Gold Is A Hedge, Not An Investment

Transcript

Unknown Speaker  0:01  

The purpose of wealth talk is to educate, inform, and hopefully entertain you on the subject of building your wealth. Wealth builders recommends you should always take independent financial tax or legal advice before making any decisions around your finances.

Unknown Speaker  0:19  

Welcome to Episode 80 of wealth talk. My name is Christian Rodwell, the membership director for wealth builders. And I'm joined today by our founder, Mr. Kevin Whalen. Hi, Kevin. Hello, Chris. Good to be with you again today. Yes. And well, we're still in troubled times, it seems that these times are just never ending at the moment. And we obviously were speaking to members every day, Kevin, and they're asking us different questions about what they should be doing with their money and their investments. So we're looking today at the topic of gold, which is, I guess, alternative investment and referred to as an asset often, Kevin, but in wealth builders world, technically not. Yeah, it's an interesting one. I mean, if you're an economist, you often refer to precious metals and commodities as an asset class. So from from that point of view, it's known as an asset. But if we kind of reflect on what we think in wealth builders is the definition of an asset. And I think we probably gave this in definition way back in early episodes of wealth talk, Chris, but an asset is something you own.

Unknown Speaker  1:26  

That is not you. It puts money in your bank account while you're asleep. Hmm, okay, so can you own gold? Yes. Does gold put money in your bank account while you're asleep? Well, it doesn't, because gold doesn't have a natural flow of income. So we must acknowledge then, as true wealth builders together, that gold is not an asset, it's a hedge, it's a way to park money,

Unknown Speaker  1:55  

where you are investing really in the stored value

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of gold, because gold with its historical connection, you're going back, as far as you can imagine, when humans first sort of traded in anything precious gold has had that store of value. And because it's so rare, it maintains a store of value. So so that's what you're buying into if you buy gold, and we don't make any recommendations of what people should buy, hold or invest in. But gold is a hedge. So it's definitely worthwhile chatting about hedges, because when times are troubled, most people hedge their money in cash. And cash has got all sorts of complexities. One is banking risk. You leave all your money in the bank, what if the bank goes bust? You know, we've seen that almost happened, and certainly some banks have gone.

Unknown Speaker  2:46  

You've also got, you know, interest rates are low threat of negative interest rates, you know, so almost getting zero on your money.

Unknown Speaker  2:55  

Maybe even back in the wild west days, Chris, when you have to pay to store your money. That could happen. Theoretically, I don't think it will, but it could, will be negative interest rate. So gold is an interesting one, because you can buy gold in relative small quantities. So it's a nice easy hedge. And it also has a fascinating appeal, whether it's in coined form krugerrands and so on, or in jewelry form, very popular in certain cultures, of course, or whether it's in bullion, and I spend more time Chris after we hear from Charles maybre very good guys. stablished guy in working with a company. Well, I mean, there's history for his company, sharps. pixley going back to the 1700s Chris, isn't it? Yes, that's right. And it was actually the the merge of two separate companies, sharps Wilkins, which was formed in 1740. And then pixley enable, which was founded in 1852. And, and they merged in 1957 form sharps pixley and very, very traditional, established and well respected companies. Yeah, very nice. And I've been to the sharps pixley offices and showroom which is in Piccadilly just down from Piccadilly Circus and they've got a volt down there. You know what Chris it's a pretty nice feeling to go down in a bolton little stroll corner, kilogram bar goal that Tony was definitely very uplifting. I can imagine it is I tell you what is also uplifting, Kevin when we have lovely reviews, and we've got a really, really good one again, okay this week, but I'll pull out the one from z Razzak. So z if you're listening, thank you so much. And let me read this out. So z is written on Google actually. So Google reviews is another place really easy can find us and if you've had some interaction or enjoyed listening to the podcast, drop us a review there. But he said Kevin and the team are great at what they do. They also go out of their way to help people who desire to create sustainable wealth through education via amazing content and training. I would highly recommend Kevin

Unknown Speaker  5:00  

If you're fortunate to have a conversation with him, make sure you tap into his vast knowledge, which is second to none. I think the difference with Kevin and the team is they do care and get a buzz out of helping people. Wow. Very nice blushing, in fact,

