Don't Sleep on Precious Metals - w/Andy Schectman

welcome everyone to the 39th episode of the new gen mindset podcast i'm dan kozel here with nick tartaglia in cold montreal nick how are you man i'm good yourself bro i'm good a little freezing though yeah a little bit we have some sun we have some sun today so it's good we do have some sun and um i think we're going to talk about today is really interesting we're going to continue the precious metals binge that we've been talking about the last few episodes and you know and it's obvious obviously yeah go ahead obviously the attention is focused around bitcoin right now so we want to we want to drive attention to something that is going to play off very well long term here exactly it's it's it's heavily correlated to macro so in economics and you know social development heavily impacts the macro world and millennials being the future generation taking over the economy the economy the political realm and the social realm understanding the macro drivers that are that are directing those dynamics forward heavily correlates also to precious metals and why they tend to be more correlated to long-term long-term fundamentals rather than short-term fundamentals and that's you know it's it's an important conversation to be had because too many people are too fixated on the short term and if you're too fixate on the short term you deviate from fundamentals of on the long term and it could cause long-term consequences so i was actually talking to a broker and one of the things that he told me and i think most people can can resonate with this is our generation hasn't lived through a down market yet and that's when stuff really really starts you know the fundamentals really drive it so without further ado we've got a very special guest here with us to talk about this topic and other macro and micro themes and prior to starting uh miles franklin precious metals investment in 1989 and uh this gentleman became a licensed financial planner especially in swiss franc investments alternative investments at the company they eclipsed about 5 billion in sales and and this gentleman has developed an operation that maintains trust collaboration ethical behavior superior customer service and satisfaction to better serve all their clients and he's also responsible for overseeing the firm's operation and business functions including strategy and planning account management finance as well as new business and business development we are so pleased to have him here today he's the president and owner of miles franklin precious metals investment welcome to the new gen mindset podcast andy schechtman thanks for having me fellas i appreciate being here looking forward to chatting so andy to start off because something that lacks a lot with our generation especially with them lacking the ability to contextualize history in order to really understand the macro theme of the world is can you just talk a little bit about yourself in the history of your development in the financial space how you got into investing and just how you developed yourself within that career well sure uh we my company miles franklin started in 1989 we kind of started on a wing and a prayer my father's middle name is miles and his best friend who who lent us at the time uh sixty thousand dollars to start a company on top of my parents selling their life insurance policies um his my name was franklin and uh you know coming from nothing in a small one-room office on a on a wing and a prayer renting mailing lists that came with labels this is before the internet for you guys were born and uh probably and um we're 27 we're 26 years ago so before you were born uh you know there was no internet cell phones were about the size of a shoe no one carried them everything was done by by mailing direct mail and and phone calls i remember my dad coming back from japan saying i bought us this really neat thing it's called a fax machine so you know it's uh it was different it was different back then and um but you know here we are 31 years later through hard work a little bit of luck strong fingertips able to hang on uh a belief in our conviction uh and and here we are 31 years later when i started uh i was 19 and you know you asked me kind of the way that i look at things or the way that it was formulated or the way that i got into all of this it all started with one rule that my father said i'd have to follow and probably the best piece of advice he ever gave me i like to tell people that my dad never gave me anything but an opportunity and really no one gave him anything but an opportunity either and uh the one rule he said to me which was very insightful which i think people should think about um because it's it's been the greatest driver to my wealth creation is that um that i'll buy something every two weeks or he'll fire me i was 19 at the time and i said if that's the only rule i can deal with it uh so here we are 31 years later i own the company i'm the president of the company he's still my partner i guess you could say but i won't fire him any longer he won't fire me any longer rather but i've honored my word to him and for 31 years every two weeks i've bought something um and to me which kind of under scores or um i guess underlines the way that i look at gold and silver it it's built wealth to me gold and silver are not an investment it's wealth uh has been for 6 000 years and uh whether you're talking emperors or kings or queens or pharaohs or whoever none of them called their gold dealer to buy metals they owned it as a form of immutable wealth to pass on to their future generations so we had come from very humble beginnings um with a belief in gold and silver as as being wealth um as being outside the system um you know you you look at a at a what's happening in this country and we see trillions of dollars being thrown around like it's no big deal but i think it's important to realize that a trillion seconds ago was 31 688 years ago so as we see a destruction of currencies that we measure our wealth by i've always chosen to look at wealth a little bit differently in terms of ounces number of ounces and in terms of historical perspective when you realize inherently every single paper currency that has ever been is meant to die it always regresses to its its value that of paper being nothing and um that's not the case with gold and silver one of the few assets in the world that you know not only has been wealth forever but in the year 3000 hopefully when my great great great grandchildren are using some of the coins that great-great-great-grandfather andy passed down long after the the bills in my wallet are hanging in the smithsonian as a form of what was money uh i think it will still be wealth and so that's how i'd like to start this discussion or the framework is that look yeah i sell precious metals but uh i believe in it to the point where i've accumulated it myself literally every two weeks for 31 years without fail never missed a two-week period and it has been the single biggest factor in in my wealth creation virtually everything i've ever bought still have so um that's that's kind of what formulated my my uh affinity for precious metals and my love for them so okay i wanna i wanna tie something in some variables you just said so i wanna tie into 31 years and japan and the fact that it's a pr it's a demonstration of kind of what we're developing ourselves in north america is obviously as we know 31 years ago japan had a stock market bubble with their real estate assets in 31 years that market hasn't gone back there and in 1999 the mar the real the interest rates went to zero also and they have never gone back up since then and north america is exactly in the same scenario so you having said japan 31 years and where we are now like where's your hat like where's your head at looking all that together that's a great comment and first of all i remember the first conference i went to um right around 1990 and back then as you mentioned um the japanese nikkei was close to 40 thousand the dow jones was twenty one hundred um the japanese owned pebble beach golf course in fact i played there a couple years ago and there's a plaque on one of the tea boxes that said this land was sold for you know excellent pittance to the the japanese who then sold it back but they owned rockefeller center in new york city they owned casinos they owned ski resorts in colorado they made anything with an engine or an electronic component far better than anyone else in the world did by and large people thought they were taking over the world um and their demographic is very much like ours only older where we are running down that same path but here we are as you mentioned since 1990 when i started in this industry i've watched the nikkei go from 40 000 to roughly a third of that it's climbed back a little bit but as you mentioned with interest rates at or near zero the whole time they couldn't even get people back in which is an important lesson to be learned you you burn your ass bad enough the whole psyche of investing is something that takes a long time to come back if you see a market that collapses to that degree especially in an aging demographic they won't come back no matter how you incentivize them even with zero interest rates and at the same time i watched the the dow jones the first guy that the conference i went to the guy said there's a guy on the stage said the dow will go to ten thousand he was truly laughed off the stage people laughed and snickered and he slumped off and you know markets go higher than anyone ever think possible to the upside and they will conversely fall further to the downside than anyone thinks possible i would say in terms of absolutes that's about the only absolute i can give you in 31 years is that the market dynamics will always outpace what people think either to the upper to the down based upon emotion and um when you throw in tremendous amount of manipulation of interest rates and of markets and of currencies it only adds to the veracity of how this ultimately plays out it will it will um i think ultimately uh completely exacerbate the move when it finally makes its itself evident do you think that the pension issue we're having here is kind of similar to the one in japan like there's a pension crisis kind of occurring in north america i think that's just one of many absolutely you know the problem with the pensions here is that they're all based upon faulty expectations uh you have you know six seven percent annualized growth in a pension projected that isn't gonna happen you know with interest rates right now even though they've climbed up on the 10-year treasury from 80 basis points to 130 or what have you which is a big move huge that's pittance it's we're talking negative real interest rates and so you're forced into speculation into a stock market to retain to get those yields to get that