Latest / The Bullion Advantage | Wealth Protection, Politics and Finance Insights From The #1 UK Gold Dealer / Gold vs Crypto: What Does Ownership ACTUALLY Mean For You?

Transcript

Gold vs Crypto: What Does Ownership ACTUALLY Mean For You? · The Bullion Advantage | Wealth Protection, Politics and Finance Insights From The #1 UK Gold Dealer

• 0:00
  SPEAKER_00: You want to make money, right?
• 0:02
  SPEAKER_00: But if you wanted to protect and grow the wealth you've worked hard to build, should you choose physical gold?
• 0:08
  SPEAKER_00: Cryptocurrencies like Bitcoin, or maybe digital gold?
• 0:12
  SPEAKER_00: All three offer you very different ways to own or gain exposure to an asset, but something often gets overlooked.
• 0:19
  SPEAKER_00: Do you actually own something yourself?
• 0:22
  SPEAKER_00: Can you manage it or give yourself access to it?
• 0:24
  SPEAKER_00: When financial markets come under pressure, the difference could matter more than you think.
• 0:29
  SPEAKER_00: By the end of this episode, you'll understand what you actually own when you buy physical gold, when you buy a gold ETF, or when you buy Bitcoin.
• 0:38
  SPEAKER_00: We'll also discuss the risks that you could be overlooking and which key differences could make all the difference when it comes to protecting and growing your wealth.
• 0:46
  SPEAKER_00: You don't want to be missing financial updates, expert insights, and wealth protection strategies that could help you make more informed decisions about your money.
• 0:54
  SPEAKER_00: So before we begin, please do remember to like and subscribe if you're watching on YouTube, or follow us on Spotify or Apple Podcasts so you never miss an update.
• 1:04
  SPEAKER_00: And your support also helps us continue to bring you the information that matters most.
• 1:09
  SPEAKER_00: So let's get into it, shall we?
• 1:11
  SPEAKER_00: Just a reminder that you can enter our drawer to win two ounces of silver completely free.
• 1:16
  SPEAKER_00: If you want all the details of the competition, just check the description below and get your entry in before the 30th of October to have a chance to win.
• 1:25
  SPEAKER_00: Alright, Jack's here to talk about everything gold and Bitcoin.
• 1:28
  SPEAKER_00: Jack, thanks so much for coming back on the Bullion Advantage.
• 1:32
  SPEAKER_00: Hello, Jake.
• 1:33
  SPEAKER_00: Firstly, we should talk about the advantages of gold and bitcoin, plus the rise of digital gold as well.
• 1:40
  SPEAKER_00: So maybe firstly talk about the advantages of gold compared to Bitcoin.
• 1:45
  SPEAKER_01: Of course.
• 1:46
  SPEAKER_01: For me, gold's biggest advantage is purely its track record, Jake.
• 1:50
  SPEAKER_01: Yeah.
• 1:50
  SPEAKER_01: It's been valued across civilizations, currencies, political systems for thousands of years, and it doesn't necessarily depend on a digital network, if that makes sense.
• 2:02
  SPEAKER_00: Yeah, no, of course.
• 2:03
  SPEAKER_00: And you know, I guess following on from that, what about digital gold?
• 2:07
  SPEAKER_00: You know, tokenized gold, that's a thing that's rising in popularity at the moment, isn't it?
• 2:11
  SPEAKER_01: Yeah, of course.
• 2:12
  SPEAKER_01: It is popular, um, but again, the reason people buy gold is for that safety aspect of things.
• 2:18
  SPEAKER_01: Safety normally doesn't come from numbers on screens, so that's why a lot of people look at physical gold for something you can take delivery of, something that you can hold in your hand.
• 2:27
  SPEAKER_00: Sure thing.
• 2:28
  SPEAKER_00: People often refer to cryptocurrency as digital gold.
• 2:31
  SPEAKER_00: Now, I don't think that's a fair comparison.
