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Is Your Money Safe? 3 Major Financial Risks Building Right Now · The Bullion Advantage | Wealth Protection, Politics and Finance Insights From The #1 UK Gold Dealer

• 0:00
  SPEAKER_02: Is your money actually safe right now?
• 0:03
  SPEAKER_02: Because three major financial pressures are building at the same time.
• 0:08
  SPEAKER_02: If you've spent years building up savings, paying into a pension, or you're just getting started on your financial journey, these wider economic problems could eventually affect the value of what we're working so hard to build.
• 0:19
  SPEAKER_02: When governments face enormous debts and rising borrowing costs, they have difficult choices to make.
• 0:25
  SPEAKER_02: And history shows that those choices can have very real consequences for ordinary savers like you and me.
• 0:31
  SPEAKER_02: So should we be thinking differently about where our wealth is held?
• 0:34
  SPEAKER_02: By the end of this episode, you'll have a clearer understanding of the pressures building across the financial system, how they could affect your savings and purchasing power, and the role that physical assets can play in protecting wealth through periods of uncertainty.
• 0:48
  SPEAKER_02: Before we begin though, please do remember to like and subscribe if you're on YouTube.
• 0:52
  SPEAKER_02: And if you're listening on Spotify or Apple Podcasts, please do follow the show so you never miss an update.
• 0:57
  SPEAKER_02: Blair's here to break this all down today.
• 0:59
  SPEAKER_02: Blair, thanks so much for joining me on the podcast.
• 1:02
  SPEAKER_00: Hi Jake, thanks for having me back.
• 1:04
  SPEAKER_02: Thank you so much for coming back on.
• 1:05
  SPEAKER_02: Let's start with the first major risk, which is inflation.
• 1:09
  SPEAKER_02: Why is inflation such a problem for savers right now?
• 1:12
  SPEAKER_00: Yeah, it's a big topic at the minute.
• 1:14
  SPEAKER_00: I think when people um especially with the budget coming up, people are starting to worry about the spending power of their own pound.
• 1:21
  SPEAKER_00: So definitely.
• 1:22
  SPEAKER_00: Obviously, we know inflation is simply the price of which goods and services rise every year.
• 1:29
  SPEAKER_00: It's around three percent, so every year things become three percent more expensive.
• 1:34
  SPEAKER_00: You could argue real world inflation is even around sort of five, five and a half.
• 1:39
  SPEAKER_00: So unless your money is growing at that rate, you're not doing so well, are you the amount that you've got gets you less and less every year.
• 1:47
  SPEAKER_02: Yeah.
• 1:47
  SPEAKER_02: So where does inflation hit us generally in our everyday lives?
• 1:52
  SPEAKER_00: Everywhere.
• 1:54
  SPEAKER_00: Food, energy, fuel, insurance, housing, holidays, entertainment, you know, eating out.
• 2:00
  SPEAKER_00: You you see it all the time, you know.
• 2:01
  SPEAKER_00: You just think, you know, a meal for four used to be 60 quid and now it's 200 pounds.
• 2:05
  SPEAKER_00: Yes.
• 2:06
  SPEAKER_00: I was I remember in COVID, I was buying the bars of chocolate in the supermarket like 90%, chopping them up into my yogurt, and I distinctly remember they were£1.50 and in Saint Res they were a generally a pound if you had a nectar card.
• 2:20
  SPEAKER_00: Right.
• 2:20
  SPEAKER_00: I was just in now, I was in a co-op, I know that can be a little bit more than the supermarkets, but they were f the same bar was four pounds ten.
• 2:29
  SPEAKER_00: It's that's just from COVID.
• 2:31
  SPEAKER_00: I know.
• 2:32
  SPEAKER_00: Um, and they do say the price well that's what I mean when I say real world inflation, so the the price of food has doubled since then, so it's way over inflation.
• 2:38
  SPEAKER_00: So when you factor everything in, three percent is actually yeah, a lot of everyday costs have definitely increased more than three percent every year.
• 2:47
  SPEAKER_00: 100% definitely so yeah, you don't need a degree in economics to figure that one out.
• 2:51
  SPEAKER_00: Your supermarket receipt will tell you all you need to know.
