Latest / The Bullion Advantage | Wealth Protection, Politics and Finance Insights From The #1 UK Gold Dealer / Gold, Inflation & Savings: Why Central Banks Keep Buying Gold

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Gold, Inflation & Savings: Why Central Banks Keep Buying Gold · The Bullion Advantage | Wealth Protection, Politics and Finance Insights From The #1 UK Gold Dealer

• 0:00
  SPEAKER_00: We live in a world where money is increasingly digital.
• 0:04
  SPEAKER_00: Most of us rarely handle physical cash anymore.
• 0:07
  SPEAKER_00: Our wealth exists as numbers on a screen bank accounts, pensions, investments.
• 0:12
  SPEAKER_00: Yet the institutions responsible for managing our currency continue to hold gold, and in many cases, increase their gold reserves.
• 0:20
  SPEAKER_00: But why do they do it?
• 0:21
  SPEAKER_00: What do central banks understand about gold that some people might be overlooking?
• 0:25
  SPEAKER_00: While we're constantly told to have confidence in our currencies, central banks themselves aren't putting all their reserves into the currency, and that creates a fascinating contradiction.
• 0:36
  SPEAKER_00: In this episode, we're going to explore what's happened to the purchasing power of your money, why governments are increasingly reliant on debt, and why central banks continue to hold gold.
• 0:46
  SPEAKER_00: This behaviour could be so important and informative and help how we approach our own personal wealth strategy.
• 0:52
  SPEAKER_00: Why do the institutions who push our currencies keep relying on gold to fall back on?
• 0:58
  SPEAKER_00: And why should you do the same?
• 1:00
  SPEAKER_00: Before we get in today's episode, before we get into today's episode, please do remember to like and subscribe if you're on YouTube, and if you're listening on Spotify or Apple Podcasts, please do follow the show so you never miss an update.
• 1:12
  SPEAKER_00: Also, if you are on Spotify or Apple Podcasts, please do rate the show five stars.
• 1:17
  SPEAKER_00: It really helps more people find the show and gain vital financial information.
• 1:22
  SPEAKER_00: Harry's here to break this all down today.
• 1:24
  SPEAKER_00: Harry, thanks so much for coming back on the Bullion Advantage.
• 1:26
  SPEAKER_00: Hey Jake, how are you?
• 1:27
  SPEAKER_00: Yeah, very well, thanks.
• 1:28
  SPEAKER_00: How are you?
• 1:29
  SPEAKER_00: I am good, thank you.
• 1:30
  SPEAKER_00: Super busy.
• 1:30
  SPEAKER_00: Yeah, yeah.
• 1:31
  SPEAKER_00: So let's get into it, shall we?
• 1:33
  SPEAKER_00: Yeah.
• 1:33
  SPEAKER_00: Let's start with something every listener can relate to.
• 1:36
  SPEAKER_00: £100.
• 1:37
  SPEAKER_00: Today, does that actually buy what£100 bought four five years ago, ten years ago?
• 1:42
  SPEAKER_00: And essentially, what has inflation done to the purchasing power of our money?
• 1:46
  SPEAKER_01: Yeah, laugh or cry, I think is the is the British stance on this at the moment, isn't it?
• 1:50
  SPEAKER_01: And uh we don't take things like this lightly, but you you see things like the the cost of Freddie's and stuff like that compared to but but from a serious point of view, it's really about trying to get uh into people's mindset that just because it says the same figure in your bank account does not mean it's worth the same amount of value.
• 2:09
  SPEAKER_01: And that's really easily.
• 2:11
  SPEAKER_01: I mean, you do a food shop now.
• 2:12
  SPEAKER_01: What do two bags of shopping cost you?
• 2:13
  SPEAKER_01: A hundred quid?
• 2:14
  SPEAKER_01: That hundred quid?
• 2:15
  SPEAKER_01: That could have got you a whole family shop five, six years ago, right?
• 2:18
  SPEAKER_01: Uh you're a big Christmas shop, as people like to say, but it just shows you that the power of the pound is getting weaker and weaker and weaker, and it's no surprise.
• 2:27
  SPEAKER_01: This is a very common thing across all theat currencies ever produced in history.
• 2:32
  SPEAKER_00: Why do you think it's so difficult for people to appreciate?
• 2:35
  SPEAKER_00: Because you are looking at the same number on the screen.
• 2:37
  SPEAKER_00: Why is it so difficult for people to appreciate that you're not looking at the same amount, really?