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very smart guy, you know, very credible accountant, tax specialists, you know, so very used to giving guidance himself. So it's quite humbling, that somebody who's busy minded professional takes time to acknowledge us. And I'd say this, Chris, this is episode number 80. In our podcast, and one of the things we often say, but I don't think we press and I want to press the flesh a little bit you listeners out there, you know, Chris, and I do this, and we are the talking side by side. And we're talking to ourselves socially distance in computers, in different rooms, in different offices on different days. But we're giving of ourselves, you know, we genuinely are trying to help. We want as many people to be wealthy as possible, irrespective of whether you favor us with any monetary value, we want to give you some intellectual value back. But you know, many of you are listening, but not participating. You're not telling us. So why don't you take a minute, sometime in the next 10 minutes after you've listened to this podcast, if you kind of like any of the podcasts, just post a review, just say loving it, or just something that takes no more than 30 seconds of your time? Because it's a gift, you know, we get a buzz. And she's absolutely right, we get a buzz when we help people. But sometimes the people who are helpers like us, Chris, we need to be acknowledged to not in a kind of self serving, are we good? And Pat each other on the back kind of way? But are we on the right track? Here? Guys? Are we saying the right things. So if you'd like in anything that we're doing, if you like, how we're interacting, if you're liking the message that we are getting out there, either tell us or tell somebody else. But tell us just say, doing a good job, guys keep going? Or if you don't like it? Don't tell us that way. Send us a message and saying, Well, you know, you could do this, you could do that. Because we will respond, if you will take one minute of your time. And that's what I'm asking for in this episode. I think we, we often will say, if you're enjoying it post review, we don't get as many as we think we should. So I'm reaching out to you personally, if you're listening one to one now, please. 30 seconds, one minute, can you give us that just acknowledges and keep going guys loving it. Or, hey, it would be great to hear from you about this. And then we'll we'll pick that up and we'll reflect on that. Anyway. Enough of that. Chris, why don't we zoom on over and have a listen to what human jobs have to say about God? Okay, right. Let's head on over and listen to the conversation with Charles maybre from sharps pixley Giles, welcome to wealth talk today.

Unknown Speaker  8:00  

Alright, Christian, thanks very much for having me on. I'm very good to have you. Now. Would you mind just giving our listeners a bit of a background as to yourself and to your company, sharps? pixley? Yes, certainly. So I worked sharps Pixie for four years now, my background before that I was working in corporate finance for an investment house called biggest deal resources. And they actually invested in very early stage development mining projects worldwide, including some precious metal projects. But I wanted to get out from behind the sort of finance financial valuation methodologies and focus on something a bit more client facing. So this position became bear that sharps pixley in the precious metals sector. So I thought why not? Let's move to the other end of the spectrum, and help people invest in something more solid. So for anyone who hasn't dealt with a bullion dealer before, and it gives them a bit of an understanding as to how it works.

Unknown Speaker  9:05  

Sure, so I mean, you know, firstly, clients come to us and really, there's no investment minimums or maximums, we look up to in advance of looking to invest you know, 10,000 pounds or clients who are looking to invest family offices that are looking to invest sort of upwards to 20 million pounds. So clients reach out generally to us and I think the thing that makes us Pixi unique is obviously our physical presence in London. We're very much of an old fashioned mindset if you like, we put some customer service and face to face meetings to the forefront of what we do here. Rather than just you know trying to encourage everyone to use our online shop to encourage people would meet us and to come form relationship.

Unknown Speaker  9:52  

And gold is an unregulated asset class so what some of the governance in around in that industry Giles

Unknown Speaker  10:00  

Sure, I mean, I think, you know, luckily over a company, which is has a name and precious metals for over 200 years now.

Unknown Speaker  10:09  

So, you know, we have a reputation, and we take that very seriously and heritage there as well. But But mainly, it's the London bullion Market Association. This is the the industry body, which governs what we do, but it governs the whole market. So it really looks into the practices and manufacturing techniques of all the refiners globally as well, to ensure that, you know, the gold is of the highest purity.