• 2:54
  SPEAKER_01: Yeah, absolutely.
• 2:55
  SPEAKER_00: So, who would you say inflation affects the most out of everyone?
• 3:00
  SPEAKER_00: Well, it affects everyone because it's you know, inflation for you, inflation for a billionaire is the same.
• 3:05
  SPEAKER_00: But yeah you could argue the more money you've got, the more money you're losing, but really in the real world, it's worse for people that hold their wealth in cash or hold their money in cash because they haven't got any, so they need the instant liquidity to their entire income.
• 3:20
  SPEAKER_00: And obviously, if your income isn't rising as quickly as prices, then that's gonna affect you the most.
• 3:27
  SPEAKER_02: Yeah, you're worse off.
• 3:28
  SPEAKER_02: If someone's got most of their savings just sitting in the bank, what should they be watching for?
• 3:33
  SPEAKER_00: Three things uh the inflation rate, okay, as previously explained, yeah, the interest you're earning on that after attacks.
• 3:41
  SPEAKER_02: Of course, yeah.
• 3:42
  SPEAKER_00: And the period you're looking at.
• 3:44
  SPEAKER_00: So obviously, if you're holding that cash for ten years, you're gonna be at more risk than someone that's only holding it for a year.
• 3:52
  SPEAKER_00: So ask yourself, is my money growing in purchasing power?
• 3:56
  SPEAKER_00: Yeah.
• 3:57
  SPEAKER_00: That that is that is the key thing is what is your pound getting you today?
• 4:01
  SPEAKER_00: What is it gonna get you in five years' time, and are you doing anything to protect yourself against that?
• 4:06
  SPEAKER_02: Couldn't agree more.
• 4:07
  SPEAKER_02: Let's move on to the second risk, which is government debt.
• 4:11
  SPEAKER_02: Now, government borrowing was reportedly 18.3 billion pounds last month.
• 4:16
  SPEAKER_02: That's the latest figures from the Office for National Statistics.
• 4:20
  SPEAKER_02: Across the first five months of the financial year, which obviously starts in April, borrowing's uh reportedly 77.3 billion.
• 4:28
  SPEAKER_02: Now that sum is 2.2 billion below the equivalent period last year, but it still sits 8.1 billion above what the OBR projected.
• 4:38
  SPEAKER_02: So these are obviously figures that regular people like you and I could only dream of, but why should we actually care about those numbers?
• 4:46
  SPEAKER_00: Well, simply put, governments will always borrow uh and owe money, and it's about how that is managed.
• 4:51
  SPEAKER_00: So it's about the difficult choices that persistent borrowing will eventually create, and those choices will affect taxation, spending, interest costs, and just the the wider economy.
• 5:03
  SPEAKER_02: So if governments need to raise more money, basically, where can that money realistically come from?
• 5:08
  SPEAKER_00: Well, ultimately there aren't actually that many options.
• 5:11
  SPEAKER_00: So unfortunately, it's going to be the obvious ones.
• 5:14
  SPEAKER_00: The first one we can all guess, especially with the budget coming up, raising taxes.
• 5:17
  SPEAKER_00: Yeah, um, absolutely.
• 5:19
  SPEAKER_00: I can't remember a budget that's not brought more tax, some some kind of tax.
• 5:24
  SPEAKER_00: Um, or they can reduce spending, but then things will suffer refuse, roads, whatever that may be.
• 5:32
  SPEAKER_00: Or they can borrow more and just try to grow the economy so the tax receipts increase without necessarily increasing tax rates, but that creates economic problems in its own on its own.
• 5:42
  SPEAKER_00: Um, and we have we are currently seeing a government that has pledged a lot of spending, so it's not going to be that one.
• 5:49
  SPEAKER_00: So most likely it will be more tax, less money in your pocket.
• 5:54
  SPEAKER_00: So it's an important thing for savers is that these fiscal decisions can affect wider economic environment, including, like I say, interest rates and then inflation and the value of your pound.
• 6:06
  SPEAKER_02: Just following on from that as well, how concerned should someone in Britain be about the relationship between these factors government debt, inflation, and the pound itself?