• 2:42
  SPEAKER_01: Um, I I think it's because people are literally seeing the same figure on their screen.
• 2:45
  SPEAKER_01: And I was speaking to a client about it earlier, and they made a uh a really good point about when we see these budgets coming up, we've obviously got the October budget coming up, and I'm sure we're gonna do that in a lot more detail.
• 2:55
  SPEAKER_01: But they they aren't gonna put loud big statements.
• 2:58
  SPEAKER_01: We are increasing your taxes.
• 3:00
  SPEAKER_01: The days of that are gone, they've got to be more savvy, they've got to get people behind them.
• 3:04
  SPEAKER_01: So it's stealth taxing, it's it's taxes we don't notice.
• 3:07
  SPEAKER_01: And one of the biggest things at the moment is inflation and and interest rates.
• 3:10
  SPEAKER_01: It's it's the biggest way to penalize people.
• 3:13
  SPEAKER_01: If you had£50,000 in the bank 20 years ago, could have bought you a house.
• 3:18
  SPEAKER_01: Definitely not buying you a cardboard box in a lot of the country nowadays.
• 3:21
  SPEAKER_01: It's it's the truth of it, isn't it?
• 3:22
  SPEAKER_01: That's true.
• 3:23
  SPEAKER_01: Is that concept?
• 3:24
  SPEAKER_01: Well, at least I'm seeing the same figure on the screen, it doesn't mean anything.
• 3:27
  SPEAKER_00: So if that figure on the screen is growing, though, you still could potentially be not making money.
• 3:34
  SPEAKER_00: So what's the difference between seeing your money grow in nominal terms and actually increasing your purchasing power?
• 3:40
  SPEAKER_01: Norminal growth simply means the figure that you are seeing is increasing.
• 3:44
  SPEAKER_01: Yeah, that's it.
• 3:45
  SPEAKER_01: But real growth means your wealth is increased after taking inflation into account.
• 3:49
  SPEAKER_01: For example, if your savings grow by four percent but inflation's five percent, well, you've actually lost.
• 3:55
  SPEAKER_01: You've still lost money.
• 3:56
  SPEAKER_01: Yeah, exactly.
• 3:57
  SPEAKER_01: And this is what we're saying the figure that they like to tell us on inflation, and we've said how they can manipulate it with the the CPI and uh the RPI, and they can select what data they want to make it look as good as they can.
• 4:10
  SPEAKER_01: Maybe chicken's less expensive one year and turkey's more expensive the other year, so they can pick the the meat they want, and that's how the CPI and the RPI are are are produced.
• 4:18
  SPEAKER_01: That's that's how they do it.
• 4:19
  SPEAKER_01: They they pick the figures.
• 4:20
  SPEAKER_01: A government-based area is picking the figures that suit the government, right?
• 4:25
  SPEAKER_01: Who would have thought that?
• 4:27
  SPEAKER_01: So inflation's the gradual erosion of what our money's actually worth.
• 4:31
  SPEAKER_01: That's why the headline interest rate isn't the whole story, it's about actually comparing that to inflation.
• 4:37
  SPEAKER_01: Massive article by the Financial Times doesn't actually correspond it to the interest rates as well, just talks about one without the other.
• 4:45
  SPEAKER_01: We need to talk about them together more.
• 4:47
  SPEAKER_01: That's really important.
• 4:48
  SPEAKER_00: Another thing to talk about is how much debt not only our government, but so many economies are in such massive debt.
• 4:57
  SPEAKER_00: The UK had does have an enormous debt problem though.
• 5:00
  SPEAKER_00: Why do we keep borrowing so much?
• 5:02
  SPEAKER_00: And what's it for?
• 5:04
  SPEAKER_01: Governments are borrowing because their spending is exceeding the debt.
• 5:07
  SPEAKER_01: The US refinanced their own debt.
• 5:09
  SPEAKER_01: So Trump all this year has been trying to push interest rates down as much as he can.
• 5:12
  SPEAKER_01: That's why they got rid of the head of the Fed.
• 5:14
  SPEAKER_01: That's why they've been trying to get Kevin Walsh and uh someone that Trump's basically got an inside man.
• 5:19
  SPEAKER_01: I mean, the Fed's supposed to be independent, but he wants someone that he can manipulate.
• 5:23
  SPEAKER_01: Yeah, they refinance their own debt with more debt.
