SAM's Webinar on Gold and Inheritance: What You Should Know

hello and welcome to Stanberry asset Management's webinar golden inheritance what you should know my name is Michael Joseph I am a deputy chief investment officer and portfolio manager here at Stanberry Asset Management many of you especially our clients will recognize me from our regular investment webinars where our investment team typically talks about happenings in the market our outlook for what's ahead and how we're positioning our various strategies today's webinar will be different for one thing we'll be talking about one specific asset type that of course is gold but we're also going to be thinking about it in a different way here's what I mean typically when someone thinks about an investment it's a personal thing what do I believe this asset is worth am I comfortable owning it what do I think the world looks like in the years ahead that makes this an attractive opportunity today in my experience very few investors think about what will happen to that asset when they die now it's natural to not want to think too much about that believe me I've done this long enough to know when you're approaching that time if you are given the opportunity to know which is certainly not a guarantee the last thing you'll want to be doing is sorting out your finances and Investments it's not how you'll want to spend your remaining time and it's going to be stressful enough time for your loved ones without that added burden now we hope that time is many years into the future for you but regardless of your time Horizon it's something you absolutely want to get ahead of the earlier the better now for your Sam accounts the wealth manager that you work with is more than capable of walking your errors through the accounts that are managed at Sam and can assist them with adjusting strategies transferring assets putting a whole new plan together whatever makes sense for them we even have a Sam Family Resource binder to help them get a head start I'll talk more about that later but there are some assets that could be more nuanced perhaps a bit more involved when airs take possession of them and on that list I would definitely include physical gold such as gold bars and coins now at Sam many of our clients own physical gold or have an interest to own it that's why we're having this webinar and so to get us started I'll be talking about Sam how we view gold and how we approach investing in it uh but beyond that we have something very special planned we have a guest with us that is an expert in physical gold uh and has for decades helped investors incorporate physical gold into their portfolios his name is Rich checkin he's the president and CEO of asset strategies International he's seen a lot he know a lot we're very fortunate to have them and I can't wait to introduce them to you rich is going to share his views on the gold market how to approach investing in physical gold because it is different than what we do here at Sam and finally as I alluded to he talk about how to have that important conversation with your heirs we've also had several questions come in from clients and Rich I'm looking forward to picking your brain about those after our prepared remarks we'll of course spend most of our time talking about gold but before before we get there I did want to touch on uh what we do here at Sam because we do offer many different strategies here and the reason why is because our clients are unique they come to us with different needs and in different situations they have different preferences time Horizons risk tolerances so we don't take a one-size fits-all approach whether you're looking to maintain your wealth to generate income your growth Focus or maybe prefer a more balanced approach we look to tailor an investment plan that is optimal for our clients needs now one of those strategies is of course the gold strategy and you we have some clients that are more focused on wealth preservation uh for some of them it's just more of a preference in any case uh for for those that it's appropriate for we have a strategy that is purely focused on gold and we take a four-pronged approach with that strategy uh one part of that is investing in physical precious metals and I want to be clear uh when we say physical precious metals it's different from what rich is going to talk to you about we at at the current time owned a fund that represents interest in a trust that owns physical bullion so it has benefits such as being liquid but if you come visit us at Sam headquarters you know we're not going to take you to the Vault where we have a bunch of coins and bars and stuff sold or held for our clients that's not how we we approach it uh so physical gold is one part of that strategy major producers is another so we're talking about the big miners in the world that have operations in different countries and and different Minds um that's part of it another is emerging producers so the difference there is the emerging producers some of them might just have one mine or they're they're located in just one jurisdiction some of them don't even have current operations but they may own rights to a gold mine and they're doing feasibility studies or looking for an operator that will uh step in and uh start to unearth the gold in that M they have pounds in the ground so to speak and then the fourth part of the approach is in royalty companies and this is one of my favorite ways to invest in gold personally uh you can think of royalty companies almost as as Banks or financiers for the gold industry they provide Capital to miners so that they can get projects up and running and then in exchange for providing that Capital they're entitled to a certain percent of the production from that mine now the beautiful part about this is a lot of the headaches that come with operating a mine like