Latest / Financial Survival Network / Silver’s Secret Surge & the Financial Risks They Won’t Admit - Axel Merk

Transcript

Silver’s Secret Surge & the Financial Risks They Won’t Admit - Axel Merk · Financial Survival Network

• 0:00
  Speaker 1: With silva, you have the industrial use and that creates
• 0:04
  Speaker 1: substantially more molatility. So one interpretation of the rise is
• 0:09
  Speaker 1: that the economy might be doing better than expected.
• 0:12
  Speaker 2: You're listening to Carrie Lutz's Financial Survival Network, where you
• 0:16
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• 0:40
  Speaker 1: And welcome.
• 0:41
  Speaker 3: You are listening to and watching the Financial Survival Network.
• 0:44
  Speaker 3: I'm your host, Carrie Lutz. Well, market's going crazy. Silver
• 0:49
  Speaker 3: almost at forty dollars an ounce, just a hair's breadth away.
• 0:54
  Speaker 3: We've got gold up there at record levels. We've got
• 0:59
  Speaker 3: Bitcoin up at record levels or near record levels, let's
• 1:03
  Speaker 3: put it that way. Bitcoins so volatile. Axelmurk is with
• 1:07
  Speaker 3: us now live from the vineyard and you know him well,
• 1:12
  Speaker 3: a well known fund manager who has a pensiant for
• 1:17
  Speaker 3: precious metals.
• 1:18
  Speaker 1: Axel.
• 1:19
  Speaker 3: Great to have you back on. It's been too long,
• 1:22
  Speaker 3: but silver. Are we heading for a silver squeeze? A
• 1:27
  Speaker 3: short squeeze? It seems like it's baked into the cake.
• 1:30
  Speaker 3: To this observer, great to be with you. It's been
• 1:32
  Speaker 3: way too many years. So I'm a simpleton.
• 1:36
  Speaker 1: I focus mostly on gold, and the reason I say
• 1:39
  Speaker 1: that is because gold has much simpler dynamics. With silver,
• 1:43
  Speaker 1: you have the industrial use and that creates substantially more molatility.
• 1:48
  Speaker 1: So one interpretation of the rise is that the economy
• 1:52
  Speaker 1: might be doing better than expected. Regarding the squeezing offline
• 1:57
  Speaker 1: we talked about a little bit, I think precious metals
• 2:01
  Speaker 1: invest does. I always think the special that the market
• 2:03
  Speaker 1: gets particularly manipulated. All markets with with derivative markets are
• 2:08
  Speaker 1: quote unquote manipulated, and and what that really is, it's
• 2:11
  Speaker 1: it's really dynamics that are the consequence of these markets.
• 2:15
  Speaker 1: It doesn't necessarily mean that they are the various actors
• 2:19
  Speaker 1: that they just want to make it buck along the way.
• 2:21
  Speaker 1: With regard the potential for for a more volatile move
• 2:25
  Speaker 1: to the upside, well we've seen of course that that
• 2:28
  Speaker 1: that we've had this move, Gold has moved quite substantially.
• 2:31
  Speaker 1: Silver historically can be quite amplified in its move, and
• 2:35
  Speaker 1: so I wouldn't rule it out. I actually think it's
• 2:38
  Speaker 1: it's quite possible whether that's new to a short squeeze
• 2:42
  Speaker 1: or not. I don't know. I it's it's nice to
• 2:45
  Speaker 1: put a narrative on things, but I like to keep
• 2:48
  Speaker 1: it simple for me. The key thing is that silver
• 2:52
  Speaker 1: is signaling that the kind of the bottom isn't falling
• 2:55
  Speaker 1: out of the economy, and that's why it's it's it's
• 2:57
  Speaker 1: playing catch up in some ways and then some.
• 3:01
  Speaker 3: Also. Don't you think there's some renewed investor demand for
• 3:05
  Speaker 3: the shining metal as well?
