EB Tucker: Why gold? Why now?

[Music] welcome to small caps my name is Carrie Stephenson and today I'm delighted that we're talking with EB Tucker gold commentator director of metallo royalty and streaming and more importantly for everybody out there he's just recently written a book called why gold why now the war on your wealth and how to win it maybe take a welcome to the program thanks for having me it's great to have you on the program EB I really want to get into why you wrote the book why God why now clearly we've we've got a pandemic on our hands there's a lot of confusion we've got zero or in some cases negative interest rates but there's a lot of people out there that don't understand why they should even own gold they don't understand how they should protect their wealth here in Australia as example people are still piling into the real estate industry and and really gold is not on very many people's radar why do you say first of all why did you write the book and I believe you you only took 23 days to write this book that is true that is true I was having a conversation with I have a Zen teacher he's about five foot three and very old and he's really a character and and he has some money in fact he drives a Porsche and his Lexus plate says awake you know and he says that you don't have to be poor to to be a Zen enthusiast which is true so anyway so he was telling me say listen I got to get some gold I mean something's not right out there and so I'm explained to him how to get some gold and he calls his broker who says well it's illegal for me to buy you gold in your accounts and he relays that to me and says he didn't want the guy to lose his license and I thought this is totally insane I mean the gold market has been so handed for so long and it's been so off the radar that there's grown people you know his advisers in 60s who their whole entire life they've never understood the purpose of gold and so I said I just have to I have to write this book and so I sat down and I wrote two thousand words a day for twenty three days fifty thousand word book and it took 21 days to to edit and format the book you know this is actually quite complicated to do all that that was a learning process for me I just I just wrote it and then I've said what here it's done but now the books available in Amazon as Kendall or paperback around the world and paperback and also audible as a audiobook you can you can have I'll read the book do you takes five hours but a couple of things I think we should touch on because as you can imagine I've been all over you know giving presentations about this and trying to illustrate why this is important and one thing that helps is this is the amount of money it takes to buy an ounce of gold today so this is a stack of 1800 US dollars yeah no no those are ones yeah these are ones okay correct this is what it takes to buy an ounce ago I mean assuming no dealer premium or something right for the coin right just just a straight gold cost okay so this is 20 dollars and this was when my grandfather was a teenager this is how many dollar bills took to buy an ounce of gold in the US 20 dollars so what happened I mean this is the ounce of gold okay so this is this has not changed at all I mean my my grandfather could have bought almost the same coin except for it was a double eagle you know this is a regular this is a current modern-day Eagle you know so they had a double this came back in 1986 but it's the same thing I mean one ounce of gold was one troy ounce of gold back then you know and you what happened was the dollar buys less what happened was the dollar lost value so so you know if my grandfather had put a thousand US dollars in an envelope for me it still worth a thousand dollars today which doesn't do me very much good I can't even fly economy class to come and see you in person it's impossible right I wouldn't even get halfway but if he had put that thousand dollars into gold and put it in an envelope it will be worth $85,000 today so what we try to show people is that all the arguments against gold are right it's an old relic of a bygone era I mean you know kings and tribal leaders and and pirates and everyone wanted the gold back then to some degree it's still the case today and it doesn't really do very much I mean if you're in a time of interest rates are slowly going down and monetary policies under control and the economy's growing you don't really need that much gold maybe you have a little bit of it around or something but today it's more important than ever because to your point people have lost their minds speculating the world debt pile is approaching 300 trillion dollars the people that are buying real estate where you are I know some of these people doing this they will tell you that it's all about being able to sell it to someone else at a higher price they're not buying it for yield I mean real estate depreciates at two to three percent per year that means if you own the property for thirty years you're gonna almost rebuild it you're gonna put a new kitchen and a new roof and a new water heater and paint the thing several times and fix all this different stuff you know and then add property taxes on top of that I mean you're almost rebuilding the entire property every 25 30 years and that's called depreciation so people will buy these places and they're making 1 or 2% and they're losing all that in depreciation so what they're doing is they're hoping to sell it to someone