dealing with labor costs and Rising costs for machinery and local governments deciding that they want a bigger piece of the action and all all this kind of stuff that happens frequently in the mining industry they're removed from that it's not really their problem they just sit back and collect the uh the the royalty or stream of of metals as as they get Unearthed so um they tend to be highly profitable businesses uh definitely one of the cornerstones of how we approach investing in gold that's an equity approach uh rich is going to talk to you about another approach and Rich I've had you waiting in the wings for long enough here I'm excited to to introduce you and uh on behalf of the whole Sam team we're we're thrilled to have you um rich as I mentioned is the president and CEO of asset strategies International so rich if you would maybe you can uh uh before we hop into the the current gold market dynamics you could tell us a bit about yourself and what ASI is all about sounds great Michael and thank you so much for having me I'm glad to be a part of uh the Sam team uh I met uh Chris uh Delora uh several months ago uh we hit it off we saw great synergies and I think we can bring some value to your team uh and looking forward to working together with you uh me I I followed the typical path to becoming a gold dealer uh I uh was a Premed uh student uh studying chemistry at West Point went on to become a infantry officer for about six and a half years uh got out uh worked as direct sales uh rep uh in Mon and Atlanta Georgia and then moved up here in 1996 to the suburbs of DC to take this job and I've I've been here now for about 29 years so I think most precious metals dealers follow that progression if I believe um I'm I'm with a great company uh my uncle and his uh partner started it back in 1982 I joined him in 96 I'm in my 29th year it's in its 42nd or 43rd year now and uh they've built a great culture of trying to take care of customers as we buy and sell gold silver platinum padium bars coins certificates Rare Coins world and ancient in us so we do a lot of different things uh but we're always focused on trying to take care of the client and one of the things you know that that we've run into over the past you know four decades or so is you know what happens when precious metals have to transition from one generation to another uh which I think qualifies us immensely to go ahead and have this conversation tonight and point out some of the pitfalls that some of our clients over the years have experienced and how we might be able to keep you from falling into those pitfalls so uh before I get there I just want to kind of get an update on the market okay um it's obviously making lines gold recently went over $3,000 an ounce I don't think I have to make the case for gold to this group if you're on this webinar I think you already have an affinity for gold but I just want to let you know what I'm seeing in this market a year ago we had just breached $2,000 an ounce with gold and I was told left and right that gold was too high it's at all-time highs uh there's no way we're going to buy it here it's not going higher um and I told everybody back then that it was Dirt Cheap um and they should buy it for sure uh a year later we just breached $3,000 an ounce I'm hearing the same things gold is too expensive we made 38 all-time highs last year 13 so far this year uh and we're we're not even out of the first quarter um and it is too expensive it's at all-time highs and there's no way I should buy it um and I'm telling people it's dirt cheap and it's got a long way to go and the reason I'm saying that I just want everybody to understand this is you have to understand who is doing the buying investors in Europe and North America are not in this market yet if they're in it they're selling into it to pay down credit card debt okay they are not buying into this Market central banks are doing the buying central banks have been net buyers of gold for 15 straight years now the last three years central banks have bought over over a th000 tons that is 40 to 60% higher than any of the best years in the previous 12 okay it's more gold than central banks have bought uh for 50 6 years since they started keeping track of Central Bank buying gold um so they're buying a lot of gold it is why gold is at all-time highs when the investor gets into this it's going to be even more interesting and more fun as as an investor and as a gold dealer um the reason we know central banks are in it and investors are not is one I look at the gold silver ratio okay so it's a number of ounces of silver it takes to buy an ounce of gold um right now that number is about 90 88 to 90 anything between anything over 80 suggests that we are in the early stages of a precious metals bull market and gold and silver have not yet moved to the heights we expect them to go and the reason for that is at that level um people are buying gold or starting to buy gold they haven't bought silver yet silver lags and then it starts to outpace gold as people buy gold and silver silver is a smaller capitalized market so the price appreciation is much more severe and accelerated and it catches up and surpasses gold as the market matures so what happens is that gold silver ratio comes down to about 35 to 50 so we've been between 80 and 127 for years now and the reason reason is central banks don't buy silver they buy gold investors buy both and they aren't in this market yet the other indication we have that suggests investors are not in this market is the premiums are minuscule so the price above the gold price that you pay for coins and bars to make it fabricate it deliver it to you um is very very tiny right now uh so if investors were in this market in a big way those premiums would go up as everyone's clamoring for manufactured product it's not happening investors are