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Transcript

Is It Too Late To Buy Gold? + Andy Burnham Confirms Tax Rises · The Bullion Advantage | Wealth Protection, Politics and Finance Insights From The #1 UK Gold Dealer

• 0:00
  SPEAKER_00: Well, he actually said it.
• 0:03
  SPEAKER_00: Andy Burnham is coming for your cash.
• 0:05
  SPEAKER_00: He has refused to rule out raising taxes in the November budget, and if his grand pocket picking plan does come to fruition, we've got some exciting information that can help you beat it.
• 0:15
  SPEAKER_00: And I'm not just talking about gold.
• 0:17
  SPEAKER_00: Britain is already facing enormous financial pressure, and with the possibility of higher taxes on the table, more of the wealth that you've worked so hard to build could be at risk.
• 0:27
  SPEAKER_00: Because when governments need more money, regular people like you and me always pay the price.
• 0:31
  SPEAKER_00: So what could be coming next?
• 0:33
  SPEAKER_00: How exposed are your current savings?
• 0:35
  SPEAKER_00: And what can you actually do to protect yourself?
• 0:38
  SPEAKER_00: Well, today we're going to explain it all.
• 0:40
  SPEAKER_00: By the end of this episode, you'll have a clearer understanding of the tax pressures that could be coming to British households, and what you can do to protect yourself.
• 0:48
  SPEAKER_00: Before we begin though, please do remember to like and subscribe if you're watching on YouTube, and if you're listening on Spotify or Apple Podcasts, please do follow the show so you never miss an update.
• 0:58
  SPEAKER_00: Just before we start today's episode, a reminder that our competition to win two ounces of silver is still open.
• 1:04
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• 1:09
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• 1:15
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• 1:22
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• 1:27
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• 1:32
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• 1:34
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• 1:38
  SPEAKER_00: Good luck, and let's get into the podcast.
• 1:40
  SPEAKER_00: Jack, welcome back.
• 1:41
  SPEAKER_00: Good to have you back on the podcast, mate.
• 1:43
  SPEAKER_01: Good to be back, Jake.
• 1:44
  SPEAKER_00: Thank you so much.
• 1:45
  SPEAKER_00: So gold's going up.
• 1:46
  SPEAKER_00: What's the main driver of this?
• 1:48
  SPEAKER_01: So yeah, gold's doing really well.
• 1:50
  SPEAKER_01: It is, yeah.
• 1:50
  SPEAKER_01: We're up uh 13% over the last 10 days.
• 1:53
  SPEAKER_01: Not bad at all.
• 1:54
  SPEAKER_01: So it looks very fruitful moving forward.
• 1:56
  SPEAKER_01: Massively just due to debt.
• 1:59
  SPEAKER_01: I mean, nobody knows what's going to happen, right?
• 2:01
  SPEAKER_01: No.
• 2:01
  SPEAKER_01: There's uncertainty left, right, and centre.
• 2:04
  SPEAKER_01: And this is the environment when gold tends to do quite well.
• 2:07
  SPEAKER_00: Absolutely.
• 2:07
  SPEAKER_00: So you're saying you're not thinking this is a temporary rally.
• 2:11
  SPEAKER_00: You're you're thinking much more long term on this.
• 2:13
  SPEAKER_01: Yeah, I mean, it's very hard to tell.
• 2:15
  SPEAKER_01: Nobody ever knows.
• 2:17
  SPEAKER_01: But it's just to look at the factors.
• 2:19
  SPEAKER_01: Uh, we've got the debt crisis looming over in the States, higher borrowing than we've ever seen before.
• 2:25
  SPEAKER_01: Even in the UK, it costs 333 million pounds a day to service debt, and that's expected to increase over the next six years a day.
• 2:32
  SPEAKER_01: Wow.
• 2:33
  SPEAKER_01: And when you think about how much that would be per person, I definitely know it's a lot more than what I've got.
• 2:38
  SPEAKER_00: Yeah, absolutely, 100%.
• 2:40
  SPEAKER_00: Are you saying we're moving into a period where for the average person like you and me, gold is becoming much more important for your portfolio?
