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Gold is on a Discount & More Political Turmoil · The Bullion Advantage | Wealth Protection, Politics and Finance Insights From The #1 UK Gold Dealer

• 0:01
  SPEAKER_01: Gold is on a discount.
• 0:03
  SPEAKER_01: After a pullback in the price of gold, some are already declaring the bull market over.
• 0:09
  SPEAKER_01: But has anything really changed?
• 0:11
  SPEAKER_01: Governments are still drowning in debt, inflation remains a constant threat, central banks continue to buy gold at historic levels, and geopolitical tensions remain highly elevated.
• 0:23
  SPEAKER_01: Plus, Kiastarma's resignation has thrown even more uncertainty into an already challenging political environment.
• 0:30
  SPEAKER_01: Many people are asking what comes next, and how they can best prepare.
• 0:34
  SPEAKER_01: So by the end of this episode, you'll know what caused the recent pullback in gold, what financial opportunities are available to you, and what this geopolitical uncertainty could mean for the economy, and your purchasing power and your financial future.
• 0:49
  SPEAKER_01: We'll also discuss the latest development in the Middle East and why they're relevant to you.
• 0:53
  SPEAKER_01: Before we begin though, please do remember to like and subscribe if you're listening on YouTube, and if you're listening on Spotify or Apple Podcasts, please do hit that follow button so you never miss an episode.
• 1:06
  SPEAKER_01: Harry, welcome back to the Bullying Advantage.
• 1:08
  SPEAKER_01: Thanks so much for joining me again.
• 1:10
  SPEAKER_02: Aye J.
• 1:11
  SPEAKER_02: Thanks.
• 1:11
  SPEAKER_02: Yeah, I mean uh look quick coming back again, but a lot happening in the news.
• 1:15
  SPEAKER_01: So uh yeah, good good to speak.
• 1:16
  SPEAKER_01: Exactly.
• 1:17
  SPEAKER_01: We we've got to start off the big story.
• 1:19
  SPEAKER_01: Kia Starmer is going.
• 1:21
  SPEAKER_01: Where did it all go wrong?
• 1:22
  SPEAKER_02: Yeah, I mean look, big story is uh it's a funny one, isn't it?
• 1:26
  SPEAKER_02: Because I think the heat was more uh noticeable than the actual news that he was leaving.
• 1:30
  SPEAKER_02: It certainly came with no surprise of anyone uh we've been speaking to.
• 1:34
  SPEAKER_02: I think it's um I mean, where did it go right?
• 1:37
  SPEAKER_02: I guess is really the question, Jake.
• 1:38
  SPEAKER_02: I mean a bit of a farcical government, isn't it?
• 1:42
  SPEAKER_02: I mean, uh a big mismatch between expectation and delivery, uh a series of U-turns on policies, yeah, and just a real lack of clear narrative.
• 1:52
  SPEAKER_02: I mean, he didn't hold himself on the world stage, he certainly didn't earn any respect in this country.
• 1:57
  SPEAKER_02: Absolutely not.
• 1:58
  SPEAKER_02: I mean, even the diehard Labour supporters we speak to can't stand the man.
• 2:02
  SPEAKER_02: So uh I think he's done a hell of a lot of damage to the Labour Party, that that's for sure.
• 2:06
  SPEAKER_01: I think so.
• 2:07
  SPEAKER_01: And more relevant, how do you think markets might react?
• 2:10
  SPEAKER_01: This is our seventh Prime Minister in ten years.
• 2:12
  SPEAKER_01: Could this could this affect the markets?
• 2:15
  SPEAKER_02: I think I think it's adding uh fuel to the fire.
• 2:18
  SPEAKER_02: I I think the markets are are in turmoil anyway.
• 2:20
  SPEAKER_02: We we've spoken many a times about how they're overvalued, where they're at, why it's stagnant.
• 2:25
  SPEAKER_02: My big worry, more about the chap who's probably coming in in terms of Andy Burnham, right?
• 2:30
  SPEAKER_02: I think more the worry to the market is gonna be what's gonna happen to areas like the the property market.
• 2:36
  SPEAKER_02: Andy Burnham's uh far more left wing.
• 2:39
  SPEAKER_02: Well, people say far more left wing than Keir Starmer.