else at a higher price so they're betting on the pricing of real estate in US in Australia has done very well over the years and it does give you an income if it's an investment property and you're renting it so so for sure well it is a good way for them to get I guess passive income so it's not all about it's it's losing its Facebook if you're sure yeah and in the US people always give you the number that they're receiving for the income but they don't factor in the rising property taxes the rising insurance costs the maintenance cost loss of rent for they don't ever factor any of these things and they say oh I'm making 5% okay well what's the net net net on that it could be it could be zero it could be negative and what you find is is that they say yeah but you know you always make it up on the back end when you sell the thing is that true I mean maybe it's gonna be true in the future but with gold nothing needs to happen so so with gold you don't have any tenants to pay you you don't have any other than keeping it secured in a vault which is pretty easy to do and so my point is this is a unique time when that actually matters and so I think in the coming years Gold's can become the sought-after asset of the world because you've got eleven trillion dollars of the gold in the world and you're closing in on 300 trillion dollars of the debt and so that 11 trillion can easily go to let's just say 15 I mean it's really conservative to think yes forty percent you're into the low 2000s I mean I think that's a really soft approach you know to what's happening now Gold is not a speculative investment I mean you're not hoping to make a killing off of your gold what you're trying to do is is preserve your wealth and even if you have only a thousand dollars in savings that's well we're not talking about billionaires we're talking about the result of you spending less than you earn and saving the difference for a better tomorrow that's wealth and so that's what we're all after the relative scale doesn't really matter and so gold is a time where we're it's time to capture that wealth and to preserve it so you can have it in the future well you know I think one of the challenges for people that I speak to is it all seems too confusing there's there's gold bars there's coins do I do I buy a Krugerrand or do I buy an eagle or do I buy a Perth Mint product or an ABC bully and Pro you know there are too many choices no there what advice would you give to people and I speak to so many people that say Kerry I don't care about gold it doesn't it's not an investment for me I'm looking at ways where I can get money in not just put it to one side and so that's okay yeah to understand and and you've kind of got two pieces there so first for the people that don't care I would say you think about gold as saving now now I do believe there's gonna be negative interest rates in the u.s. at least probably around the world the reason why that's gonna happen is because every time is a crisis your first reaction is to stuff money into savings accounts and money market accounts in cash because things bad things are happening and you're gonna need that money so the money market funds in the US went up to four point seven five trillion during the virus pandemic in March March and April and so the the reason why you're gonna have negative rates is because the Fed the US Fed has thrown everything it has to try to get the economy restarted and it's not really getting restarted and there's gonna come a point where there's no more bonds for them to buy interest rates are already zero and once those rates cross negative and you're being charged to keep your money at the bank your first instinct is gonna be to pull that money out and do something with it which is what that means is you'll stimulate the system because that that money when you do something with it if it's a real estate purchase or stock or take a trip whatever it is it's a stimulant of effect on the economy and the Fed used to have that power and it's lost the power to do that so second piece of your your question which is which is critical it best thing I can tell you this when I started writing the book it was gonna be two parties why gold which is how we got here why now which is the urgency of doing something now before the inevitable habits but it ended up being three parts because the how to do it part deserved its own section so what we do is I mean if you've never even heard of gold you can by the time you're done reading this third part you will understand what's going on because we walk through how much gold to have so so we give you a little kind of a formula like a starting formula to help you think about what's appropriate you know like we give some examples of what might be appropriate where I'm not a financial adviser so I'm not you know advising people specifically but but I give you the same formula that I use to kind of look at do I have enough do I need more am I happy with everything that I have if I'm 98% tech stocks or something am I happy with that I mean you know we kind of help you look at this from a holistic approach which I think can help anyone then we say come up with your percentage then what do you do you've got physical gold bullion and so we walk you through bars all the sizes it's very easy you know you go from the James Bond good delivery bars you know that are about 700 grand for those or a little more we go all the way down to grams you know which we explain