return that is as overvalued as by every metric as as any ever in the united states or really i guess ever in all markets you're talking in terms of equity markets as overvalued by every metric as you can find so when you look at uh insurance companies and pension programs throughout the country yeah it's a it's a big big potential problem i think and uh it's it's something that i think there will come a day of reckoning because as the population ages uh as the need to cash in on those pensions becomes more more in focus yeah they're going to really really really really struggle and also you have you know you have um at least in terms of a broader perspective you could look at pensions or you could look at social security you have a huge demographic of people the baby boomers who are retiring and are going to be needing social security and a generation of younger people who aren't having as many kids there are fewer and fewer worker workers supporting the huge number of people that uh are receiving social security benefits so whether it's social security or whether it's a pension program it's the same thing it's it's um over extension it's under funding and um i think you'll have problems in both areas maybe social security being the worst it's uh we're we're living through an interesting time right now too i think uh you know and i mentioned this you know right before we got on here was just the fact that our generation has not lived through a down market and it seems like everyone's just throwing a dart right now at a dartboard and everyone's a winner i've never seen so many penny stocks go up in one single week in my life which was the last two weeks and obviously the whole gamestop fiasco that mainstream media is talking about so my question to you right now is when you see stuff like this does this remind you more of maybe 1987 2000 or does it remind you of 2008 and why is that well in 1987 i was 17 years old i i hadn't quite started to think along these lines i had my mind was was elsewhere but i will tell you that um what i've seen up until this point and whether you're talking about you know what happened in in the last several years or nothing nothing compares to what we see right now nothing i think that what we are seeing right now is look it took this country took the united states 300 years to create 800 billion dollars worth of wealth and we've as the federal reserve created 910 trillion dollars in the last year and uh it's far worse now than it ever was then back then it was um a liquidity crisis it was uh a credit crisis what we see right now is is far far far more troublesome you have uh 140 000 small businesses gone forever the the small and medium-sized business in the united states represents 40 of the gross domestic product that's been eviscerated you have people who believe that stimulus is the only way that you see strength in the economy and strengthen in the markets and you know when you see stock markets at all-time highs and an economy that doesn't justify it you see great wealth inequality we're having a much bigger social problem this time and i think that this is far more than anything i've ever seen in 08 or 2011 with precious metals where you see crashes this is far far more i think frightening ultimately because of the inability to get price discovery you have markets at all-time highs right now whether it be the stock market the bond market and the real estate market and what's different this time than ever any other time is that you have positive correlation between all three at all-time highs so let me explain when i started in this industry stocks and bonds were inversely correlated it was called risk on risk off and now they're positively correlated because interest rates are so low um when i started in this industry in 1990 89 90 you could buy a us treasury paying nine percent um and that means you could put two million dollars as you're retiring into u.s treasuries at nine percent and make a hundred and eighty thousand dollars a year tax-free and you would live off your interest and save your principal for your heirs now that same investment would cost 20 million dollars instead of two um to earn the same thing basically or maybe 18 million the moral of the story is is that the situation has become far more compressed far more um tenuous and so there really is nowhere to run and i think that as ultimately we have been painted into a corner with interest rates because ultimately when you look at a 10-year treasury paying 1.3 up from 80 basis points so up to 130 basis points issued by an insolvent government running massive levels of inflation and you know who in their right mind would buy a 10-year treasury with interest rates or inflation running two three four percent what's the real number the cpi is and um the if you look at the chapwood index or at um john williams shadow stats where they're going to show you um they're going to show you the way that inflation used to be calculated uh prior to this administration and previous it's going back to carter and reagan and the way that it used to be calculated he'll tell you john williams that inflation's seven eight nine percent and rising so when you look at a 10-year treasury earning 1.3 with inflation running two three times that uh issued by an insolvent government that's that's wickedly inflating the currency who in their right mind would buy it the answer is nobody except the fed so the fed has two choices they continue to monetize which leads to hyperinflation which ultimately raises interest rates where they back away from the bond market and interest rates spike and everything collapses point of it is is that there's nowhere to run any longer and this is why you're seeing such a proliferation into things like cryptocurrencies and ultimately i would argue you're seeing the same type of run on a large scale in physical precious metals you just don't notice it because the price has been held down we can get into that too but the bottom line is is that there really is nowhere to run and the elite i think are repositioning ahead of this um i think we've been seeing that since 2017 a progression of the elite uh removing counterparty risk and dedolorizing and i guess i'm just simply trying to say that there this is of no historical comparison where we are uh the numbers are too big and um you know it's i think there'll be a day of reckoning and but you can see by the most sophisticated traders on the planet they are de-dollarizing they are getting out away from this because when it pops uh it will be a spiritual experience because when interest rates rise it takes down the entire system stocks bonds and real estate all implode at the same time because of the positive correlation that they all have to one another which is very unusual and all three at all-time highs which is even more unusual and there is no room for a correction in the interest rate market you saw that in 2018 they tried to normalize their balance sheet they tried to raise interest rates to 3 and the market threw up so i would argue we are very close to our limit right here at 130 basis points or 140 basis points of the market uh throwing up if it goes much higher and that becomes a big problem and that's when it all starts to spiral so are we almost there don't know but i would argue interest rates can't move up much higher before there is uh uh going to be some sort of uh of of a uh consequence to pay for that and the higher those rates go uh the greater the problem becomes and in particular you talk about pension funds well you know if interest rates rise the bond market collapses the stock market implodes and then what what happens to those pensions you know and they they go upside down is what happened so yeah we we have pushed the laws of nature so far and we have held back the cleansing of the system for far too long that when it does correct it's going to bring down a lot of things with it pensions and real estate real estate in this absolutely real estate is at all times highs also and it's directly related to interest rates exactly first house i bought in 1994 interest rates were eight and seven eighths uh you know and and so on on a 30-year mortgage eight and seven eighths versus right now you can get under three percent here in the states on a on a 30-year mortgage so that means that someone could buy literally almost three times the house today than they could back then for borrowing money uh big problems and they're all related to uh you know to the distortions that have been created through the fed policy and the longer they keep holding it back and trying to distort um the cleansing process that mother nature wants to you know to to fix the inequities that have been created the excesses that have been created it's a natural cleansing process and if you hold it back through manipulation and money printing and stimulus you're only going to make it worse in the end and now you have a whole bunch of people who believe it's their right to continue to re receive stimulus and um so the welfare state it is it is and you have more money being created and less people being productive so you have more money and less stuff you're getting into the realm of inflation quickly and so bottom line is there will come a day of reckoning and the longer we hold it back the worse it's going to be but rest assured there will be a correction there will be a day of reckoning and things don't just go straight up forever especially when it's funded by you know non-stop government printing zimbabwe and weimar republic proven that that that isn't a recipe for success now i want to tie it a little too so i want to stay a little bit on the economic philosophy of the conversation we're having right now so do you think that this distortion at least this is this is in our conversations me and dan and our little community like in my belief from an economic perspective listening to thomas so well milton friedman you know how listening to people like peter schiff yourself do you believe that well first off that now with yellen and the federal reserve um in the um in the government that's gonna be a merger of the fed and the government which is not what we want that's first thing and secondly do you think that this economic philosophy from the central planner of keynesian economics and mmt modern day monetary theory do you think that is the primary factor driving this illusionary economy that we're seeing being driven by the government well i think you're witnessing the final chapters of a keynesian failed experiment you know you kenzie and economics is is a level of thinking that is is formulated by consumption holding up a blanket of debt consumption and spending holding a blanket of the debt and in good times it works the problem is when we contrast it to the austrian school of economics i would argue it by uh interest rates are set by the market rather than by the government