• 5:27
  SPEAKER_01: Uh and obviously, that's me just giving it in the most simple terms I can.
• 5:32
  SPEAKER_01: It's far more complicated than that.
• 5:33
  SPEAKER_01: But essentially, they're buying their own debt.
• 5:35
  SPEAKER_01: That is what bonds are.
• 5:36
  SPEAKER_01: That that is how the markets are moving.
• 5:38
  SPEAKER_01: How much more can they do this?
• 5:39
  SPEAKER_01: How much many more times can they refinance trillions and trillions of dollars worth of debt?
• 5:44
  SPEAKER_00: And what what happens if government debt grows faster than the economy?
• 5:48
  SPEAKER_01: Well, simply the debt burden becomes progressively larger relative to the country's ability to support it.
• 5:53
  SPEAKER_01: More government revenue can end up being required simply to service existing debt, and that can reduce the government's flexibility in response to future crises and uh additional funding in areas, cutting costs, cutting spending.
• 6:06
  SPEAKER_01: It's the knock-on effect that ultimately affects us higher taxation, spending reductions, higher borrowing costs, uh inflationary policies, all these things that you can go into so much detail on on what the actual outcome is.
• 6:20
  SPEAKER_01: Can they actually keep borrowing indefinitely?
• 6:22
  SPEAKER_01: Like could they just keep borrowing forever?
• 6:25
  SPEAKER_01: It's a good question.
• 6:26
  SPEAKER_01: I mean, technically governments could continue refinance debt for a very long time, but that doesn't mean there are no consequences.
• 6:32
  SPEAKER_01: Uh the important the important constraint is the the confidence behind the currency that they're using the pound, the dollar, the yen, the euro, whatever it may be.
• 6:40
  SPEAKER_01: Um, if confidence deteriorates, borrowing can become significantly more expensive.
• 6:45
  SPEAKER_01: So I guess the the real question isn't simply can governments borrow forever?
• 6:50
  SPEAKER_01: It's at what cost?
• 6:51
  SPEAKER_01: Yeah.
• 6:51
  SPEAKER_01: And under what economic conditions.
• 6:53
  SPEAKER_01: And that's where we as the people are starting to feel it.
• 6:56
  SPEAKER_01: Well, that's what I was gonna say.
• 6:57
  SPEAKER_00: Here's the uncomfortable question who ultimately pays the price.
• 7:00
  SPEAKER_01: Yeah, I think that's it.
• 7:01
  SPEAKER_01: Look at the look at the things we are seeing, pensions getting abused by the government, uh, fuel winter allowances, people who need this money, pensioners that it's not the the mega rich that are getting taxed, they're buggering off to another country.
• 7:14
  SPEAKER_01: Yeah, it's the people who genuinely need the help that are uh are suffering the most at the moment.
• 7:19
  SPEAKER_00: So obviously, central banks really don't stop buying gold, they're buying so much gold at the moment, record amounts.
• 7:26
  SPEAKER_00: What makes gold fundamentally fundamentally different from holding government currency, government debt?
• 7:32
  SPEAKER_00: How does it get you outside the system?
• 7:33
  SPEAKER_01: Yeah, I mean we touched on this in the last podcast we did, didn't we, about the the banks buying, but yeah, currency is ultimately linked to the monetary system and policies of the country that that issues it.
• 7:42
  SPEAKER_01: That that's the baseline.
• 7:43
  SPEAKER_01: We use the pound, obviously, Europe used the euro, blah blah blah, so on and so forth.
• 7:47
  SPEAKER_01: Government bonds are also promises, that that's what they are.
• 7:50
  SPEAKER_01: You're promising to pay the issuer.
• 7:51
  SPEAKER_01: Physical gold is the complete opposite of both them points, isn't it?
• 7:56
  SPEAKER_01: It isn't someone else's promise to pay you.
• 7:58
  SPEAKER_01: Gold exists independently of any single government's financial system.
• 8:03
  SPEAKER_01: The one reason central banks can use gold as a form of reserve diversification is it's essentially a way of holding an asset that isn't directly dependent on anything else.
• 8:10
  SPEAKER_01: Yeah, there is no counterparty risk, it is counter-cyclical to the markets, it is physical.
• 8:16
  SPEAKER_01: Your one ounce of gold is worth the same amount as my one ounce of gold.
• 8:19
  SPEAKER_01: The the currency you trade it in will change, but the gold is still the same value.