• 3:08
  Speaker 1: Well? There's certainly been been broadening and just for contact
• 3:11
  Speaker 1: for those who don't know us, we manage a two
• 3:13
  Speaker 1: and a half billion in both gold and the gold
• 3:16
  Speaker 1: miners or precious metals miners that include silver. There not
• 3:19
  Speaker 1: many good pure plays on silver, so it's often more
• 3:22
  Speaker 1: of a byproduct. And indeed, the way I would just
• 3:26
  Speaker 1: kind of astracted speaking group the investors aside from the
• 3:29
  Speaker 1: central banks, you got the diversifier, you got the investor
• 3:33
  Speaker 1: who's concerned about the person car of the dollar, and
• 3:37
  Speaker 1: then you do also have the speculator, and the speculator
• 3:40
  Speaker 1: tends to be more on the mining side than the
• 3:42
  Speaker 1: physical side. Many of those speculators are more on the
• 3:45
  Speaker 1: cryptocide these days, they are not very loyal. They'll go
• 3:48
  Speaker 1: whenever there's action. Now, what we have seen is we
• 3:52
  Speaker 1: have seen more interest from every one of these constituents,
• 3:58
  Speaker 1: and we have more conversation on the physical goal side.
• 4:01
  Speaker 1: We see flows on that side, we see on the
• 4:06
  Speaker 1: on the mining side, in part because there's been disappointment
• 4:09
  Speaker 1: with the larger mining companies, we've there's a lot more
• 4:13
  Speaker 1: attention to what we do. But even within the industry
• 4:16
  Speaker 1: of course as well, merger activity has kind of moved higher.
• 4:21
  Speaker 1: And the other day I got a question about convertible debt.
• 4:25
  Speaker 1: How much we own of that, and there's sure we
• 4:27
  Speaker 1: own some. But the equity markets are open, meaning there
• 4:31
  Speaker 1: is an ability to raise capital. The question to me
• 4:35
  Speaker 1: is what does it mean with regard to the phase
• 4:37
  Speaker 1: we are in. And the short answer is, it's possible
• 4:41
  Speaker 1: that it's a short window. It's possible that's a tenure window.
• 4:43
  Speaker 1: It's it's very very difficult to say. We don't see
• 4:46
  Speaker 1: signs of excessive deals. We don't see signs of people
• 4:51
  Speaker 1: getting into the space who who have no business being
• 4:54
  Speaker 1: in that space. I mean, of course, to something extent
• 4:56
  Speaker 1: that always happens a little bit, but there is but
• 4:58
  Speaker 1: there is over all, I still feel that this is
• 5:03
  Speaker 1: an early inning, but that's more of a feeling. I
• 5:06
  Speaker 1: don't have a crystal ball either.
• 5:09
  Speaker 3: Well, but look, you've been in this for decades, somebody
• 5:13
  Speaker 3: like you says, I think this is starting to happen,
• 5:16
  Speaker 3: and it's happening now. I think it's incumbent upon everybody
• 5:21
  Speaker 3: who's watching this to say, what does this guy know
• 5:24
  Speaker 3: that we don't know that you don't know? And where
• 5:28
  Speaker 3: do I find out? So this is your gut talking,
• 5:32
  Speaker 3: and this is your expert system with decades of experience.
• 5:36
  Speaker 3: What is the most important factor you think that is
• 5:41
  Speaker 3: pointing to potential upswing in the metals here?
• 5:46
  Speaker 1: No, First of all, it's a little bit more than
• 5:47
  Speaker 1: my gut. I'm on record as an inside of Baya
• 5:50
  Speaker 1: in the mining space, and I haven't sold anything in
• 5:53
  Speaker 1: that space, and so I put my money where my
• 5:56
  Speaker 1: mouth is. Just to clarify that it's not for the
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  Speaker 1: faint of heart. I do have to put that caveat
• 6:01
  Speaker 1: out there. It's a very volatile space. My speech is regulated,
• 6:04
  Speaker 1: so I got to add that. When we when we
• 6:06
  Speaker 1: talk about the potential for the for the upside, the
• 6:13
  Speaker 1: I mean we've seen the price of gold was substantially higher.