and it's in an environment where growth is built by investment savings and reinvestment that's the antithesis of what we see now where growth is built by debt and spending and you can see why a lot of people who think about it things this way would believe that covet 19 was a man-made event now i'm going to take a step back and just say not saying i believe this maybe i do maybe i don't maybe there's parts of it that i do but when you have the entire western world that has created immeasurable amounts of debt in a kenzian system that has to have continual spending and consumption to keep it afloat and we're talking about over extension and final chapters of a keynesian experiment gone bad here's a way where you can stop the engine of spending and consumption at the same time no one gets blamed for it but a virus and everyone faces the same catastrophe a uh a collapsing of the economy and a smothering of that blanket of debt because the spending and the consumption ceases so then you get government stimulus coming in to the rescue to help everyone and you build a whole generation based upon a socialist agenda but the thing of it is is that um kenzie an experiment has proven to fail and i think that this is a prime example of it you you don't build growth through debt you don't build growth through um spending and and consumption you build debt through savings investment and reinvestment period and in particular as it pertains to interest rates i would simply say here in lies to me one of the biggest problems of the whole thing is that it's all manipulation of interest rates that creates an illusion of wealth people feel wealthy when interest rates are low because their home value and their stock portfolio is high imagine if treasuries were paying eight percent right now u.s treasuries who the hell in their right mind would buy stocks at their all-time highs uh in this environment when you could get eight percent guaranteed by the u.s government um and you know the rule of 70 seconds the law of 70 seconds it's uh you take the interest rate that you're paid or being paid and um and divided into 72. tells you how long before your principal doubles so at eight percent interest rates every nine years your your principal would double way better than risking to speculation i went with interest rates right now at 1.3 percent you're talking 70 years or whatever before your principal level so fixed income isn't going to happen so people are forced into speculation into the into into the stock market which is one reason you see it so high but yeah i think that um no question about it that interest rates uh and distortions in valuation and all of these things are starting to to come into focus and when you talk about a keynesian-based economy it it is dying and or dead because you'll never get that level of consumption and spending again underneath that blanket until you see the economy go back to what it was and will it ever go back to what it was i don't know so it really becomes a problem and i think people out there could do a whole lot worse than to follow the austrian model and that is to save invest and reinvest to pare down debt uh and and you know i think we're beginning to see very quickly here that um maybe the kenzian model uh should just become part of the history books and uh and move on past that but that's a discussion for another day so you're so you're so would you be in the school of thought that the gdp and the fixation on gdp and unemployment from a central planner perspective is just wrong well it's wrong because the numbers that they provide are wrong also and you know the the fed says well it's our job to provide full employment and keep inflation and check stable prices but it used to be uh stable prices and then it went to two percent inflation and now it's averaging two percent inflation so two things the lab the information that comes out of the bureau of labor statistics the bls you should take the letter l out of that equation and it's bs when you look at uh when you look at unemployment the numbers are still massaged they pull out all of the disenfranchised workers and the people who fall off the charts after a certain period of time the numbers are so much bigger than what unemployment really says and when you talk about inflation the numbers that they give us are crap and inflation is way higher so yes yeah there's uh once it was the like a lot of times the the labor statistics they include employment from the government's perspective so how many people are government employees but in from my understanding of economics especially from the more macro archery and free market perspective is government doesn't produce anything does it provide any productivity to a growth of an economy so how can their employment be a predictable or a viable number to depend on from an expansion perspective it shouldn't be at least it's not and there's no expansion there and uh you're seeing an expansion of government people on the government dole and a contraction of people the wealth creators and you know they're they're raising taxes you see people leaving all of the states with high taxes people are moving into florida a thousand people a day they're all leaving california they're leaving places where the wealth creators are being taxed and the economies have been eviscerated through through covid and the reaction by the governments to lock everybody down and um that those lockdowns have have destroyed the economy some of them will never come back and i don't know if we'll ever see the way it used to be i don't and um you know sometimes you get too far down the path for for you never to come back but um there are distortions everywhere and and more and more people are now reliant upon uh subsidies and stimulus just to make ends meet this is we're heading down i think a very bad path where there is a day of reckoning coming coming and uh what that looks like i don't know but these are the reasons you mitigate your exposure to the us dollar where you realize that profit is not a four letter word uh where you have to take a step back you know something you said earlier about a whole generation of people who have never seen a market correction well you have all their advisors who have never seen it either and so it's important to to realize that everything in life is a cycle everything comes full circle the old adage the more it changes the more it stays the same is true just because it's digital versus non-digital doesn't mean the laws of nature aren't playing coming into play and and so we will have that day of reckoning you know people can't should not like you said just believe you can close your eyes and throw a dart and make a nice return it doesn't work that way you know and uh we have uh entered a period of time where you have a bunch of people who believe that is look at the rise of cryptocurrencies they've been extraordinary and that's not how typical investments work you know what happened in gamestop is not how things work but what happened after a crescendo is in other words the market will always correct somehow some way whether it's by you know hook or crook it will correct um you can't continue to stimulate it forever i think really the the bigger issue to me with all of this is that i think we are witnessing the beginning stages of the end of the dollar and i think you know i gave a speech at you said mentioned rick rule i i was at his conference a few years ago too maybe in vancouver and i presented a chart that i had from a very wealthy client of mine who was a client of jp morgan private wealth and this is the division of j.p morgan that works with the wealthiest people in the world and it was a one-page letter written this gentleman owns an nba franchise very wealthy man and he sent this to me i blacked out his name and i posted it up on the screen and it basically showed about seven or eight currencies going back to the 1400s that were all pretty much the reserve currency of the world at that time or the main currency and all of them had life spans of between 40 and 50 years we closed our gold window in 1971 we're living on borrowed time the gist of what that letter said to all of their wealthy depositors was that we want you to mitigate your exposure to the us dollar through foreign currencies and precious metals because we believe the dollar will be challenged for singular world reserve currency status challenge for singular world reserve currency status doesn't mean it's going away but it will be challenged and i think we're seeing that and i've seen a progression of events that i've harped on now for the last year since 2017 that has me believing wholeheartedly that this is coming true and um [Music] i mean i'd like to take just a second just to go down that timeline and for anyone who's listened to my presentations i say this a lot but for those who haven't heard it i i think it bears understanding and repeating those who have heard it i'm sorry for being redundant but to me redundancy is important if it's if if what you're talking about is important and i think it is in 30 years i don't think i've seen anything that connects the dots for me any better um in 2017 as cryptocurrencies and in particular bitcoin was accentuating people were shedding precious metals in favor of buying other assets like a dow jones that was reaching all-time highs and cryptocurrencies bitcoin that was taking over the the um you know the eye of the world and it was a rough time to own precious metal company all of a sudden out of nowhere as all of the central banks are selling their gold into 2017 none of them are buying they're all net sellers exception of maybe the chinese and the russians we see the german bundesbank say we want all our gold sent home from the new york federal reserve it was unusual at the time they made a very big deal about it and they said we want it home by 2020 period um within a few months of that happening you saw the exact same thing with the bank of austria at the bank of hungary bank of turkey the bank of poland the dutch national bank in 2018 a few months later said we want all our gold home too because gold is what broken systems emerge from more or less is what they said all this you can google and find it and in 2018 the central banks bought more gold as a group than they did in the previous 60 years combined out of nowhere we went from net sellers to bam accumulating copious amounts more than they purchased as a group in the 60 years previously combined and so you have all of these central banks first repatriating their metal from the bank of england and the new york fed you have in 2018 massive 180 degree turn by the banks accumulating more and more gold in 2019 those numbers were up 90 from 18. so a trend that was continuing in motion and then the bank of international settlements which is the central bankers central bank reclassifying gold as the world's only other