
• 26:04
  Speaker 5: interference of the swift in seven seconds with the ninety
• 26:08
  Speaker 5: eight percent reduction in fees. And the Shanghai Metals Exchange
• 26:11
  Speaker 5: has come out about a month ago and said from
• 26:13
  Speaker 5: now on, any of our trading partners can take there
• 26:16
  Speaker 5: you want and immediately convert into gold in the Shanghai
• 26:19
  Speaker 5: Metals Exchange in these vaults without switching to dollars. That's
• 26:23
  Speaker 5: the kind of thing removing any of this risk through
• 26:26
  Speaker 5: multi jurisdictional it's more distributed. And so no, I don't
• 26:32
  Speaker 5: think so. I think it's too late for that, to
• 26:34
  Speaker 5: be honest with you. I think a lot of these
• 26:36
  Speaker 5: countries are sick and tired of the Western hegemony and
• 26:40
  Speaker 5: anything including DeFi including ideas like this that are truly groundbreaking. Yeah,
• 26:46
  Speaker 5: they'll have an impact, but won't completely erase the need
• 26:49
  Speaker 5: or desire for these bricks countries to find a new path.
• 26:53
  Speaker 1: I think they're going to find a new path in
• 26:55
  Speaker 1: the blockchain. It's because ethereum essentially already lands in that
• 26:59
  Speaker 1: frame and work right now and tether you know, from
• 27:02
  Speaker 1: a settlement side is already there and it's not you know,
• 27:06
  Speaker 1: the western you know ecosystem that has been really the
• 27:10
  Speaker 1: reason for the rise of bricks. Listen, we are in
• 27:13
  Speaker 1: financial and global warfare, it feels like, especially with what's
• 27:17
  Speaker 1: happening in the goal market and the shift, especially with
• 27:21
  Speaker 1: digital assets, because it's pretty much supplanting the current banking
• 27:25
  Speaker 1: system in a big way. So Andy, we're going to
• 27:28
  Speaker 1: have you back on as things start to progress with this,
• 27:33
  Speaker 1: So thank you so much. Where can everybody find you
• 27:35
  Speaker 1: right now? I know you guys launched a brand new
• 27:38
  Speaker 1: Miles Franklin media channel over on YouTube, So where can
• 27:41
  Speaker 1: they find you?
• 27:42
  Speaker 2: Give us a shot.
• 27:43
  Speaker 5: We're excited to have Michelle McCrory running that for us.
• 27:46
  Speaker 5: Thank you for mentioning that. Look, we have a website
• 27:48
  Speaker 5: at Miles Strengthlin dot com. The best place to reach
• 27:51
  Speaker 5: out to us, not only to get our price list,
• 27:53
  Speaker 5: which for a myriad of reasons that I should really
• 27:56
  Speaker 5: have a discussion with online so people understand why it
• 28:00
  Speaker 5: this way, we keep close to the best ask for
• 28:03
  Speaker 5: our price list, no obligation or any questions you've heard
• 28:07
  Speaker 5: here or any of the other shows I'm on info,
• 28:09
  Speaker 5: I NFO at Miles Franklin dot com that Priceless will
• 28:12
  Speaker 5: be as good or better than anyone in the country,
• 28:14
  Speaker 5: and just as a caveat, we do update it once
• 28:17
  Speaker 5: or twice a week every week.
• 28:18
  Speaker 3: If you find prices better, let us know.
• 28:21
  Speaker 5: We'll beat it typically almost every time, but it's info.
• 28:24
  Speaker 5: I NFO at Miles Franklin dot com. Our website is
• 28:28
  Speaker 5: Miles Franklin dot com and of course Miles Franklin Media
• 28:31
  Speaker 5: on YouTube. And Paul, I've I've learned so much from you.
• 28:34
  Speaker 5: I've been watching everything that you're doing. I appreciate you
• 28:36
  Speaker 5: having me on and helping bridge these two communities together,
• 28:40
  Speaker 5: who again have more in common than we have a part.
• 28:43
  Speaker 3: So I thank you very much.
• 28:44
  Speaker 5: I look very forward to picking up where we left
• 28:46
  Speaker 5: off and hopefully doing it again real soon.
• 28:48
  Speaker 2: Excellent. Thanks Thanks Andy for coming in. We appreciate it.
• 28:51
  Speaker 3: You got it, brother. Stay well.
• 28:53
  Speaker 1: All right, you guys, if you're not in our Diamond
• 28:55
  Speaker 1: Circle right now, make sure and get in on that.
• 28:57
  Speaker 1: That's our own private group that gets additional content, research,
• 29:00
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• 29:02
  Speaker 2: From me, and we do that in an email to you.
• 29:04
  Speaker 1: So it's very easy to join, and it's free it's
• 29:06
  Speaker 1: the link down below, or catch me out there on
• 29:09
  Speaker 1: x just at Paul Baron. We'll catch you next time
• 29:11
  Speaker 1: right here on The Paul Baron Show.