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Transcript

How Physical Assets Can Protect Your Wealth + What New Taxes Are Coming? · The Bullion Advantage | Wealth Protection, Politics and Finance Insights From The #1 UK Gold Dealer

• 0:00
  SPEAKER_01: How much control do you really have over your own wealth?
• 0:04
  SPEAKER_01: What if financial freedom isn't just about how much money you have?
• 0:07
  SPEAKER_01: Governments are facing enormous financial pressures.
• 0:10
  SPEAKER_01: Taxes are already high, and we're seeing growing moves towards greater access to our cash and savings.
• 0:18
  SPEAKER_01: In this episode, we're looking at the growing pressure on household wealth and why some believe we're moving towards an era of financial repression, where governments increasingly look for ways to access, tax, or redirect private wealth.
• 0:31
  SPEAKER_01: Just look at what's happening here in the UK, including proposed tax rises and HMRC's increasing power over bank accounts.
• 0:39
  SPEAKER_01: There is another side to this story though.
• 0:41
  SPEAKER_01: Could precious metals provide a way of holding your wealth outside the traditional financial system?
• 0:47
  SPEAKER_01: By the end of this episode, you'll have a clearer understanding of the pressures facing Sabres, what financial oppression could mean for your wealth, and why physical assets are increasingly becoming considered as a way to protect everyday sabers like you and me from governments picking our pockets.
• 1:03
  SPEAKER_01: Before we start though, 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.
• 1:13
  SPEAKER_01: Right, let's get into it.
• 1:15
  SPEAKER_01: Harry, thanks for jumping back on the podcast with me, really appreciate it.
• 1:18
  SPEAKER_01: Yeah, no worries at all, looking forward back.
• 1:20
  SPEAKER_01: So, what does financial freedom actually mean to you?
• 1:23
  SPEAKER_01: How would you define it?
• 1:24
  SPEAKER_02: I think the bottom line when we're speaking to people and there's lots of videos on this is financial freedom isn't necessarily about being a millionaire, it's more reaching the point where your finances give you choices uh rather than dictate your choices.
• 1:37
  SPEAKER_02: I think it's a fair way to do it.
• 1:38
  SPEAKER_02: And the example we always use, and obviously with the clients we do in the property market here, it's an important distinction between being wealthy and financially secure because you can have a million pound house but uh very little liquid savings, and that leaves you financially vulnerable.
• 1:53
  SPEAKER_02: So I think it shows actually assets and and financial freedom are two different things.
• 1:58
  SPEAKER_01: We are talking about financial repression today, and that's a set of government policies they're used to channel private savings into public debt.
• 2:06
  SPEAKER_01: So basically, take your savings, spend it on whatever they owe to anyone, and that allows governments to borrow money cheaply and reduce their debt burdens over time.
• 2:16
  SPEAKER_01: Do you actually think this is a genuine possibility?
• 2:18
  SPEAKER_02: Yes, is the answer, and this is where I think we should separate the conspiracy theory from the economic history.
• 2:24
  SPEAKER_02: Financial repression is absolutely real.
• 2:26
  SPEAKER_02: I mean, the IMF published research in this year, in fact, uh looking at 17 advanced economies over roughly a century and found that repression has historically been used.
• 2:36
  SPEAKER_02: It's something that they use to uh reduce government debt, and we've seen it in wars, the second world war famously, we we used it as well.
• 2:44
  SPEAKER_02: And in fact, the IMF estimates that the financial repression could contribute to about 91% of GDP.
• 2:50
  SPEAKER_02: So this definitely isn't an imaginary economic mechanism, it has been used by governments before.
• 2:55
  SPEAKER_02: I think the more important thing to look at though is financial repression doesn't necessarily mean someone turns up and takes your savings, it can be much more subtle regulation, uh, inflation, restrictions on capital, that that sort of thing.
• 3:10
  SPEAKER_02: And and that's what we've seen, as I say, probably the I don't know if it's living history still, but uh World War II was probably the most famous instant of that in this country.