• 6:16
  SPEAKER_00: Yeah, so if it's something that you know we we all have money, we'll we all don't want to be losing it.
• 6:21
  SPEAKER_00: So it's stay informed.
• 6:23
  SPEAKER_00: Don't be so alarmed day to day, month to month.
• 6:25
  SPEAKER_00: It's about the bigger picture and the direction of travel.
• 6:28
  SPEAKER_00: You know, look at what the government uh is is likely to do and how that will affect economic growth, monetary policy for investors and savers alike.
• 6:36
  SPEAKER_00: So I'd be I'd be looking at the overall trend rather than panicking over one month's number, right?
• 6:41
  SPEAKER_00: But as we can clearly see, the trends are going one way.
• 6:45
  SPEAKER_00: So inflation is on the up.
• 6:47
  SPEAKER_00: The pound I mean, the pound's lost 99% of its value since creation.
• 6:50
  SPEAKER_00: Yeah.
• 6:50
  SPEAKER_00: The Bank of England have said you know inflation's around what 3.1%.
• 6:55
  SPEAKER_00: The Bank of England has said 20 by 20 ends of 2027 there'll be another 25% of that.
• 6:59
  SPEAKER_00: Wow.
• 7:00
  SPEAKER_00: So another percentage point on that.
• 7:02
  SPEAKER_00: So yes, it's certainly something to keep an eye on.
• 7:05
  SPEAKER_02: So the third risk that we want to make people aware of is market pressure.
• 7:10
  SPEAKER_02: So for someone who doesn't actually follow financial markets, what exactly does that mean?
• 7:15
  SPEAKER_00: Okay, so market pressure sounds way more complicated than it actually is.
• 7:18
  SPEAKER_00: Okay.
• 7:19
  SPEAKER_00: Essentially, it's what happens when investors will demand more compensation for taking any given risk.
• 7:26
  SPEAKER_00: And what I mean by that is so, for example, one of the places you can see that is government bond markets.
• 7:31
  SPEAKER_00: If investors demand higher yield, higher yields to lend to a government, the the cost of that will rise for the government.
• 7:39
  SPEAKER_00: Uh, and you can see that in a wider economy.
• 7:41
  SPEAKER_00: So it's like saying, I'm willing to lend you the money, but you're gonna have to pay me a little bit more for it.
• 7:46
  SPEAKER_02: Got it.
• 7:47
  SPEAKER_02: So, what would you say we should be watching for to determine whether financial market pressure is actually becoming more serious?
• 7:56
  SPEAKER_00: Like I say, it's it's the the overall trend and persistence rather than a single move.
• 8:00
  SPEAKER_00: Right.
• 8:00
  SPEAKER_00: But you know, are you have to ask yourself a government bonds yield rising significantly?
• 8:05
  SPEAKER_00: Is the currency answer to sustain pressure and and investors demanding a higher risk premium?
• 8:10
  SPEAKER_00: And importantly, does that start feeding into borrowing costs for the economy, which is unfortunately what we are seeing now?
• 8:17
  SPEAKER_00: So one bad day, but doesn't tell you much, but it's the overall trend.
• 8:20
  SPEAKER_00: So if people lose confidence, the government will have to increase the yield to get you to borrow, then it would mean higher risk and therefore less stability, and it can obviously have a ripple effect for the whole economy.
• 8:33
  SPEAKER_02: Right.
• 8:34
  SPEAKER_02: So could we see a situation where the government is forced to choose between higher taxes, spending cuts, or just simply more borrowing?
• 8:42
  SPEAKER_00: Yeah.
• 8:43
  SPEAKER_00: So when the numbers don't add up, and we're seeing governments borrowing more and more, yeah.
• 8:49
  SPEAKER_00: We've just, you know, we're seeing look, look at the US, for example,$40 trillion in debt,$30 trillion economy,$400 billion borrowed for AI, betting on interest rates to go down, but the confidence that investors have that the borrowing is sustainable is low, so that they have to offer they have to have had to raise interest rates.
• 9:09
  SPEAKER_00: So it's it's a a mix of political decision that that governments will have to make different choices from a financial perspective.
• 9:16
  SPEAKER_00: What matters is there a credible plan for balancing books over time.
