“Just a Shiny Rock” – How To Use Gold and Silver

So all of the coins on the desk here are Legal currency here in the United States So if you want a really short version of This video Well I guess I could take these down the Street and pick up about 630 worth of Chips I think that's how Mr Beast gotta Start [Music] So it's pretty rare to hear somebody Talk about how to use gold and silver Like what would you do with it once you Have it to some it's pretty simple you Just bury it in your basement expect to Never need it others say maybe pile it Up because you will need it not yet but Soon and I probably made those two ideas Seem more different than they actually Are because in both cases gold and Silver would be just in case assets the Only difference between the two camps Really is How likely and how soon that Deed might be but there are other Reasons to have gold and silver and even Potential ways to use them along the way And we're going to look at a few so First off let's just cover some quick Facts now I don't compare physical gold And silver to the stock market but we're Going to do it here for the sake of just Getting the whole story out the S P 500 It has gained 10.7 percent annually on Average since it was introduced in 1957. Now the past 10 years have been better

More like 14.7 percent annually and if We use that same period that same 10 Years the story does not look great for Gold since it's only up 10 percent over That entire period it's an inconvenient Time frame for gold now if we were to Use that same 10-year time frame six Months from now it will look a lot Different because the price of gold fell To twelve hundred dollars by June of 2013. either way holding an index fund Over those 10 years would have Outperformed metals and if we looked at Silver that would be even worse because It lost 20.4 percent over those same 10 Years so once again off balance time Frame for price comparisons but the S P 500 would have returned 254 percent now Since we're picking arbitrary time Frames we'll tell the 20-year story as Well in that time frame gold out Performs S P 500 you've probably heard That price of gold increased 430 percent From 2002 through 2022 S P 500 and that Same time frame increased 390 percent Now you would still never hear me call Gold or silver a growth asset at least Not if we're talking about the physical Metals now just being real about what it Is to me gold is really just a long-term Savings model Silver's kind of similar The way I use it depends on my Circumstances something big came up Maybe it's an opportunity or a huge

Expense I would sell the gold I would Take care of the emergency or take Advantage of the opportunity and then I Go back to buying it again little by Little bit either one of those reasons To sell would have to be big enough that I couldn't cover the them with whatever Other Capital that I had quick access to I see people say that there's just no Way they'd ever sell their gold or Silver and that makes it pretty clear That they see it as having one single Use a use only in a total collapse now This is a big reason that you don't see Many people talking about how you can Use it because most people just don't You will see people say that silver is For barter and maybe they'll give an Anecdotal use like a farmer's market but Usually it's for some kind of fantasy Situation like the end of the world as We know it now for the record I don't Question that view you have to give it To the person who plans for an unlikely Outcome over the person who just doesn't Plan at all Dave Ramsey has pretty Famously said people run to gold out of Fear or greed and he might be right some Might but others probably do it out of Self-sufficiency and maybe that's not Conventional enough for Dave who is Pretty proud of his 100 million plus net Worth but some of us live a little Closer to the ground and where I differ

From Dave is that I think there's a Conventional use for it where I differ From the never sell crew is that I will Use gold or silver if it's good for my Family apocalypse or not now the way That I've used Metals in the past is Pretty common I've sold some gold to put Towards some real estate I've used Silver to fund some long shot Investments a relatively basic ideas now Those were not direct purchases I didn't Buy a property with a pile of gold coins But that's where some of the capital Came from and you could say that I could Have simply kept separate savings Accounts or held that Savings in cash But I've found that I don't have the Same drive to save cash and I'm more Likely to tap into savings accounts the Director of Fight Club David Fincher had A great line he said that we're designed To be hunters and we're in a society of Shopping there's nothing to kill anymore Nothing to fight nothing to overcome and Nothing to explore basically nothing big Left for us to do so we end up wasting Money buying things we don't need with Money we don't have to impress people we Don't like that last part came straight From the author Chuck palahnik now where I'm going with this is that we get the Same dopamine hit buying a gold coin That we would get buying something we Don't need to impress someone we don't

Like and probably more of a hit to me That's a big part of how anyone can use Metals I've used it to build something In small steps with capital that maybe I Wouldn't have otherwise had and anyone Can do that at any time When this question comes up though in Comments people don't want to hear that They want to hear how they can use gold And silver directly everyday Transactions and to me this is still a Little bit of an unlikely case because It just isn't easy it requires a few Things happening at the same time one Person has to have the goal that another Person wants and the second person has To have the thing the first person wants And to make it a little bit more Difficult both of them then have to Agree on the value of both of those Things it doesn't make it impossible Farmers markets those are decent Examples of how it could work and I've Heard from others that are willing to Trade Services willing to trade goods For gold and silver but it would be hard For me to find anyone to make that trade Without knowing about it ahead of time Now the other problem is the tax on Silver and gold it's not the way you Think the tax in this case is the Premium that you pay when you buy gold And silver a lot of that gets lost when You sell or trade so that makes it very

Expensive unit of Exchange change it Still doesn't make it impossible and There are projects out there like gold Backs that are trying to overcome it but There are a lot of good reasons why it's Just not common today Now there are emergencies that I think Could change things a little bit in Emergencies that are somewhere between Normal everyday surprises and the Apocalypse where gold and silver might Be useful in common cases especially if You're in certain locations if you're Stuck in the mountains with a stack of Silver Eagles you're probably more Likely to find people who understand Precious metals at least more likely Than if you're stuck say in the Bay area And I'm going to let you use your Imagination on possible events but I Would be happy to have something as Recognizable as a silver eagle that I Could trade in a lot of different crazy Situations and maybe it wouldn't work in San Francisco but their definition of Crazy is probably different than mine to Begin with if I was using it I would Think of a silver eagle as a 20 Bill Maybe 30 bill now if there was such a Thing pretty easy I would think of an American Gold Eagle as two hundred Dollars five hundred dollars thousand Dollars two thousand dollars depending On the size it'd be for a tenth ounce

Quarter half or one ounce now I wouldn't Get that much for it but those are the Amounts that most people who know gold And silver would probably think of so For silver I've always thought that it Just doesn't hurt to have some around The way that you might have say a stack Of twenty dollar bills but gold is not For everyday transactions for me and I Can't see a case where it ever would be I might negotiate something maybe a Trade using gold but that would be Planned well in advance another possible Case would be using gold for collateral For a loan because gold is a tier one Asset and some banks will actually allow It as collateral the same that they Would allow say a property some kind of Real estate I've never pulled it off Personally but it's possible outside of That it is for big events and in those Cases it's a two-part transaction trade The gold for cash use the cash for the Purchase So that's my view in a nutshell my Rationale for holding gold rationale for Holding silver you might have other Reasons other thoughts on how to use it In more common cases but to me the Savings aspect is where it's at it has a Dual benefit it's something I like to Buy which means that I'm saving what I Might have otherwise wasted and it's Something that I don't like to sell that

Keeps me from rating the account for a New motorcycle and that's a strong Enough answer to me at least for how to Use Gold without using it for everyday Things boots bullets groceries whatever So here's where you come in let us know What you think I know from the comments And other videos that a lot of people Are interested in this topic and the Idea of using Metals for everyday Purchases so if you have stories to tell Drop them in the comments now I'm Interested in your take either way so Let us know what you're up to and then While you're there be sure to hit the Like button if you found any of this Interesting be sure you're subscribed With notifications turned on if you'd Like to see more on the topic and if You're still here thanks again for Watching I always appreciate your time Take care [Music]