not here yet so great time to be picking some up even at all-time highs it's still Dirt Cheap so the question then comes if you buy into that argument well who should own gold right uh in my opinion everybody gold is for everybody and and you know this again I'm preaching to the choir because it's a store of purchasing power with high liquidity for potential financial crisis you hope to never have you buy a small allocation in your portfolio and you hope that everything else in your portfolio does well and it goes nowhere because then you don't need it you don't need your insurance I mean you don't buy homeowners insurance and hope you get to cash it in right same thing with gold in your portfolio uh you you want to hold it just in case but pray that you never need it right so everybody needs gold it's highly liquid and it serves its purpose now a lot of times the Next Generation doesn't get what you're doing you have the foresight to understand Gold's role in your portfolio you've seen this chart that suggests what gold does when you measure it with a mismanaged fiat currency right so you've seen this chart that's why you're buying gold your heirs oftentimes have not seen this chart don't get it don't appreciate it they haven't seen this one either where gold tracks the money supply you know if you ever want to know where the gold prices go and just wonder are we printing money or not yes we are are we did it hyperbolically guess where the gold price is going there's not a whole lot of mystery to it you know this take the time while you're alive to pass this knowledge on to your heirs it's critical that they understand it because when you pass if they don't know what this is the first thing they're going to do is sell it and they're not going to have the benefit of that protection that you had during your life time okay so now I want to cover just a couple different ways to deal with gold for you and or your erors right the first thing is if you have it how do you sell it it's a very simple process this really isn't that difficult with physical Commodities uh you call a dealer I would suggest calling several shop around always no matter how trusted a relationship you have keep them honest um we've taken good care of clients for years I still hope they shop me uh because it's got to keep me honest too um although I'll be honest anyway uh you call you get an indication right uh shop it around if you like indication then you say great I'm going to send the medals you find out where to send them to at the dealer either to their facility or to a depository they'll give you the address once it re uh is received at the depository or at their location they will update the price basis the current gold or silver price fix it basis that current market and if you're in agreement they'll cut you a check or send you a wire it is that simple Now understand this price is not everything most dealers operate within a fairly narrow band there are criminals out there mind you that will try and take advantage of you that's why you shop to weed them out most everybody else operates around the same place uh they're all in the ballpark if you will um trust is the most important thing when it comes to to selling or buying metal when you send funds you want metal to show up when you send metal back you want money to show up okay uh moving on look at uh how do you store how do you hold on to the metal once you've bought it well three things I I'll raise you can store it at home you can store it domestically but not at home or you can store it abroad very simple uh at home a lot of people cringe when they hear this um I take it back a lot of people want to hold it at home they they have that desire to keep it in their hot little hands but they do cringe because they know that they're responsible for safeguarding and protecting it okay and that's a big responsibility it's the cheapest way to hold metal until it's lost or stolen then it's the most expensive because it's 100% loss um but I do think because of the definition of wealth insurance right it's a store of purchasing power with high liquidity right meaning if you have an issue you need to put your hands on the metal and deal with it right away okay that's Gold's purpose for that little bit of insurance in your portfolio so that really kind of dictates you have to keep it at home but don't hold any more than you feel comfortable safeguarding and storing yourself don't hold any more than you feel you need to bridge a short-term Gap to access funds elsewhere in terms of a crisis so you're only holding what you need to get by and that you feel comfortable storing everything else I believe you should put in the hands of the professionals you're going to pay a little fee to have them hold it for you and Safeguard it and we can give you Guidance just reach out to us about what you should look for in a depository we can recommend some as well um the bottom line is there there there are things that you might not think about do they practice 100% Insurance versus fractional Insurance uh if they practice fractional we don't deal with them they put your Metals at risk in my opinion 100% insurance is the bare minimum it's the only thing acceptable okay so these are the kind of things that we can guide you through and and get you in the right hands whether you're storing domestically or abroad the more you hold the more you own the more I think you should spread it out okay so that's kind of how you store in some of the things you think about next thing I want to touch how do you move metal domestically internationally and what we're here to talk about tonight generationally okay so first off domestically you can carry the metal on your person there's nothing wrong or legal about you taking metal with you on your person throughout the United States okay um you do have a bit of a risk when