• 2:35
  SPEAKER_00: What do you think?
• 2:36
  SPEAKER_00: Do you think these are completely different assets, or do you think there are some similarities between the two?
• 2:41
  SPEAKER_01: Yeah, I think it's a uh there are some similarities, but Bitcoin offers some interesting advantages, particularly around digital transfers, obviously it's got limited supply, but it's still relatively young.
• 2:54
  SPEAKER_01: Yeah, we have we just have far less evidence of how it will behave over the long term.
• 2:59
  SPEAKER_00: So, for someone who is arguing that crypto is basically the modern form of gold and potentially could argue it may replace it in the future, what do you think the strongest arguments to support that claim would be?
• 3:11
  SPEAKER_01: The best way to look at it is gold isn't perfect, its price can come down, but the real difference between an asset with centuries of established demand and one that's future still being written is like uh is yeah, it speaks for itself really.
• 3:25
  SPEAKER_00: Yeah, it's apples and oranges, isn't it?
• 3:26
  SPEAKER_01: Yeah, exactly.
• 3:27
  SPEAKER_00: But would you say gold and crypto are direct competitors, or do you think they serve completely different purposes, or could they work together in tandem potentially?
• 3:38
  SPEAKER_01: Yes, Jake.
• 3:39
  SPEAKER_01: Although there is some overlap, so gold is particularly attractive to people who value tangible ownership or diversification or just want something with a long history of acceptance, so to speak.
• 3:52
  SPEAKER_01: Uh Bitcoin appeals to people who believe in decentralized new technology and the potential that digital assets has, right?
• 4:00
  SPEAKER_00: Yeah, I mean the world is going digital, so we can only assume that digital assets are going to become a big a bigger part of people's portfolios.
• 4:09
  SPEAKER_00: Yeah, exactly.
• 4:10
  SPEAKER_01: Yeah, personally, I think gold has a a big role for someone looking for a long to a long-term establishment of the store of value, essentially.
• 4:19
  SPEAKER_01: Bitcoin might offer different opportunities, but it just comes with a higher level of uncertainty, right?
• 4:26
  SPEAKER_00: Yeah, definitely.
• 4:27
  SPEAKER_00: And gold obviously has a long history, Bitcoin's relatively new.
• 4:31
  SPEAKER_00: So, how how much should people care about that difference when deciding what to own?
• 4:35
  SPEAKER_01: I think it's not necessarily necessarily about choosing the winner.
• 4:39
  SPEAKER_01: But yeah, it's about understanding what you're buying and why you're buying it.
• 4:43
  SPEAKER_00: But obviously, both gold and bitcoin they both have arguments built around scarcity.
• 4:49
  SPEAKER_00: Where does scarcity factor in when talking about Bitcoin?
• 4:52
  SPEAKER_00: Because to me it seems like something that could just be digitally created.
• 4:56
  SPEAKER_01: Yeah, of course.
• 4:57
  SPEAKER_01: It's an interesting question.
• 4:58
  SPEAKER_01: So at the minute, Bitcoin's protocol limits the supply to 21 million coins under its current rules.
• 5:04
  SPEAKER_01: Okay, fine.
• 5:05
  SPEAKER_01: But I understand what you're saying because what's to say that that can change, yeah, can't can or can't change.
• 5:11
  SPEAKER_01: Yeah.
• 5:11
  SPEAKER_01: So there is an argument to be had there that essentially they could just make more.
• 5:17
  SPEAKER_01: Yeah, so that's that's certainly something to consider in the back of your mind.
• 5:19
  SPEAKER_00: And something you definitely can't do with gold.
• 5:22
  SPEAKER_01: Yeah, of course.
• 5:22
  SPEAKER_01: I mean, it it's it's a finite resource, it can't be mass produced, so it's not like uh creating a new coin or or so on and so forth.
• 5:31
  SPEAKER_01: It has to be taken out of the ground, yeah.
