So whether this is your first time Hearing about goal investing or you have Been buying for quite a while this is The master class you need you probably Know that cash is trash and you need to Hatch against inflation not just for a Few years but for the next 100 and this Is where gold comes in right and in this Video You're Gonna Learn how to approach Buying gold the types of gold that are The best to buy and the mindset you must Have and three things you must watch out For that will affect the price of gold And my aim today is to help you become An expert when buying gold I'm going to Make sure you get the most amount of Gold for your dollar and we're gonna Discuss getting physical gold the paper ETFs and most importantly what drives The gold price and if you're new to the Game there's one phrase you must Remember and it's a simple one if you Don't hold it you don't own it and That's the entire point of investing in Gold you want to be holding the physical Method first and foremost and people buy Gold because they want some money Outside of the financial system and in Their hand stands for one simple reason You don't want any counterparty risk When you deposit money to a bank it Becomes an asset to the bank the money Is owed to you but it doesn't physically Belong to you anymore and that means if
A bank becomes insolvent they could Reach in and take your money to save Themselves for example back in 2013 Cyprus had a horrible financial crisis The Cyprus Bank sees a percentage of Deposited savings above 100 000 Euros to Bail themselves out doing the financial Meltdown this is what you call a bank Billing in fact major depositors face Losses of 60 of their savings during a Crisis is truly terrifying situation for Anyone and that's why people buy gold we Want to hold some money directly in our Possession it doesn't lose value over Time like cash but it is also not within The banking system there's no Counterparty risk and the best way to Start is by buying either go bars or Gold coins and truth be told both of of Them are great options to start stacking Physical gold and there are only three Criteria that you want to remember to Get the best type of coin or bar without Overpaying now first you want to make Sure the gold bar or coin is highly Recognizable right so what I have here Is a one ounce gold Canadian meatball With very beautiful coin one of the most Recognizable gold coins in the world now The other I have is the one ounce gold Pen bar right it's a pen bar it's one of The most popular gold bars in the world As well everyone recognizes Pam gold and They trust it now there are many other
Types of fancy gold out there you have The American Gold Eagle here minted in The United States and there's also this Very beautiful Chinese gold Panda but There's a big problem with these two Coins right you'll be overpaying for Them by quite a bit and I'll explain why And when it comes to buying gold there Are two prices you have to remember the Spot price of gold and the physical Price now the spot price is simple is The price of gold being traded on Wall Street in the Futures Market we call it The Sport price or the paper price of Gold but that doesn't reflect reality And when you're buying physical gold you Want to concentrate on the physical Price of gold which is basically the Sport price plus the physical premium Now the premium reflects the cost of Digging the gold out from the ground Refining it and turning it into coin and Bar form but this is the most important Thing about physical premiums you want To pay the least amount of premium for Your gold because there's no guarantee You will get it back when you sell and That's the price that you have to pay in Order to invest a physical goal and That's why my favorite types of go to Stack are the Canadian Maples and the Pen bars I keep things very simple They're very low premiums it can help You minimize the premium loss when you
Sell right and this is really important Because like all other Investments you Want to minimize the transaction fees But of course there are few others that Also have low premiums like the go Pretending over here it's a beautiful Coin from the United Kingdom but those Three are my favorites right and here's Another tip buy physical gold that is One ounce or more high no gold is Expensive it's above 1800 today but if You can get a 100 gram bar versus a 10 Gram bar do it right the physical Premiums get smaller the bigger you go Now for example a one ounce bar might Have a premium of four percent but a 100 Gram bars premium can drop down to only Two percent so for example what we have Here is a 50 gram bar from perthman so The premium here is anywhere from 2.5 to 3 percent compared to the one ounce coin That premiums easily four percent or Even five percent depending on the brand You buy and that's quite a bit of Savings especially when you continually Build your physical gold position but Whatever you do avoid those quarter Angle coins or one tenth of a gold coin Those premiums are ridiculously high Anywhere from 10 to 50 18 sometimes even 20 as well and I also want to make a Quick mention of decorative coins of Bars for example this limited edition Year of the rabbit gold bar from Pam has