• 9:21
  SPEAKER_00: So that's a decision you would have to make.
• 9:23
  SPEAKER_00: I've got my opinion on it, and I think we're headed for a bit of trouble.
• 9:26
  SPEAKER_00: Definitely ultimately, you know, markets don't have to have zero debt.
• 9:30
  SPEAKER_00: Governments will always like I say, governments will always borrow, but what matters is is this borrowing sustainable?
• 9:36
  SPEAKER_02: Yeah, I have my opinion on whether it is or not as well.
• 9:40
  SPEAKER_02: But we've talked about inflation, we've talked about government debt, and now we talk about market pressure.
• 9:44
  SPEAKER_02: So, what can people do to keep their money safe against all three of these factors?
• 9:50
  SPEAKER_00: You can speculate, you could you could win big on the next Apple or crypto, but like I say, hugely speculative.
• 9:59
  SPEAKER_00: And if it pays off, you might set yourself up for life, but it'd be like trying to base your future future on winning the lottery.
• 10:07
  SPEAKER_00: So I'd maybe start with something a bit more boring.
• 10:10
  SPEAKER_00: Boring is often underrated when it comes to money because no one's talking about the next boring stock that's gonna protect them for 10 years, but when they should be have diversification, don't have everything on one asset, one cash, well, one currency, sorry, or one institution, like I just mentioned.
• 10:27
  SPEAKER_00: Yeah, cash does have its important role, you know, investments do too, and for some people, I think tangible assets are becoming way more popular in the current climate because there's less counterparty risk, you are in more control, yeah.
• 10:41
  SPEAKER_00: Um, and and the less moving parts the more simple or boring you could say something is, the easier it is to try and predict and and protect yourself.
• 10:52
  SPEAKER_00: So it's not about we talk about predictions.
• 10:55
  SPEAKER_00: I wouldn't try and predict everything that's gonna happen, but build something that won't fall apart if it does all go wrong.
• 11:02
  SPEAKER_02: Yeah, and my next question was gonna be where does where does gold fit into this picture?
• 11:07
  SPEAKER_00: Okay, yeah, so gold has historically always been viewed as a store of value and a fantastic diversification asset.
• 11:14
  SPEAKER_00: So it doesn't rely on anything to like a company to make a profit, it doesn't rely on someone else's promise to repay you, it doesn't pay interest, but that's part of its appeal.
• 11:25
  SPEAKER_00: It's been proven time and time again to hold its value over time.
• 11:28
  SPEAKER_00: And putting it this way,£10,000 right now.
• 11:31
  SPEAKER_00: What does£10,000 buy you right now?
• 11:33
  SPEAKER_00: Real, I don't know, a uh a decent second hand car.
• 11:36
  SPEAKER_02: Decent ish ish, yeah.
• 11:38
  SPEAKER_00: And so say you've got that car,£10,000 and a gold bar, rewind 10 years, that£10,000 would get you a really good second hand car.
• 11:46
  SPEAKER_00: Would but go in the future,£10,000 is going to get you an awful car.
• 11:51
  SPEAKER_00: But it is the gold bar, if you trade it in in the future, will still get you the same value because if you trade it in for monetary terms, it would still get you the same quality of cars it would now and ten years and ten years previously.
• 12:06
  SPEAKER_00: In fact, looking at where it is now historically, it'd probably get you the same car and a bit of change left over.
• 12:12
  SPEAKER_02: Yeah, actually, the trajectory it's going, I could see that happening for sure.
• 12:16
  SPEAKER_02: A lot of people have a common misconception about gold that it is dependent on believing that a massive crisis is gonna happen.
• 12:26
  SPEAKER_02: Would you care to debunk that a little bit for me?
• 12:28
  SPEAKER_00: Yeah, of course.
• 12:29
  SPEAKER_00: Um, and if there is a massive financial crisis coming, and if it does happen, I'm sure the people with a lot of gold will be a lot less anxious than everybody else.
• 12:38
  SPEAKER_00: But it doesn't mean that's what it's for.
• 12:40
  SPEAKER_00: I mean, Jake, do you believe in your heart your cut your house is gonna burn down?
• 12:44
  SPEAKER_00: No, but do you think your smoke alarms are a waste of money?