• 5:33
  SPEAKER_01: There's being less and less of it taken out of the ground now.
• 5:36
  SPEAKER_00: Yeah, but you know, leading on from that, we are going to talk about got digital gold, gold ETFs.
• 5:41
  SPEAKER_00: What exactly is a gold ETF and how do they allow someone to gain exposure to gold without actually physically owning it themselves?
• 5:48
  SPEAKER_01: Yeah, so an ETF stands for an exchange traded fund, right?
• 5:52
  SPEAKER_01: So it's essentially a basket of investments that you can buy and sell on a stock exchange, like an like a normal share.
• 6:00
  SPEAKER_01: Um, for example, you can buy the SP 500, you can buy digital gold.
• 6:04
  SPEAKER_01: So a lot of people like the digital side of things with gold, but then again, there's pros and cons.
• 6:10
  SPEAKER_01: So it's m people might find it slightly easier to buy, yeah, but then obviously you're still exposed to that third party response.
• 6:15
  SPEAKER_00: Well, yeah, I think um a lot of people listening might think that sounds like a decent middle ground between physical gold and between Bitcoin.
• 6:24
  SPEAKER_00: What would you say to what would you say to that?
• 6:26
  SPEAKER_01: The biggest thing is tax.
• 6:29
  SPEAKER_01: Yeah.
• 6:29
  SPEAKER_01: Tax.
• 6:30
  SPEAKER_01: Because if you buy digital gold, you can incur some capital gains tax.
• 6:34
  SPEAKER_01: When you buy physical gold, physical gold British legal tender coins, there's no capital gains tax.
• 6:40
  SPEAKER_01: And that's before we we uh we go onto the budget next week.
• 6:43
  SPEAKER_00: Yeah.
• 6:43
  SPEAKER_00: Uh is there any other fees involved with gold ETFs, maybe management fees or other charges?
• 6:50
  SPEAKER_01: Yeah.
• 6:50
  SPEAKER_01: So that's how banks and companies make their money.
• 6:53
  SPEAKER_01: They're just charge you a spread to get in and a spread to get out.
• 6:57
  SPEAKER_01: So in terms of management fees, let's call it that because you'll have to pay to get into an ETF and you'll have to pay to get then get back out.
• 7:04
  SPEAKER_01: So yeah, there will be fees associated with that.
• 7:07
  SPEAKER_00: And if the company who's running the the gold product, if they go into financial difficulties, what is there any protections that the holder has for the gold ETF?
• 7:16
  SPEAKER_01: Yeah, so when you buy ETFs, um just first and foremost, the cheapest option isn't necessarily the best.
• 7:22
  SPEAKER_01: Because some people will buy that because it's the cheapest option.
• 7:25
  SPEAKER_01: It's just about considering what you own and the protections attached to it.
• 7:29
  SPEAKER_01: And off the back of protections, essentially, what happens if the company operating goes under or has financial difficulties?
• 7:36
  SPEAKER_01: It just depends on the legal structure.
• 7:38
  SPEAKER_01: Custody arrangements and protections are built into a particular product.
• 7:42
  SPEAKER_01: Right.
• 7:42
  SPEAKER_01: Some physical backed products have security over bullion.
• 7:46
  SPEAKER_01: It doesn't guarantee investors will recover every penny in every circumstance.
• 7:50
  SPEAKER_01: So there are pros and cons to both.
• 7:52
  SPEAKER_00: I think that's maybe an argument for Bitcoin, right?
• 7:55
  SPEAKER_00: Is that it can be transferred without relying on a traditional bank.
• 7:59
  SPEAKER_00: How significant would you say that advantage is in Bitcoin's quarter?
• 8:03
  SPEAKER_01: Yeah, I think it's just going under the radar, really.
• 8:06
  SPEAKER_01: It's uh it's not something that's at the moment necessarily tracked.