• 8:23
  SPEAKER_00: What does that actually mean in terms of defining no counterparty risk?
• 8:28
  SPEAKER_00: Why does that matter so much?
• 8:29
  SPEAKER_01: Well, counterparty risk is the risk that other party in a financial agreement fails to meet its obligation.
• 8:35
  SPEAKER_01: So when we have we've spoken about this as well, but we used to have bailouts, so Greece famously was the big one for us uh growing up, we saw a bailout.
• 8:44
  SPEAKER_01: So that was the IMF.
• 8:45
  SPEAKER_01: They used to go in, they helped bail out countries and ensure that they could get back on their feet.
• 8:50
  SPEAKER_01: However, the Bank of England have changed that.
• 8:52
  SPEAKER_01: We now have bail-ins.
• 8:54
  SPEAKER_01: Now that is a hugely boring long document, but if you read the the general crux of it, a bail-in now means that investor money, so yours and I's money, we're investing in the bank by leaving our money with them.
• 9:06
  SPEAKER_01: Should that bank fail, that money is used to protect it, that money is used to keep it afloat.
• 9:12
  SPEAKER_01: What you get in return, Jake, is shares, and here's here's the real joke of it in that bank.
• 9:18
  SPEAKER_01: So the bank that just went bumped that just used your money to prop them up is the same bank you're getting shares in.
• 9:25
  SPEAKER_01: What a trade.
• 9:26
  SPEAKER_01: What a trade.
• 9:27
  SPEAKER_01: Oh, what a deal that is amazing.
• 9:29
  SPEAKER_01: It it's it's uh so ironic.
• 9:32
  SPEAKER_01: So I mean, look, you you were saying about the counterparty risk, a government bond, bank deposit, or corporate debt instrument involves an issuer or an institution on the other side.
• 9:41
  SPEAKER_01: Physical gold doesn't rely on anybody, it is simply there.
• 9:45
  SPEAKER_00: Yeah.
• 9:45
  SPEAKER_00: So a countries deliberately trying to reduce their dependence on the currencies, even their own currencies, particularly the US dollar, which has been debased so much in recent years.
• 9:55
  SPEAKER_01: Uh, in some cases, yes.
• 9:57
  SPEAKER_01: I mean, reserve diversification appears to be part of the motivation.
• 10:00
  SPEAKER_01: Right.
• 10:00
  SPEAKER_01: Um, but we should be careful about saying that countries are simply abandoning the dollar.
• 10:05
  SPEAKER_01: Right.
• 10:05
  SPEAKER_01: The US dollar obviously remains an important global trade and finance.
• 10:10
  SPEAKER_01: What we are seeing though is a bit more nuanced.
• 10:12
  SPEAKER_01: It's some countries appear to want more diversification than rather a complete replacement, which is what we we say to anyone.
• 10:19
  SPEAKER_01: You should have a diverse portfolio.
• 10:21
  SPEAKER_01: Don't put everything you have in gold, of course not, or silver or copper.
• 10:24
  SPEAKER_01: Yeah, yeah.
• 10:24
  SPEAKER_01: Gold is just one way of achieving that diversification.
• 10:28
  SPEAKER_01: Most assets, investments, they're bank-based in one form or another.
• 10:33
  SPEAKER_01: You're normally buying a stock, a share, a bond.
• 10:35
  SPEAKER_01: Someone else is on the other end.
• 10:37
  SPEAKER_01: Other than maybe gold and people say property, but actually, I think there's a lot of manipulation in property nowadays as well.
• 10:44
  SPEAKER_01: And look, we've got the budget coming up, right?
• 10:46
  SPEAKER_01: I mean, we could see a hell of a lot of tax changes on it, which is then going to affect the the property prices.
• 10:52
  SPEAKER_01: So, to a degree, I would argue property is still uh manipulated and there's still a counterparty risk on that as well, but gold stands alone against all that.
• 11:01
  SPEAKER_00: So you think we're witnessing a long-term change in the way that they think about their reserves and maybe even the financial system itself.
• 11:08
  SPEAKER_00: And do you think a gold-backed currency system, a gold-backed system, sorry, could be a genuine possibility?
• 11:15
  SPEAKER_01: I I think this is what we've been trying to allude to, isn't it?
• 11:17
  SPEAKER_01: That it feels like instead of a complete crash, it's going to be maybe a complete restructure, or at least that's the way it's going to be painted to the general consumer.