• 2:41
  SPEAKER_02: Yeah.
• 2:41
  SPEAKER_02: So what's gonna happen to areas like the profit mark property market, these other markets that we talk about similar to gold, where it's out of the system and and tangible assets basically.
• 2:50
  SPEAKER_01: Yeah.
• 2:50
  SPEAKER_01: So do you think this could put even more pressure on the pound on our currency?
• 2:55
  SPEAKER_02: Yeah, definitely.
• 2:55
  SPEAKER_02: I I think this is it, because where people think the I mean look, the UK government it affects the the the UK the most, obviously.
• 3:02
  SPEAKER_02: Yeah.
• 3:03
  SPEAKER_02: What the reason I say that though, Jake, when something happens in America and Trump makes a decision, that affects the globe.
• 3:08
  SPEAKER_02: But more really, when British politics changes, it's the the domestic change that we see uh the most.
• 3:15
  SPEAKER_02: So yes, because the pound isn't pegged to anything else, I I do think we could see it affect the pound again, which is a worry because we we spoke about the devaluation of the pounds and the and the dollar for for ages.
• 3:26
  SPEAKER_02: But if Andy Burnham goes along with what experts are saying that they plan to borrow even more money.
• 3:34
  SPEAKER_01: Well, okay.
• 3:35
  SPEAKER_02: So so that's that's a worry.
• 3:36
  SPEAKER_02: They're gonna increase public spending, as I was just saying about the housing market, a lot of uh social housing in areas like that.
• 3:42
  SPEAKER_02: But because there's been such a chopping change, it's gonna create a huge uncertainty on taxes again.
• 3:48
  SPEAKER_02: Well, if there's no stability on taxes, property, and more borrowing that's a that's a tough trio trio, right?
• 3:55
  SPEAKER_02: So I I guess that clashes with investors and the the capitalist idea of making money.
• 4:01
  SPEAKER_02: So yeah, I I I do think the pound's gonna really, really struggle.
• 4:05
  SPEAKER_02: I mean, Trump came out the other day and said about Burnham, yeah, seems like a liberal guy.
• 4:09
  SPEAKER_02: I think that's all he said about it.
• 4:10
  SPEAKER_02: Had nothing to do with it.
• 4:11
  SPEAKER_01: That's all he needs to say because there could be a general election earlier than we think.
• 4:17
  SPEAKER_02: Uh I I I think it's it's the headline that we're seeing on the news and and all the TV.
• 4:22
  SPEAKER_00: Yeah, yeah.
• 4:23
  SPEAKER_02: In this country, it's really, really hard for there to be a snap election like that.
• 4:28
  SPEAKER_02: Yeah, Labour have to lose the majority in the Commons, it's unlikely.
• 4:32
  SPEAKER_02: Do I think we'll see another Prime Minister in the Labour Party before the end of the tenure?
• 4:37
  SPEAKER_01: I think maybe.
• 4:38
  SPEAKER_02: Perhaps, but I I think the actual likelihood of there being a general I'm well, I mean Labour, no, they're doomed going for a land fly defeat if they uh go back to it.
• 4:48
  SPEAKER_01: I think with such a majority that they had.
• 4:51
  SPEAKER_01: Yeah.
• 4:51
  SPEAKER_02: I think our good friend Nigel can't wait uh any sooner to to have one, actually.
• 4:55
  SPEAKER_02: So and and actually not just Nigel, but all the the the smaller parties, all those that have been in the the sort of background for the last I mean as you know, Joey, I'm no fan of Zach Polanski, but even he's probably rubbing his hands saying this can definitely be sooner for them.
• 5:09
  SPEAKER_02: So definitely yeah, I think at the moment Labour are maybe we just see more of what Starmer did, mate.
• 5:14
  SPEAKER_02: May maybe it's going to be more of just don't rock the boat, just get through.
• 5:17
  SPEAKER_02: Let's let's just do it.
• 5:18
  SPEAKER_01: So yeah, I I agree, I agree.
• 5:20
  SPEAKER_01: Let's let's move it on to gold, which is obviously still going through its pullback.
• 5:25
  SPEAKER_01: Have we seen pullbacks like this before?