at the end that the the troy ounce is about 31 and a half grams roughly some people buy 1 gram of gold it's not really worth it you know by the time you you know pay the dealer premium and always so but but by the end of this chapter you know exactly what that means you know what what the sizes are and ultimately for most people one ounce common coins are the way to go and we and we think that us Eagles Canadian Maple Leafs and Kruger ants are the best place to start now no offense to your beautiful coins okay from the Perth Mint but the fact is is that there's 50 million Krugerrands in the world and so and so when you when you talk about for the average person that's not going to become an expert in the in the gold field it's nice to have the Krugerrand because you walk in to us to a gold store and from Shanghai to San Francisco and they know exactly what the Krugerrand is and then they know they know what to pay you forward and everything so so then we go into the collectable coins which which is a no-fly zone I mean just stay out of that completely but we explain to people how it works I mean we're like look this is what it means to have a collectible coin and I personally love us saint-gaudens coins you know from like 1908 to 1932 and but I explain to people I've been at this for 20 years and I developed an affinity for these coins I really enjoy them it's kind of a coin collecting thing that's a nice hobby okay but for the average person it's it's it's it's you're only gonna hurt yourself and so don't fall prey to that yeah don't don't end well you're gonna call up and you say hey I'd like to get a crew gram and the dealers who say well have you considered the the flowing haired half nuchal from 1862 which while it's only a tenth of an ounce I mean it really could explode and value because they only made a million of them and you never know what that could be worth one day and it's very sad but so many people say okay well I'll take that and and so what happens is is that they pay there's a price for the gold so that the gold in that coin might be worth five hundred okay that's meltable gold but then the the collectors premium is the additional price and that's what's completely arbitrary and so when I explain to people that some of my Saint Gaudens coins have $1,000 in in collectible value because they're somewhat rare they've been certified put into cases they have ratings applied to them this is really it's a nice coin and I could sell that at auction you know with paperwork and everything and and and get a high high price for that but I really know what I'm doing so I mean so I know about what that's worth and and my point is is that you don't know anything about the flowing haired 1/2 nickel from the 19th century and so to stumble into the gold world you know you can really hurt yourself because what will happen is you'll pay a thousand dollars for the collector premium on that and the collector premium might only be worth twenty-five dollars you know if that okay and so to figure that world out is is it's very tricky okay and so we say for now if this is your first go this is a way to stay safe is one ounce coins of these sizes you know and and and so by the we have pictures of the coins in the book if he if you get the kindle version you have color pictures of the book you can literally take your Kindle or iPhone or whatever and say I want this coin okay and there's no mistaking it and what you do from there is up to you I mean we go through mining stocks which also are a danger zone and then we go into royalty companies which why do you say mining stock decide I mean it's rather like collectibles so long as I always say to people do your own research it is mining stocks are more speculative than actually having the physical gold however the returns can be spectacular both up and up yep absolutely and I give multiple examples in the book of site visits that I've been on to companies that found something stock went up 4,000 percent market slowed down stock crash 92 percent then you know company changed name you know raised more money got another project stock back up you know it's 750 percent okay so I mean I give real examples with photos of my partner Brett Heath CEO of Mattel and Iran of precious metals Equity Fund for years and so I have all these great photos of us at these crazy sites and I tell people I mean look these guys for instance literally had a hole in the ground that was full of water okay and we showed up there and the local staff told us that they wasted all the company's money starting their own drilling company overcharging the public company there was never anything coming out of the ground they ran out of money the market crash and they just disappeared okay so I'm not picking on these guys I'm just saying look there are some amazing mining stock stories that come out and you can see dramatic share price increases and we haven't even started the bull market yet I mean we're just talking about you know we're just at the first ending of this and so you're gonna you're gonna see so many stock gains that you're gonna have guys that were running a cannabis company that ran out of money and they say let's just change the name to a gold company this is gonna happen believe me okay and so that's all part of the bull market cycle but we explain to people look the I've been in this for a long time and and when I was running the fund I would always notice that there would be people that had royalties