tier one asset next to u.s treasuries and this as far as central banks are concerned a tier one asset is a riskless asset so you have the banks pulling back their medal massively accumulating and front running a decision that reclassifies gold after 80 years nearly but only being us treasury is now adding gold to that equation putting it up on a pedestal but yet no one talks about it the media didn't talk about it um i view that as the most significant event period of my 30-year career period 2020 last year rolls around and you see a continuation of central bank buying of gold and then you see what i believe was the biggest event of 2020 something that's coming true here next week we'll talk about that too but in 2020 um we saw the rise of a new reportable group on the comex market titled the others so normally on comex you have the commercials versus the specs the specs being the hedge funds the commercials being jp and goldman and the boys and they would battle against one another when you look at the commitment of traders report you see speculators versus the commercials and one would go long the other would go short the commercial banks sell the shorts to the to the specs meaning the specs are short the commercials are long and vice versa they take the opposite side and now you see in 2020 the rise of this third reportable group called the others believed to be sovereign wealth funds and family offices wealthiest private investors in the world they're doing something very interesting they are standing for massive delivery huge amounts of delivery taken off the comex market comex was never designed to be a delivery mechanism the comex was designed to hedge risk to offset risk i talk about that all the time i use the comex if i have a thousand ounces of gold in my warehouse i'll sell a thousand ounces on comex because if what i own in my warehouse falls by a hundred dollars instead of being down a hundred thousand dollars i sold the exact thing short on comex now i'm up by the exact same amount market neutral so i never speculate with my inventory at miles franklin uh so i can remain market neutral well you know you you have a uh a situation now where you have the this group the others who is standing for delivery um and regardless of what happens to the price and so you see the commercial banks always try to hit the price into the end of the delivery month to get people who have these contracts they raise the margin and then they hit it so you have to hang on and pay more money with margin calls to hang on these sovereign wealth funds say go ahead do it we're going to sit and take all of it off the exchange and what we saw in deliveries last year in both gold and silver in a typical delivery month was equal to what we see in a typical year they took off over a decade's worth of metal in 2020 and in 2021 now we're seeing the exact same thing in fact we see one of the biggest open interests ever leading into the march delivery contract which starts february 24th here and you know you're talking the possibility i don't know if it will but in theory the possibility of a massive short squeeze and run on the comex because of this because this group is basically challenging the commercial banks and saying well fine we want it delivered because they're naked shorting they're selling things that they don't own like back on february 1st when they dumped one and a half billion ounces of silver to scare the reddick crowd on the market at the open now if you were a broker you'd get fired and may be prosecuted for that because at the open in the thinnest of trading between new york and uh between london and new york they dump almost two years worth of global mine production like that that ain't how you do it that doesn't give you the best price that's that's poor trading to say the least it's criminal uh it should be spread out or bled out over days or weeks to give in that kind of quantity maximum return without affecting the price right well they did it as a drive-by shooting to affect price you have the the international monetary fund here last year as well saying we want a new system you have the great reset coming by the uh by by you know this this large world monetary organization um draw the line look at look at the connection of dots here you see the the most wealthy people in the world starting with the central banks pulling back their gold out of harm's way all of them all of these huge central banks pulling it home you see the banks reclassify gold as a tier one asset in which they front run that decision by a year and a half you see their friends people in the know the sovereign wealth funds taking huge amounts of gold and silver off of comex market and taking delivery of it it's not ending here today you see the international monetary fund 190 countries from around the world saying we want a new system you see the world monetary organization whatever it's called saying we want a great reset um all of these things to me is a linear progression of uh removal of counterparty risk of underscoring the importance of gold and silver but holding down the paper price allowing them to accumulate massive quantities of it before they let it run when you have a futures market that enables you to control price through naked shorting it and rhetoric through the media uh it enables them to literally corner the market in physical product while the rest of us are enamored with everything else and we'll wake up one day and then we'll be set free and gold and silver will be much higher than people can believe they'll wake up and say how the hell did that happen and then trying to get it will be next to impossible give an example on that too you know we're talking about this march this february 24th comex deal the delivery normally getting thousand ounce bars is super easy i get as many as you want like that and now i called one of the largest distributors in the world and was told that i can't get any thousand ounce bars until march well that to me tells me that comex is frightened about a squeeze frightened about a run-on product when you can't get thousand ounce bars for four weeks and i have to pay sell them for over a dollar an ounce i used to sell them for 20 cents over and get you as many as you want so premium's up five times since last year since 2019 and availability went from as many as you could put in a semi truck to no you can't get any at all these are things that are happening a progression that is speeding up of highlighting at the highest levels the importance of precious metals the realization that these people are de-dollarizing and removing counterparty risk and accumulating as much as they can taking delivery not just leaving it taking delivery removing that counterparty risk and it's a progression that i see continuing to today and here we go into the um you know this next week will will be another example of that and maybe more so than we saw at any point last year i don't know exactly what the open interest is but it's millions and millions of ounces and you know if if you get a standing for delivery by a lot of these groups again it has the potential to create a run and if you saw silver go to the moon like that it would have the same effect on gold and platinum and palladium this is what the reddit group did it shined a light upon the crap that's going on with price discovery and the manipulation and i think it has the commercial banks really frightened right now that's so interesting because this is really like a generational shift between like the battle of wall street versus main street and the little guys so i think there is a lot of uh you know social social debate and dilemma in that situation but i wanted to ask you in particular because this is probably the biggest challenge i guess with our group of or our generation i was talking to a broker last week and the one thing he said he's like your generation is a bunch of headline babies what that means is like we'll just see headlines and then we'll just run with that and then like we'll just stick with the narrative and then we'll go with that don't carrot exactly and it's just like feeding the narrative beating the narrative just keeps going and going right so um how do we break that like what what is that one thing that's gonna cause people to start saying there is an opportunity here to get into an asset class that is not getting a lot of love right now you know i i just received my first batch of like silver bars because you know nick and i have been talking about this and i'm sure you know we share the same philosophy but like what is the message to that group of people right now the message is that you have to sometimes i think um well in terms of of it being headlines look first and foremost if if you're following headlines to a degree it's right you this group has created the headlines and has has had the ability to bring into mainstream focus something that the rest of us older people haven't had any luck with all of a sudden just because of the eight million people on reddit that talked about the silver squeeze um and about gamestop you have a whole new uh focus on on what they're talking about so i guess i think in terms of big picture macro and i think if i were to give advice to anyone it is to look at the fundamentals and and pay less attention to the price into the headlines and this is what the big money you can see what they do as well they're looking at the big picture and they've been doing this now for several years giving them the ability to uh to position themselves and i think that you know i talk you mentioned the little the little guy never wins well um versus wall street i talk about this too i i when i used to be a stock broker way way way back when many years ago financial advisor and i i would take the class i took the class to become a stockbroker they give you a book this thick it's called a series seven manual and the very first page and now it stuck with me to this day because i had already been in in swiss franc investments and precious metals before i went down this road and i'll never forget page one says of this manual it says the little man rule and it says the little man never wins the little man always um decides to make a move after the big person the big man has established their position well take a step back and look at what i was talking about here uh it when you talk about headlines it's too late generally in in this case it's not because what they have done what the group the reddit group and your generation has done is shine a light upon maybe the biggest headline and it's stick with the narrative it's don't don't jump from headline to headline trust your gut your fundamentals and stick with it because this is i think as big of a of an operative i think silver is a generation of an opportunity i really do think it's a generational opportunity once in a generation opportunity uh to accumulate