• 2:48
  SPEAKER_01: 100%.
• 2:49
  SPEAKER_01: Just because when borrowing costs are higher, you either have to print more money or tax more.
• 2:54
  SPEAKER_01: Now that's a lose lose.
• 2:56
  SPEAKER_01: Because if money, if more money is printed, inflation goes up, which dilutes the currency, um, and if and inflation sort of tends to follow with that as well.
• 3:04
  SPEAKER_01: So keeping money in the bank, yes, the number stays the same.
• 3:07
  SPEAKER_01: We've been through this before, but the purchasing power of your money in the bank getting eaten away at inflation changes by the day.
• 3:14
  SPEAKER_00: And for anyone who's m who maybe hesitated when the dip happened and then thinking, oh, I've missed it now, what what would you say to them?
• 3:21
  SPEAKER_01: We will always hear this.
• 3:23
  SPEAKER_01: We will always hear it.
• 3:24
  SPEAKER_01: People have been saying that for the last five, ten or so years, and they will always continue to say so.
• 3:29
  SPEAKER_01: But the best thing to look at it and the best way to look at it is that the people that didn't decide to purchase in January, when we reached a record high of 4152 in the pound, yeah, they've now got another chance.
• 3:40
  SPEAKER_01: A lot of the smart people now are seeing this as a uh a time to take advantage of a discount, essentially, because we've seen it start creeping up, right?
• 3:47
  SPEAKER_00: Yeah, and there's never been a record high that's never been met again.
• 3:51
  SPEAKER_00: 100%.
• 3:52
  SPEAKER_00: You mentioned debt, borrowing.
• 3:54
  SPEAKER_00: Another thing to think about is potentially more taxes on the horizon.
• 3:57
  SPEAKER_00: So do you think people are maybe underestimating just how fragile we are in terms of the financial situation here in the UK?
• 4:03
  SPEAKER_01: Definitely.
• 4:04
  SPEAKER_01: I was listening to uh the radio the other day, and this chap came on, good salary, and his key words were that resonated with a lot of people, definitely myself.
• 4:13
  SPEAKER_01: He said, I've never earned so much money and been so poor.
• 4:16
  SPEAKER_00: Yeah, I think a lot of people are feeling that way at the moment.
• 4:18
  SPEAKER_01: It's an absolutely ridiculous spectacle just because yes, you can earn more money, you can jump up the salary ladder, but the taxation and wages aren't keeping up with inflation.
• 4:28
  SPEAKER_01: So, yes, you might earn more money, but it doesn't go any further, does it?
• 4:31
  SPEAKER_00: It's especially with the last budget and we don't know what's to come in the new one, but freezing those income tax thresholds, if you move up on your salary, you're just gonna end up paying more in income tax anyway.
• 4:41
  SPEAKER_00: So it's a it's a lose-lose situation at all.
• 4:44
  SPEAKER_01: Definitely, and there's there's still further speculation around capital gains tax coming in line with income tax.
• 4:48
  SPEAKER_01: Wow.
• 4:48
  SPEAKER_01: So what that's gonna mean for high-rate taxpayers is that they'll pay that a high rate tax on their earnings, and then any investments or anything that they have, they'll pay that on that as well.
• 4:58
  SPEAKER_00: What would you say the warning signs for regular people?
• 5:01
  SPEAKER_00: What should they pay attention to?
• 5:03
  SPEAKER_01: Well, we saw an article from Ray Dalio, as a lot of people know, billionaire.
• 5:08
  SPEAKER_01: Yeah, I'd like to think he knows his stuff.
• 5:10
  SPEAKER_01: Um, he said anyone that's exposed to bonds or anything like that should pull some money out and allocate 15% in gold for safety.
• 5:17
  SPEAKER_01: Now he's predicting a US debt crisis over the next three years.
• 5:20
  SPEAKER_01: So if uh an influential figure like that is making those sort of predictions, it might be worth listening to.
• 5:26
  SPEAKER_00: Yeah, absolutely.
• 5:28
  SPEAKER_00: And if a financial crisis does come, could it affect people's savings, even if, like you said, they're not investing in shares, bonds, stocks, stuff like that?