on the mines and it me some guy or an LLC whoever is getting you know hundred grand a quarter or something and I'm thinking who this guy how did he get the royalty well usually he got the royalty because he discovered the asset 20 or 30 years ago and he just has the royalty and so my partner Brett and I came up with this idea it's really Brett is the brains of the operation not me I've just been able to help him because we have such a long-term relationship and I'm on the board I've been able to structure the company and help steer it but Brett's the brains of the operation so what we did is we sent him to work to define these royalties on high-quality assets I mean I I don't mean juniors okay I mean Pan American silver gold court Newmont cbh in Australia you know this is serious companies that are better they don't decide on a whim to go into business mining they say we're gonna spend the you know 250 million mining this they really mean it okay so find the people that own these royalties and let's have them sell us those royalties for stock so that they become part of our company and so what we what we end up with is a more diversified holding company of royalties and we're gonna pay a conservative price for them and we're gonna justify that by telling them they get stock I mean if they want cash they can sell it to someone else who's gonna be a high bidder but but if they're gonna be part of this we're not gonna overpay for these things we have to do deals that are a creative day one okay so how's that worked out well we've done 18 transactions we have 50 royalties it's about a quarter billion Canadian market cap and the the the momentum is better now than at any point you know during the past so so so how valuable can this business be well in the book I told the story of Frank o Nevada which some people know they bought a two million dollar royalty in in the Carlin Trend in Nevada and it's paid back over a billion dollars 1 billion dollars in payments since the late 80s can you believe that I mean it's it's 2 million into over a billion and it's still going okay and so I walk people through that story I mean one of the founders has a book where he talks about it extensively and and how they how they started to do this everything and so I explained to people what happened it wasn't luck I mean they decided they were run out of money as a mining company they were gonna just issue shares endlessly to finance drilling which was never boring fruit okay so they got this royalty from a an oil and gas company was going out of business and had the royalty for sale in the classifieds in the Reno newspaper and they bought this thing and Barrett gold came drilling right through and and it found a gold strike so I mean so so look it's amazing and so I tell people I say if Pierre Lassonde will you this the the former chairman of frança if if you want to get lucky in the royalty business what you do is you pay the right price which is you be very conservative for mineral royalties adjacent to productive areas you don't you don't go by the the middle of Saskatchewan you know bunch of moose pasture and just say maybe someday somebody will buy go there you go next door to where there's already at forty five million ounces come out of the ground or something in and that's what we've done with metallo I mean we just did this deal in South Dakota where we have a royalty encore mining one of the most productive assets yeah that cash flows today it's in America it's right near Mount Rushmore the famous American is where they have all the presidents okay I mean it's right down the road from that so you can visit the mine and about Rushmore so so then in Nevada we have a nice package of royalties that's on Berek Berek is working a package and it's in its Cortese trend area and so my point is is that we for 42 months we've accumulated these royalties we're still doing this through the stocks up about seventy percent per year compound average growth and still I feel like people still don't know the story which is shocking so the reason why I'm telling you this is we go through all these things in the book of how to buy the gold and then these other areas of mining stocks are very fair about how we characterize them but then we say look the royalty business there's literally nothing like it I mean I don't know the business as profitable as the royalty business and I compare it to Google Facebook Amazon there's no comparison I mean Franco Navotas you know 20-something billion market cap with 25 employees yeah it's unbelievable and so how did they do it they did it by buying royalties paying a low price fine royalties near other they didn't do it by loaning money to juniors common misconception they did it by buying royalties near productive zones in the world and we've done the same thing he's fast you know and the royalty business you know if people want to look at something like that it is it is a way that you again can protect your wealth and it's all about them now you mentioned a moment ago where at the start of a bull market can you just explain your rationale behind why you say that definitely so so we've yet to take out the 2011 high in this market so let's let's just walk people backwards a little bit through how we knew this was gonna happen December 2015 was the ultimate low for Gold $1,050 with their face down in their hand saying aye aye aye this is assets are worthless I mean we can't we can't raise money we can't pull the gold