Unknown Speaker  10:41  

So, Charles peaks The only offer our clients gold bars from it's called an lbma accredited, good delivery refinery, which can be abbreviated as the GDL. So if clients are looking to buy gold bar insurance from an lbma accredited refinery. Okay, so let's start looking now at some of the things that makes gold such as strategic asset, Charles. Sure. I mean, I think, you know, firstly, the gold is, is relatively scarce. We all know that. I mean, if you look at the global mine, production each year on gold is about 3400 times. Now, this has only increased by about 1.6%. year on year for the last 50 years. So the supply of gold is scarce. Firstly, the demand for gold is ever growing, particularly on the investment side, I think that's really down to emerging markets. You know, obviously, we're thinking of China, here, we're now a huge consumer of investment gold.

Unknown Speaker  11:48  

And, you know, with those developing markets, you know, in good times, there's also a lot of people buying jewelry, you know, that's that's usually the sign of a buoyant economy. And if people have a little bit more money to spend on jewelry in India, of course, they buy jewelry as an investment form for them of gold. And you can always tell how productive the agricultural farming seasons been in India, because all the rural population, travel into the cities and buy a lot of gold if they've had a good, a good season. So, I mean, you know, we've covered this luxury, good. We've covered in sort of scarce supply, obviously, it's used in technology, as well. So there's demand for it there. And of course, it's used as a sort of a hedge against market uncertainty and systemic risk it for us here, this company, that's what we do. And you know, there's gold, as always had a history of preserving its wealth over time in fear currencies.

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debase over time, and we're seeing that more and more prevalent than right now.

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But, you know, everyone's had the sort of the,

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the anecdote that an ounce of gold and into the Roman times would buy a suit of armor, and you know, it's still just about by zero, Susan, Susan Savile Row here in London, if you're lucky. Yeah. So I actually put a post in the wealth builders, Facebook community last week jars to let people know that I was speaking with you. And we had a few questions and just want to dip into a couple of those now, actually, and the first one was from Dave Ford. And Dave was asking why the stock market has been dropping recently. And there's been a corresponding drop in the gold price. And in times of uncertainty, he would expect a proportional rise in the price of gold.

Unknown Speaker  13:41  

Yeah, I mean, he's absolutely right. This is a question which a lot of our clients have been asking us recently. And I think, you know, this probably started more in

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March. And then the beginning of April, when we saw an all encompassing mass market liquidation. Everything plummeted as obviously we entered a lockdown and, and those huge uncertainty in the economy, and why gold also started selling off is ultimately that if you consider their own portfolio fund managers out there who have equity positions, and when those equities, they decrease and full, very swiftly, they get margin calls. And then the fund managers look at what's the most liquid profitable position that they can sell off, and to cover those margin calls. And that's when they think that these positions are going to recover quite quickly. Now, we saw an awful lot of that, the end of March, and, you know, suddenly the gold price was down at 1400 and $50. Having been up at you know, 1900. So that's really what drove all markets in the same direction. And then we have this sort of V shaped recovery as of course, we saw these mass new fiscal and monetary packages, being released to try and combat COVID

Unknown Speaker  15:00  

So that's suddenly brought everything up in the same direction at the same time again. But more broadly, what I would just ask your your listeners and your members to consider is to try and avoid looking at sort of short movements and focus on longer term trends. And now what I mean by that, and I'd happily send it to anyone, and perhaps to David as well, is some research that Bloomberg data which Bloomberg brought out, looking back at the correlation between gold and US equities, international legacies over the last 20 years. So this is actually quite off the moment it was published just to the end of September. And the correlation over the last 20 years with gold, US equities, actually naught point naught five. So that shows that gold is doing its job as a diversify. And, you know, apart from this short term,

Unknown Speaker  15:58  

period, and Babs is also due to reflationary times right now, as well. I think, you know, that comes with what I mentioned about the monetary and fiscal stimulus. But you know, right now, the countries are doing whatever they can to try to dig ourselves out of this hole. And we are just a couple of weeks away from the US election, which is another kind of hot topic, right? How's how's this gonna affect gold? Yeah, I mean, it's, that's the most pressing question right now, clients are clamoring as to which results going to yield the biggest increase in the gold price? And I think that, you know, it's interesting, isn't it? I mean, Trump,

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obviously, has been good for coal prices over the last, you know, few years. You know, let's not forget that he always saw the war with Iran.