you do that okay so keep that in mind uh if you want to ship it location to location it's done through the USPS Postal Service FedEx UPS Metals move through these vehicles all day long every day um I've been here almost 30 years now we've shipped hundreds of thousands of packages I believe two total have been lost uh one was never found but they paid off the insurance to the to the uh person it was being shipped to um and then well they paid it to us and then we paid the person it was being shipped to um and then uh the other one was found and delivered eventually so uh great track record you would not think it but a lot of metal moves safe through the Postal Service um you're moving it internationally you can carry it as well a lot of times you can take it on your person alternatively you can look at armored couriers to move the metal internationally you can sell and repurchase on the far side if shipping it internationally is too cost prohibitive um if you choose to carry it with you or if you're shipping it to another location be sure you're wary of the Customs laws of the country you are shipping it to it makes a difference and you don't want any surprises on the far end once it's there right last thing is generationally and and this is really what I want to kind of harp on here tonight and that's you know heirs are often overlooked first off they don't buy in to Crazy Dad buying gold you know they they they don't get it educate them educate them it's the best way that your efforts during your lifetime are going to pass on generationally and protect those you wanted to protect in the future uh you know just something as simple my oldest daughter she graduated uh nursing school we we got her started with just a small allocation of gold and she knew what D did all her life and that's wonderful she had a couple 10,000 coins on birthdays and stuff like that um but when when I made it her account she started asking well Dad I heard Gold's up where's gold today you know now all of a sudden it matters right so put some in their hands and I promise you you'll see them respond to having gold or silver and they'll start to understand what you've been doing for them all these years um SS don't share the belief un let you unless you help them share it um and they're often as a result lost right so if you pass away and all this gold is dropped in their laps they have no idea what to do with it they're absolutely lost um and oftentimes their first reaction is let me just sell it cash out okay um and they do so by going probably to the wrong people to sell it to okay so there's a way to protect against that uh first off take stock of what you got maintain an inventory right it's it's it's a bit of a pain I get it at first put it all in a spreadsheet keep all the information you can for what you hold uh a description an American Eagle Coin waight one try ounce finest 22 karat probably not graded in good condition these types of things things put have as much information as you can if you have a rare coin or numismatic uh and it's graded by PCGS Professional Coin Grading service or NGC the newest Mar guarantee Corporation um go ahead and list that mention the grade uh that it's in put the uh coin number because it will be serial numbered um anything you can put in there do so it will make life drastically easier for your heirs um if you need help once you put that list together finding what you have and making sense if you want to try and figure out how to divvy it up for your errors Etc come to us we'll offer you a free appraisal for Sam uh clients uh won't even think twice we don't charge you for it we will go ahead and say listen if you sent all this to us today this is what we'd pay you for it okay just so you have an idea of what it's worth um and you know we hope that in the future you might consider us as one of the options you shop if you needed to sell it um but more importantly at least you'll know what you're passing on to your kids okay next thing is keeping your heirs in the loop um be careful who who you choose to receive those medals and when you tell them uh I know some families I mean I wouldn't have a problem with telling my kids this is what's coming to you when Mom and Dad pass away okay however um not every family is like that I get it um some people you may not want to know you may inform them with a trust uh with some guidance as to what they have I've known people to put trust together that say listen you get all this gold as long as you promise never to sell it you know things of this nature so you can pass on your your wishes beyond the grave as well but anybody that needs to know needs to know you need to tell them where that metal is located physically you need to tell them where that inventory is located all right because they can't it's like a treasure map they they're not going to be able to access those assets unless they know where they are and what they are um and when you do that I strongly suggest that you include the cost basis so include the confirmation it is vastly helpful uh for the heirs to to know what you paid for it and when okay and most importantly tell them whom to contact okay if you have a trusted dealer let them know tell them who to call when they need to sell or if they're considering doing something a lot of times they will have long conversations with you in your lifetime as you're buying it from them and and they can pass on your wishes whether they adhere to them or not you could say listen dad and I talked all the time he wanted you to hold this for your future okay and for the future your grandkids Etc and then when you get all that together I would put that in your Sam Family Planning binder it it's the binder where you're going to keep all your important papers for your Sam account uh you should keep it right in there with it um and I know we'll talk more