• 8:09
  SPEAKER_01: So people like to move it around without using a conventional bank, but we don't know if that's always going to be the case.
• 8:16
  SPEAKER_00: I mean, everyone wants to make money, right?
• 8:18
  SPEAKER_00: What would you say the biggest risks people should understand before buying, especially for a lot of our listeners whose biggest interest is protecting the wealth first and foremost?
• 8:29
  SPEAKER_01: The the main risk, and this is the biggest one, is volatility.
• 8:32
  SPEAKER_01: Um obviously, then when you think about security, you speak you speak about scams, custody.
• 8:38
  SPEAKER_01: Um so Bitcoin can rise dramatically, but it can also fall sharply, and that's a a big consideration if you're trying to protect your savings that you might need in the near future.
• 8:48
  SPEAKER_00: Definitely.
• 8:49
  SPEAKER_00: And also financial markets, you know, there's there's a few people out there predicting that there will be a serious shock in the markets at some time in the relatively near future.
• 9:01
  SPEAKER_00: What factors would influence how physical gold and then also gold ETFs and Bitcoin, what would happen in if there was a serious shock to the market?
• 9:09
  SPEAKER_01: Yeah, I mean, gold may attract demand when confidence in fiat currencies or financial market isn't there anymore.
• 9:16
  SPEAKER_01: Yeah.
• 9:17
  SPEAKER_01: Although its price can fall during a crisis too, particularly when people need cash.
• 9:22
  SPEAKER_01: So you might see people liquidate some gold, which then in turn can bring the price down.
• 9:27
  SPEAKER_01: Gold ETF should generally track the gold price.
• 9:30
  SPEAKER_01: Um, obviously got less cost, but they also carry products and uh and risks over ownership.
• 9:36
  SPEAKER_01: Bitcoin could benefit if people are looking for alternatives to traditional financial systems, but equally it could fall sharply if people see it as risky and want to pull their money out.
• 9:48
  SPEAKER_01: So it just depends why you're looking at an asset and what you want to get out of it.
• 9:53
  SPEAKER_01: Yeah.
• 9:53
  SPEAKER_00: Well, I mean, moving on from that, for someone listening who's never owned gold before or is interested or is also thinking about Bitcoin, what would you say the biggest questions they should ask themselves before choosing either one of those assets?
• 10:08
  SPEAKER_01: The five biggest questions, five simple but big and effective questions.
• 10:12
  SPEAKER_01: What am I trying to achieve out of the market?
• 10:14
  SPEAKER_01: Yeah, when will I need the money?
• 10:17
  SPEAKER_01: How much risk can I actually take or afford to take?
• 10:20
  SPEAKER_01: And do I understand what I own and what will it cost to buy and also sell?
• 10:26
  SPEAKER_01: So I think it's very important to know what you're looking to get out of the market.
• 10:30
  SPEAKER_01: Is it a long-term thing?
• 10:31
  SPEAKER_01: Is it a short-term thing?
• 10:32
  SPEAKER_01: Is there any risk of you needing the money in that term that you want to have them have it allocated for?
• 10:37
  SPEAKER_01: That's a big consideration.
• 10:39
  SPEAKER_01: Um, and essentially, big one is how much risk can you afford to take?
• 10:43
  SPEAKER_01: So you might think, oh, I'm after growth, but I don't want to risk X amount of money, and then that just ultimately changes what you're looking for.
• 10:51
  SPEAKER_00: Yeah.
• 10:51
  SPEAKER_00: So I think you mentioned it earlier, but one of the questions I did want to ask, and I think should be important that people come out of this conversation with is that perhaps there isn't an outright winner when it comes to this conversation.
• 11:05
  SPEAKER_00: Do you think people could reasonably choose different approaches depending on their goals and their circumstances?
• 11:11
  SPEAKER_01: Yeah, people look, there's a lot of tools out there to do your own research.
• 11:14
  SPEAKER_01: Yeah.