out of the ground I'm just retiring with I'm just quitting and finishing and I'm going out with a whimper yeah I remember this I mean it was really bad okay so this was this was a definitive time you know ultimate low we had a little rally in beginning of 16 where things started turning that's when Brett and I put this company together because we thought you know this is you could see the wind blowing okay you can see this coming in so what happens well we go through that little blip in 16 it's still pretty dead we have companies losing money shuttering projects you know you have the majors saying we spent a billion over here trying to put this mine in production we're gonna cancel it and and stop the bleeding then you have any start seeing all these mergers where you where you have these companies folding into each other at no premium okay so so remember you have like goldcorp Numa and we have two really confident how how CEOs who just agree to a net even will just save on the office space I mean that's okay well at the top of the bull market it's the opposite it's I'm gonna need a 50 million dollar golden parachute to leave this the driver's seat I mean that's how these mergers work out when when they're at the top of the market who said that all happened and so now you still have no understanding of gold I mean I talked to hedge funds family offices high net worth investors all these people okay these people still go to stupid so okay so how much cryptocurrency do you have oh yeah well we bought some of that okay well look I'm not saying that that's not relevant but what I am saying is is that you know this is a unique asset for this time it's a credit it's a credit problem you're in a credit system yeah the system has to keep expanding okay so so so separate from your crypto and all these other things got going on okay you have to see that the feds turning everyone into speculators all right the system has got to keep growing GDPs to keep growing they created 12 trillion dollars around the world in you know government based stimulus because of the virus situation the virus situation is coming back in the US I mean believe me like I went to dinner Sunday night couldn't even sit down until they spray your hands with everything yes eighty percent of the restaurant is empty the manager says they shrunk the menu in half everyone's terrified to come out you know to dine out okay so it's not good right and you know we have race riots in the US and there's a lot of things happening right now that are not what you would expect to see in a rip-roaring you know bullish a capitalist expansion okay so all I'm saying I'm not getting into the details I'm just saying business is not that great okay and meanwhile you've got people living as if there's no problem and there is a huge problem the US government's gonna run at three and a half at least trillion dollar deficit this year you know it's about 15% or more of GDP close getting close to twenty and it's a big issue right and so gold is the antidote for what's coming during this time and people just the reason why I say we're in the early innings okay it first inning I think is because you haven't taken out the old high you don't see any coverage in the papers you still you see people speculating and Hertz bankrupt car rental stock in the US but not speculating in gold stocks I mean anybody watching this that's been around for a gold bull market knows when this sucker goes you've never seen anything like it I mean ABC exploration company that has no property can sell stock for a dollar right because that's how excited people get about gold stocks forget about it I mean look I've got the best royalty company in my opinion at least out there and I've got to spend an hour on the phone explaining to people that we haven't just been 18 times lucky you know we've bought 50 Tier one royalties that we think are fabulous assets and we're gonna we're gonna buy more of them and they say yeah I'm gonna still need more convincing well at the end of this market I could say we're gonna look for gold on Mars and they say we're in we're in for that that's what we want a piece of so you'll see as we move through the $1,900 high in the US which will happen this year and we start moving into the 2000s you'll see more mainstream attention you'll see more articles in the mainstream papers explaining how gold works and all these things then you'll see people get interested then buy the speculative stocks and then we'll be off into a into a bull market and eventually that'll crash and you know hurt lots of people but that's a long way out in the game but maybe what do you say to those people that you know we've kicked the can down the road for you know so many years and governments can you know they're printing money out of out of thin air therefore asset prices are going to continue to go up I don't care about gold because I'm speculating on the share market which doesn't show any signs of slowing down and in fact yeah we had a blip but you know we're back to almost all-time high so yeah yes all that care about gold don't stop doing that speculation I don't advocate for completely stopping I mean I have young children I bought this in stock you know I bought this from some regular conventional type stocks that kind of need the market to keep going because that's something that you just want to say I'm not going to participate in what's happening in life generally speaking instead of having an idea