an asset that is wholeheartedly undervalued that has massive massive utility and and potential and that the most powerful people in the world are doing all they can to hold down the price and to keep the story from getting out there that to me is really the important thing here is is not jump from headline to headline but to trust your gut and run with it you um i i think you know the the millennial generation has gotten a bad rap i think that they're they've proven that they uh are uh coordinated they are in intellectual they are insightful they're able to um to work as a team in many ways a lot better than the older generation it's just that uh they didn't have the wherewithal maybe they do now or they're beginning to as as a lot of them become enriched with cryptocurrencies and certainly they have savvy and um the ability to communicate better than than just about about anyone else i think um and that's proven over the last several weeks so you know there's the old saying that that the chinese think in terms of decades and people in the united states think in terms of days and weeks you just have to take a bigger picture approach to all of this and don't think in terms of days and immediacy look at the big picture see what's happening see what the big money is doing not what they're saying and um trust the economic fundamentals i guess that's the best advice i can give it's a tough question simply to say that um i think that this is not just a get in pump it up and get out type of deal i think that this is huge i think that gold and silver have been money for 5 000 years and i think the biggest money on the planet is showing the importance of it and i think you guys have have uh your generation has really helped shine a light on that and i don't think the story is over yet quite to the contrary i think there's a lot to be written about how this finally plays out and i guess i would simply say as it pertains to precious metals it should be a portion of everybody's portfolio everyone even in the very best of times people should have that anchor in their portfolio and shining a light on that look across the globe rick may have said this when you spoke with him he's fond of saying there's been a one-half of one percent allocation to precious metals um across the entire financial matrix well since 1980 if you go back to 1980 the average was two and a half percent at the peak last last bull market peak we've gone all the way down to one half of one percent just a regression to the mean where only two and a half percent of the populace has um uh or where the populace has just two and a half percent of their assets two twenty five hundred per hundred thousand that'll be a five-fold increase in in demand so i guess what i'm simply saying is stick with your belief don't jump from headline to headline find something you believe in if you believe in bitcoin hold on with both hands and go if you believe in precious metals take a big position in it and hang on to it i think that now more than ever there are opportunities that people will be able to generational opportunities that people will be able to benefit from with that type of thinking and i i think um cryptocurrencies and precious metals and dedolorizing will be the next chapter of the book and in large part because of uh because of the message that is being broadcast across the globe by your generation of people i i think the comment that that gentleman gave you really isn't fair and um i think you've proven us all wrong actually so here's the thing with what you just said about the what the percentage of allocation of portfolio to precise metals let's say one and a half percent is it not in the advantage of the institutions to have the general market be ignorant of the value of real money because it allows them to take advantage of a suppressed price to continue to hoard and buy it over time so this way when the free market or the regular market does collapse well it can't fix itself in terms of individual people but the institutions themselves are hedged and can't fix themselves in that environment yeah so if we go back to when i started in this industry there's a term in economics called gibson's paradox which is the inverse relationship between real interest rates and precious metals and so when you have embark upon a philosophy of low interest rates to stimulate or make people feel wealthy it's an illusion of wealth in 401ks and home values they used to hold down the price of gold and silver for that reason all of the central banks did they would hold it down so people would uh be comfortable with gold and sil with uh with dollars yen and deutschmark and pound and make loans and um use currencies use the system this is what enriched all the bankers and so if you embark upon a low interest rate philosophy you have to kill the canary in the mine shaft that's the precious metals and so for a long time the folks at gatta have shown a light upon manipulation of of precious metals because interest rates were kept so low this is what creates the illusion of wealth they couldn't let inter precious metals rise because if they did it would it would show the frailty of the of the system and so what happened then if we go back and see how the progression of this happened and what it means is that the central banks were all coordinated the western central banks they had a plan where they would take their gold and they would lease it to the commercial banks that less than about a half a percent was what it would cost so the commercial banks at goldman and jp and city and deutsche they would take gold from the central banks and and borrow it from them at less than a percent half a percent they would take that gold and they had two obligations number one dump it onto the market number two take the proceeds and buy treasuries with it dumping it on the market selling short dropping it would depress the price so they borrow the gold they sell it immediately they take the proceeds and they buy treasuries now first of all you're borrowing or borrowing gold at less than one percent you sell it to the marketplace drive down the price with the intention of buying it back uh you take the proceeds by treasuries which uh suppresses interest rates stabilizes the bond market they make a ton of money in in those bond purchases and then as they cover their positions as the prices is driven down so low they keep the price low they let it rise back up again they suck in the speculators they do the same thing over and over and over again never really letting it rise because it was a self-funding mechanism where keeping gold low and buying treasuries with the proceeds by the commercial banks well by 2000 2001 you had four or five commercial banks who had the largest short position the comex market had ever seen ever and they were continually doing the same thing suppressing the price taking the proceeds and buying treasuries so interest rates stay low the bond market stays high and the price of gold stays low then all of a sudden you had 911 in afghanistan and iraq and and people started the rest of the world started buying precious metals so i would argue this that the central banks went from holding down the price to create a a dollar western central bank currency strength and illusion of it uh through the the term gibson's paradox keep precious metals low keep interest rates low there's an illusion that the currencies are strong everything's good and then all of a sudden they started to get overrun by physical demand uh you know after 2001 2002 and i think they went from a position of trying to maintain dollar strength and low interest rates to one of cornering the physical market in precious metals and really since 2007 and 2008 i would argue that most of the moves that we have seen in um in precious metals have or in uh um accumulation of precious metals and the and the keeping of it low has been so that the big money can corner the physical market they're massively accumulating at the chinese and the russians and all of the central banks bringing it home and accumulating it big big money is using the manipulated price to accumulate it as you can see by the reclassification of gold rather than to maintain this dollar illusion or the western central currency illusion through gibson's paradox so it went from one thing to another originally it was done to keep everyone happy in central western central bank currencies and now it's changed i think it's changed to look at what the sovereign wealth funds are doing look at what the central banks are doing look at what the big money is doing jp morgan jp morgan has a mass north of 25 million ounces of gold and a billion ounces of silver it's the single largest physical position of metal the world has ever seen as they've held down the paper price and paid a 920 million dollar fine for doing so yet they continue to be the administrator of the largest silver trust in the world um the fine was a slap on the wrist the big money is allowing their brethren to do this and maybe all the silver that jp morgan owns is the us governments maybe it's chinese government maybe it was a deal that they reached i don't know but when you see these institutions continually violating antitrust law paying what amounts to pittance in fines for doing this i think the handwriting is on the wall you can see what the big money is doing do not listen to what they say do what they are doing and that is accumulating massive amounts of metal and pulling it off at the exchanges and removing counterparty risk and debalarizing the trend i think is firmly in motion and uh you know i think we'll all wake up one day and say how the hell did that happen and you know when you see at the very top the inability to get thousand ounce bars um you know we we did over a half a billion dollars in sales last year i'm very high up on the food chain i can get this stuff easily and now all of a sudden it's gone i can't get thousand ounce bars i can get silver eagles easier than i can thousand ounce bars and silver eagles are hard to come by right now it's a very unusual situation but i think you can take a step back and see big money is is frightened and i think that they've been using these manipulated prices not just to manipulate the price and make money trading but for a reason it used to be gibson's paradox and now i think it's to de-dollarize and reposition for what comes next if i had to guess how this all plays out i would guess that we see a new currency at some point whether it be a brics nation brazil russia china india south africa or u.s or both competing currencies cryptocurrency-based blockchain-based currency that is tethered to some degree to a portion of gold backing why else reclassify it why else see all the central banks rush to get it home over the last four years why i'll see the sovereign wealth funds taking massive amounts off of comex when they never did it before