on this a little bit later so that's kind of what I wanted to touch on today just little minor points uh things that will make your heir's life much more uh Pleasant less painful uh and I promise you if uh you can if you can pass on why they're owning it um and they can get that in your lifetime uh then your work will pass on generationally r that was fantastic I've been taking notes Here as you've been speaking a lot of lot of gems there uh let me thank you for offering that free appraisal for Sam clients that's that's really generous of you and and appreciate you spending your your time uh being willing to do that I also noted I love the idea of um involving the kids by starting them off with a little bit beforehand I do the same with my kids they have like small stock market accounts and it's amazing it it doesn't really matter the amount but is if they have something in the game they got a little skin in the game all of a sudden infinitely more interesting to them so I love idea makes it real it makes it real so very much so very much well thank thank you again for that um we uh have a number of questions that came in we always get questions about gold but in this market it's even more than usual so uh we'll tackle those really soon and and curious to hear your thoughts on some of them um but while we're doing that we have some contact information uh posted on the screen for you some of you that are attending already Sam clients you already know how to get a hold of us but I know we have prospective C clients uh on the webinar as well so we've uh provided a few different ways to contact us you can of course pick up the phone give us a call email addresses there you can visit our website for more information we also encourage you to uh follow us on social media um so we looking forward to starting a conversation with you or to continue one if we've spoken with you in the past as far as getting a hold of ASI anything you'd note rich is there a best way to get a hold of you or how should folks go about doing that yeah I I think the the two most common are uh the the phone number uh if you're domestic uh or International it works 301 881 8600 uh we've got a toll-free line it's not up there but I'll I'll just put it out uh uh 800 8317 I just like saying the fact that we're one zero better than James Bond so but there or email are probably the best ways to reach us and we're we're here five days a week uh 8 to five so fantastic well if you don't mind uh I have a list of questions that I gathered from clients that knew we were going to be doing this and I'd love to get your thoughts on some of these topics I'll fire away if you're ready sounds good I've got a few for you too by the way uh oh okay well no hard balls please um well I get to started off you know a lot of our clients are pretty familiar with gold they might already have their preferences or know their way around uh physical gold investing but not everybody maybe some folks are newer they're just thinking about getting involved and I know that once you take that first step there's all of a sudden you realize the the world of gold investing is a lot wider than you might have thought there's different weights there's different purities there's different issuers is there one type of bullying that that is is best if we can call it that or for folks that are maybe just getting comfortable is there a direction you steer them towards or how do you how do you approach that no that's a great question and and honestly it comes up all the time um a lot of a lot of folks want to own gold in their portfolio but they just don't know how to get started right um so hopefully we'll start down that road here and you know a good dealer when you call up you say I want to buy gold the first question they should ask is you know what's your purpose what's your goal why are you trying to buy it um you might buy something different if you're looking for uh you know a profit play versus uh insurance which is what most people are looking for with gold which is Insurance um I I I think in order for us to meet that definition of wealth Insurance uh it's store purchasing power in a in a high liquid form you you need something that's worldwide readily acceptable okay uh the eagle in the US is the number one most popular coin in the world year after year number two is the maple leaf okay from Canada so now you have to sort out tariffs and whatnot now I'm guessing uh but uh you know the bottom line is the dealer can help work you through that and there are Maple Leafs that are in the country that got here before the tariffs were imposed so don't worry about such things but you know it I've heard a lot of people over the years say that you know Sovereign coins so coins minted by governments like the philarmonic from Austria the Buffalo of the eagle from the US Maple EA from Canada kangaroo from Australia krugar from South Africa you name it britania uh Panda um that they're much better because they're more liquid um 29 years now I've never had a problem buying or selling a bar right so so bars are pretty darn liquid too uh especially if you buy something that's in demand like a pamp or Fortuna bar something along those lines um the other thing is the premiums right so uh Eagle you're probably going to pay more than anything else in terms of a higher premium but what people don't understand is when you sell it back you're going to get more than anything else you would sell back and that spread tends to be kind of a constant but you have a higher or lower entry point so for me it really comes down to preference what do you feel more comfortable with if you're in the US it's hard to make an argument against the eagle got it great great information there um during the prepared remarks you mention numismatic coins for the uninitiated can you explain what that means and then um talk