of what you want to happen the way to be successful in all parts of life is to look at what is happening so yes if they pump trillions and trillions of dollars in the market and the Fed buys junk bonds and they control all this stuff you'd be crazy to not participate in this market however I also think you'd be crazy to say maybe I'll just have like 3% of my assets and gold I mean and and maybe I'll just have a couple shares of a royalty company and and that's it hey that's it I mean like look that things up seventy percent plus a year for three and a half years I mean how bad could it be okay but I'm not saying you just abandoned saying you want to have a couple of tech stocks or something I mean yeah I mean that's the market today how long can that go on maybe for a while I mean I remember in the 90s when I was getting involved in the market the first time everyone thought there was a bubble in 97 I mean they were talking this yeah but if you if you just like went totally out of that I mean you you watched a lot of fireworks before it ultimately run off a cliff I mean so so I think in life the the the best way to play this is to be is to position yourself so that you have you have that exposure to gold you have that exposure to royalty companies and you also have something going on in the traditional market but you're prepared I mean a lot of these people have zero gold okay like zero awareness of what's happening zero plan for tomorrow and 100% bankrupt herd stock I mean yeah it's crazy it is crazy but there's a lot of people that are literally living paycheck to paycheck yes and they haven't actually thought about saving anything they'll go out and they'll buy the big plasma screen TV but they won't think about tomorrow because it's that sort of immediate gratification so it works notice is never going to change by the way there's a lot of this is a lot of what you're describing is not it's it's an eight it's it's it's a societal kind of conditioning that's not going to change so let's not expect that everyone's gonna change in this I mean and and for most your viewers you know that probably if you're honest when you were younger you start out thinking this way life experiences make you think this way now it's kind of like buying hurricane insurance after the storm alright so a lot of these people living the way that you're describing what's gonna happen is they'll try to start saving they won't be able to save enough money but trying to start speculating they'll speculate right off a cliff and all this stuff and then they'll they'll say this is crazy I got to blame someone and also I got to start doing some things to prevent this from happening again which as you know it's probably not gonna be a hurricane right after the hurricane I mean it's just statistically you know you have these events that happen and the time you want the hurricane insurance is before the hurricane so so so why don't you know take these steps now okay be aware of what's going on in the least at least learn about what's happening and learn about the numbers and say to yourself I mean how long can it go I mean effectively if the Fed pumps and pumps and pumps and then takes rates negative pumps the economy even some more does all these things does MMT 0% to eternity oh yeah I mean this this thing can keep going for a while longer so so we need to be ready for that I mean however I do think that's a bullish environment for gold I do think there's a lot of people I mean I talked to extremely high net-worth people in the u.s. from some name-brand families that people would recognize and and they're saying how do we how do we get involved in gold what are the allocations I mean what do we do okay so so these people realize these are people that have not looked at gold in the past but all of a sudden why now I think the families have looked at gold in the past I think I think there's been some generational skipping where you've had you know you've had a lapse in that I mean like the they remember older members of the family mentioning it and talking about you know times of trouble and when we say times of trouble what we describe in the book that's coming is a scenario where the value of your assets goes down and the cost of things you need goes up it's very complicated because the government has flooded the the markets with so much money okay that you have too much stuff I mean you have office towers that have three percent net rates of return okay for investors I mean you have so you have too many luxury apartments you have too many people that went to college to become lawyers you had to you have too much of this stuff and so what happens is when you have too many lawyers is that the lawyers all can't make the kind of money they thought they were going to make so they took massive loans to go to law school now there's too many lawyers they start going your work they can't make enough money to feed themselves and lows so they're a bartender at night or something and then there's a coronavirus and and now they can't do that anymore so it simply does you see how this works my point is is that that example is a small example of what's happening overall in a world where the Fed has solved every problem with more money okay so what happened in 2002 we explained this his book as well is that that was the first time when the feds circumvented the recession process because the recession is like a forest fire it burns off the undergrowth of the forest so