• 5:27
  SPEAKER_01: Have we seen similar pullbacks in in the past?
• 5:30
  SPEAKER_02: Yeah, I mean look, this this isn't uh a new thing, and it's really important people understand how markets like this work.
• 5:38
  SPEAKER_02: They go up and down, the whole point is they beat inflation, they move with the times, they move the market, that's why you don't stick to something like fiat currency.
• 5:45
  SPEAKER_02: Yeah.
• 5:46
  SPEAKER_02: Going over some more notable ones, 2008, we saw it fall 30%, obviously huge financial crash, yeah, and then rallied very strongly the following years.
• 5:55
  SPEAKER_02: So there was that quick sell-off, quick liquidation, quick money, and then we saw a really good rally.
• 6:01
  SPEAKER_02: Probably the next one, I mean twenty eleven, twenty thirteen there were corrections there as well, but they were corrections that again just saw it's going to new heights.
• 6:09
  SPEAKER_02: The next big one that we should probably talk about though is uh March 2020.
• 6:13
  SPEAKER_02: That was COVID.
• 6:14
  SPEAKER_02: We saw a 15% drop then massive sell-off.
• 6:17
  SPEAKER_02: Obviously, the the again the scaremongering around the world caused people to panic.
• 6:23
  SPEAKER_02: They used what they wanted to use the gold for, which was their rainy day fund, they sold off, and then guess what, recovered to massive new heights.
• 6:30
  SPEAKER_02: That was 15%, bear in mind.
• 6:32
  SPEAKER_02: So the the one we've just seen, or the one we're in right now, we're about 20%.
• 6:36
  SPEAKER_02: And again, we're seeing huge issues in the Middle East, we're seeing a massive shift in left and right politics.
• 6:43
  SPEAKER_02: Covid was obviously a global issue that everyone was affected by, but I don't think it should be understated.
• 6:48
  SPEAKER_02: We're back in the Middle East in a war, that's massive.
• 6:50
  SPEAKER_02: Yeah, the politics is more strange than ever, the uh markets are more overvalued than ever, borrowings.
• 6:58
  SPEAKER_02: There's there's so much going into this catalyst right now that is starting to bubble over.
• 7:02
  SPEAKER_02: So, yeah, do we do we believe that the gold market's gonna rally to new highs?
• 7:06
  SPEAKER_02: For sure.
• 7:06
  SPEAKER_01: I mean definitely, yeah.
• 7:08
  SPEAKER_01: So we we were talking about the pound earlier, and it's important to mention inflation when we're talking about gold.
• 7:14
  SPEAKER_01: Why is why is inflation such an important factor when thinking about gold ownership?
• 7:19
  SPEAKER_02: Yeah, I mean, inflation, uh if we just break it down to its core, just the cost of goods and services over time, um, and gold's always been considered as a hedge against inflation.
• 7:28
  SPEAKER_02: The bottom line being uh the pound you have in your bank account, Jake, is gonna be uh the same pound no matter what.
• 7:35
  SPEAKER_02: Yeah, but the goods you're trying to buy with that pound are going up in price.
• 7:39
  SPEAKER_02: Exactly.
• 7:39
  SPEAKER_02: Hence why you need to be in a market that's moving up and down and not just well, at least my money's in the bank.
• 7:46
  SPEAKER_02: That is the worst mindset.
• 7:48
  SPEAKER_02: Anyone listening who's unsure what to do, the first thing you need to do is stop doing what you're currently doing if you're just leaving it in the bank.
• 7:55
  SPEAKER_02: That is probably one of the worst decisions.
• 7:57
  SPEAKER_01: Definitely.
• 7:58
  SPEAKER_01: So obviously, there's a lot of speculation going on with what's happening in the gold market at the moment.
• 8:04
  SPEAKER_01: One of the things people are talking about obviously is central bank buying.
• 8:07
  SPEAKER_01: Have have central banks stopped buying gold?
• 8:10
  SPEAKER_01: Have they slowed down on their gold buying at all?
• 8:13
  SPEAKER_02: No, they haven't, isn't it?
• 8:15
  SPEAKER_02: I mean, there's a couple of countries in the Middle East as we know, they've been selling heavily, they're selling heavily because they're funding a war, but the majority is still still up.