A premium of eight to nine percent that Is very high yes it looks very beautiful But I'm buying this to collect and not Really as an investment so you have to Be clear about that when you buy gold if You're a million investor avoid things Like this and stay simple focus on the Premium savings and a very big question That comes up is why gold and not silver Should I buy both gold and silver now Let me disclose that I hold quite a bit Of silver I've been buying physical Silver for almost a decade now but I Still recommend people start out with Gold if they are new to Precious Metals Now silver is not a primary monitoring Method it is more of an industrial metal In 2021 more than 70 percent went into Industrial use and not investment demand This is a very important point that many Gold and silver stackers forget because The fundamentals of both are very Different silver is correlated to the Health of the economy even recession Hits we could see silver crash while Gold stays resilient and could even Appreciate now if we take a look at the Performance of gold and silver doing the Big stock market crashes we can see Something very interesting on average Silver fell by 16.4 percent while gold Actually held strong and appreciate it By 6.5 percent sure both were more Resilient than equities but silver still
Collapsed together with the rest of the Market they have very different Metals The drivers are very different what Drives the price of gold doesn't always Affect the price of silver and there's Another point you must know physical Silver premiums are disgustingly High Compared to gold and ounce of physical Gold might never premium of three to Four percent but that ounce of silver Could have a premium of 20 or even 30 Percent depending on the type of brand You get and when you sell it back to Dealers you lose the bulk of the premium So you need to understand the reality of Investing in silver you will pay more Upfront and potentially lose more when You sell now the upside for silver is Much more volatile than gold so if you Time the market well or if their supply And demand shocks you could make a whole Lot more with silver but let's focus Just on gold for this video so what Drives the gold price I think this is The most important part of our Discussion because you need to know what Will affect your investment there are a Lot of factors that can swing gold Prices around and they range from Geopolitics all the way to supply and Demand but I want us to understand the Concept of financial trust is the Financial Trust of money being destroyed This is the most important question you
Have to ask yourself when it comes to Gold because it will affect whether Money flows into or out of gold as Financial trust goes down the demand for Gold flies up and let's go through What's destroying the financial Trust of Money and the first is simple the Debasement of global currencies which is Happening everywhere but you always want To focus first on the US US dollar Because gold is price in dollars and That means if the supply of dollars Suddenly increased the price of gold Will be affected for example over the Last two decades we faced two severe Recessions and this prompted the Federal Reserve to print up trillions of dollars To prop up the economy first in 2008 Then in 2020 bringing the balance sheet From less than a trillion to nearly nine Trillion dollars in other 15 years and That's why we can see this incredible Rise in the gold price taking it from 700 an ounce to new all-time highs Hitting over two thousand dollars so Every time countries start to debase Their currencies by putting a lot of Money this reduces the financial trust And money and people start to flock to Gold they know their Fiat currencies are Being mismanaged and they move towards a True store of value now the second thing Is destroying Financial trust it's a Huge amount of deficit spending
Countries are embarking on and this is Essentially spending tomorrow's wealth Today and as you can tell it is very in Inflationary for example in 2022 the U.S Government spent 6.27 trillion dollars But only 4.9 trillion came from revenue Such as taxes the rest came from deficit Spending which means issuing bonds to Raise money and a big portion of the Money comes from the Federal Reserve to Debt monetization which is basically the Treasury issuing bonds to the FED which Then brings up tons of cash for the Government to use and this expands the Money supply and not all the money is Used correctly there's a lot of ways to Spending that doesn't increase the Supply of goods and services and this Causes even more inflation it dilutes The purchasing power of the dollar and That's why gold rises in price it's not Really because gold is rising in value Is because the dollar is worth less and Less in fact over the last 100 years the Dollar has lost 97 percent of its Purchasing power and this isn't gonna Stop we can see that over the past 20 Years there's been no physical Responsibility more money is being Borrowed and the deficit is growing it Went from a budget surplus in 2001 to Huge deficits of over 3 trillion dollars At one point and this isn't going to Stop any time soon and the third driver
Of the gold price is a big one it's a New one and that is geopolitical chaos Such as war and sanctions now every time There's a war it tends to be very Inflationary because you're simply Printing money to blow up stuff right You don't increase the production of Commodities in fact you are consuming Oil and Industrial Metals to construct The War Machine and this decreases Supply and causes inflation in Everything and that's why when that's Geopolitical instability like the Conflict in Russia and Ukraine the price Of gold tends to go up right it is Accounting for all the chaos and Inflation that's happening but in 2022 We also saw a Black Swan event that tore Apart the trust of money remember that Everything filters back to whether Conventional idea of money is working or Not and I'm referring to not just the Car currencies but the entire structure Of the financial system and when the United States and their allies throws Russian assets it sends shock waves Across the world suddenly The Wealth of Nations can be confiscated and this Destroys a lot of trust in the financial System which is predominantly Western-centric and that reminded the World that Financial assets such as U.S Treasury bonds could be frozen by Governments and aren't truly safe and