• 6:17
  Speaker 1: The market is paying much less fond ounce of precious
• 6:20
  Speaker 1: metal in the ground, but of course that means also
• 6:23
  Speaker 1: valuations are in that sense more modest. And of course
• 6:26
  Speaker 1: we've seen a significant move, but in my assessment, nothing
• 6:30
  Speaker 1: compared to where where we would be if the market
• 6:34
  Speaker 1: were to assume that these markets are more permanent the
• 6:37
  Speaker 1: current level. I happen to think that there are plenty
• 6:40
  Speaker 1: of underlying drivers that provide kind of support for where
• 6:45
  Speaker 1: we are subject to short volatility. Some of them are
• 6:49
  Speaker 1: the ones I'm trust you have discussed with many of
• 6:51
  Speaker 1: your guests about the deficits and whatnot to make sure
• 6:55
  Speaker 1: I give you your view of something that maybe they
• 6:58
  Speaker 1: don't hear everywhere else. One fact I think that's completely
• 7:02
  Speaker 1: underestimated is the impact on financial flows from teriffs. And
• 7:08
  Speaker 1: let me go to the stupid Trader Joe's or a
• 7:11
  Speaker 1: supermarket example that's like, oh, you have a trade defastate
• 7:14
  Speaker 1: with Trader Joe's. Well, what people don't realize that if
• 7:17
  Speaker 1: you get this trade more into balance, it does affect
• 7:21
  Speaker 1: financial flows as well. And in my view, the rise
• 7:25
  Speaker 1: in interest rates longer term interest rates in the US
• 7:28
  Speaker 1: in recent months is the direct results of the teriffs,
• 7:32
  Speaker 1: meaning that deficits are less financed from abroad than they
• 7:35
  Speaker 1: previously have been, and that translates to a higher cost
• 7:40
  Speaker 1: of boring and from that lead all kinds of unintended consequences,
• 7:44
  Speaker 1: notably also increased pressure on the federal reserved to lower
• 7:47
  Speaker 1: rates and whatnot. But it's that that sphere of things
• 7:53
  Speaker 1: I think we need to pay attention to. The low
• 7:57
  Speaker 1: long term interest rates could of course also be higher
• 7:59
  Speaker 1: growth attention because of the regulation. But if if I'm correct,
• 8:04
  Speaker 1: then we have to be very careful with regard what
• 8:06
  Speaker 1: we call is exorbitant privilege, which is really the idea
• 8:10
  Speaker 1: that we can borrow and the infinite amount of money
• 8:13
  Speaker 1: very cheaply to invest for higher returns abroad. And so
• 8:17
  Speaker 1: if we throw a wrench into this global system, and
• 8:19
  Speaker 1: not saying they aren't good reasons why maybe from trades
• 8:22
  Speaker 1: should be rebounced, but if we throw a wrench into
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  Speaker 1: that system, it does have an impact on financial flows,
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  Speaker 1: and I think that is one of the underestimated factors.
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  Speaker 1: Beyond that, yes, these these mining companies that are producing
• 8:36
  Speaker 1: are going to be very, very profitable, and unlike another
• 8:40
  Speaker 1: eras we've had that the the overall cost of mining
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  Speaker 1: hasn't exploded as much and it's been it's it's we
• 8:48
  Speaker 1: are in a in a much better sweet spot, so
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  Speaker 1: to speak, than we've been in the past.
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  Speaker 3: Yeah, yeah, well, and so we're at record goal prices.
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  Speaker 3: You know, I saw a statistic I've new and for
• 9:00
  Speaker 3: years that silver is the only commodity in the past
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  Speaker 3: forty years that hasn't made a new high and probably
• 9:08
  Speaker 3: more than forty now. And how much higher can gold go?
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  Speaker 3: And how much how much higher is possible here without
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  Speaker 3: some major world disruptions taking place?