that you don't have a gigantic forest fire so if you prevent forest fires it sounds like a good idea but 10-15 years later you have so much undergrowth that one little spark goes off and you that thing roars for months and you get nothing can put it out ok so they're very very apt given the fact that Australia suffered from exactly that scenario in January this year absolutely shocking the undertow is too much and yeah we a lot of people decimated from our fires down here so just a minute analogy yeah and so and that happens in the economy because recession is the capitalist version of a normal forest fire because risen what recession does is it is sales slow and it puts pressure on the worst operators you know if you have five people in the tire business or something and business slows down and one of the tire store operators has spent all his money on jet skis and taking trips and bought a bunch of Beach condos and had a girlfriend and everything on the side I mean and he just is totally responsible well he goes out of business because you can't he can't take care of everything whereas the guy that that saved money you know helped out working himself and was prudent okay it didn't expand and brought his lunch to work every day well he's gonna be fine I mean business is a slowdown and then it's gonna get better and he'll be fine that's a recession we don't have those anymore what we have is bubbles and crashes so you go bubble crash bigger bubble bigger crash bigger bubble bigger crash and then at the end you have a reset of the system why do you think right now that the bubble is just it's almost like being it's being artificially inflated so that it never bursts this bubble has to be it has to be so in defense of the Fed they're actually wise they realize you have to keep this thing inflating and the goal is to keep it inflating by just a little bit every year 2% every year or something ok that's what they want to do right now so that's the balancing act when when GDP Falls what happens is companies can't service their debt revenues go down all of a sudden they can't refinance their debt you know just a lot of this debt is two three four year dead it's not 30-year debt you know these these loans are fairly short so already they can say well we can't refinance this sales are going down Fed steps in to buy those bonds to keep them up at par smooth everything out so you're exactly correct so how long can that go on probably for a while I mean if you if you had the power to create the money and then you have the power to make the loss and then you have the power to decide who survives and who fails I don't know you could probably go for a little while I mean certainly several years I mean so it's it's unknown how long that can go now while it's going okay you have a chance to quietly buy some gold when no one's paying attention right no one's paying attention okay no one and in the end I mean ultimately there'll be a lot of attention on gold I mean I wouldn't be surprised if they paint people that have gold as enemies of the state at some point because Gold's value will shine as this system runs into more and more trouble absolutely now I've got I've got two more questions first of all the likes of Harry dent turning around and saying Gold's gonna go down to a thousand dollars he wouldn't put any money into gold whatsoever how do you what's your answer to that one if gold goes a thousand dollars my suspicion is many other assets have been taken out at the knees and it's kind of like in the Great Depression you know if you had a thousand dollars of the gold it was still worth a thousand dollars when stocks were down 90% so so if Gold's is a thousand my question to Harry who by the way lives not that far from me my question for Harry would be what does everything else look like because my suspicion is if you get into the weeds there you're looking at a very difficult time for other assets yeah Gold has no counterparty risk right so you think about it the stocks they have to have customers buying more and more and more of their of their product okay the apartment complex has to have tenants paying month on time and paying more money as time goes on right so everything depends on something so gold depends on nothing well you and I both know that the tenants is the apartment can't pay any more money okay they're paying as much as they can pay people aren't really making any more money I mean incomes have risen a little bit but they've not risen anywhere near the the price of the assets when you go back to 2000 I mean people weren't making so so little I mean they're making somewhat close to what they're making now me in the u.s. I don't have the numbers in front of me but I mean the the the household income at say 60 grand today or something and I bet you it was probably 40 20 years ago some minutes up you know 50 percent meanwhile the the asset price isn't balloon you know they've grown at a multiple of that so how long can people afford it well the question is if you can keep the borrowing cost at zero or negative they can afford it for a while longer however there comes a point in time where where people say well that's so longer worth and so in Harry's world a thousand dollar gold let me see the rest of the assets all right a good answer may be it I just want to finish up with what are the things that I think you said was everyone is in the money game everyone said like it or not we're all in the money game but right now