• 11:27
  SPEAKER_01: I mean, central banks uh increasingly want a broader mix of assets.
• 11:30
  SPEAKER_01: That that's a fact.
• 11:31
  SPEAKER_01: They are looking at more and more, they're not sticking with what they've known forever because it's simply not working.
• 11:36
  SPEAKER_01: Yeah, doesn't necessarily mean we're heading towards a gold backed monetary system, and a full gold-backed system will be a hugely dramatic change for.
• 11:46
  SPEAKER_01: I mean, that's when Elon Musk's$15,000 an ounce starts coming in a bit more reality.
• 11:52
  SPEAKER_01: Yeah, but could potentially become increasingly more important.
• 11:56
  SPEAKER_01: I I think yes.
• 11:57
  SPEAKER_01: Look at the BRICS Nations, they've got a cross-border currency payment system, 40% of which backed by physical gold.
• 12:04
  SPEAKER_01: So could we see some pinning back to the dollar?
• 12:06
  SPEAKER_01: Could we see some pinning back to the gold price?
• 12:08
  SPEAKER_00: Yeah, I think we could.
• 12:10
  SPEAKER_00: Okay.
• 12:10
  SPEAKER_00: And when you look at the scale of the central bank gold buying, do you think they are preparing for something though?
• 12:17
  SPEAKER_00: It's it's it's always tempting to assume, isn't it?
• 12:20
  SPEAKER_01: I I I think it is fun to speculate.
• 12:23
  SPEAKER_01: I don't want to come on this podcast and be like, this is gonna happen, we're seeing a collapse.
• 12:27
  SPEAKER_01: I think the signals are there that we're we're certainly rallying up to a big change, but we shouldn't automatically jump to the conclusion.
• 12:34
  SPEAKER_01: I mean, central banks have legitimate reason to diversify reserves and manage long-term risk.
• 12:39
  SPEAKER_01: That's a business, that's any successful business.
• 12:42
  SPEAKER_01: The behaviour though reflects a little bit more about the inflation, the geopolitical tension, uh, the currency concentration, sovereign debt, even, and just the resilience of the financial systems in in general.
• 12:56
  SPEAKER_01: So I think the question is what do they know, and what is the risk that they are preparing for?
• 13:01
  SPEAKER_01: I think they're probably the two things in our minds that are going on.
• 13:04
  SPEAKER_01: What what is happening that they're doing all this diversification?
• 13:07
  SPEAKER_01: Yeah it's less about knowing the answers, more about just seeing the signals.
• 13:10
  SPEAKER_00: Yeah, and whatever their motivation is, should ordinary people like me and you pay always pay attention to what they're doing, or do you think sometimes we shouldn't?
• 13:21
  SPEAKER_00: Yeah, I think you're naive to not these guys win.
• 13:24
  SPEAKER_01: I mean, that that's that that's the bottom line, isn't it?
• 13:27
  SPEAKER_01: They don't put all their reserves into one asset, they they diversify because they don't know what the future looks like, and households can apply that exact same principle.
• 13:36
  SPEAKER_01: I said it on the podcast a few weeks ago.
• 13:38
  SPEAKER_01: Look at the Middle East, they went to war, and what did they do?
• 13:42
  SPEAKER_01: They used the gold that they had stored up, sold it to finance that war.
• 13:46
  SPEAKER_01: I'm obviously not saying that's the same for people in households, but what I am saying, when them unexpected events happen and life takes a turn, brilliant.
• 13:55
  SPEAKER_01: If you've got something like gold on the back, at least you're in one position stronger, right?
• 14:00
  SPEAKER_00: 100%.
• 14:00
  SPEAKER_00: Let's be absolutely clear though.
• 14:02
  SPEAKER_00: Does owning gold guarantee that you won't lose money?
• 14:06
  SPEAKER_00: Trying to get me in hot water here, J.
• 14:08
  SPEAKER_01: Public service announcement.
• 14:10
  SPEAKER_01: No, absolutely not.
• 14:12
  SPEAKER_01: Price of gold can fall as well as rise.
• 14:14
  SPEAKER_01: So you can lose purchasing power depending on the price you paid and the period you hold it, of course.
• 14:20
  SPEAKER_01: What physical ownership does come with, though, is the fact that you're going to have less people using it against you.
• 14:27
  SPEAKER_01: The fact is gold has stood the test of time, it's it's averaged that 13% return.
• 14:32
  SPEAKER_01: It's why people like it instead of something like crypto.