• 12:47
  SPEAKER_00: No, no, exactly.
• 12:49
  SPEAKER_00: And what if I told you in 10 years' time you can trade your smoke alarms in for what you paid for them and get a little bit of change left over?
• 12:54
  SPEAKER_02: Yeah, that just makes sense, doesn't it?
• 12:56
  SPEAKER_00: But you wouldn't sell them completely, you'd still have them, right?
• 12:59
  SPEAKER_00: Yeah, yeah.
• 12:59
  SPEAKER_00: There we go.
• 13:00
  SPEAKER_00: Absolutely.
• 13:00
  SPEAKER_00: So, yeah, so the arg the argument for earning physical gold isn't all about diversification, but it is about moving away from cash shares or bonds or anything tied to a fiscal system.
• 13:12
  SPEAKER_00: Um, and you like I say, you don't have to believe that your house is burning down or going to burn down to protect yourself.
• 13:19
  SPEAKER_00: Yeah, there are people that aren't so worried worried about the security and safety.
• 13:23
  SPEAKER_00: Gold in the last few years has attracted a much more diverse set of buyers itself.
• 13:29
  SPEAKER_00: You know, we've seen confidence in stocks and shares decrease.
• 13:34
  SPEAKER_00: Yeah, traditional ISES, government investments, bank-based products, the faith in them is on the decline.
• 13:42
  SPEAKER_00: Crypto attracted a whole younger generation of people to invest in and thinking about their money more, but again, confidence in that is down.
• 13:51
  SPEAKER_00: So we've seen a lot of these people moving into gold surely just because of the profit over the last few years.
• 13:57
  SPEAKER_00: The forecasts again are very strong from the major banks.
• 14:00
  SPEAKER_00: So it is I I'm biased, I work in the industry, but and I do believe it is for everybody.
• 14:05
  SPEAKER_00: I encourage my friends and family to do to do what I have done and move my money away from traditional areas into gold.
• 14:12
  SPEAKER_00: Obviously, I need some cash, we all do.
• 14:14
  SPEAKER_00: Yeah, um, so yeah, I think there are there are it's great to diversify, but there are a lot of aspects that could suit different different people.
• 14:22
  SPEAKER_02: And for anyone listening who is just starting to look at the market or listening to this podcast and think, yeah, maybe I do want to get some physical gold.
• 14:31
  SPEAKER_02: What do you think they should understand before making their first decision?
• 14:34
  SPEAKER_00: Ask yourself why are you buying it?
• 14:36
  SPEAKER_00: Is it purely safety?
• 14:38
  SPEAKER_00: Do you want to turn a profit?
• 14:40
  SPEAKER_00: Do you want to turn a profit in the short term?
• 14:41
  SPEAKER_00: Do you want to turn a profit in the long term?
• 14:43
  SPEAKER_00: Is it for tax?
• 14:44
  SPEAKER_00: Because as we know, pure gold is CGT and VAT free.
• 14:49
  SPEAKER_00: So understand what you're buying.
• 14:50
  SPEAKER_00: Look at the purity, the weight, the premiums, storage, insurance.
• 14:55
  SPEAKER_00: What are you buying it for?
• 14:56
  SPEAKER_00: What are you expected to sell it for?
• 14:58
  SPEAKER_00: You know, it's it's different from owning a financial product as well that attracts the gold price.
• 15:04
  SPEAKER_00: I believe in tangible physical gold, but again, that's something else you might want to consider.
• 15:08
  SPEAKER_00: You're having it delivered, you're having it stored.
• 15:10
  SPEAKER_00: So so gather as much information as you can and ask yourself what your problems are.
• 15:16
  SPEAKER_00: What what are your fears?
• 15:18
  SPEAKER_00: And will do you think gold will help you alleviate those fears?
• 15:22
  SPEAKER_00: Will it help you towards your goal?
• 15:24
  SPEAKER_00: Um, and and if the answer to those is yes, then it's definitely worth a conversation.
• 15:29
  SPEAKER_02: 100%.
• 15:30
  SPEAKER_02: And just moving over to silver briefly, why do you think someone who normally thinks about gold should be paying attention to silver right now?