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And, of course, you know, is sort of ongoing war with China, slightly different, different themes.

Unknown Speaker  16:58  

But, Biden, for me, if you look at a lot of analysts reports, as well as sort of every support what I'm saying, you know, Biden's promised such mass fiscal spending over his term, you know, throwing a figure of something like $9 trillion around, which, you know, of course, people do throw these figures into thin air. But I think that the scale of the stimulus package that we see, will be greater immediately after the election of Biden wins than if Trump does. So I believe that that will only increase what we're seeing with this recovery. I don't think it'll be sustainable in the long run, whether it'll be six or 12 months, who knows. But I think in the short term, all asset prices will rise considerably. So I think that Biden will be better for gold in the short term, and Trump, no Trump victory? And are there any other factors that you think can contribute over? You know, when we look at 2021, in terms of the price of gold?

Unknown Speaker  18:00  

Well, I mean, I think, you know, what, what do investors look for when they're investing in gold, they're looking at interest rates, that's been the main driver for gold over the last few years.

Unknown Speaker  18:13  

And, you know, we are now in a period of sustained, no interest rate. If you look at inflation.

Unknown Speaker  18:23  

The ECB has their target of 2%. I think we're a little bit above that at the moment. And then you've got, you know, the interest rate at the moment, and naught point one. Now, what that means, essentially, is that you've got a negative real rate, this is interest rates adjusted for inflation. So if you've got a 10,000 pound saving in your bank account in your savings account, you're essentially losing 2% of that per year at the moment. Now, that is

Unknown Speaker  18:52  

due most

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strongly strong driver for gold prices that you'll see. Now, the opportunity cost of holding your money in the bank is obviously significantly less. And not only that, but

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bond yields are significantly lower than they have been as well. So when you're looking for an efficient diversify, over the next, I'd probably say, three, four or five years. I don't think he's looking much further than gold.

Unknown Speaker  19:23  

I mean, if we look at just talking about interest and debt, particularly in the US, I think they're, they're fit fiscal interest payment at the end of September for the year was 520 $2 billion.

Unknown Speaker  19:39  

Now, that's only going to continue growing. And if you throw in their spending on defense as well, you're already at 1.4 trillion. And so if interest rates do start increasing, then

Unknown Speaker  19:53  

it's just hard to imagine how they're going to stop this sort of stimulus and

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printing, increasing the money supply exponentially.

Unknown Speaker  20:04  

I'm going to come back to a couple of other questions that we've had posted in our Facebook group, Giles. And next one's from Jeff Sturtevant, Jeff's asking, Is it true to bullion vaults work on a fractional reserve principle like the banks do with money, where the gold you buy and own is actually resold to another buyer working on the principle that all gold owners would not ask for the delivery of their gold at the same time?

Unknown Speaker  20:29  

Okay, well, thanks, Jeff. It's a question. That's a good question. This is probably a question which no one knows. Yes, your true truthful answer to that. I mean, I hear sharp speak See, we only offer clients allocated and individually segregated metal. Now, we also offer you inspection rights, you can come in on it, you can hold your own bars, take pictures with them, do whatever you like that metal is yours a tear. So there is no counterparty risk, if you like for you when you invest in shorts.

Unknown Speaker  21:00  

And going back to the the larger banks, there are a lot of conspiracy theories. And, you know, last year, I think I read a piece of research, which said something like, every ounce, which was supposedly back, backing and ETF,

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it was also lent to about another eight

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ETF holdings. So not all these ETFs in the same, I will

Unknown Speaker  21:29  

I can't say that strongly enough when picking the correct one is, of course important.

Unknown Speaker  21:35  

But, you know, I think gold should be considered as the the ultimate hedge against systemic risk and market collapse. And with that being the case, the old adage that whoever holds the gold makes the rules will always ring true. Right. So we're offering and you have the option to do this with anyone else as well. But But please do consider owning some physical gold. Because if you can't touch it, you don't really own it. Hmm. And how does it work with kind of ensuring that and the vaulting aspects, Charles? Sure, I mean, you know, all of our holdings are fully insured.