• 8:23
  SPEAKER_02: In fact, we're up 17% from the previous quarter, if we if we're talking just uh brass tax here, so uh right, which is also slightly above what Q1 of 2025 was as well.
• 8:33
  SPEAKER_02: Yeah, some of the biggest buyers, Poland, they've just added 31 tons, Uzbekistan, uh 25 tons, Kazakhstan, 12 tons, and China again, the the infamous, they've added another seven seven tons.
• 8:46
  SPEAKER_02: So in April, central banks were buying and again uh netted another 19 tonnes.
• 8:52
  SPEAKER_02: So yeah, the the it's not slowed down.
• 8:54
  SPEAKER_02: I think supply's been a bit tough, even on these uh huge central banks, but I think that's a very clear indicator, unless the country is at war, the the buying of gold is still happening.
• 9:04
  SPEAKER_02: I mean, Poland's getting some huge credit around the world at the moment for being savvy, they're doing what all people should be doing, buying low and selling high, as opposed to what famous Gordon Brown did.
• 9:15
  SPEAKER_02: Yeah, yeah, we can't bought high and sold low, yeah.
• 9:18
  SPEAKER_02: We can get into that in another episode, maybe I think that shows it.
• 9:22
  SPEAKER_02: And bottom line, whether people want to listen to us, whether they want to read the news or whatever, these guys control the world, and if they're buying more gold, that that's really the takeaway.
• 9:31
  SPEAKER_01: Absolutely.
• 9:31
  SPEAKER_01: So, would you say anything has fundamentally changed for gold then?
• 9:36
  SPEAKER_01: Not not at all.
• 9:36
  SPEAKER_02: No, not at all.
• 9:38
  SPEAKER_02: Gold is used as a safe haven asset, whether that is on a I'm getting some m I'm getting some money together for my grandchildren, or I'm a country in the Middle East currently fighting a war, yeah, they use it for identical reasons.
• 9:51
  SPEAKER_02: Quick liquidation, easy to get money, beating inflation.
• 9:55
  SPEAKER_02: It is as simple as that.
• 9:57
  SPEAKER_02: That it it never has changed, Jake.
• 9:59
  SPEAKER_02: So as much as I can't sit here and say gold's never gonna change, yeah.
• 10:03
  SPEAKER_02: We talk about the Roman Empire, it was used in the exact same way.
• 10:05
  SPEAKER_02: We talk about 500 years ago, used the exact same way.
• 10:08
  SPEAKER_02: I personally, I personally believe in 5,000 years it will still be used the same way.
• 10:13
  SPEAKER_02: I agree.
• 10:14
  SPEAKER_02: So, yeah, for me, no, got gold will always and has always been the same.
• 10:19
  SPEAKER_01: So so these corrections are normal in in these long-term markets.
• 10:23
  SPEAKER_02: Yeah, for for sure.
• 10:25
  SPEAKER_02: I mean, again, where we've got the luxury of being in the market, sometimes we forget people don't study this day in, day out, they don't look at it, but it it reduces excessive speculation.
• 10:34
  SPEAKER_02: Uh, when everyone thinks the price keeps rising uh and and people start getting worried about the the big drops that come after it.
• 10:41
  SPEAKER_02: Well, brilliant, that pullback calms it down, it resets valuation, it gives the market a chance to breathe and go, right, where's it valued against other areas in the market?
• 10:50
  SPEAKER_02: And it creates new buyers.
• 10:51
  SPEAKER_02: This is a cycle, it's not everyone buys, everyone sells at the same time.
• 10:55
  SPEAKER_02: 100%.
• 10:56
  SPEAKER_02: People buy.
• 10:57
  SPEAKER_02: I mean, look, as you know, we've been going 10 years at direct billion, and a lot of our clients who were coming on 10 years ago, in the last peak we saw, a lot of them sold.
• 11:05
  SPEAKER_02: They made very good profits and they decided to take some of them profits.
• 11:09
  SPEAKER_02: What are we seeing now?
• 11:10
  SPEAKER_02: A whole new cycle of buyers coming in.
• 11:13
  SPEAKER_02: And this is why it's gold's never something you want to buy today, sell tomorrow.