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  Speaker 1: Well, I won't give you a price target. Let's talk
• 9:25
  Speaker 1: about disruptions though for a moment, of course, different types
• 9:28
  Speaker 1: of disruptions. Historically, I don't like geopolitics as a driver
• 9:34
  Speaker 1: for the price of gold, simply because the market gets
• 9:37
  Speaker 1: used to anyone crisis. Let there be a terrorist attack,
• 9:40
  Speaker 1: the price of gold goes up right and very quickly
• 9:42
  Speaker 1: market used to it, even if that terrorists are taken
• 9:44
  Speaker 1: to might continue. What has changed, though, is that I
• 9:48
  Speaker 1: think we're in a new year in the sense that
• 9:51
  Speaker 1: the peaceful period since World War Two has somewhat come
• 9:55
  Speaker 1: to an end. And you're the financial survival network people
• 9:57
  Speaker 1: to relate to that. But the kind of what we've
• 10:02
  Speaker 1: seen in Ukraine or Gaza are but symptoms of a
• 10:06
  Speaker 1: new era that we live in, and very abstractly, it
• 10:10
  Speaker 1: means that the cost of doing business has gone gone up.
• 10:15
  Speaker 1: Countries will invest the fortune into defense. Germany alone wants
• 10:20
  Speaker 1: to invest the five hundred billion, and in order to
• 10:22
  Speaker 1: get done they have to promise five hundred billion in
• 10:24
  Speaker 1: infrastructure investment. The EU wants to spend much more money.
• 10:29
  Speaker 1: They have different motives because they want to have EU
• 10:31
  Speaker 1: jointly guaranteed debt. But we have an era of more
• 10:37
  Speaker 1: industrial policy to address whatever the governments believe are the
• 10:41
  Speaker 1: important issues of the day. In the US we clearly
• 10:44
  Speaker 1: have shifted also more towards industrialist policy. Those policies cost money,
• 10:49
  Speaker 1: they're expensive, they're inefficient. They may be the right thing
• 10:53
  Speaker 1: for national defense or whatever it may be, but it's
• 10:57
  Speaker 1: not cheap, it's not efficient. The US is no longer
• 11:01
  Speaker 1: the guarano that global trade on global seeds is safe necessarily,
• 11:07
  Speaker 1: and so all of that is a disruption. And in
• 11:10
  Speaker 1: that sense, yes, the there is is less global certainty
• 11:14
  Speaker 1: and it translates to higher cost of doing business. It
• 11:17
  Speaker 1: translates to governments to spending more money, and presumably a
• 11:23
  Speaker 1: lot of that is going to be deficit spending.
• 11:25
  Speaker 3: Right, So continued devaluation of the currencies. You know, how
• 11:31
  Speaker 3: much more can they be devalued before there's a major
• 11:35
  Speaker 3: economic disruption of a loss of confidence in the system
• 11:39
  Speaker 3: here a because we think it can't go it any worse,
• 11:44
  Speaker 3: but you know, technology.
• 11:45
  Speaker 1: Eail can always get worse. And that is one of
• 11:50
  Speaker 1: the things, especially to just offend some gold bugs out there,
• 11:54
  Speaker 1: because a lot of folks say, oh my god, there
• 11:56
  Speaker 1: has to be a reset at some point, there has
• 11:58
  Speaker 1: to be this or that. There's always a day after.
• 12:02
  Speaker 1: And just look at Latin America, right they You would
• 12:05
  Speaker 1: have thought that some of these countries have done well
• 12:07
  Speaker 1: and then they suddenly there's integrate or whatever it is.
• 12:12
  Speaker 1: There's life is always there is a day after and
• 12:15
  Speaker 1: society adjusts. Just think about it. In the nineteen fifties
• 12:19
  Speaker 1: there was one bread winner in the house and people
• 12:23
  Speaker 1: could have a decent levy. Now if you nowadays and
• 12:28
  Speaker 1: if in nowadays you have two bad winners. Similarly, people
• 12:31
  Speaker 1: haven't saved enough for retirement. Well, I guess what if
• 12:33
  Speaker 1: you are sixty seven and have a job. You're proud
• 12:37
  Speaker 1: that you have a job. You're not lamenting twenty four hours.