Unknown Speaker  22:19  

We are underwritten by Lloyds of London. So that's one of the questions which client aren't the clients ask? So I know what happens if if your underwriters collapse? Well, you know, we use the biggest and the best. And if Lloyd's of London collapsed, and then the world's really darker place.

Unknown Speaker  22:38  

So we offer bolting in insurance for naught point 3% per annum. And that's inclusive of VAT, which is a very reasonable competitive rate, we feel.

Unknown Speaker  22:51  

Okay, now, the questions from Steven Holl this time, and he's asking a question that's probably very relevant for our listeners. And this is how to invest in gold via a SAS pension. So what products can be held specifically jars.

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So according to HMRC, rules, clients can only hold gold bars of a purity greater than 995.

Unknown Speaker  23:15  

Which for us, we only sell off the bars which are 99.99% pure gold.

Unknown Speaker  23:23  

And as I said, from from the accredited lbma, good delivery refineries. So it's very straightforward. We have an application form which clients, trustees complete

Unknown Speaker  23:34  

with their pension providers or their scheme provider, I should say, and return it to us, the account can be opened within 24 hours, usually. And then clients also have an online portal access, where they can sort of review

Unknown Speaker  23:49  

and also manage their accounts. If they want to buy more, sell more, they can do so long line. But you know, I'd always encourage clients to give me a ring and do things over the phone voice execution usually yields a slightly better price.

Unknown Speaker  24:05  

So I guess Finally, Charles, is there anything that our listeners should be kind of looking out for when they're thinking about investing in gold and nopsi? You know, another comment actually, within the Facebook groups, there are some potentially dubious schemes that you see out there and you know, how do you do the due diligence, obviously, working with someone reputable like yourself that's got the, you know, the trust and the background that you do have any kind of other tips for people just to make sure they avoid any costly mistakes?

Unknown Speaker  24:33  

I mean, I think that's it. I think that reputation counts for a lot. Certainly, in my book, and everyone else is we know, our clients and hopefully your members are considering

Unknown Speaker  24:45  

investing an awful lot of their hard earned funds. You know, they, they want to make sure that it's safe. And I always encourage people to have a good relationship with, you know, with the outfit that they choose.

Unknown Speaker  24:57  

You know, for me

Unknown Speaker  25:00  

I don't think it's right that generally, clients, you know, commit to large investments over the phone, I would always encourage you to come visit us. Of course, that's been made more difficult this year due to COVID. But you know, thank goodness for zoom, and other providers, of course. But, you know, I think that you just need to feel feel safe, and trust that the outfit you choose to use. And, you know, I think obviously, nowadays, everyone, there's a review on every company out there,

Unknown Speaker  25:35  

the customer service is absolutely crucial.

Unknown Speaker  25:39  

And, you know, the things you need to look out for, as I've mentioned, are that you're buying gold from a reputable refinery, and that you can always sell it back to them. You know, we offer clients, one of our unique selling points, if you like, is that we offer a buyback guarantee on metal we've sold will always buy back. And it's incredibly liquid. If the client says Mrs. Jones, I want to sell a kilo of gold, within 10 minutes, we'll have instructed a bank transfer back to his account. And the funds in the UK account will arrive in the state within the hour, usually. So it's incredibly quick and liquid. And I think that that goes back to sort of talking about counterparties. You know, you want to make sure you're using a firm who've got the financial resources, even in times of significant market stress. And you know, and what I mean by that is, let's say we do see gold prices rally next year. And suddenly, people decide that the world's looking great, and the economy, the economic outlook is suddenly favorable. And that there's a lot of selling new for gold, you want to make sure that you're using a company who can manage the liquidation process without delay. And for us shores Pixie, we are eventually owned, and part of the degrussa Group, which is Europe's biggest precious metals, retail dealer.