• 15:39
  SPEAKER_00: Yeah, so silver does move if you look at the historic charts, it does move in tandem with the gold price.
• 15:45
  SPEAKER_00: Not always, it's more volatile.
• 15:47
  SPEAKER_00: Yeah, in fact, it has a completely different personality.
• 15:50
  SPEAKER_00: You know, gold is primarily thought of as a monetary and an investment metal, taking jewelry out of it.
• 15:56
  SPEAKER_00: Silver has that monetary history as well, but it is also very important industrially.
• 16:01
  SPEAKER_00: It's used in electronics, electric applications, solar, cars, but increasingly so in the latter, you know, technologies associated with uh EV, electronic vehicles, and the big one at the minute data centers and AI.
• 16:16
  SPEAKER_00: It has fantastic conductivity properties and is in huge demand industrially as well as uh as a precious metal.
• 16:25
  SPEAKER_00: So it's definitely worth uh considering silver as part of an investment portfolio.
• 16:30
  SPEAKER_00: It can also provide you with a little bit more flexible liquidity.
• 16:34
  SPEAKER_00: So with gold, it's often more cost effective to buy in larger denominations.
• 16:38
  SPEAKER_00: Right.
• 16:38
  SPEAKER_00: You know, I would rather buy a one coin for say four thousand pounds or three thousand or five thousand and then escape with five because it's easier than five£1,000 coins because you'll just get a better value.
• 16:50
  SPEAKER_00: Silver, on the other hand, you can get the same value in silver from£60 to£600,000.
• 16:57
  SPEAKER_00: So if you have some in storage or whatever and you want to sell parts, you haven't you haven't got to sell large chunks.
• 17:04
  SPEAKER_00: You can you can have that instant liquidity all the way down to 50-60 quid should you need it, which again is is quite popular with uh younger investors.
• 17:14
  SPEAKER_00: It's obviously a lot cheaper than gold, so you get a lot more of it for your money.
• 17:18
  SPEAKER_00: So a lot of people are say do 80% gold and you know 20% silver.
• 17:23
  SPEAKER_00: Yeah, so it's it's it's in high demand.
• 17:27
  SPEAKER_00: We don't believe that supply can keep up with the current demand, and therefore it's definitely worth a look.
• 17:32
  SPEAKER_00: The the growth forecast for silver is very, very strong.
• 17:35
  SPEAKER_02: Another metal that we're paying particular attention to at the moment is copper.
• 17:41
  SPEAKER_02: Why is copper becoming such an important metal at the moment?
• 17:45
  SPEAKER_02: Is it AI also?
• 17:47
  SPEAKER_00: Yes, so it's not just AI, but AI does need an enormous amount of copper for physical infrastructure.
• 17:56
  SPEAKER_00: So, as well as where do I start?
• 17:59
  SPEAKER_00: There's there's a lot with copper at the minute, a lot of talk about copper.
• 18:02
  SPEAKER_00: So even just my social media feed now, uh, he obviously knows what I do for a living.
• 18:07
  SPEAKER_00: My social media is trying to sell me copper, yeah.
• 18:09
  SPEAKER_00: Um data, yeah.
• 18:10
  SPEAKER_00: So data centers, electricity generation, transmission, networks, cooling systems, electric cars.
• 18:19
  SPEAKER_00: There's there's a huge demand for copper at a minute.
• 18:22
  SPEAKER_00: So one data center requires between five to fifteen thousand tons of copper, a hyper data centre, fifty thousand tons.
• 18:29
  SPEAKER_00: An electric car, this blew me away.
• 18:32
  SPEAKER_00: An electric car contains between 40 and 80 kilograms of copper in one car.
• 18:37
  SPEAKER_02: Is that just wiring?
• 18:39
  SPEAKER_00: Yeah, basically, and wrapping the battery.
• 18:41
  SPEAKER_00: Right.
• 18:41
  SPEAKER_00: If you see the big reels of it.
• 18:43
  SPEAKER_00: Yeah, yeah.
• 18:43
  SPEAKER_00: Um, so that's like a weight of a person.
• 18:45
  SPEAKER_00: Now we know the world is moving heavily into electric cars.