• 11:16
  SPEAKER_02: It's a mid to long-term hold, and and it's at protection, but it is a constant cycle, yes.
• 11:22
  SPEAKER_02: Yeah, so could today's prices look cheap in hindsight?
• 11:26
  SPEAKER_02: Uh yeah.
• 11:26
  SPEAKER_02: I mean, if I had a if I had an ounce of gold for every time someone said to me, I wish I bought six months ago, yeah.
• 11:31
  SPEAKER_02: Well, I wouldn't be doing this podcast.
• 11:33
  SPEAKER_02: It's the honest answer.
• 11:35
  SPEAKER_02: Um, but no, uh jokes aside, yes, I I mean it could look cheap.
• 11:39
  SPEAKER_02: Talking about value versus cost is is two totally different things.
• 11:43
  SPEAKER_02: We're we're 20 to 25% off an all-time high.
• 11:46
  SPEAKER_02: You would have to be the unluckiest man on earth to not see that again.
• 11:49
  SPEAKER_02: Yeah.
• 11:50
  SPEAKER_02: So for for me, uh along with a lot of my colleagues, we're we're doubling down right now.
• 11:54
  SPEAKER_02: We're we're freeing up assets, we're buying more gold uh and silver.
• 11:57
  SPEAKER_02: In fact, I I think it's just a good time for for metals in general.
• 12:01
  SPEAKER_02: Let let let the storm rage on, set your bed with a nice lot of counterparty risk asset, and then when the opportunities come out of this, brilliant.
• 12:09
  SPEAKER_02: That you can start going into the risky stocks again and the stuff that might make you a millionaire every night.
• 12:14
  SPEAKER_01: Exactly that.
• 12:15
  SPEAKER_01: You uh briefly mentioned the Middle East earlier.
• 12:18
  SPEAKER_01: Obviously, we've been led to believe that there is peace in the region now, but how worried should we still be about the tensions in the Middle East at the moment and and how could it affect the market?
• 12:30
  SPEAKER_02: I think the worry more is the ripples it causes.
• 12:33
  SPEAKER_02: I mean, look, let's be honest, Jake, the Middle East, there's never gonna be complete peace.
• 12:36
  SPEAKER_02: I mean, in our lifetime, when have we ever seen it?
• 12:39
  SPEAKER_02: Even when there is a uh hiatus from it, they it always goes back to being trouble in the Middle East.
• 12:45
  SPEAKER_02: Exactly.
• 12:45
  SPEAKER_02: I think more the worry the tension is again how how Trump reacts to things, how volatile he is, how snap the decision making is.
• 12:52
  SPEAKER_02: No doubt we're gonna see heavy inflation.
• 12:54
  SPEAKER_02: Whether the Strait of Hermes is closed for 24 hours or 24 months, yeah.
• 12:58
  SPEAKER_02: The knock-on effect, it just snowballs and the magnitude at the other end in six months, twelve months, twenty-four months' time when we see the inflation impact of it.
• 13:07
  SPEAKER_02: Yes.
• 13:08
  SPEAKER_02: We should be worried about it, of course.
• 13:10
  SPEAKER_02: Is it something that is ever gonna change?
• 13:12
  SPEAKER_02: Probably not.
• 13:14
  SPEAKER_02: Have the markets been knocked sideways a little bit?
• 13:16
  SPEAKER_02: Yeah, that that that's the thing we're more focused on here.
• 13:20
  SPEAKER_01: So do you reckon we could uh see further escalation in the in the region then?
• 13:24
  SPEAKER_01: Yeah, of course.
• 13:25
  SPEAKER_02: I mean it'd be naive to say no.
• 13:27
  SPEAKER_02: I mean all the while you've got Netanyahu Voss Iran and and and Israel going back and forth.
• 13:32
  SPEAKER_02: It's we're we're so out of the picture we don't really get to see it as as much as we want to, and but because it's so controversial, you're seeing so normally when we see wars in the Middle East, it's the West's opinion versus the East opinion.
• 13:44
  SPEAKER_02: Yeah but now you obviously have the the Islam debate, the Jew debate, it everything in it, they're they're going back and forth.