Unknown Speaker  27:04  

And that gives us the institutional scale service, support and pricing which we can pass on to our clients. And I think that, you know, it's really important to delve into the background of the company that you're investing with. Charles, thank you very much for sharing with us on wealth talk today. pleasure, thanks for

Unknown Speaker  27:26  

the jobs talked about holding gold as a hedge there, Kevin, what are some of the benefits of that? Well, you know, the important thing when you're building wealth is, you know, by diversification, so you're building wealth in multiple pillars, but also in troubled times, you might want to keep more of your assets in a liquid or semi liquid form, in other words, easily realizable from the formality in into cash to enable you to reinvest or build other assets that you want to in business property, joint ventures, and so on. So your gold has long been established as a place to storing value, as well as other precious metals. But certainly gold would probably be the most popular one. And so therefore, it's important to kind of understand how gold works. And one of the best ways to hold gold, in my view, Chris is to is to hold it in your pension. And particularly, you can't hold gold in normal pensions, you know, personal pension that you've got or a work pension, because they're not designed for that they're only designed for the stock market, which is why we believe there's, you know, better alternatives to that. And one of those alternatives, which we hear a lot within our community, Chris isn't is in the SAS, that small, self administered scheme that allows you to take control of your pension, and therefore you can invest in whatever assets, whatever things you want to recognizing that we're not saying gold as an asset, because there's no income stream, but definitely a great way to hold

Unknown Speaker  29:04  

gold is to hold it in an assess. Hmm. Yeah. So what are some of the benefits because we, we've heard on several occasions, some of our members who, perhaps they're in between projects, and they've got cash in their SAS, and they kind of want to put it to work. And instead of having it in cash, would you recommend perhaps having some of that in gold are the pros and cons to that? Well, of course, there are pros and cons to anything. And let's be clear, we never recommend, right, we say the very beginning of the podcast, you know, our role is to educate, to inform, and to entertain. It's not to give advice, but I'm saying everybody should have a rich and diversified portfolio of assets. And if gold appeals to you, then one of the few of the reasons actually why holding gold inside your suspension would be useful. Well, first of all, if you think about it, if you put money into a pension, you get taxed.

Unknown Speaker  30:00  

From. So if you, you know, if you pay money personally, let's say, and you're a 40% tax payer, and you pay whatever you pay into your pension, you've got 40% tax relief. What if you then go and buy gold? What if you just don't, he bought gold at a 40% discount? What's wrong with that? You know, that's not a bad thing is it? The next thing of course, any growth is completely tax free. So there's no income taxes, no Corporation taxes, no capital gains tax, and there's no inheritance tax. However, the thing to bear in mind about owning gold, you heard Giles, talk about different ways gold can be

Unknown Speaker  30:40  

can be owned and stored, you know, jewelry, as you mentioned, coins and bullion. The only way you can hold gold in a pension is to hold it in bullion format. So there's a few technicalities there Did you hear him talk about the quality of gold, as always fancy language, but the quality of gold needs to be a certain standard, which is 995, which is 995 1000, which means virtually pure gold. And it needs to be in bullion or bars, format. And you can't take the delivery of the bars to hung, but you need to have those bars stored. And sharps. pixley just happen to be a place where you can store your gold, you can also store gold at the Royal Mint, you know, so there's lots of places you can store your gold, so you can inspect it, you could touch it, feel it and so forth, but you just can't take it home.

Unknown Speaker  31:29  

But that's lots of good reasons to hold money. And the other thing is interesting about gold is because it's so acknowledged as a store of value, you might have heard him referred to the ability to buy and sell gold. Well, whenever you're buying and selling anything, there has to be a market for it. So if anybody wants to sell gold, for whatever reason, they'd want to sell gold, then, of course, there is a market for that. And any good bullion dealer will be able to sell your gold virtually instantly. You know, so while it's not as liquid as cash, or as liquid as a tracker fund, you know, there's a process for it, it's pretty quick. So you know, you can get you capture your value quickly, and you can exit from that value relatively quickly. So you know, if you'd like gold, no reason at all, why you couldn't think about holding gold inside your pension. One of the things that holds people back from building wealth, we've talked about overwhelm lack of time on last week's episode. The other thing is, is the fear of making mistakes, risk. And the importance of doing your due diligence on any investment is obviously critical. And we talked about that jars, and also just having that relationship and taking time not rushing into things. It's credibly important, Chris, with all assets, you know, it's the fourth part of the wheel of wealth isn't a due diligence. So