• 3:18
  SPEAKER_01: Well, when I read the definition, I didn't think that that was actually going on right now.
• 3:22
  SPEAKER_01: So do you think it could happen mostly without people noticing?
• 3:27
  SPEAKER_02: Definitely.
• 3:27
  SPEAKER_02: I mean, look we look, how often do we talk about stealth taxes and and hidden hidden costs?
• 3:32
  SPEAKER_02: People are far more savvy and far more accessible to news nowadays.
• 3:36
  SPEAKER_02: We don't rely on one paper, one tabloid to get our answers.
• 3:39
  SPEAKER_02: People are clued up, they understand the markets a bit more well, more than ever in history, right?
• 3:44
  SPEAKER_02: So I think the governments are starting to get smarter, they they have to get smarter to find it out.
• 3:49
  SPEAKER_02: It's all about winning the next vote.
• 3:50
  SPEAKER_02: It's not about the right thing to fix the situation, it's about what's gonna let them win the next general election.
• 3:56
  SPEAKER_02: They know categorically, if they go heavy on pensioners, they lose the next election.
• 4:00
  SPEAKER_02: So they have to be more subtle with the way they take the money from her.
• 4:03
  SPEAKER_02: So, what could it actually look like in everyday life?
• 4:06
  SPEAKER_02: It could look incredibly boring, is the honest answer to you.
• 4:08
  SPEAKER_02: Your savings account could still say£100,000, you haven't lost a penny nominally, but if inflation averages 4% for five years,£100,000 a day is not the same as£100,000 in five years, just the same as£100,000 a day gets you a hell of a lot less than what£100,000 bought you ten years ago.
• 4:27
  SPEAKER_02: Yeah.
• 4:27
  SPEAKER_02: One would have got you on a property ladder, the other might be, well, I don't know, it would get you a box in a lot of areas of the country nowadays.
• 4:34
  SPEAKER_02: Definitely not that.
• 4:35
  SPEAKER_02: It just shows you.
• 4:36
  SPEAKER_01: Yeah.
• 4:36
  SPEAKER_01: So how much access does the government have to our finances right now?
• 4:41
  SPEAKER_02: Uh I think more than people realise.
• 4:43
  SPEAKER_02: I think we always have the this is where we can borderline on the conspiracy of the government are watching us, they they see everything.
• 4:49
  SPEAKER_02: But I recently rented a property and um open banking was the way they did the referencing process, and it's worrying how easy it was to verify your income, verify what transactions you have.
• 5:01
  SPEAKER_02: You say yes, they access your banking details, and that's it.
• 5:05
  SPEAKER_02: Granted, that's just to a referencing company, but more the point, if a small referencing company has that sort of access, what do the people that govern this company have access to?
• 5:14
  SPEAKER_02: We we we see how we go online and we're talking about holidays to Spain and the next thing we're filled with is adverts from all of it, right?
• 5:21
  SPEAKER_02: It's it's the same thing.
• 5:23
  SPEAKER_02: So, yeah, I think that's that's a real good point.
• 5:25
  SPEAKER_01: Do you think there's any chance the government could ever directly take money from our bank accounts?
• 5:31
  SPEAKER_02: Yeah, but this is one area we we've got to speculate.
• 5:33
  SPEAKER_02: I can't obviously say it's right, but HMRC's direct recovery of debt system allows it.
• 5:39
  SPEAKER_02: It already suggests that it's gonna be it's something they've said in taxing before in in previous budgets.
• 5:44
  SPEAKER_02: So, yes, it's already in place that they can just retrieve this money.
• 5:48
  SPEAKER_02: So, what's to stop that going one step further?
• 5:51
  SPEAKER_02: Nothing is the honest answer.
• 5:53
  SPEAKER_02: True, and again, you've only got to look at countries like the Middle East uh in in uh Saudi Arabia and areas like that.
• 5:59
  SPEAKER_02: A lot of their fines, a lot of their payments, they're automated already.