• 14:35
  SPEAKER_01: Yes, you can make millions overnight, but you can lose your whole life overnight as well.
• 14:40
  SPEAKER_01: Gold is stable, gold is relaxed.
• 14:43
  SPEAKER_01: Has it been a little bit choppy over the summer?
• 14:45
  SPEAKER_01: Yes, but so's every other market.
• 14:47
  SPEAKER_00: That's the truth of it.
• 14:48
  SPEAKER_00: Very true.
• 14:49
  SPEAKER_00: And essentially, diversification is what we're advocating for.
• 14:53
  SPEAKER_00: Do you think that could actually be more important than trying to predict what what asset will go where and perform best next year?
• 15:00
  SPEAKER_01: Yeah, I think I think we slightly covered that on the last point, but I think it's a good point to reiterate.
• 15:06
  SPEAKER_01: It's about being diverse.
• 15:07
  SPEAKER_01: Not just gold necessarily, though.
• 15:09
  SPEAKER_01: Exactly that.
• 15:10
  SPEAKER_01: I mean, I I did we say it on the last podcast about the sort of diverse findings of copper and silver as well.
• 15:15
  SPEAKER_01: Yeah.
• 15:15
  SPEAKER_01: And I think that's what we're more people are looking at.
• 15:17
  SPEAKER_01: It's look at his percentages.
• 15:19
  SPEAKER_01: You might come and say, I've got a£50,000 budget, we'll put 80% in one area, 10% in another,£10 in another.
• 15:25
  SPEAKER_01: That's the way you can balance it.
• 15:27
  SPEAKER_00: Another speculation question.
• 15:29
  SPEAKER_00: If inflation does fall massively and central banks stop buying, what would happen to gold then?
• 15:36
  SPEAKER_01: I mean, look, if that happens, Jake, happy days for all of us, right?
• 15:39
  SPEAKER_01: As as people, great.
• 15:40
  SPEAKER_01: That that means we can afford more and and life looks a little bit better for all of us.
• 15:46
  SPEAKER_01: How can inflation fall?
• 15:47
  SPEAKER_01: That that's that's a big question, isn't it?
• 15:50
  SPEAKER_01: We've looked at what the crux of inflation is, we've explained it many a time.
• 15:53
  SPEAKER_01: How can it possibly be that the demand is people expect more?
• 15:58
  SPEAKER_01: The living wage is simply nowhere near enough that the minimum wage in this country you cannot live on.
• 16:04
  SPEAKER_01: Not not a chance can you live on it.
• 16:06
  SPEAKER_01: So that means inflation's gonna have to come down a long way, plus expectation of salaries go up a hell of a lot for us to be in the clear.
• 16:13
  SPEAKER_01: So, yeah, great.
• 16:15
  SPEAKER_01: If it does come down, honestly, you're probably not gonna be too worried about your gold holdings because life's gonna be great.
• 16:20
  SPEAKER_01: Yeah, and it doesn't crash gold, it doesn't typically crash, it plateaus, it just sits there, it's stable.
• 16:26
  SPEAKER_01: The central banks still hold it, they cannot afford for their assets to decline.
• 16:30
  SPEAKER_00: No, they can't, they definitely can't.
• 16:32
  SPEAKER_00: So basically, you're just saying gold's current role is more about protection than anything else.
• 16:39
  SPEAKER_00: Yeah, I mean, hopefully I've made that clear protection and diversification.
• 16:41
  SPEAKER_00: That that is it, bottom line.
• 16:43
  SPEAKER_00: Yeah.
• 16:43
  SPEAKER_00: So if central banks are diversifying their reserves rather than relying entirely on paper currencies, they're responsible for the paper currencies, so this should be really telling for us, shouldn't it?
• 16:55
  SPEAKER_01: Yeah, I mean that they're I don't think there's a way to simplify it.
• 16:58
  SPEAKER_01: It's it's like your best mate being in a load of debt and then going, Oh Jake, can I borrow an extra hundred quid?
• 17:04
  SPEAKER_01: What are you thinking?
• 17:05
  SPEAKER_01: Like the reality is no, is the answer, isn't it?
• 17:07
  SPEAKER_01: Yeah, but we just do it because it's these institutions and we've just got to get out of that habit.
• 17:12
  SPEAKER_01: It's just because you went into Santander when you're a little boy and opened up your first bank account, don't think it's the be-all and end all because it's really not.