• 11:14
  SPEAKER_01: So I think it's just a case of knowing what you want to do, how you want to go about it, and then making that decision for yourself.
• 11:21
  SPEAKER_01: But it the underlying thing is if someone's interested in preserving wealth, people normally look at physical assets, gold or silver.
• 11:29
  SPEAKER_01: Yeah.
• 11:30
  SPEAKER_01: And that's that's the bottom line.
• 11:32
  SPEAKER_01: Just because when you think about safety, you think about something that's tangible, something you can hold in your hand, not a number on a screen that can jump up 50%, yeah, but then could also fall 60%.
• 11:44
  SPEAKER_01: So yeah, it's just it's just ascertaining what you want to get out of the market.
• 11:49
  SPEAKER_00: Definitely 100%.
• 11:51
  SPEAKER_00: So for someone listening or watching who's interested in all three of these topics we've spoken about today, what's your final thoughts for them?
• 12:02
  SPEAKER_01: I'd break it down.
• 12:03
  SPEAKER_01: If you're looking at sporadic growth, but you're happy to take the risk, then crypto can be your thing.
• 12:11
  SPEAKER_01: If you're looking at long-term preservation of wealth, slow and steady, not gonna make you miller overnight, but you you value safety, that's when assets, hard assets come into it.
• 12:21
  SPEAKER_01: Um, but it's just finding that that fine line and ultimately what people are comfortable with.
• 12:27
  SPEAKER_00: So when it comes to gold, Bitcoin, or even gold ETFs, there's a lot more to consider than simply which one might go up in price.
• 12:36
  SPEAKER_00: Gold has been trusted for thousands of years.
• 12:39
  SPEAKER_00: Bitcoin supporters argue crypto is destined for the same legacy, and gold ETFs provide a convenient way to follow the gold price without storing the metal yourself.
• 12:50
  SPEAKER_00: But what matters is understanding what you actually own, who you rely on to access it, and also the risks involved.
• 12:58
  SPEAKER_00: There's a difference between owning physical gold outright and holding something that gives you exposure to the price, and when your goal is to protect the wealth you worked so hard to build, that distinction is definitely worth understanding.
• 13:12
  SPEAKER_00: But what do you think?
• 13:13
  SPEAKER_00: Would you rather own physical gold, would you rather hold Bitcoin, or get exposure to the market through a gold ETF?
• 13:21
  SPEAKER_00: Let us know any questions you have down in the comment section, and we'll answer them in the next podcast.
• 13:27
  SPEAKER_00: You can also send any questions you might have to info at directbullion.com.
• 13:32
  SPEAKER_00: If you've found this episode useful, please do remember to like and subscribe if you're on YouTube, or follow the bullion advantage on Spotify or Apple Podcasts.
• 13:42
  SPEAKER_00: It really helps more people discover the show.
• 13:45
  SPEAKER_00: Also, if you'd like to learn more about physical gold and Bitcoin and the rise of tokenized assets, take a look at our free guide.
• 13:52
  SPEAKER_00: That's at guide.directbullion.com.
• 13:56
  SPEAKER_00: Remember to enter the competition to win two ounces of silver as well, everything is in the description below.
• 14:02
  SPEAKER_00: Thanks again for listening to the Bullion Advantage.
• 14:04
  SPEAKER_00: Stay informed, stay prepared, and most importantly, stay golden.
• 14:10
  SPEAKER_00: The purchase of gold does not constitute an investment or offer financial returns.
• 14:15
  SPEAKER_00: Gold is considered a store of value and not an investment product.
• 14:19
  SPEAKER_00: Past performance of gold is not indicative of future performance.
• 14:23
  SPEAKER_00: Prices and values of precious metals can fluctuate and are influenced by various market factors.
• 14:28
  SPEAKER_00: Direct bullion does not provide investment or tax advice and recommends that you conduct your own independent research before making any purchasing decisions.