• 5:37
  SPEAKER_01: 100%, and it will always be the case just because inflation will jump up.
• 5:41
  SPEAKER_01: Now, a lot of people don't really understand how that can affect them in the banks.
• 5:46
  SPEAKER_01: So it's a really simple explanation.
• 5:48
  SPEAKER_01: Right, the number on the screen doesn't change fragments like£100,000.
• 5:53
  SPEAKER_01: The number won't change, but what you will be able to buy for that same£100,000 goes down dramatically because even when you do your weekly shops, I know with mine, they're getting more expensive.
• 6:04
  SPEAKER_01: Yeah, when you look at the price of olive oil, for example, it's absolutely ludicrous.
• 6:08
  SPEAKER_01: What is it, eight pounds?
• 6:09
  SPEAKER_00: Yeah, I know it's crazy.
• 6:11
  SPEAKER_00: I mean, I was I did a food shop this week.
• 6:13
  SPEAKER_00: Actually, my missus did a food shop, and uh, I saw the payment was like 90 quid.
• 6:17
  SPEAKER_00: I couldn't believe how little stuff we got for that amount of money from the supermarket.
• 6:21
  SPEAKER_00: It's just it's getting pretty mental at the moment.
• 6:23
  SPEAKER_01: It is, and it's it looks like it could get worse, but where does it end?
• 6:27
  SPEAKER_01: Yeah, there's where does it end?
• 6:29
  SPEAKER_01: Because food shops can't be that much more expensive, surely, because it is getting uh getting a little bit out of hand, I'd say.
• 6:35
  SPEAKER_00: It is getting a bit crazy.
• 6:36
  SPEAKER_00: Do you think we should be focusing more on protecting what we have right now instead of chasing fast returns, perhaps in stock shares, Bitcoin, whatever?
• 6:45
  SPEAKER_01: Yeah, so well, in order to protect your money, you have to grow it, right?
• 6:49
  SPEAKER_01: So that's just the the baseline of how it works.
• 6:51
  SPEAKER_01: Yeah, true.
• 6:52
  SPEAKER_01: But it is pivotal in this day and age to protect the money, and that's normally happens with hard assets, metals, silver, gold, copper, for example.
• 7:02
  SPEAKER_01: Yeah, so that's what a lot of people were looking for, just because safety comes from something that's tangible, something that you can move around with you, something you can sell whenever you like, just to mitigate third party risk, if you're with me on that.
• 7:15
  SPEAKER_00: Yeah, 100%.
• 7:16
  SPEAKER_00: So obviously, we've seen, like you said, 13% in the last 10 days, decent spike in the gold market.
• 7:22
  SPEAKER_00: Where do you actually see it going in the short term?
• 7:24
  SPEAKER_01: All the while the big banks are buying more gold than ever.
• 7:27
  SPEAKER_01: Now they're doing that for a reason, they're doing that to protect themselves, right?
• 7:30
  SPEAKER_01: So not only does that tell us as normal people what we should be doing, it's a good indication of to where the price might go.
• 7:37
  SPEAKER_01: I mean, we're seeing expectations of five thousand dollars by the end of the year.
• 7:41
  SPEAKER_01: Now, if you'd asked me that two months ago, I would have said could be a bit high.
• 7:45
  SPEAKER_01: Yeah.
• 7:45
  SPEAKER_01: But the rate we're seeing gold start climbing again, it could be a possibility.
• 7:49
  SPEAKER_01: And I think a lot of people will come around to see that that very much could happen if everything in the world stays as it is or gets worse.
• 7:56
  SPEAKER_01: And in the long term, long-term gold's always been that long-term wealth protection.
• 8:01
  SPEAKER_01: That's what I said.
• 8:02
  SPEAKER_01: Because we'd always say um don't look at a long-term asset with a short-term lens just because you want to have your money in gold, for example, hold on to it for five years because there will be peaks and troughs, right?
• 8:13
  SPEAKER_00: Yeah, absolutely.
• 8:14
  SPEAKER_00: Obviously, you mentioned Ray Dalio earlier recommending 15% gold allocation.