• 12:40
  Speaker 1: I mean some people might, but most people they take
• 12:42
  Speaker 1: it as a pride that, oh I can still work,
• 12:45
  Speaker 1: I can still be productive. And so we are adjusting
• 12:49
  Speaker 1: to whatever the cards we're dealt with now. It doesn't
• 12:54
  Speaker 1: mean we have to put up with it, and we
• 12:56
  Speaker 1: doesn't mean we have to kind of put up with
• 12:58
  Speaker 1: the erosion of the perchain cower that we have. But
• 13:02
  Speaker 1: I've argued for a long time that kind of the
• 13:05
  Speaker 1: the populist device we've had and including current president, is
• 13:10
  Speaker 1: just the symptom of people being very dissatisfied they've seen
• 13:13
  Speaker 1: an erosion of the perchain power, and they'll lead to
• 13:16
  Speaker 1: more populist politicians, either on the left or the right.
• 13:20
  Speaker 1: Could have a sharp turn to the left after this presidency.
• 13:22
  Speaker 1: It's completely feasible. People are just dis chant. Just look
• 13:25
  Speaker 1: at New York City what's happening there right as an example,
• 13:29
  Speaker 1: and a lot of time, the sort of solutions that
• 13:32
  Speaker 1: are being proposed are more addressing the symptoms rather than
• 13:36
  Speaker 1: the root cause. And say when people say, oh, the
• 13:40
  Speaker 1: government needs to go back to the gold standard, I
• 13:42
  Speaker 1: when the interests of government are not aligned with the
• 13:45
  Speaker 1: interests of investors. I would not hold my breath that
• 13:50
  Speaker 1: that's going to happen. And so investors might want to
• 13:53
  Speaker 1: take care of their own gold standard if that's what
• 13:55
  Speaker 1: they if that's what they believe is the appropriate thing
• 13:58
  Speaker 1: to do.
• 13:59
  Speaker 3: Yeah, there's no desire among the world's governments to reign
• 14:03
  Speaker 3: in the deathicit spending. It's not just the United States.
• 14:07
  Speaker 3: It doesn't have a monopoly on it. It's China, it's Japan,
• 14:11
  Speaker 3: it's every country in the world except maybe Russia. And
• 14:16
  Speaker 3: there's no political will it appears to actually come to
• 14:20
  Speaker 3: terms with this situation. So then what's the endgame?
• 14:24
  Speaker 1: Here? Is the endgame?
• 14:25
  Speaker 3: A new economic system? Is the endgame? A reshuffling of
• 14:31
  Speaker 3: the deck chairs on the Titanic?
• 14:33
  Speaker 1: What is it here? Give us your insights. No, I
• 14:35
  Speaker 1: don't think there's an endgame. It's a process. And one
• 14:38
  Speaker 1: thing people have said I mentioned earlier about the exorbitant
• 14:41
  Speaker 1: privilege and Moody's I think has said, oh, there is
• 14:45
  Speaker 1: no alternative to the dollar, and therefore don't worry about
• 14:49
  Speaker 1: any of these scenarios. My scenario is that that does
• 14:53
  Speaker 1: not need to be an alternative. What we will see
• 14:56
  Speaker 1: is that disintegration of global finance. We will see and
• 15:01
  Speaker 1: again it's a quote unquote less efficient way of operating.
• 15:05
  Speaker 1: We will see more patchwork of things. Of course, eventually
• 15:08
  Speaker 1: something may come up. But there's of course a reason
• 15:11
  Speaker 1: beyond I talk about it. I don't like the impact
• 15:13
  Speaker 1: on financial flows and terrorists. There's of course a reason
• 15:16
  Speaker 1: why the US is the growth engine of the world
• 15:18
  Speaker 1: that goes far beyond that, right, and so those advantages
• 15:22
  Speaker 1: will persist. But at the same time, when financial flows
• 15:27
  Speaker 1: are inhibited it it will create more pockets. Ultimately, it
• 15:33
  Speaker 1: is healthier for many economies if they finance themselves domestically. Too.