ever and now taking huge amounts off why allow a bank like jp morgan to literally violate every antitrust law there is in terms of holding down the price to accumulate massive position in it slap them on the wrist allow them to continue doing what they're doing if not for a reason don't look it at the result of these fines or of just look at what the big money is doing don't look at the price price is a tool of misdirection and if you take a step back i think you can see that the most sophisticated money on the planet believes that gold and silver is very important maybe that's why they've let bitcoin run unfettered um without you know really killing it maybe maybe they're trying maybe that's that's why they're allowing it so that people will be um distracted distracted uh and while they continue to dedolerize and into uh something that has been considered collectively by all human civilization for almost 6 000 years as wealth so i don't know how this all plays out but i'll simply say this to you that i believe it to be very i believe very strongly that the most sophisticated money on the planet has a plan for gold and silver or they would not have gone to such great lengths to massively accumulate it pull it off of the exchanges reclassify it and and to this day in the next week you can see they're continuing to remove it from counterparty risk to take possession to take delivery and the price isn't the important thing yet in fact the low price the manipulated paper price has given them the ability to do so at subsidized prices while everyone else is distracted at bitcoin and the dow jones at all-time highs yeah it's misdirection misdirection is so pervasive all the time the book the art of war which is was written in the fifth century bc by sun tzu a chinese military strategist this is taught at west point mandatory reading at cia taught in every major business school on corporate hierarchy taught in every law school on formulating arguments uh it is classic misdirection it's the no look pass they're they're letting things run while they are quietly scooping up subsidized priced physical metals in a world where it's it's depleted and getting harder and harder to find it's pretty incredible honestly because you know we're the the joke between millennials is like we suffer from like some form of adhd right so like we'll just pick up on something that is just the hot topic and you know i get messages from people all the time saying hey did you see the stock did you see the stock and nick and i have been so focused on silver and gold people are looking at it the macro it's always like you said right the macro environment you know it it won't the macro will win out over time yeah exactly it's the cycle it's the cyclical movements are macro driven whereas the year-to-year base is very niche micro driven you can make a lot of money trading you know i i watch a guy online his name is johnny bravo and he's a traitor he's awesome by the way and and i try to watch him every night and he's a traitor and he trades in and out and in and out and in and out well there's the micro there's a lot of potential there but the macro perspective is what the big money looks at the repositioning and i think this is a generational reposition uh the days of the dollar are coming to an end you know like i said it you know a trillion seconds ago being 31 688 years ago we're creating money like it's going on a style will never be paid back ever um you can't and and so they are destroying the currencies and and ex and rapidly accelerating the destruction of them and as that destruction continues rapidly um i think you'll see things start to change quickly also um there will be a shift away from the dollar and what starts as a trickle will turn into a deluge and i think that's coming look the macro perspective is the way to do it i think you there's a portion of your assets that you can trade with and be micro with but i think if you want to uh get out of the way of of you know what's coming i think you you'd look at it from a macro perspective with the majority of your assets and you know in a world of uncertainty i fall back on 5 000 years worth of history look i'm not telling people to buy gold and silver to get wealthy you can do that with silver right now but to me you buy precious metals right now because it's it's wealth and and it's been wealth for five thousand six thousand years and uh these are very very uncertain times where um things are changing very quickly but look at what the biggest money in the world has been doing now for the last several years they haven't been selling their gold they've been accumulating at subsidized prices and bringing it home and that's the most important lesson that i take away from all this and i simply will say this the most sophisticated well-funded well-informed traders on the planet would not have class reclassified gold as the world's only other tier one asset next to u.s treasuries after almost 80 years if it wasn't part of the long game and that's why i think it will be tethered to a new world reserve currency maybe 10 packing it won't be convertible but it will have a role to play in what comes next and you can see that by the movements of the biggest traders on the planet i have so in my mind there's a risk scenario where the younger generation because we're we're tying it back always to look at the macro look at the big money look at the global dynamics but the thing is and i'm sure we can agree is the younger generations are not very in line with the macro world they're very much more in line with the micro world and that inability to contextualize the macro environment the political dynamics the economic dynamics the social dynamics and how it all ties up and and behaves on cyclical behaviors is a risk factor in the way people are allocating their capital so for me that's really that's where i see kind of a a sustainable problem a sustainability problem is in the fact that we can't contextualize our future actions because we're too sh fixated on our short-term actions so to me like with the pension problem with the real estate problem with the low interest rates with the abuse of the monetary system with the progressive government philosophy the inability for younger generations to contextualize and properly allocate the capital on a longer time frame which is necessary to heal the economy that to me fuels that risk it's an ad because we're the future generation that's driving the future of the economy so i i think there's a disconnect in our behavior we want to be like we have access to data that you cannot deny nobody can deny that but i don't think we're capable yet at contextualizing it on a longer time frame and that's where the micro the macro kind of falls apart after for our generation because most of them don't understand the value of gold or silver they don't understand how politics impacts the economy they think the zero interest rate is a good thing our generation uh they they all they want to do is buy a house now it's low low low and that's how they're all going crazy but they're not realizing the only reason why prices are going up because you're a low interest rate and what happens when you have to raise it because to heal the economy you have to raise it so we're getting marginalized as a generation and then our framework to me is a risk factor you just said it beautifully i mean it's that's everything you said it seems like you got it you've grasped it and that that is the key i think you don't look at the the trees you look at the forest it doesn't mean you can't take advantage of the micro side of things and there is a way to do it but everything you just said is is it that's what the big money does and they are repositioning ahead of that i think you have to take a step back and look at the big picture this these are generational changes um uh someone like the both of you who who are getting the message out you know i have faith in you you seem to get it pretty darn well that to me is the key to to to everything is big picture life is big picture but i we we i think we understand these things a little more because we listen to people like yourself we we seek conversations with gentlemen like yourself who who seem to be capable of explaining things and highlighting macro developments on a scale that you don't get from the general market that you don't get from the educational system that you don't get from the government that you don't get from our peers it's it's a small community which you know so it's like you know there's it's it's there's that little disconnect you know there's a small group of people that are getting it and then there's a large people who are trying to figure it out or at least they you see that they realize there's problems but they haven't connected the dots yet you know and there has to be a new system you know uh when you see 190 countries from around the world the international monetary fund saying we want a new system a new bretton woods as they called it there has to be a new system when the dollar was anointed the world reserve currency in 1944 at bretton woods it was backed by gold and so the other currencies of the world pegged their their currencies to the us dollar and the us dollar was as good as gold not for the citizens because when roosevelt confiscated in gold in 33 the general public couldn't turn in their gold uh or their currency for gold but the rest of the world could after bretton woods they could say uh we want to turn in our our whatever currency it is and and and turn it in for our dollars rather and turn it in for gold so um you would have other currencies that would buy our gold assuming our dollars and our treasuries uh and they would then be able to turn in the uh their hoard of dollars into gold in other words it was as good as gold and so it was backed by something and since 1971 when that gold window is closed dollar is backed by nothing anymore except a printing press and a military it used to be that uh you know there was stability and strength behind the u.s dollar and now it's just a pile of debt and i think that's the macro perspective that people need to realize is that the biggest money in the world has been for several years de-dollarizing and now you have half of the world saying we want a new system they're revolting away from from the dollar just being able to unlimited uh to create unlimited wealth through a printing press it's not fair and it's not right and it's immoral and i think you're going to see that type of a generational shift so when you talk about micro perspective there are opportunities there are a lot of opportunities to you know to enrich your wealth in a micro perspective but you'll get rolled over by the macro when it changes when the system changes and that's kind of the most important thing is to not risk the base of your pyramid to speculation you have to i think have the base