• 13:51
  SPEAKER_02: So you of course you're gonna see uh more escalation.
• 13:54
  SPEAKER_02: Probably do I think this is the last time we'll talk about it on this podcast?
• 13:56
  SPEAKER_02: No.
• 13:56
  SPEAKER_02: No, I agree.
• 13:57
  SPEAKER_02: Do I think the severity of the impact it has on the global markets changes?
• 14:01
  SPEAKER_02: No.
• 14:02
  SPEAKER_02: So let's just see how the markets perform over the next few months, is what I really say.
• 14:06
  SPEAKER_01: 100%.
• 14:07
  SPEAKER_01: If the Strait of Hormuz does close again, what what do you think the long-term effect really could be if oil supplies are disrupted even further?
• 14:20
  SPEAKER_02: I mean, Michael Bury, some of these huge, huge economists, they're they're all saying the same thing.
• 14:26
  SPEAKER_02: That this market's about to go belly up, and yeah, it almost feels like a uh a revolution almost of the stock market is is coming, and this is from the guys we're talking from the the f uh foreign exchange markets to the stock markets, that they're all saying the same thing.
• 14:42
  SPEAKER_02: I mean, it it's been a whirlwind of a year, but again, it hasn't taken away from the fact that a lot of this stuff is seriously overvalued.
• 14:49
  SPEAKER_01: So, moral of the story, buy some gold while it's on a discount.
• 14:53
  SPEAKER_02: Yeah, I definitely I I think it it is the smart man who buys while it's low.
• 14:58
  SPEAKER_02: Yeah, it's everyone else who, as I said to you, Jake, the busiest time we had was February this year when it was at its all-time high.
• 15:04
  SPEAKER_02: Yeah.
• 15:05
  SPEAKER_02: All-time high.
• 15:06
  SPEAKER_02: And and you get it, because it's going from strength to strength.
• 15:08
  SPEAKER_02: But really, if you want to get ahead of the game, you should be looking now.
• 15:12
  SPEAKER_01: Absolutely.
• 15:14
  SPEAKER_01: As we've discussed throughout today's episode, the recent pullback in gold may have changed the price, but it hasn't changed the reasons why people own it.
• 15:24
  SPEAKER_01: Debt levels continue to rise, currencies continue to be debased, and geopolitical risks have not disappeared.
• 15:31
  SPEAKER_01: If anything, recent events have reminded us how quickly the world can change.
• 15:36
  SPEAKER_01: At the same time, Britain's political uncertainty has increased once again following Keirstharma's resignation, adding another layer of unpredictability to an already fragile economic backdrop.
• 15:49
  SPEAKER_01: We can't know exactly what comes next, but history has shown us that periods of uncertainty often favour those who prepare early rather than those who react late.
• 15:59
  SPEAKER_01: So whether you see today's lower gold price as a warning of more worrying economic and geopolitical uncertainty, or an opportunity to own gold before its next growth phase, the most important thing is to stay informed and think long term.
• 16:14
  SPEAKER_01: If you would like more information, please do go over to guide.directbullion.com, where you can download our guide to tax-free gold that's packed with information, you definitely won't get anywhere else.
• 16:26
  SPEAKER_01: That's guide.directbullion.com.
• 16:29
  SPEAKER_01: Please do like and subscribe if you're watching on YouTube, and if you're listening on Spotify or Apple Podcasts, please do hit that follow button.
• 16:38
  SPEAKER_01: As always, leave a question below and we'll answer it in the next episode.
• 16:43
  SPEAKER_01: Thank you so much for listening to this week's episode of The Bullion Advantage.
• 16:46
  SPEAKER_01: Stay informed, stay prepared, and most importantly, stay golden.
• 16:51
  SPEAKER_01: The purchase of gold does not constitute an investment or offer financial returns.
• 16:55
  SPEAKER_01: Gold is considered a store of value and not an investment product.
• 16:59
  SPEAKER_01: Past performance of gold is not indicative of future performance.
• 17:03
  SPEAKER_01: Prices and values of precious metals can fluctuate and are influenced by various market factors.
• 17:08
  SPEAKER_01: Direct bullion does not provide investment or tax advice and recommends that you conduct your own independent research before making any purchasing decisions.