• 6:02
  SPEAKER_02: So you get them tickets, you get them points, it just comes out your bank account.
• 6:06
  SPEAKER_02: There is no discussion, it just happens.
• 6:08
  SPEAKER_01: True.
• 6:09
  SPEAKER_01: So why are governments increasingly interested in taxing wealth rather than simply just taxing your income?
• 6:15
  SPEAKER_02: Uh really simply because wealth is a much larger pool than annual income.
• 6:19
  SPEAKER_02: The UK household sector has around 10.8 trillion in in of net wealth.
• 6:24
  SPEAKER_02: Alright.
• 6:24
  SPEAKER_02: That's an enormous tax base compared with simply taxing someone's annual salary.
• 6:29
  SPEAKER_02: So actually taxing the wealth is is a much easier approach, I guess, is the is the right way to say it.
• 6:35
  SPEAKER_01: What's the one risk to savings that most people aren't thinking about?
• 6:38
  SPEAKER_02: Purchasing power.
• 6:39
  SPEAKER_02: Well, by far.
• 6:40
  SPEAKER_02: I mean, we we talk about it week in, week out on this podcast, but it is purchasing power.
• 6:44
  SPEAKER_02: It is scarily how many people are fooled by the fact they see the same digits on a phone and assume that's the same amount of money.
• 6:51
  SPEAKER_02: It's not, it's not the case.
• 6:53
  SPEAKER_01: Very true.
• 6:54
  SPEAKER_01: So, how can I actually tell whether my savings are keeping up with inflation?
• 6:58
  SPEAKER_02: Three numbers take your saving interest rate, subtract your tax rates effect, and compare the result with inflation.
• 7:05
  SPEAKER_02: That will give you an idea on exactly where you stand.
• 7:07
  SPEAKER_01: Lovely.
• 7:08
  SPEAKER_01: So the natural segue needs to be where does gold fit into all of this?
• 7:13
  SPEAKER_02: Uh primarily as an insurance, this this is it.
• 7:15
  SPEAKER_02: I think we're coming into choppy times uh economically, geopolitics, uh financially, on a local scale, on a on a national scale, on a global scale.
• 7:26
  SPEAKER_02: Everything is choppy right now.
• 7:28
  SPEAKER_02: You've got the left going left more left than ever, you've got the right going further right, and you've got the poor sods in the middle trying to prop up everything, and uh and that's where we see it.
• 7:36
  SPEAKER_02: So gold has got to be that hedge against all fear, all worry.
• 7:40
  SPEAKER_02: It's something that can't be manipulated.
• 7:42
  SPEAKER_02: There is no digits on a screen, it's a physical asset with a finite resource.
• 7:47
  SPEAKER_02: Any other exciting opportunities you want to talk about?
• 7:49
  SPEAKER_02: I'll be careful with the word exciting because exciting and good investments aren't always the the same thing.
• 7:54
  SPEAKER_02: But um, I would say have a little look over the next.
• 7:57
  SPEAKER_02: I mean, gold, for example, last year between September and December did 23%.
• 8:01
  SPEAKER_02: So this is the business end of the year for the markets typically.
• 8:04
  SPEAKER_02: So I would say definitely keep an eye out for how the market's gonna move, and definitely this is what I would say to a lot of people have a look at the bond markets in America and the refinancing of the debt.
• 8:15
  SPEAKER_02: It's gonna be a huge movement for the dollar.
• 8:18
  SPEAKER_01: Do you think there could be a point where there'll be a large amount of people who want to move into physical assets like gold, silver, and copper over the short-term future, medium-term future?
• 8:28
  SPEAKER_02: I think we're there, aren't we?
• 8:30
  SPEAKER_02: I mean, people are people are leaving ICEs and bank-based products like no tomorrow.
• 8:34
  SPEAKER_02: I mean, you've only got to speak to your neighbour to find out that they're not happy with the interest rate they're seeing.
• 8:39
  SPEAKER_02: And I God, I don't know, the last time I had a conversation with someone who was happy with their bank rate.