of your pyramid in things that are stable and solid and and generational like precious metals um because if you if you take too big of a risk right now with speculation and uh and trading and a micro perspective when we are entering a macro generational shift i think you can get rolled over by that so i think you have it really nailed very very well but but to me look there's a place for bitcoin there's a place for cryptocurrencies i would put it a different part part of the financial pyramid than maybe many people would i'd put it up near the top of it and uh but i think we are entering a period of time where we're going to see a generational shift where the rest of the world is going to say we don't want dollars anymore and we want a new system and we want something that is tethered so that governments can't inflate away the value and that's where i think gold comes into play and that's why they reclassified it as a tier 1 asset there's no other reason in the world for them to have reclassified it as tier one if they weren't expecting it to play a significant role in what comes next and so here again look how little information was talked about the fact that there's now two tier one assets u.s treasuries and and gold but why would the most sophisticated traders on the planet do that if it wasn't important and do it very quietly i think it's coming i do and micro perspective is not the way to look at your wealth micro perspective is the way to look at uh increasing your wealth but the big portion of your wealth must be a macro perspective you have to take a broader look and uh and i think that that will more than anything help people build wealth and continue to to preserve it and continue to build it you build it up on the macro on the micro part you you retain it and preserve it on the macro perspective so i want to bring it oh no okay i want to switch it over to bring a little back to silver now with the industrial demand of ev green expanding and the clear demand on the retail and wealth side for monetary purpose of silver where do you see silver going like we know we it hits it hit 50 twice in history so you know you have the triple top that that appears to be coming it's like do you see it going higher and like where do you see it within the realm i think it's the most undervalued asset in the world i i think when you see jp morgan a massive billion ounces it should tell you where it's going it's the only asset in the world that has demand massive demand bracketing it on both sides uh you have industrial demand which is ever expanding you have the green new deal as you mentioned on top of all of the other things and last year was a 300 plus million ounce shortfall in demand versus supply you have the chinese rail belt railroad and um belt road and rail initiative it's the largest infrastructure project in human history underway right now it's connecting 65 percent of human population connecting asia and africa the need for silver in a digital world connecting these two land masses and all these people is immeasurable of course you have things like you know batteries of tesla and ipads and iphone samsung and apple the the demand for silver on an industrial side is huge especially when you realize it's a depleted asset there's rumor that elon musk is is making a uh either has or is making a large purchase of silver he'd be a fool not to um and i guarantee you that apple and samsung are waking up to this as well if they haven't already here again hold down the paper price with with levered naked shorting uh and accumulate the physical when no one else is paying attention because the price has has knocked everyone off the tree no one's looking at the price when bitcoin's going to the moon and the dow jones is at all time high but the big big big money well that gives them carp launch to scoop things up in copious quantities without gaining too much too much attention but there are very few assets if any in the world that have both massive industrial and investment demand at the same time you know i um talk about the gold to silver ratio a lot uh and it's it's been a big focus over the last few years and i was talking to keith neumayer about that who's the ceo of first majestic uh silver one of the biggest silver mining companies in the world and i said keith what do you think about the gold to silver ratio at the time it was 80 to one he says andy i don't look at that he says i look at the mining ratio i said what's that keith he says well that's how much we pull out of the ground gold to silver he says the entire industry in 2020 pulled eight to one out of the ground eight ounces of silver for every one ounce of gold i said whoa how long do you think he can stay at 80 to one he says well you tell me andy how long can we mine it at eight to one and sell it at eighty to one so you have a depleting asset in other words there's only a few big silver mines in the world um seventy percent of all the silver that comes to market is a byproduct of mining other metal it's a byproduct of mining gold and copper and tin and what have you um the big silver deposits were found decades ago it's found in nature in a form called epithermal it's very close to the surface long before advanced imagery the big deposits were found so you don't have new giant silver deposits coming online all the time in fact last year there was over a 300 million ounce shortfall supply to demand the year before it was 250 million ounces shortfall so in the past two years alone a half a billion ounces of silver shortfall between supply and demand so you have a massively increasing demand in a green new deal and into away from uh combustion engine into uh you know um solar and wind and uh um battery which in and of itself would tremendously accentuate the demand for uh silver moving forward uh and then you have massive shortfalls coming out of the ground you have a mining ratio of eight to one when the price right now is almost 70 to one there could not be a better set up for massive upside potential and that's why you get guys like big weir who i love dearly uh who is a massive crypto guy believes wholeheartedly in crypto is saying that silver will outperform all the kryptos because of that type of upside potential now he says 600 bucks could it get that high i don't know maybe maybe not but the bottom line is is that there are very few assets that come to mind for me that have that kind of physical demand in investing massive demand in industrial a depleted asset uh and and expanding use cases yeah and also half of its value it's double peak high of 1980. there are no assets out there that are half of 1980 values so when you talk about macro perspective this is what the reddit group realized on top of the huge bullish argument for it you have a four or five commercial banks that are short over half of the all the open interest on the comex market there is no other commodity traded that is like that nothing like that it's if if that much energy and effort is expended to keep the price low what does it say for the significance and the importance of it let's not forget about military there's 500 ounces of silver used in the tip of every tomahawk cruise missile i mean silver is an is a massively important metal that is becoming harder and harder to find it is depleting in nature and you can see the biggest most sophisticated well-funded well-informed traders on the planet are spending a lot of effort and a lot of money to not only hold the price down but to accumulate ask yourself why hold the price down they don't do it just for shits and giggles they do it specifically right now i would argue to corner the physical supply they're using the disingenuous paper price whereby they can dump two years worth of production at the open to drive down the price to freak people out when they're accumulating so many ounces they're they're holding down the price too accumulated and that's the most important thing i think to take away from this do not look at price price is a tool of misdirection look at fundamentals look what the biggest money in the world is doing and have been doing really since 2017 it is a linear progression of accumulation and removal of counterparty risk that's what's happening and when you see it trickle down to the fact that i can't get thousand ounce bars right now when i could have gotten them like literally like gumballs as many as you want for the cheapest premium ever and now i can't even get them and premiums are five times what they used to be moving all the way down into the retail market where you're seeing all these online companies running out of product it's happening right in front of us and so i think you this is what you take away from it here's the macro perspective in all of this the macro perspective is that gold and silver have been wealth for five thousand years and the most sophisticated well-funded well-informed traders on the globe are accumulating it j.p morgan the billion ounces of silver they have well they only have i don't know um 150 million ounces on comex something like that the rest of it they control off a comex in in physical in their in their warehouses in their vaults off of it um the big money is accumulating metal not to get rich they're not doing it to enrich themselves of course they will when the price runs they're doing it to position i think for the new system and you can see by the acceleration of the destruction of the currency uh that we are closely coming to to a new system and 190 countries say we want a new system through the new bretton woods and so then you have the world monetary organizations well let's reset you know well it's all happening and it's speeding up so if you want to be outside the system here is the rise of the proliferation of cryptocurrencies and should be precious metals there are very few things that allow you the ability to be outside the system in preparation for what new system comes next and here again they would not have reclassified gold if gold was not going to be part of a new system so silver and gold when i say gold i mean silver two silver won't be part of a new system most likely but it has a 90 correlation movement with gold and i i think that it's the buying opportunity of a generation i truly do believe that it's interesting too because um i'm i'm just going on various the last two weeks we've been going on various like precious metals websites yours as well and that we've noticed that there's been a like you can't there's no there's no metals left in storage right so i think i think this is the beginning like you said of something a lot bigger that most people need to pay attention to um real quick just before before you you jump from that i have more silver than just about anyone in the country in the industry the thing is this uh two years ago a year and a half ago i shut down my online store i i'm building a new website my website sucks when it