the money game is in serious trouble now we've just spoken about the fact that this can be kicked down the road for another few years give me your final thoughts on you know I guess we've talked a little bit about hedging and diversified like don't sell your house and your children and go all in gold but have some exposure to it what would your advice be to people right now that have got that as you said before they're not awake they don't understand it I guess the first thing is go out and buy a B's book why God why now but should they be I guess what is your what's your final thoughts on what people should be doing right now because a lot of people are just going it's all gonna be okay the the pandemics it's around but it's not really bothering me in terms of my financial situation yeah I mean most people sense that something is wrong okay and just remember that your whole life educators and your bosses and all these people have encouraged you to not listen to your instincts right like a remember when you're in school or something they're telling you don't do that and stop daydreaming in well when you get older you realize it's the people that are daydreaming all the time that end up you know making a hundred million dollars because they think of some crazy idea it's the straight-a student that has guaranteed servitude working in a cube forever okay they never dream of something more right so your whole life they've been trying to get you to stop listening to your instincts and instead to follow a program and following the program right now means don't worry about this shutdown of the economy don't worry about all these debt problems don't worry about all this stuff just buy the stock index that we told you to buy buy some real estate buy a little bit more real estate buy a car make payments on the car have a high credit score which by the way credit score is only good for borrowing more okay so I have a high credit score okay like follow all these rules that we tell you to follow and stop listening to anyone that tells you otherwise okay so when you say awake you know just for one day forget about all that stuff and think about awareness and walk around and and use the skill that that is an instinctual skill within you you can wake it back up okay of awareness and and don't have any opinions just observe what's happening it's a restaurant Sunday night the ladies spraying me with a toxic disinfectant you know I didn't want it on me I can't be in there no one in the restaurant I can't hear anything she says cuz this is a full hazmat mask thing on yeah it's ridiculous and the managers telling me you know without customers I don't think we can stay in business much longer okay now this is anecdotal right this is one restaurant in one place so you don't go making a lifetime of decisions off of one thing however awareness you see something's not right your instinct tells you something about this is not right I know for a fact that you can't get ahead in life by betting on bankrupt companies for very long something about this is not right and once you do that you're going to start having a new perspective and in the book we go through an easy the book personal is easy to read that's when people need to understand is that this book is written for people that want to learn that are seeking more knowledge it's not it's not written for people that have a PhD in economics right hey because everybody has money period I mean if you're an English teacher then you're in the money game because otherwise why are you working you can just teach to someone online for free no I have to have a job while you have a job I need money okay yeah you're in the money game so like it or not you better wake up and pay attention cuz you're in that game you're part of that game and so it's time to wake up and to and to see what's happening and you don't have to be afraid of it because it doesn't mean anything other than you have some awareness about where this is headed and then you'll know what to do about it Wow what you know what baby that was I think the most important thing that I just got then and and I want to tell all of you out there why God why now it's a book that is made for every person like it's easy it's not technical it's it's for you guys out there that just want to understand why gold should be a part of your reason to protect and potentially grow your wealth but as EB and I both have said not financial advisors we're just very awake and we're looking at the system and saying it is time that you stopped being programmed and started waking up so I'm gonna put the link to a B's book down below and I urge all of you to read it and to understand what's going on wake up people it's time to understand why gold why now a B any final thoughts from you that's it thanks so much for having me and let's let's come back in a few months and see see if what happened and will be held accountable for our for our thoughts about that I'd love to have you back on because you say we're gonna breach the the earlier high of 1900 this year potentially going up to two and a half you know when you've got interest rates at the bank and banks possibly charging you to keep your money there perhaps now is the time to wake up and have a look at this EB Tucker thanks so much thanks

Channel: Small Caps

Views: 13,125

Rating: 4.8371038 out of 5

Keywords: EB Tucker, gold, Small Caps

Id: tcs3aQFw0ds

Length: 45min 40sec (2740 seconds)

Published: Fri Jul 10 2020