• 8:44
  SPEAKER_02: In fact, I tell a lie, I spoke to a chap who was very happy and he said his very happy was four and a half percent.
• 8:48
  SPEAKER_02: And once I told him the sort of returns he could see elsewhere, well, that was a very different conversation.
• 8:53
  SPEAKER_02: Yeah, you're just about just about staying afloat of 0.5%.
• 8:57
  SPEAKER_01: Yeah, aren't you?
• 8:58
  SPEAKER_01: So if that does happen, if there is a large spike in demand for these assets, do you I guess the natural question is will there actually be enough to go around?
• 9:06
  SPEAKER_02: Yeah, we saw it last October.
• 9:07
  SPEAKER_02: I mean, delivery times and wait times for gold went through the roof.
• 9:10
  SPEAKER_02: I mean, the demand was way outgoing the supply.
• 9:14
  SPEAKER_02: I mean, if we talk about uh silver and copper, I mean the analysts at JP Morgan are saying by 2029 we're gonna be in a massive deficit of both.
• 9:21
  SPEAKER_02: So uh supply and demand is always that there are there's never enough to go around when people want the same thing.
• 9:28
  SPEAKER_01: What's the one warning sign you'd tell every saver to look out for at the moment?
• 9:32
  SPEAKER_02: Interest rates.
• 9:33
  SPEAKER_02: It's the it's the easiest thing to track, it's it's the easiest thing to help dictate markets.
• 9:38
  SPEAKER_02: Trump is actively trying to push down the interest rates in America to make this refinancing of the debt uh a lot more straightforward.
• 9:43
  SPEAKER_02: So interest rates.
• 9:45
  SPEAKER_01: So I'm nearly 30 and just sort of starting out building my wealth.
• 9:50
  SPEAKER_01: What would you say to people like me who are listening right now?
• 9:53
  SPEAKER_02: Uh don't panic, don't try and catch up for lost time, but also seize opportunities when you see them.
• 9:59
  SPEAKER_02: Uh, don't have the mindset of I wish I got into this when it was at the bottom.
• 10:02
  SPEAKER_02: Well, of course, who doesn't?
• 10:03
  SPEAKER_02: Who doesn't wish they saw Bitcoin when it first came out?
• 10:06
  SPEAKER_02: I mean that that's the natural way of thinking, but don't stand still, move, be in a market that is moving by doing nothing, is doing everything wrong.
• 10:16
  SPEAKER_02: That that's the bottom line of it.
• 10:18
  SPEAKER_02: You've just got to be moving and proactive and moving forward, diversify.
• 10:23
  SPEAKER_02: Never does anyone call us up and say, I want to put 100 my percent of wealth into precious metals, do we go, yeah, great idea.
• 10:28
  SPEAKER_02: And it's not, it's about being diverse.
• 10:31
  SPEAKER_01: And if for the general audience of the podcast, if they take just one thing away from this conversation today, what would it be?
• 10:39
  SPEAKER_01: And what what should their first move be?
• 10:41
  SPEAKER_02: Uh I've I've actually written a few things for this.
• 10:43
  SPEAKER_02: Okay.
• 10:44
  SPEAKER_02: Not all your money is cash, not all your wealth is property, not all your investment in one country, not all your income in one employer, and not all your retirement dependent on one pension.
• 10:55
  SPEAKER_02: As I just said, diversify it over everything you do, diversify it.
• 11:02
  SPEAKER_01: There is something we need to talk about today as well, because what's happening in the UK finances could eventually have a real impact on all of us.
• 11:09
  SPEAKER_01: The new Chancellor of the Exchequer, just like Andy Burnham, refused to rule out tax rises in October.
• 11:17
  SPEAKER_01: Borrowing costs are going up, and the government is under increasing pressure to get the books under control.
• 11:22
  SPEAKER_01: So how concerned should we be about what could be announced in the October budget?
• 11:28
  SPEAKER_02: John Healy said it himself, he's not ruling out tax increases.
