PART 2: How Gold Beats Cash

Somebody once asked why having gold Would have any benefit over cash since You need to convert the gold to cash in Order to use it Well that was Tuesday and sometimes it Just takes me a while to get around to Answering things [Music] Every week I mentioned that it was a Good thing to have gold or even silver On hand as digital transactions continue To get more and more invasive now that Was a video about Banks knowing about Your visits to massage parlors and fur Shops your alleged visits but what I Didn't mention is why gold or silver Would have any kind of advantage over Just keeping cash on hand or in a Savings account So let's mention it so the First Advantage is this idea that gold Appreciates over time and silver does as Well but we're going to focus on goal in Ounce of gold it would have cost you 274 Dollars plus premium in the year 2000 And today it's obviously worth more at The time of recording an ounce of gold Will cost 1 665 dollars plus premium now We all know that gold and silver don't Increase in value in straight lines but History proves they appreciate over time Cash does not if you set aside 274 Dollars in cash in the year 2000 you Would still have 274 dollars today so if

You have any reason at all to keep Savings outside of the bank and I think There are quite a few it makes sense to Have some part of that Savings in metals Rather than just having it all in cash Based simply on the potential Appreciation of your gold and silver Now we all know there are other assets And Investments That appreciate as well But what we were looking at was having Cash available to give you more Flexibility so we want something that's As liquid as possible and available is The big word there because if you want To take out more than a few thousand Dollars in cash today you need to talk To a banker the ATM probably won't do it For you now I've complained enough to my Personal banker by now that I have a Higher daily limit but there's a limit And that should probably have been the Lead here The prior video that I mentioned was About Banks tracking our purchases using These Merchant category codes if you buy A boat that's category code 5551 if you stay at a hotel the category Code ranges between 3 500 and 39.99 and That depends on the hotel you stay at That's happening today so if you're Planning to check into a no-tail motel You might want to use cash As cbdc's roll out those are Central Bank digital currencies I would say that

It is a given that they will have all of The tracking the regional banks have all Of the tracking The isos Have and then Some so a cbdc would know about your Purchases at Boat Shops at hotels first Shops and massage parlors just like the Banks do today and they're gonna know Some other things as well now the United States does not have a cbdc yet But the writing is on the wall and what We don't know is whether they'll be Effectively made mandatory but an easy Way to get there would be to require the Population's use of the cbdc for certain Transactions examples they might be Government services like tax payments or Refunds maybe entitlement payments like Employment Social Security maybe Medicare Medicaid Etc and we also don't Know how quickly anyone would agree to Use them particularly Beyond those Required uses that I just gave some Examples of but you get the concern from A tracking angle purchase scrutiny would Only increase from where we are today Okay so this is where I drop down a Layer in the last video I briefly Mentioned that a new Merchant code was Just approved for firearms retailers now My fur hats massage parlor joke that Takes a turn when you look at a serious Topic and the reason that this Particular code is so heated is that It's coming as a step toward gun control

Now I'm not going to talk politics here But if the push that got this new code Created was the thought that it could Possibly prevent future shootings well Then the use case is no longer passive Tracking it's flagging a buyer ahead of Time And if we knew that that worked every Time that'd be wonderful but you can Decide for yourself if you think that That sounds great or terrifying it Doesn't matter to the point here if the Banks and isos now have a mandate to Flag users and to share that information With government officials or the Government just has a way to go in and See any particular person's purchase History well then the tracking is now Profiling now if you go down one more Layer the current wall between Banks or Isos and the government that goes away If a cbdc rolls out because the cbdc is The government now earlier I mentioned How certain transactions could make Partial adoption mandatory for retail Use well the government isn't going to Roll out of cbdc in a way that would Decimate Banks and credit card companies They're not going to destroy the Industry they just bailed out in 2008 But a central bank digital currency Might become the way in which those Banks and ISO settle transactions now a Cbdc it could offer a wholesale channel

In addition to what we were just talking About with this retail Channel and I Assume it will Cbdcs operate using a digital Ledger or A blockchain like Bitcoin does and that Would be far faster and cheaper than the Current model the banks use they would Also remove certain risk factors like Individual bank insolvency so the short Story here is that the banks and isos Well they'd stay in business they'd Continue offering their cards but the Infrastructure would be centralized So to recap Banks know what you're Buying today and the government well It's not far behind and maybe that Scares you maybe you're still waving it Off but as I said when I kicked this Video off we still have the option of Using cash that assumes though that we Have access to it so I'm going to take Us down one more layer and then I'll Bring it back up A monetary policy and new legislation Could be implemented almost immediately Through a cbdc a monetary policy that Might be as simple as immediate interest Rate changes new legislation though that Could be a lot of different things Depending on the current political party In place and I'm not here to talk Politics but we're always no more than Four years away from the possibility of Significant policy change now if

Legislation came through to pause Firearms sales to any person who also Spends lots of money at first shops well That change Could Happen very quickly I Am using a ridiculous example not only To keep this light you could probably Imagine a few of your own though So back to Gold because that's why we're Here I've always kept a little bit of Cash for emergencies I think most people Do I also have Bank savings accounts to Cover that three to six months of Expenses that we always hear about I Think that's also pretty common practice But as I've gotten older and my savings Has grown rather than keep that all in Sidelined cash stored in a safe Somewhere and Bank savings accounts I Started turning some of that into gold If we want to put some numbers on this And we just used easy math say a hundred Thousand dollars in savings most people Would likely have most of that saved in A bank account maybe they'd have a few Thousand dollars in cash at home but if An event came up or that person needed To quickly get at say twenty five Thousand dollars that person can't do it They have to get to a bank and they have To work through daily withdrawal limits Now it will take time and it will take Scrutiny and each of those withdrawals Well it's also tracked but if person B Had fifty thousand dollars of that

Savings in Gold well that gold can be Converted to cash with no counterparty Risk no worry if things like Bank runs No worry of daily withdrawal limits or Bankers asking you what your plans are Now All of that is practical today none of It hinges on the future risk of further Transaction profiling maybe false Positives it doesn't rely on concerns of Cbdc's and possible policy swings but if You're planning for down the road rather Than planning for what's happening today Which you'd be late on some of those Other possibilities that could come up Down the road well they should at least Be considered the recap here is pretty Simple there are reasons that you might Want cash gold appreciates cash does not And pulling cash out of a savings Account is not as easy as you might Think even in a normal everyday case Just a typical Tuesday but if you add a Bank run to the mix that issue escalates Pretty quickly so if you put all of that Together I think that makes a pretty Strong case to have some gold and this Video is really just meant to explain Why why it makes sense to hold gold if You're someone who thinks that Everything had been covered already with Cash on hand or Savings in a bank Account and hopefully I was able to make That point without getting too deep into

Political intrigue so let us know what You think are you concerned about cbdc's And possible profiling or is the future Just So bright that you have to shop for new Shades let us know Sunglasses by the way Merchant category code 8043 now while You're in the comments 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]