This freaked out many central banks and Countries such as China which began Dumping their Holdings of U.S treasuries And started moving more into gold and in 2022 central banks added over 1100 tons Of gold into their reserves a 55-year High they know that gold holds no Counterparty risk and it's a long-term Store of value so they piled into it Especially in 2022 when the sanctions Started we also have China officially Buying gold month after month which is Big news and in the People by the IMF They also acknowledge just how the risk Of sanctions is pushing Central Banks to Rush more for gold so this is a very Important development that you need to Track as well central banks they are the Biggest buyers of physical gold they're The biggest stackers and what they do Can move the market if the big Financial Nations of the world keep facing assets For whatever reason it lowers the trust Of money and when the world loses trust In conventional money right they move More towards goal is an asset you can Hold without having to trust the Counterparty on the other side but what About ETFs or people go is there a point In buying them now there's a lot of Advice circulating around telling you to Avoid ETFs like the plague and I agree That physical gold is the best way to go But ETFs are still very useful and I
Personally buy them as well now if You're new to ETFs these are funds like The GLD goal shares or the sport Physical gold trust that gives you Exposure to the price of gold you are Buying shares of a fund that tracks the Price of gold so if the price of gold Goes up or down now the fund will Reflect that in their price so there are Two reasons why you might want to use ETS to get exposure to Gold because Holding the physical metal might not be Possible for everyone out there and the First is if you can't afford to buy a Full ounce of gold or if you want to Avoid paying the physical premiums now There is a match point in buying quarter Ounce coins or 10 gram bars the premium You pay doesn't make sense and if I had To choose between a 10 physical premium Or 0.4 ETF management fee a year I choose the ETF I'll use the ETF to build my Position until it goes above an ounce or More and then upsell out of the ETF and Buy the physical bar later on now I've Done this multiple times and it works Like a charm especially if the price of Gold keeps rising and the second reason Is to quickly sell out of your goal Position now I can preach why physical Goals the best but there are some of you Out there who just sees gold as a trade And that is fine if your aim is to
Actively manage your portfolio ETA apps Are the best way to get in and out of go Quickly it's just like buying or selling A stock you can execute your order Instantly so you got to understand What's most important to you and that Brings us to the million dollar question When should you exit your goal position When is a good time to sell your goal And this is a very personal question That you have to answer for yourselves But I'll share one chart that I like to Refer to which is the s p the goal ratio Now there are many times when gold is Overpriced and there are other times When stocks are underpriced for example Back in 2010 to 2012 it will take you Less than an ounce of gold to buy a Single share of the S P 500 but today You will need over two ounces of gold to Buy the same share and that tells us That shares might be currently Overpriced versus gold so if you have The holding power you can wait until This ratio Narrows before selling off Your goal for income producing stocks But we also have to be realistic we Don't know when this will happen and Sometimes we have to sell our gold if There's a good opportunity out there and One great example is real estate Now Goal is great but biggest weakness is That it doesn't produce any income it Pays no dividend so you can't live off
It goals purpose is to Simply store Value so let's say you find a great Piece of real estate that pays you six Percent rental yield or more it's worth Considering liquidating your goal to buy The property because we know that Inflation will still be persistent and Just like gold the home will keep its Value over the long term if you do your Homework right and that's why having Some goal for diversification is great It allows you to stay liquid while Protecting your purchasing power and This concludes our Master Class goal is All about storing your wealth outside of The financial system and living a real Legacy for generations to come and let Me end this with a simple scenario let's Say your grandparents had 3 500 back in 1971 and they left the cash intact for You you would have a small stack of cash But we both know that 30 500 today can't Even buy the wheels on a car but if they Converted that money to 100 gold coins You would have almost two hundred Thousand dollars today that is a Handsome down payment on a new home or Even a Lambo and as we move towards the Future of digital money cbdc's I think Holding some physical gold is a wise Move that everyone should consider so Let me know what you think in the Comments below are you buying physical Gold today let me know stay safe be sure
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