• 11:30
  SPEAKER_02: Now, Burnham said they're sticking to the manifesto, they're not raising VAT income or national insurance.
• 11:36
  SPEAKER_02: The question is, what does that leave on the table?
• 11:38
  SPEAKER_02: It leaves inheritance tax, it leaves corporation tax, it leaves anything that means if you're trying to make some money for yourself in this country, trying to make some sort of a success, trying to be a true capitalist, they're the ones that are going to be exposed.
• 11:51
  SPEAKER_01: So for someone listening today who's worked hard, built up savings, want to protect what they have, what should they be thinking about between now and when the budget is announced?
• 12:01
  SPEAKER_02: As as corny as this sounds, Jake, and I can't think of any other way apart from saying in a corny way, if you know a car crash is about to happen, do you take insurance out before or do you take insurance out after?
• 12:12
  SPEAKER_02: So true.
• 12:13
  SPEAKER_02: And I know it's so corny, and I'm sorry to the people listening if it is come across corny, but it if really, really true.
• 12:19
  SPEAKER_02: Yeah, if you know something's gonna happen, people are saying to us at the moment, I'm gonna wait for the budget.
• 12:25
  SPEAKER_02: To my first response is Jake, what is it you're waiting to hear in the budget?
• 12:30
  SPEAKER_01: They're telling us, they're telling us to our face.
• 12:32
  SPEAKER_01: They're refusing to deny that they're gonna raise taxes in the budget.
• 12:35
  SPEAKER_01: Exactly that.
• 12:36
  SPEAKER_02: And by the time we go through it, people go, actually, yeah, you you make a good point.
• 12:39
  SPEAKER_02: Yeah, don't wait for what you know is already going to happen.
• 12:42
  SPEAKER_02: So true.
• 12:43
  SPEAKER_02: It is really just protect yourself a little bit.
• 12:46
  SPEAKER_02: Whatever that is, start moving money about.
• 12:49
  SPEAKER_02: You buy on rumour, you sell on news.
• 12:51
  SPEAKER_02: Yeah, couldn't agree more.
• 12:53
  SPEAKER_01: So, financial freedom isn't simply about having money, it's about having control over the wealth you've worked hard to build.
• 13:01
  SPEAKER_01: We've looked at the pressures facing governments, the possibility of further taxation, increasing access to personal finances, and the growing debate about how private savings could be used to meet wider economic needs.
• 13:14
  SPEAKER_01: And whether you agree with all of the arguments we've discussed today, or not, there's one thing that's difficult to ignore.
• 13:21
  SPEAKER_01: The financial environment is changing.
• 13:24
  SPEAKER_01: That makes it increasingly important to think about where your wealth is held, how exposed it is to changes in government policy, and how much control you actually have over it.
• 13:35
  SPEAKER_01: Physical gold, silver, copper, they're not a solution to every financial problem, and nobody can predict exactly what governments will do next.
• 13:45
  SPEAKER_01: But for those looking to diversify their wealth and hold part of it outside the traditional financial system, it could be something worth considering.
• 13:54
  SPEAKER_01: To learn more about physical gold and wealth protection, go to guide.directbullion.com.
• 13:59
  SPEAKER_01: And if you've enjoyed today's episode, remember to like and subscribe if you're on YouTube, or follow us on Spotify or Apple Podcasts so you never miss an update.
• 14:08
  SPEAKER_01: As always, leave a question in the comments below and we'll answer them in the next podcast.
• 14:13
  SPEAKER_01: Thanks so much for listening to the Bullion Advantage today.
• 14:15
  SPEAKER_01: Stay informed, stay prepared, and most importantly, stay golden.
• 14:20
  SPEAKER_01: The purchase of gold does not constitute an investment or offer financial returns.
• 14:24
  SPEAKER_01: Gold is considered a store of value and not an investment product.
• 14:28
  SPEAKER_01: Past performance of gold is not indicative of future performance.
• 14:32
  SPEAKER_01: Prices and values of precious metals can fluctuate and are influenced by various market factors.
• 14:37
  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.