• 18:49
  SPEAKER_00: This is undeniable.
• 18:50
  SPEAKER_00: We're moving heavily into AI.
• 18:52
  SPEAKER_00: Like it or not, it's happening.
• 18:54
  SPEAKER_00: It's happening, and the demand for both is set to increase.
• 18:57
  SPEAKER_00: I think electric cars 300% by 2030 and 300 again in copper 2035.
• 19:05
  SPEAKER_00: So, you know, look at Volvo saying they go fully electric.
• 19:08
  SPEAKER_00: You can get an electric Porsche or electric Mustang, the muscle car, which I find strange, but here we are.
• 19:13
  SPEAKER_02: I think Jaguar are saying they might be going full electric so it's not.
• 19:17
  SPEAKER_00: I think they have to.
• 19:18
  SPEAKER_00: I think as well, but even cars that aren't fully electric, so you look like a Porsche, a turbo Porsche, yeah, as a hybrid.
• 19:25
  SPEAKER_00: Yeah, so it's it's here.
• 19:26
  SPEAKER_00: So the demand is massive, supply can't keep up.
• 19:30
  SPEAKER_00: It could take 15 to 25 years to get copper out of a new mine.
• 19:33
  SPEAKER_00: Well, but yet the so the the simple supply and demand, the demand is rapidly rapidly increasing, and demand can't keep up.
• 19:42
  SPEAKER_00: Now recycling recycled copper is a big thing, but it can only really at maximum produce 20% of the world's copper, so the other 80% has to come from somewhere.
• 19:50
  SPEAKER_00: Current mining supply can increase by about two to three percent a year at best, so it leaves a huge shortfall.
• 19:56
  SPEAKER_02: So, what does that actually mean for the copper market with all this demand potentially outweighing supply?
• 20:03
  SPEAKER_00: Well, and be careful saying it's it's guaranteed to go up.
• 20:07
  SPEAKER_00: Yeah, yeah.
• 20:07
  SPEAKER_00: But you don't have to be an economist to put the numbers together.
• 20:12
  SPEAKER_00: So with significant demand, limited supply, it it can, in my opinion, only really go one direction.
• 20:20
  SPEAKER_00: With the higher prices of copper, it will encourage new mining, recycling, and substitution.
• 20:25
  SPEAKER_00: But like I say, the problem is with that, is it can take 15 to 25 years to get copper out of a new mine.
• 20:31
  SPEAKER_00: So it will just for me mean that the copper in supply, whether it be recycled or currently being mined, will fetch a higher price at the market.
• 20:40
  SPEAKER_02: So if someone already owns gold, but they're thinking of diversifying even further.
• 20:46
  SPEAKER_02: Should they be looking at silver and copper differently because uh there's different industrial trends?
• 20:51
  SPEAKER_00: Yeah, 100%.
• 20:52
  SPEAKER_00: So if you own gold, you already have a bit of experience with metal, you know, the buying, the selling, the mechanics of it.
• 20:58
  SPEAKER_00: So it's probably easier for you to understand and probably less less nervous to dive into a new market, yeah.
• 21:04
  SPEAKER_00: But they have completely different roles.
• 21:06
  SPEAKER_00: So gold is primarily your your monetary store of value asset, your inflation beta.
• 21:12
  SPEAKER_00: Silver has both monetary characteristics and the significant industrial demand, and then copper, overwhelmingly an industrial commodity.
• 21:21
  SPEAKER_00: So they are they shouldn't be necessarily be treated as three versions of the same in obviously they're all metal, yeah.
• 21:28
  SPEAKER_00: But you know, the fascinating thing is they can all respond completely to completely different forces, which is again why diversification can be really, really useful.
• 21:37
  SPEAKER_02: So, what's the one thing about silver and copper that you think most regular people, regular savers like you and me are currently overlooking?
• 21:44
  SPEAKER_00: I think silver and gold, uh and metals in general, press precious metal, are are often viewed as a historic belonging in the past, you know, coins, central banks, and jewellery.
• 21:54
  SPEAKER_00: But the future is very, very metal intensive for reasons previously explained.