• 8:20
  SPEAKER_00: How important is diversification when the financial system is obviously under so much pressure at the moment?
• 8:25
  SPEAKER_01: Diversification is always important, right?
• 8:27
  SPEAKER_01: The classic saying don't put all your eggs in one basket.
• 8:29
  SPEAKER_01: But I think that lens changes when the world gets a little bit more uncertain.
• 8:35
  SPEAKER_01: Now, I think there's a lot of places that could do quite well in terms of putting your money.
• 8:40
  SPEAKER_01: Yeah.
• 8:40
  SPEAKER_01: But at the moment, we're seeing a lot of our clients just prioritising protecting the money that they've got because making money is one thing, but if you don't even protect the money you've got, then what's the point?
• 8:51
  SPEAKER_00: So true.
• 8:51
  SPEAKER_00: So true.
• 8:52
  SPEAKER_00: So, where does physical gold fit into a sensible wealth protection strategy?
• 8:56
  SPEAKER_00: Do you do you agree with the 15% line that Dalio put, or do you have maybe a little different strategy yourself?
• 9:03
  SPEAKER_01: I think it's very much case by case.
• 9:05
  SPEAKER_01: A lot of people will have their own opinions and they're entitled to.
• 9:08
  SPEAKER_01: At the end of the day, it's their money.
• 9:10
  SPEAKER_01: I think 10 to 15% is a nice safe ballpark.
• 9:13
  SPEAKER_01: Solid, isn't it?
• 9:13
  SPEAKER_01: Yeah.
• 9:14
  SPEAKER_01: We see people that do a lot more just because they want to tuck their money away for the next five or ten, fifteen years, however many years it may be, and just forget about it.
• 9:22
  SPEAKER_01: So it's very much case by case because we see a lot of people that just do whatever they're comfortable with.
• 9:27
  SPEAKER_00: Yeah.
• 9:27
  SPEAKER_00: Just so following on from that, if someone has never owned gold and they're looking to get into it, what do you think they should understand before getting into the market making their first purchase?
• 9:37
  SPEAKER_01: Yeah, of course.
• 9:38
  SPEAKER_01: And it's it's key to get your head around it to understand how it can benefit you.
• 9:42
  SPEAKER_01: Main thing is ascertain what product you like, what's important to you?
• 9:45
  SPEAKER_01: Yeah.
• 9:45
  SPEAKER_01: Now, a lot of people will look at British coins.
• 9:48
  SPEAKER_01: We've spoken about this before.
• 9:49
  SPEAKER_01: It's an asset that's VAT free when you buy, so you save 20%.
• 9:53
  SPEAKER_01: And if it's a British legal tender gold coin, it will be capital gains tax-free.
• 9:58
  SPEAKER_01: Now, if you can protect and preserve your money in a tax-efficient manner, that's what a lot of our clients tend to do.
• 10:04
  SPEAKER_00: Yeah.
• 10:05
  SPEAKER_00: Now, there is another story developing here in Britain that I think deserves some serious attention.
• 10:11
  SPEAKER_00: Andy Burnham has been open about the fact that the country is in a challenging financial position.
• 10:16
  SPEAKER_00: And the worrying thing is that he's refused to rule out tax rises as he prepares for his first budget this autumn.
• 10:23
  SPEAKER_00: So that's concerning.
• 10:25
  SPEAKER_00: How can they possibly tax us even more when we're already paying so much?
• 10:29
  SPEAKER_01: I'm sure they'll find a way.
• 10:30
  SPEAKER_01: Yeah, uh, they always do.
• 10:32
  SPEAKER_01: But in terms of the budgets, I found it's never to sort of be worried about what they're saying, be worried about what they're not saying.
• 10:38
  SPEAKER_01: Okay.
• 10:39
  SPEAKER_01: Because they they seem to sneak little tax rises in here and there and not be the forefront of their uh of their budget.
• 10:47
  SPEAKER_01: So, in terms of income tax, will it change?
• 10:50
  SPEAKER_01: It might do, but it's all speculation at this point.
• 10:53
  SPEAKER_01: Yeah, one thing that is speculation, which I can see happening, is capital gains in line of income.