comes to looking at our product but i have um i did that for several reasons there's way too much identity theft and consumer fraud we could talk for an hour i could tell you stories that blow your mind completely and totally warp your mind when i tell you stuff i've seen so i closed it i'm old school i do things on a phone call but i love that i have i i think old school belongs for precious metals and privacy but i have a trader my head trader my head logistics guy we've been doing this for 31 years and um most of the online companies have been doing that a third that long i have levels of supply chain acquisition um partners that no one else has i've been doing this for a very long time and i work with every major distributor every major mint on top of the fact that i have a network of 1500 small coin companies around the industry that sell me everything that comes in their shop and i have stuff that other people don't i don't broadcast it online but i have in stock probably three hundred thousand ounces of 2021 silver philharmonics kangaroos krugerrands eagles maple leafs junk silver bars i work 24 hours a day seven days a week to do this i go deep into my line of credit and pay four five six months in advance when no one else does that most of the big online companies work with one very large distributor i work with that one or two or three large distributors that all the online companies work with but i work with them all most of these online companies work with one i work with them all plus a myriad of small and mid-sized businesses so do understand that if your listeners out there are looking for precious metals not only have i been the least expensive in north america literally for the last year by and large um i have it and i can deliver it now the the challenge becomes when i sell out of it how do i get more i'm selling silver maples right now on special for 6.99 and i almost want to throw up saying that because in november of 19 december you could have bought them for 289 over at 6.99 i'm cheaper than anyone in america uh on them i sell silver eagles i'm one of only 24 u.s mint distributors i sell them at 10 bucks over i'm cheaper than anyone is this is this gonna continue i don't know but i have to pay wicked premiums to buy this stuff months in advance and i can't hedge the premium if it changes i i'm in the same boat as everyone else wondering if they need to if it's wise for them to pay these high premiums because i have to pay them myself but for your listeners out there who want silver not only do i have it i'm better priced than anyone in the country and i'll deliver immediately now when i run out of the stuff that i have getting it is becoming harder and harder and harder because no one in the industry is selling us anything back there is no secondary market at all it's gone so everything that's coming in is brand new when the mints of the world run out of produce that's why they say there is no bull market like a precious metals bull market because every other bull market in the world speaks to our desire to become wealthy precious metals is different it speaks to our desire to protect our ass and the crazier the world gets or the higher the price goes only reinforces that motivation you can make a ton in bitcoin and you know there's a little bit of the fear in there too because it's protection from the system but still you're like holy crap i made all this money i should cash out and buy some other things with it or with gold and silver it doesn't work that way the higher the price goes people like damn i was right i knew was going to get bad here i'm hanging on to that because it's scary world out there i'm not going back into fiat and so there's no secondary market and that's why they say there's no bull market like a precious metals because it it it speaks to our desire to protect ourselves and i'm telling you uh we're i i've done in the last six weeks a year's worth of business in normal years in six weeks and i'm working 18 hours a day seven days a week every day every day every night just to keep up and that also includes scouring the globe for new product so we do have it but it is becoming harder and harder and harder to get the us mint as an example ran out of gold for the most part second week in january that never happens uh maybe in october november but to see that happen the second week in january should tell you that not only is it becoming really important uh on many levels but the biggest money in the world is draining the coffers from the sovereign mints and the canadian mint where you guys are in ottawa they haven't had gold maple leaves to sell for weeks and so the look at the premiums on gold maple leafs right now they're way over 100 by almost everyone in the country never was that way ever um so getting product everyone's focusing on silver getting gold is really hard really hard i can't get cold buffalos to save my life right now and i'm one of only 27 u.s mint authorized resellers in the world i'm high up on the food chain i know all the distributors i go right to the u.s mint there is none so you're feeling that yeah to see that happen this early in the year is adding crystallization to my belief that the biggest money in the world the sophisticated investors not the little guy but the big one that is sets the trend they are positioning in in mass and in spades ahead of what's coming coming next so what reddit group has done is to shine a light on this and i hope that everyone out there continues to do their part to accumulate whether they buy from me or not i think it's making a difference and you can see that on what's coming here on the 24th with the beginning of the march delivery the commercial banks have to be really scared and i think that if if this trend continues something that i never thought possible that being the overrun hey sorry my dogs are barking the overrun of the comex market is potential it's possible andy um i think this is a perfect way to kind of segue to getting back to the things that are really important because i know that you're working 18 hours a you know a day you've taken about one hour right now to really um give us all the knowledge and the listeners an opportunity but i think nick and i would love to have you back absolutely when silver hits probably a new all-time high maybe hopefully and i want to hear some of those stories too and and we'll definitely talk about those stories because this is probably the you know i think this is the craziest time to really be you know in the precious metal space and we we want to thank you so much for i appreciate it brother very very much i do appreciate it uh i would like any of your listeners out there uh send an email to andy milesfranklin.com i'll reply to it you put put the title of of this podcast in the subject line i'll make sure they get the very finest price in north america that's my word uh for your canadian listeners we have worldwide exclusives with brinks in montreal in toronto and in vancouver we have the only fixed rate structure in north america based on the number of ounces that you store rather than the value it is my mission singularly to get the word out and help people i i talk to people all day long i i'm i'm not the the ceo who sits in the ivory tower i'm i'm on the front lines all day every day i love talking to people i will email them back personally or if i get overwhelmed as i often do these days pass it off to one of my brokers who i personally taught and am in contact with all the time but it can start by sending an email directly to me i will read them all i will either respond myself personally or have one of my senior brokers do it immediately and i'll make sure your listeners get the best price in north america while the product is is still here and i do appreciate being here and i'd like to continue to come back absolutely and i love seeing i love seeing um younger people interested in this because it was one of my very very biggest concerns for a very long time that the people that i speak to and have since i was your age have all been your grandparents age that's changing rapidly and i love that and i give credit and kudos to people your generation they're they've been given they've been short sailed they've they've been shortchanged um they're a whole heck of a lot smarter than a lot of us have ever given them credit for and industrious and coordinated and i hope that that continues because i think that you guys are on to something and you're doing a great job by getting the word out there um look the more things change the more they do stay the same gold and silver aren't going anywhere there may be new forms of of wealth creation through cryptocurrencies what have you but everything comes full circle and um take some of that profit off the table if you've made a fortune in cryptocurrency and put it in your pocket one last thing and i'll let you run every year when before times were crazy my family would go uh on a trip with another family and a father of the other family is a good buddy of mine and we would always end up in a casino when the kids were sleeping and the wives were in the hotel room and he and i would end up in a casino somehow some way and every single time not only would he get me drunk to where i don't even hardly remember anything but he would have a pile of chips in his pocket and i said how the hell did he do that every single time how did you do that and he finally said to me every hand that i win i take something off the table and i put a green chip in my pocket and there's wisdom in that nothing goes straight up do not be greedy take some money off the table take some of that profit off the table and put it in your pocket in the form of 5 000 year old wealth that is trading at half of its all-time high from 1980 and um put it away hope you never need to use it if you do you're damn glad you have it if not you pass it on to your kids someday because you know what i was your age once and you wake up one day and you're 50 like i am like how'd that happen but i still have virtually every ounce of gold and silver i've ever bought going back to when i was 19 years old so thanks for the opportunity i'd love to come back and have your listeners reach out to me i'll make sure it's a good experience and they'll get the best price in north america for doing so of course well andy they always say that uh business owners are the best storytellers so we're very looking forward to our next uh our next little episode with you thanks so much for coming on absolutely this was awesome and uh we'll be back next week guys thanks so much for listening

Channel: NewGen Mindset Pod

Views: 2,338

Rating: 4.9024391 out of 5

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Id: foMi1M1BtIo

Length: 91min 2sec (5462 seconds)

Published: Tue Feb 23 2021

Reddit Comments

[u/thirdn1]

If you do look around the financials in the world make no sense.