about how that fits into a portfolio yeah by the way well done it's the most mispronounced word in our industry um and just it's a big word for rare or collectible um but common commonly in the US it refers to early us gold and silver coins um pre-1933 typically uh that are there only a few of them there there're a lot fewer yet that are in good condition um because a lot of them were circulated right and to have something come out pristine when it was carried in people's pockets or thrown in a cash drawer uh is hard to find so you tend to look at these coins and they have world and ancient we deal in those too uh but it's hard to have those coins um come in pristine form and therefore there's that collectible uh element to it it's not just the gold value it's not just the silver value it's how nice it is and how desirable it is for a collector that adds vastly to its costs now what happens there is you're going to pay a much higher premium over the gold value or the silver value uh because of that collectibility that desirability the dealer is going to make more money you have to overcome a lot more before you're in a profitable position now that all being said collectors tend to buy with their hearts right so we do see those prices over time go up uh and you know as odd as it may be there is some potential there um for me it's not your first step okay um bullion with low premiums and a store purchasing powers where you start out for that insurance in your portfolio you may Branch to Collectibles with a smaller segment later but it's not your first step in my opinion got it I have more questions for you but I know you said you had a few for me too so if you want I'll give you a break I'll let you fire one at me yeah sounds good sounds good so so let me ask you this since we're talking about gold right and obviously it's in the news it's on people's minds yeah what sort of environment does Sam look to to invest in gold is this it or no it's it's a great question um you know earlier in the presentation I showed the the strategies that we manage I think I neglected to mention that we have gold in just about every strategy that you saw there so we have the gold specific strategy but we think of it as an asset that belongs in a well- diversified portfolio uh for just about any investor and that is really the case no matter what's happening in in the markets and I don't have to explain the uh the direction of gold to you and how prices move but it could be difficult to time in the short term uh we have a good feeling that over time it will appreciate um you the purchasing power of the dollar has steadily declined over time and we strongly believe that that'll continue to be the case so we think gold has it obviously has the proven track record of maintaining that purchasing power uh so for us it's not something that we say well you know we really like it uh more if inflation is high or we really like it more when you know geopolitical risk is higher because those those things are pretty darn difficult to predict in the short term anyway uh so we don't we don't really play that game we we just look at it as this is a uh great way to preserve purchasing power over the long run it's a great crisis hedge when the proverbial stuff hits the fan so we we like it in all environments gotcha so as a followup to that if I might um you know you mentioned that things change right uh so does the Sam gold strategy then change over time uh or is it more of a static approach yeah so I would say those four pillars that I mentioned the physical the the major minor emerging in the royalty companies I expect that those will always be in place but what we do is uh depending on a number of things but we'll just say our Outlook uh for for gold and gold equities we'll make adjustments so as an example if we are heading into a period where um cost of mining labor is going up which is going to be a major issue for miners over the next decade in my opinion there's not as many people going into that business and so the the prices for labor are likely to go up as I mentioned that doesn't really impact the royalty companies so if we're in a inflationary environment for labor or there's been times when uh there's a shortage of Machinery you see the cost for those go up those are those are minor headaches you know so we we might want to scale back on on the miners conversely if we're we're bullish on gold uh as you know it's it's often the case that um during bull markets those miners can run ahead of the physical gold price so maybe we want returns yeah yeah so yeah it's and especially the emerging uh miners which tend to to have quite a bit more uh up up and down to them so you know it's carefully balanced we don't want to have any um any area be too much of the portfolio but we will we'll make those active adjustments uh depending on our macro View and then of course within the individual Securities what's happening with them is management doing what they ought to do uh what does the jurisdictional risk look like and all of that too so it is absolutely an L managed portfolio gotcha I'll turn it back to you if I can Rich on that front um you know we've talked about a lot of different ways to invest in gold from the mining equities to physical bulling how do you think about that in terms of risk and reward and and the the the pros and cons and takeaways as far as constructing a a portfolio for clients no that's a great question a lot of people you know they scratch their heads you know you say you you w't need to invest invest in gold they like well does that mean Mining stock that mean a fund does that mean you know physicals what does it mean um I tend to think it means a little bit of a doll uh I'm guessing you guys do as well that's why I'm on this program um they they bring different things to the table right so so if you're owning a