• 15:37
  Speaker 1: Many countries are boring in US dollars because it's been
• 15:40
  Speaker 1: cheaper to find out their projects. Part of that is
• 15:44
  Speaker 1: because the domestic markets aren't sufficiently developed, and that's because
• 15:47
  Speaker 1: there'sn't enough trust in these markets because of a lot
• 15:49
  Speaker 1: of reasons. That's not going to change overnight, and I
• 15:52
  Speaker 1: don't think that the Europeans are going to get to
• 15:54
  Speaker 1: act together tomorrow. Quite the opposite. But they can spend
• 15:57
  Speaker 1: They are big, and they can spend a lot of
• 15:58
  Speaker 1: money and say it will be a disintegration. Also, what
• 16:04
  Speaker 1: happens along the way, in my view, is that that
• 16:07
  Speaker 1: all dynamics between countries will resurface. I would think we
• 16:13
  Speaker 1: should keep a close eye on what's happening in Turkey
• 16:15
  Speaker 1: and in other places we've seen. I mean a Russia
• 16:18
  Speaker 1: of all places, is plunging above it's waistline. It's a
• 16:20
  Speaker 1: tiny economy, right, and it's controlling a lot of the
• 16:25
  Speaker 1: imagination in the world in what they can do. And
• 16:28
  Speaker 1: they've re engineered the economy that they're kind of dependent
• 16:30
  Speaker 1: on military spending now. So there is And the other
• 16:34
  Speaker 1: thing to keep in mind is it's a go at
• 16:36
  Speaker 1: endgame is at some point the bond market will tell
• 16:41
  Speaker 1: the government in the US to get the act together.
• 16:44
  Speaker 1: But we'll see a thousd eight remember two thousand and eight.
• 16:48
  Speaker 1: Government can change the rules along the way. So even
• 16:52
  Speaker 1: if I had a crystal ball, or you did, or
• 16:55
  Speaker 1: one of your guests had, we just don't know how
• 16:58
  Speaker 1: exactly it's going to play out, because the rules of
• 17:02
  Speaker 1: the game when the government is cornered will change. And
• 17:06
  Speaker 1: it's enough and address that living within your means, controlling
• 17:12
  Speaker 1: your Yeah, you can live within your means. You can
• 17:15
  Speaker 1: try to reduce or eliminate your debt. You can try
• 17:18
  Speaker 1: to have more income and expenses. I mean, we talk
• 17:22
  Speaker 1: about gold and silver and whatnot. The reason we do that,
• 17:25
  Speaker 1: of course, is because we want to preserve our purpose
• 17:28
  Speaker 1: and power and and and yes, if we get again
• 17:31
  Speaker 1: on top of that, that's fantastic. But that's usually what
• 17:34
  Speaker 1: investment is about, and what whatever people do, it's somewhat
• 17:38
  Speaker 1: related to that, right, I mean, if you buy your
• 17:40
  Speaker 1: favorite in the video, stock or gold or or a
• 17:43
  Speaker 1: piece of real estate. And of course we have our
• 17:45
  Speaker 1: reasons why we want to diversify or be concentrated, or
• 17:48
  Speaker 1: why we think one is better than the other. In
• 17:51
  Speaker 1: a in an unstable world, you got to think more
• 17:54
  Speaker 1: about the basics, right, are your property rights the secure
• 17:59
  Speaker 1: and how? And I live in the world where maybe
• 18:02
  Speaker 1: taxes will.
• 18:02
  Speaker 4: Have to go up because at some point in some
• 18:05
  Speaker 4: government has gone that out there and say, well, with
• 18:08
  Speaker 4: high taxes we can solve all the problems out there,
• 18:11
  Speaker 4: which of course is not going to happen, but a
• 18:12
  Speaker 4: lot of damage can be caused along the way.