• 21:58
  SPEAKER_00: You know, the AI Boom, the move into electric vehicles, just the the expansion of the planet, and everywhere you look, there's there's houses going up everywhere.
• 22:07
  SPEAKER_00: And silver and copper both have industrial uses.
• 22:09
  SPEAKER_00: Copper is really industrial, wires, connect conductivity, switchboards, microchips, things like that.
• 22:17
  SPEAKER_00: And now because of the demand for silver, what's put people off in the party VAT?
• 22:22
  SPEAKER_00: Yeah, you know, you lose 20%, plus in the buyer selling you can lose 25% um larger because of VAT when you buy silver.
• 22:31
  SPEAKER_00: Now, because of the demand from our existing customers that have hold already hold gold, we have facilities in Switzerland to store your silver VAT free.
• 22:41
  SPEAKER_00: So this gives you the VAT free, obviously, but it gives you that instant liquidity and again somewhere to store it, very very cost-effective way of storing it, you know, also quite popular.
• 22:51
  SPEAKER_00: Some people just have it out of the out of the UK as well, quite popular.
• 22:55
  SPEAKER_00: So don't be put off by the VAT.
• 22:57
  SPEAKER_00: It's a lot cheaper than gold, so you're gonna end up with a lot of metal as well.
• 23:01
  SPEAKER_00: Well, exactly.
• 23:02
  SPEAKER_00: Um, and even what people don't think about when you want to sell are just the shipping costs.
• 23:06
  SPEAKER_00: So if it's in a vaulted offshore storage facility, you don't pay the VAT, you haven't got to worry about the shipping, um, and there's another option for you.
• 23:17
  SPEAKER_02: So, what does all this mean for you and your wealth?
• 23:21
  SPEAKER_02: We've looked at three major pressures building across the financial system: inflation, government debt, and financial market pressure.
• 23:28
  SPEAKER_02: So, how do each of them affect the purchasing power and value of the money you've spent years building?
• 23:34
  SPEAKER_02: Gold has its role as a store of value and is continuing to attract attention from central banks, people looking to protect their wealth.
• 23:42
  SPEAKER_02: Silver has the added dimension of industrial demand, with technology and AI potentially creating even more demand, and then there's copper, which could become increasingly important as the world builds the infrastructure it needed to support AI and data centers.
• 23:58
  SPEAKER_02: Nobody knows what's gonna happen next, obviously, but these are trends that are definitely worth understanding and paying attention to.
• 24:06
  SPEAKER_02: Your bank balance only tells you one part of the story.
• 24:10
  SPEAKER_02: What matters is how much that money will buy in 10 years, 15 years, and what could stand in the way of that.
• 24:18
  SPEAKER_02: So if you spent years building your savings, paying into a pension pot, or you've just started accumulating your wealth, the question is pretty simple.
• 24:27
  SPEAKER_02: Are you prepared for the financial pressures that could affect it in the future?
• 24:32
  SPEAKER_02: If you would like to learn more about physical gold and wealth protection, please do head over to guide.directbullion.com where you can download our guide to tax-free gold.
• 24:42
  SPEAKER_02: Also head over to goldpensions.com to get more information on silver and copper, and download our gold pensions guide.
• 24:50
  SPEAKER_02: If you have enjoyed today's episode, please do remember to like and subscribe if you're listening on YouTube, and if you're on Spotify or Apple Podcasts, please do rate the show 5 stars, it really helps us out.
• 25:03
  SPEAKER_02: As always, leave your question in the comments below and we'll answer it in the next episode.
• 25:08
  SPEAKER_02: Thank you so much for listening to the Vullian Advantage today.
• 25:11
  SPEAKER_02: Stay prepared, stay informed, and most importantly, stay golden.
• 25:15
  SPEAKER_02: The purchase of gold does not constitute an investment or offer financial returns.
• 25:20
  SPEAKER_02: Gold is considered a store of value and not an investment product.
• 25:24
  SPEAKER_02: Past performance of gold is not indicative of future performance.
• 25:28
  SPEAKER_02: Prices and values of precious metals can fluctuate and are influenced by various market factors.
• 25:33
  SPEAKER_02: Direct bullion does not provide investment or tax advice and recommends that you conduct your own independent research before making any purchasing decisions.