mining company uh royalty company Etc um there's a great opportunity to get a leveraged return on your investment now it brings in other variables right you you mention them all uh the different variables the the geographic issues environmental issues labor Etc um but you you can make a lot more money with mining shares than you possibly could with an ounce of gold right so um they all bring something different to the table my piece of that pie is the physical gold coin right um and you know I I'm a firm believer that you you know whatever your number is mine happens to be 10% it could be 5% or whatever whatever that number is I buy it and I hold it and I hope I never need it and I hope the rest of my portfolio vastly outperforms it okay now so far this Millennium that's not the case right go is outperforming everything except Bitcoin um but that's not going to be the case all along and it's not why I bought it I didn't buy it for a profit I bought it for a store of purchasing power I bought it for insurance for the rest of my portfolio and I think it's a complimentary nature that you need a little bit of everything if you're really going to protect yourself I don't know if you you want to elaborate on that or not but no I think that's spot on and and we agree and many of our clients agree as well which is why we we brought you on to to walk them through this because in our view there is they're different there's trade-offs to all these different ways to invest and there's not one is is better than another it really comes down to uh personal preference and we think that having a diversified approach has a lot of value to it yeah no question about it um got another one for you if it's okay um yeah absolutely what when when you're talking to your clients and I know you've talked to many over the years um what kind of clients or what kind of questions do you hear from them regarding gold I mean have we talked about them are there other things they raise yeah um you know one you you actually mentioned Bitcoin a moment ago and and that depending on what Bitcoin is doing sometimes that that that will come up um people like as is is is Bitcoin going to replace gold is it gold 2.0 and that sort of thing and uh I could tell by your your headshake that you don't believe so but you know for what for what it's wor and I'll give you an opportunity to to share thoughts but you know we look at them as two separate things you we do see potential for Bitcoin as a um long-term um uh purchasing power uh stabilizer but in the short term and I'm not telling anybody anything they don't know it's volatile it moves around a lot it behaves a lot different than gold uh as we're recording this gold is hitting fresh all-time highs and Bitcoin has uh gone down tremendously from its all-time high so they they aren't marching all the time in the same direction um they they have some qualities that are um are similar but they're also apples and oranges in in other ways and so we look at them as two different asset types uh you know part of the takeaway I think of this webinar is that you there's there's different ways to approach things diversifying is is critical and so you know it depends largely on the the client especially when we're talking about cryptocurrencies but we do think that there can be room for both but I'd love to hear your thoughts on it yeah so I shook my head no because I I don't believe that Bitcoin is at the point where it's replacing gold um Gold's got a 5,000 year history of doing what it does preserving purchasing power bitcoin's what a 16-year-old anfi teenager trying to figure out what what it be when it grows up right so um I am not against Bitcoin I've been on a ton of gold versus Bitcoin panels and they're always they're always geared toward you know either own this or own this it's a zero some gain and that's not the world I live in um I own Bitcoin I picked some up in 2015 I haven't sold any of it and I can promise you I'm pretty damn happy about it um I don't look at as a store purchasing power it's not the way it's behaving I still think at this point in time it's a speculation because that's how people are buying and selling it okay um it may figure out what it wants to be someday it may evolve into a store of purchasing power it looks at times like it's getting closer to that but it's still I think far away um but I don't have a problem with it and I love the returns and I'm I'm along for the roller coaster ride uh but it's not a store of value when I need a store of value I Look to Gold um and when I'm looking for a calulation which means small allocation to me I'm not an investment manager where that's like one to two% Tops money I can lose and not blink an eye I put that into Bitcoin the the where they are very similar though is you know you think about it the the guy who uh sold 41 Bitcoins for or I'm sorry 10,000 Bitcoins for $41 worth of Papa John's Pizza back right I bet he would wish he had them back um Bitcoin now because of you know it's gone over $100,000 of Bitcoin um Bitcoin now is kind of like gold in that when you have it you don't want to spend it it is a guttural emotional thing to part with a Bitcoin like it is an ounce of gold right so they're very similar in that way they are hard assets and then and we're not going to get more of them in the future uh so consider holding on to what you got I'm not against Bitcoin I think the answer is both not either or but they're they're different I had this hunch that you didn't think that gold was going to get replaced so thanks for confirming that yeah it may somay but I don't see it it's not tomorrow I'll give you that I don't I don't see it happening anytime soon either uh you know another question that that comes up uh from clients from time to time and frankly I don't have the the best answer for them so I'd love to hear what you think