• 18:14
  Speaker 1: Yeah, yeah, so yeah.
• 18:17
  Speaker 3: I think the first order of business of any organism,
• 18:22
  Speaker 3: living organism and governments and countries are living organisms, and
• 18:27
  Speaker 3: one way of looking at it is survival. Keep the
• 18:31
  Speaker 3: game going, and you know they'll do whatever they have
• 18:36
  Speaker 3: to to basically perpetuate their existence at the expense of
• 18:44
  Speaker 3: the country, the world, et cetera. You know, what are
• 18:49
  Speaker 3: some things you think that they're going to try to pull,
• 18:52
  Speaker 3: so we can be a little prepared for it.
• 18:53
  Speaker 1: Axel Well, I think we should study the your zone
• 18:57
  Speaker 1: debt crisis, like what happened in Greece, what happened in Spain,
• 18:59
  Speaker 1: what happened and the sort of politics that go on
• 19:02
  Speaker 1: or in the US right when in September October two
• 19:06
  Speaker 1: thousand and eight, when when the markets brought politicians to
• 19:09
  Speaker 1: their nees and got bail out. The one thing kind
• 19:12
  Speaker 1: of to take this back on a higher level, we
• 19:17
  Speaker 1: live in the credit driven society. We have fracture reserve banking,
• 19:22
  Speaker 1: and you talk about the Federal Reserve worrying about interest
• 19:26
  Speaker 1: rates and unemployment. Well, those are subordinate mandates to the
• 19:30
  Speaker 1: primary mandate, which is financial stability. And we know the
• 19:34
  Speaker 1: playbook of the central Bank that they'll for to run
• 19:38
  Speaker 1: the way right. They will make liquiding be available to
• 19:44
  Speaker 1: the banking system because that is what keeps the glue together. Indeed,
• 19:51
  Speaker 1: I mean, if you if you want to go in
• 19:52
  Speaker 1: these scenarios in March twenty twenty, when when the pandemic hit,
• 19:58
  Speaker 1: you might recall your viewers might recall we had this
• 20:00
  Speaker 1: one day when the market's absolutely crashed. The one thing
• 20:04
  Speaker 1: that happened overnight that night was that the currency markets
• 20:09
  Speaker 1: got unhinged. There were spreads of five six percent in
• 20:13
  Speaker 1: major currencies. And the reason that happened is because the
• 20:16
  Speaker 1: folks that the Federal Reserve were sleeping. It was nighttime,
• 20:18
  Speaker 1: it was past midnight, and it was further a wave
• 20:22
  Speaker 1: of a shark. And and and yes, I mean if
• 20:24
  Speaker 1: they if they were wake, they would have they would
• 20:26
  Speaker 1: have done something. And it was just stunning to watch.
• 20:30
  Speaker 1: I mean there if you ever saw markets completely falling
• 20:32
  Speaker 1: apart for about two or three hours, that was the
• 20:35
  Speaker 1: case there before they they kind of put Humpty dumpty
• 20:37
  Speaker 1: back together. But that's the that's kind of the idea
• 20:41
  Speaker 1: that there's there's a certain risk or just fast forward, right,
• 20:45
  Speaker 1: I mean, the reason what happened in in Iran there
• 20:50
  Speaker 1: was attack on the on the central bank and causing
• 20:54
  Speaker 1: a financial panic induced by by the idea. And what
• 21:03
  Speaker 1: is something like that work to happen in the US right,
• 21:06
  Speaker 1: And of course we think we are called more sophisticated
• 21:10
  Speaker 1: and better in this and that, But it's it's it's
• 21:14
  Speaker 1: always interesting as to kind of can you imagine scenarios
• 21:18
  Speaker 1: that could happen? Sure, I mean anything can happen. Diversification
• 21:24
  Speaker 1: is the name of the game. You can't safeguard against
• 21:29
  Speaker 1: any possible scenario. You also have to assign some probabilities
• 21:33
  Speaker 1: to it. Now I happen to put more weight on
• 21:37
  Speaker 1: kind of high risk, low probability events. But everybody needs
• 21:40
  Speaker 1: to be so comfortable with what they do. And one
• 21:43
  Speaker 1: thing I tell people, ultimately, if they invest in themselves,
• 21:45
  Speaker 1: that's probably the best investment they can do, because you
• 21:48
  Speaker 1: are fixed income generating machine that you have a much
• 21:51
  Speaker 1: better control of than whether you buy a stock with
• 21:54
  Speaker 1: a click off a button.