• 10:59
  SPEAKER_01: Yeah, that will be a massive change.
• 11:02
  SPEAKER_00: I think that'll that'll force so many people out of this country, I think.
• 11:05
  SPEAKER_01: Yeah, not even that.
• 11:06
  SPEAKER_01: Force people out of the country, force people out of convention conventional savings routes with banks, true, ISERs, that sort of thing.
• 11:13
  SPEAKER_01: Because if you're putting£20,000 tax-free every year into your ICER, and then you could incur a 45% tax.
• 11:20
  SPEAKER_00: Well, they've already cut it down to 12 grand, haven't they?
• 11:23
  SPEAKER_00: Yeah, exactly.
• 11:24
  SPEAKER_01: So you have to split it between cash ICEs and stocks and shares.
• 11:26
  SPEAKER_01: So all that's done is they're pushing people's money into the economy, which a lot of people would call risk-on areas, where a lot of the conventional savers they want risk off, they want somewhere that's going to grow gradually and you know that it's still gonna be there.
• 11:39
  SPEAKER_01: They don't want to be investing into random companies and so on and so forth.
• 11:43
  SPEAKER_00: Well, that's exactly it.
• 11:45
  SPEAKER_00: Do you so you genuinely think that savings could be targeted even more?
• 11:49
  SPEAKER_01: They've started it already.
• 11:50
  SPEAKER_00: Oh yeah?
• 11:51
  SPEAKER_01: They've started it already.
• 11:52
  SPEAKER_01: The uh the threshold came down, the speculation around income tax, this could just be the start, and it is absolutely terrifying to think of what could come next.
• 12:02
  SPEAKER_00: Concerning, yeah, for sure.
• 12:04
  SPEAKER_00: And if the government ends up borrowing more money, which I think so many financial experts have said we basically can't do, would we still ultimately end up be paying for that as well?
• 12:15
  SPEAKER_01: Yeah, it happens all the time.
• 12:16
  SPEAKER_01: We it always falls on the uh the UK taxpayer.
• 12:19
  SPEAKER_01: Yeah, whatever it may be, there will be something down the line that means we pay for it in some way, shape, or form, whether that be higher council tax, higher income tax, higher capital gains, higher VAT.
• 12:31
  SPEAKER_01: There's lots of avenues for them to up to then obviously to pay back this term.
• 12:36
  SPEAKER_00: Yeah, so true.
• 12:37
  SPEAKER_00: I think really people need to be considering tax-free assets now, right?
• 12:41
  SPEAKER_01: I think it's important.
• 12:43
  SPEAKER_01: It is important, just because, as we said, to protect your money, you have to grow it.
• 12:47
  SPEAKER_01: And if you can grow it in a tax-efficient way, then that would be quite a good thing to do.
• 12:51
  SPEAKER_01: Whether that be gold or silver or or anything like that, because silver is capital gains tax-free if you buy a silver British gold.
• 12:59
  SPEAKER_00: Yeah, I think a lot of people wouldn't know that, would they?
• 13:01
  SPEAKER_00: Because they think of it as just I'm sure a lot of people think of it as a precious metal, but also probably a lot of people think of it as an industrial metal as well.
• 13:09
  SPEAKER_01: Yeah, I mean, when you look at silver, the the demand is massive.
• 13:12
  SPEAKER_01: It works out that every electric car that is produced holds two ounces of silver.
• 13:17
  SPEAKER_01: Now, on the face of it, that doesn't sound like a lot, but when you look at the fact they're making 28 million electric cars every year at the moment, now I'm I know I've seen charging spots prop up left, right, and centre.
• 13:29
  SPEAKER_01: That tells me that they're looking at producing more.
• 13:31
  SPEAKER_01: And every car that is produced has silver, so as we know it's a finite resource, it can't be mass-produced, so there must be a stage where the demand outstrips the supply, and that could push the price up.
• 13:45
  SPEAKER_00: Yeah, and with this AI boom as well.
• 13:48
  SPEAKER_00: Do you think there's other industrial metals that you can also get into the market to like copper, for example?