Unknown Speaker  32:50  

you need to buy gold from a reputable dealer, if you're going to buy gold, and there are many of those. We're not annex to an exam, but you know, we like sharps pixley they're very willing people to show people around, to get them an experience of seeing what gold looks like, feels like prices of things. And as you've heard from jars, you know, he he treasures the relationship. Now you don't need to, there's plenty of places you can buy gold online, but just check out the reputation and, and make sure you're buying, you know,

Unknown Speaker  33:24  

you're actually buying bullion, you're not buying hope. There's other ways to buy gold, by the way, you know, you can buy gold ETFs you know, buying the actual asset, but shares in, in companies that manufacture or process gold, so, or mined gold. So there are ways to buy gold in different different assets, you know, certainly through the stock market, or through funds or ETFs, exchange traded funds. So I would just

Unknown Speaker  33:51  

put this in your pipe and the smoke of it. So if you think gold is worthwhile, and you know, one, one thing also to talk about, which is very briefly I'll mention is he talked about,

Unknown Speaker  34:02  

you know why people want to store gold in, in what he called fiat currency. Remember, he said fiat currency.

Unknown Speaker  34:09  

So it's not an old Italian car, it just basically means currencies that are not backed by anything. So in the old days, you've you may or may not know, Chris that up until the 70s. All notes and coins in circulation were backed by the amount of gold that were was owned by a country. And that was the gold standard. That as we become much more my suppose aware of quantitative easing, printing money to get out of, you know, sovereign debt become you know, companies go bust, individuals go bust and countries can go bust. So one of the ways they avoid that is by being able to print money at their own political discretion rather than as a multiple of the gold bullion they have in storage.

Unknown Speaker  35:00  

So that gold standard is gone. So now all currencies are really at the mercy of opinion. There's no real value in in the notes and coins in circulation anymore. And that's what we mean by fiat currency, just not backed by anything.

Unknown Speaker  35:18  

So just just a point of education, Chris, if anybody heard that term and didn't know what it meant, but you know, that's the reason why gold used to be inextricably linked with the value of the dollar and the value of the pound. Now, it isn't 1971 I believe, post the Nixon who was responsible for that? Well, that's so new us. But there you go. But that's fundamental. Right. So, yeah, so you mentioned earlier about, you know, feedback from our listeners, Kevin. So you know, we're really open to any other alternative investments, anything within the invest investment pillar that you're interested in, then the Facebook group at wealth builders, on Facebook is a good place. And we had a good conversation actually, around the topic of gold. And just before this interview, and obviously, we heard some of those members questions that I put forward to jobs. So

Unknown Speaker  36:05  

I've enjoyed that. Kevin, it's good to to understand that.

Unknown Speaker  36:09  

More, Chris, actually, I remember doing 1520 minutes.

Unknown Speaker  36:15  

presentation on the subject of holding gold in your SAS on conference, which was in July of this year, was called the SAS Alliance conference, which, if anybody goes to SAS alliance.org. So WSI, s alliance.org. You know, you can you can see there's a conference coming up in November, where we're focused focusing not on gold and other assets, but just on property. So if you're interested in properties and asset, and pension is an asset, and you want to see how pensions and property can go together, as a free to attend,

Unknown Speaker  36:54  

basically, to hold a conference, so you can tune in when you want to in recording of old days available. So you've got the ability to watch at your leisure, you can tune into that at SAS alliance.org. And you'll see on there a link to the property conference, which is on November the 12th. So that's just an interesting thing. So gets again, some free education, some free information to work out where the property is right for you or where their assessed might be. I'll link to that in today's show notes. Also, Charles did supply a prospectus. And so anyone who wants to download that just hit on the show notes and you can have a look through that from Matt, sharps. pixley as well. There you go. I enjoyed. Thanks, Kevin. Yeah, where we going next, Chris, we got some interesting things on property to talk about in the next podcast, I believe. So we'll dive back into property.

Unknown Speaker  37:39  

But up until next time, Chris, I'll see ya.

Unknown Speaker  37:46  

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