• 21:55
  Speaker 3: Agreed, Agreed. Rick Rules said the same thing. I've said
• 21:58
  Speaker 3: the same thing for many years because from personal experience,
• 22:02
  Speaker 3: every time I've invested in myself, better tools, better knowledge,
• 22:08
  Speaker 3: it's always paid dividends. It used to be when I
• 22:11
  Speaker 3: was in business, every time I upgraded my computer, it
• 22:15
  Speaker 3: made money for me. I had no idea how it worked.
• 22:18
  Speaker 3: I just knew that updating it whether it saved me
• 22:22
  Speaker 3: two minutes of waiting around every day and I did
• 22:24
  Speaker 3: something more productive. I don't know why, but that upgrading
• 22:28
  Speaker 3: and better tools for yourself and in human capital increased
• 22:33
  Speaker 3: knowledge is always going to pay better returns than anything
• 22:38
  Speaker 3: else you can do out there.
• 22:39
  Speaker 1: No, absolutely, it's a it's a if you're thinking about
• 22:43
  Speaker 1: doomsday scenarios, investing in yourself is probably the best thing
• 22:48
  Speaker 1: that you can do. And that I can say without
• 22:50
  Speaker 1: my regulator slapping my wrist.
• 22:52
  Speaker 3: Yeah. Yeah, nobody can take issue with that one, that's
• 22:56
  Speaker 3: for sure.
• 22:56
  Speaker 1: All right.
• 22:57
  Speaker 3: So, Axel, where's the best place to find you? To
• 23:00
  Speaker 3: read your work? To connect with you on the web?
• 23:02
  Speaker 1: Back Investments dot Com is our website. There you can
• 23:05
  Speaker 1: see what we do on the gold and gold mining site,
• 23:07
  Speaker 1: we have a free newsletter. We periodically have webinars on
• 23:09
  Speaker 1: gold miners and whatnot. Follow me on Twitter at Axelmerk
• 23:14
  Speaker 1: is my handle there imus about what's happening in the world,
• 23:18
  Speaker 1: off the Federal Reserve, in the precious metal space and whatnot.
• 23:21
  Speaker 1: I can't talk about products on social media, but otherwise
• 23:24
  Speaker 1: I'm quite accessible, all right.
• 23:26
  Speaker 3: Hey, Well, appreciate if you've got a question out there
• 23:28
  Speaker 3: for Axel or myself, just shoot me an email Klatkerrie
• 23:32
  Speaker 3: Lutz dot com. We'll get your quick response back and
• 23:36
  Speaker 3: you'll find a link to accel site in the show
• 23:40
  Speaker 3: notes of this interview on Financial Survival Network dot com.
• 23:44
  Speaker 3: If you visit, we just ask that you sign up
• 23:46
  Speaker 3: for a free newsletter. Axel always always intellectually stimulating experience.
• 23:52
  Speaker 3: When we talk, you make me think about things that
• 23:54
  Speaker 3: I might not have otherwise thought about, so we won't
• 23:57
  Speaker 3: let as much time go by till next time.
• 24:00
  Speaker 1: I appreciate you coming on my pleasure.
• 24:02
  Speaker 2: Thanks for listening to Carrie Letz's Financial Survival Network, your
• 24:06
  Speaker 2: solution to today's trying times. For the latest, go to
• 24:10
  Speaker 2: Financial Survivalnetwork dot com. Financial Survival Network
• 24:15
  Speaker 1: Now more than ever