• 13:54
  SPEAKER_00: Yeah, copper.
• 13:55
  SPEAKER_00: Um I read something, it takes 13 tons of copper to build a data center or something like that.
• 14:02
  SPEAKER_00: Yeah, so I just think demand surely is going to be rising.
• 14:05
  SPEAKER_01: And that's a really small data center as well.
• 14:07
  SPEAKER_01: Really?
• 14:08
  SPEAKER_01: Now we we had a look at it the other day, and they're building them in space just because they don't have to worry about cooling.
• 14:14
  SPEAKER_01: Because when there's a lot of data going through these centers, you have to keep them cool.
• 14:18
  SPEAKER_01: They used to use water that uses far too much water.
• 14:20
  SPEAKER_01: So they're now looking at getting them into space.
• 14:23
  SPEAKER_01: So when you think about when you use Chat GPT, Claude, uh, Grok, so all of these uh all of these prompts you're putting into these websites have to go to a data center.
• 14:34
  SPEAKER_01: So that's why the uh the demand for copper is massively increasing.
• 14:37
  SPEAKER_01: We saw it on Bloomberg yesterday, yeah, approaching a record high.
• 14:40
  SPEAKER_00: Yeah, and it's it's I think it's up a it's up 50% or something like that over the last year.
• 14:45
  SPEAKER_01: That's right.
• 14:46
  SPEAKER_01: So yeah, it that's definitely an avenue worth looking at.
• 14:49
  SPEAKER_01: A lot of our clients are looking into gold, silver, and copper.
• 14:53
  SPEAKER_01: And copper.
• 14:54
  SPEAKER_01: Gold more so for your wealth protection, because that's what it's always done.
• 14:57
  SPEAKER_01: Silver for your potential growth, and then copper again for something that could do quite well for the longer, longer period of time.
• 15:03
  SPEAKER_00: Absolutely something to keep in mind.
• 15:05
  SPEAKER_00: So, there's certainly a lot to think about.
• 15:08
  SPEAKER_00: Britain is facing enormous financial pressures, yet the promises keep coming, and sooner or later, someone's gonna have to pay for them.
• 15:17
  SPEAKER_00: Whether that means higher taxes, more borrowing, spending cuts, or some combination of all three, the pressure ultimately lands on the taxpayer, and that's why these issues matter to all of us.
• 15:29
  SPEAKER_00: This affects your income and how much of the wealth that you've worked so hard to build you actually get to keep.
• 15:36
  SPEAKER_00: The financial world is changing, and the days of simply assuming that your money will retain its value, well they've been over for a very long time.
• 15:45
  SPEAKER_00: That's why understanding what's happening and taking steps to protect yourself are becoming so very important.
• 15:51
  SPEAKER_00: Thanks so much for listening today.
• 15:53
  SPEAKER_00: If you enjoyed the episode, please do remember to like and subscribe if you're on YouTube, and if you're on Spotify or Apple Podcasts, please do follow the show so you never miss an update.
• 16:04
  SPEAKER_00: Reminder: our competition to win 2 ounces of silver is still open.
• 16:09
  SPEAKER_00: Just leave a 5-star review on any platform Apple Podcasts, Spotify, wherever you get your podcasts, send a screenshot and you'll be entered into the drawer.
• 16:17
  SPEAKER_00: All the details are in the description below, so do check it out.
• 16:21
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• 16:25
  SPEAKER_00: Also, if you'd like to learn more about physical gold, head over to guide.directbullion.com where you can download our guide to tax-free gold that's packed with information you won't get anywhere else.
• 16:38
  SPEAKER_00: Thank you again so much for listening to the Bullion Advantage today.
• 16:42
  SPEAKER_00: Stay informed, stay prepared, and most importantly, stay golden.
• 16:47
  SPEAKER_00: The purchase of gold does not constitute an investment or offer financial returns.
• 16:52
  SPEAKER_00: Gold is considered a store of value and not an investment product.
• 16:56
  SPEAKER_00: Past performance of gold is not indicative of future performance.
• 17:00
  SPEAKER_00: Prices and values of precious metals can fluctuate and are influenced by various market factors.
• 17:05
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