• 17:20
  SPEAKER_01: We understand it's easy because you can tap and go on your cards and things like that.
• 17:24
  SPEAKER_01: This isn't your day-to-day money we're talking about putting into gold.
• 17:27
  SPEAKER_01: This is your reserve money, this is your tuck-away money, and that's what people need to remember.
• 17:32
  SPEAKER_00: So, protecting your wealth, does that mean abandoning cash completely, taking all your cash out of your pensions, selling your properties?
• 17:40
  SPEAKER_00: Or is it really just about a greater diversification and splitting between different assets?
• 17:46
  SPEAKER_01: Uh of course a few questions there because a few different answers, I think.
• 17:50
  SPEAKER_01: So it's not about abandoning traditional assets, of course not.
• 17:53
  SPEAKER_01: Cash has an important role for liquidity, as I as I've just mentioned.
• 17:57
  SPEAKER_01: Pensions, I I think are the doom and gloom one because people feel very trapped in their pension.
• 18:03
  SPEAKER_01: It's money you can't touch, it's money you have to contribute, it's it's really tough.
• 18:07
  SPEAKER_01: Make the best of a bad situation there.
• 18:09
  SPEAKER_01: Property, it can be I don't know many property investors right now unless they're big corporates or they're super savvy in the game.
• 18:16
  SPEAKER_01: I don't know many casual uh buy-to-let landlords anymore.
• 18:21
  SPEAKER_01: You've got to have a portfolio or nothing because the the returns aren't there.
• 18:25
  SPEAKER_01: Is there still money to be made in property?
• 18:27
  SPEAKER_01: Yes, but it it's not as obvious of just buying and selling anymore.
• 18:31
  SPEAKER_01: I guess it's less about which one should you own, it's how do they complement each other, work out a balanced portfolio, speak to someone about that and find the balance.
• 18:40
  SPEAKER_01: But be aware whoever you speak to from a financial, guess what?
• 18:44
  SPEAKER_01: An estate agent's gonna want you to buy a property, an FA is gonna want you to buy stocks he makes a killing in.
• 18:48
  SPEAKER_01: Of course, we're gonna tell you the benefits of gold, silver, and copper.
• 18:51
  SPEAKER_01: That's logical, but do your research, do all your research.
• 18:55
  SPEAKER_00: So ultimately, people should take away from this podcast thinking about should I own something that sits outside the system, outside dependence on currency, and keeps my wealth safe.
• 19:06
  SPEAKER_00: That's it, mate.
• 19:07
  SPEAKER_01: I mean, not even a question.
• 19:08
  SPEAKER_01: That that's the statement I would go with.
• 19:10
  SPEAKER_01: Look at it like that 100%.
• 19:12
  SPEAKER_00: Cheers.
• 19:12
  SPEAKER_01: No worries.
• 19:14
  SPEAKER_00: Central banks manage the currencies we use every day.
• 19:19
  SPEAKER_00: They tell us to have confidence in those currencies.
• 19:22
  SPEAKER_00: Yet behind the scenes, they continue to hold significant amounts of physical gold.
• 19:28
  SPEAKER_00: It doesn't mean gold will always rise in price, and it certainly doesn't mean you should abandon cash, pensions, property, or other financial assets.
• 19:36
  SPEAKER_00: But it does raise an important question.
• 19:38
  SPEAKER_00: A question about diversification.
• 19:42
  SPEAKER_00: If the biggest institutions don't trust putting all their wealth in one currency, then we definitely shouldn't.
• 19:48
  SPEAKER_00: Knowing what you own, what you put at risk, and whether your wealth is prepared for more than one possible future is now so important.
• 19:57
  SPEAKER_00: Remember, if you're listening on YouTube, please remember to like and subscribe, and remember to follow the show if you're listening on Spotify or other podcasts, and please do rate the show 5 stars so you never miss an update.
• 20:09
  SPEAKER_00: Thanks so much for listening to the Bully and Advantage today.
• 20:12
  SPEAKER_00: Stay informed, stay prepared, and most importantly, stay golden.
• 20:16
  SPEAKER_00: The purchase of gold does not constitute an investment or offer financial returns.
• 20:21
  SPEAKER_00: Gold is considered a store of value and not an investment product.
• 20:25
  SPEAKER_00: Past performance of gold is not indicative of future performance.
• 20:29
  SPEAKER_00: Prices and values of precious metals can fluctuate and are influenced by various market factors.
• 20:34
  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.