about it is is there a concern about gold confiscation it's happened in the past can you see that repeating in the future and are there ways to maybe Shield yourself from that if it is something to be concerned about yeah so I may be like the only precious metals dealer on Earth that's going to tell you there is no chance whatsoever of confiscation now you can't rule it out right it happened already so it's 100% chance that it could happen it did um but you got to understand the the the the situation back then so this is 1933 we couldn't pay our bills just kind of like now um but the gold and the dollar were convertible right so you can turn in a gold coin get a get a dollar or $20 bill you can turn in a a $20 bill and get a $20 gold piece right um so they were convertible and you know they needed money they needed honestly to devalue the US dollar so they can expand the money FL Supply do what they always do what governments always do um so what they did is they collected all your gold didn't want your gold they wanted to collect it all so then they can change the official price from like 20 bucks to 30 bucks an ounce um and in effect devalue the dollar that's what it was all about that's the endgame now since August what 15th of 1971 Richard Milhouse Nixon uh saw to it that there was no longer a convertibility between gold and the dollar so he cut that tie and since then there's really no impetus or Reason to confiscate gold doing so would only do one thing which would piss off the entire gold owning population in your country um so there's no value they can't change anything in terms of the dollars value with it um maybe going back to a gold standard might have some impact but as long as they're separated there's no incentive and the gold Market's tiny compared to the foreign currency Market um so uh I don't see any benefit other than just alienating all your citizens and I think there's zero chance of confiscation going forward because of what Nixon did in in the 70s hopefully that helps uh a few viewers sleep easier tonight not having to be as concerned about that yeah sleep peacefully if you own go that's that's the that's the point of it well put rich I really appreciate the time sharing your knowledge and expertise it's been fantastic I know that there are probably additional questions so is it fair to say that you're willing to field those if folks want to reach out oh my gosh yes just send them to that email address on the screen I'll answer everyone promise you um that's what we do uh you know we're kind of like evangelists uh believe it or not um after all these years and after Millennium uh or Millennia of people owning gold and doing its job it's hard to believe you have to make the case for it to most of the population do you realize that average Holdings of gold in a portfolio are typically you know historically about 2% of a portfolio allocation um and right now it's only about a half of 1% % so just to get back up to the norm uh we've got to do a 300% increase in gold Holdings um that's that's how hated this asset is right now at all-time highs plenty of room to rise yeah pretty amazing to think about the the value that we're seeing and uh investors are still skeptical but that uh that's fuel for it to go higher yeah no question and and I just want to say thank you for having me uh and and share what I know with your folks I've learned a lot here as well and I look forward to to working with you guys in the future if you'll have me so absolutely appreciate it again and we alluded to this binder a few times during the webinar uh our clients already know about it hopefully if you don't talk to your wealth manager but uh what this is is we have a f we call it a family resource binder and it's really meant to get together financial information that's there for your heirs when they need it so bank statements investment statements your wealth managers contact information if you're a client uh Rich mentioned a number of the things you might want to have uh put together inventory appraisals uh purchase confirmations this is a place for you to to store all of that it it can be very powerful it can be very helpful for your loved ones when they need to reach it and it could also be a conversation starter I mean I know this is not always like the you know when do you bring this up how do you talk about it use the binder as an excuse hey I got this s binder this is what's in it I keep it under the landline or on the bookshelf or in the safe or whatever it is but that way they know and it takes takes pressure off of how to communicate that um you can update it as you go and and believe me when the the time comes it'll it'll be great to have all that in one place and not uh not go on the the treasure hunt for all all this information so um you can scan this QR code um we offer these to Sam clients but if you're on the webinar today you're prospective client we're happy to provide you with one as well so go ahead and scan that and uh and we'll absolutely get it out to you I think it's very important to have so hopefully you take advantage of that can I just say I love this and it's amazing and its Simplicity um everybody should have this uh so if you're not scanned on this QR code something's wrong thanks for that rich and um you we also want to uh open open the door for folks that are interested in future webinars you can scan the QR code and we'll be sure to keep you up to date we have um more focused webinars like this where we tackle uh particular estate planning topics we also have investment specific webinars we try to cover a lot of ground so uh scan that and we'll keep you in the loop about what we have coming up with that rich thank you I know I've learned a lot on this webinar it's been a pleasure having you really appreciate the time and thanks to all of you for joining us thank you all e e