Beware Now That Gold Price Hits All Time High…

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Summary

➡ The speaker suggests that the all-time high in gold prices is due to anticipation of the Federal Reserve cutting interest rates, despite cuts typically only happening in significant market crashes. He warns investors against buying into the frenzy, pointing out that when markets tank, gold and silver trends often decrease.

Transcript

It’s gonna make a weird sound. It’s a gouge. Hey, everybody, economic ninja here. We have to have a very serious talk right now, and it’s about gold prices. Gold just hit an all time record high. Everybody that has bought gold in the last few years are excited. They’re excited. Type one. If you’re excited, there’s nothing wrong with that. But I want to talk about something that most people don’t want to talk about.

And it seems like I’m always that guy. I’m that guy that always says something that nobody wants to hear about first. The reason why gold is hitting an all time high is because we are getting closer and closer every day. As time moves on, we get closer to the point at which the Fed cuts rates. That is what everybody is excited about. That’s why the gold price is trending higher.

People are betting that the Fed is going to lower rates, yet the Fed has never lowered rates unless there is utter and epic crashing everywhere. Why? Because they don’t want to lower too soon. They don’t want to be blamed for out of control inflation, which actually is their fault in the first place. But most of the public, most people in America have no concept of how economics work.

So do you see the stock market crashing? Just so you know, also, when the stock market does tank, gold and silver actually trend lower with them because it’s an insurance place. So hedge funds and wealthy investors sell their insurance, their gold, their precious metals, and then they recoup their losses or cover their shorts, or cover their margin accounts. All right, so during 2007, 2008, going into Lehmanberg’s crash, gold and silver were trending down.

Okay? So the question is, as we’re seeing all time highs, I want to bring people back to reality. I’m not a financial advisor. I’m not a wizard. I am an investor. I look at big cycles. All right? I own gold. Am I selling my gold right now at the top? No, I’m not. But I’m going to get into that. I think this is very important because it says right here out of Reuters, gold Hits Record High.

This is an hour ago on bets for March start to Fed rate Cuts. Now, I’ve told you, I do believe there is going to be a rate cut. I believe there is the possibility next year that the Fed is going to do something to try and juice the markets ahead of the election. I want to go on record as saying that, and you’re going to know I go into much more depth in my courses.

But I want you to understand that we’re going to know that they are hiding, that they’re doing this juicing of the market. You’re going to know this months and months ahead of time if they come out and they say, we’re going to decide to lower rates because we believe the economic outlook looks good. We all know that. They know that it does not look good. They’re very intelligent people.

They’re trying to hide as much. But if political motivation is their weapon of choice, you’ll know, it when they lower rates and they say, we’re doing this because we feel that we should help the housing sector, we should help people get into what’s it called homes and things like that. As a matter of fact, you’ll see it in conjunction with presidential announcements where the president will come out and say, I’m calling on the Federal Reserve to lower rates.

So that’s what the Fed wants. They’re like, all right, if you want us to do this, you got to be the boogeyman. And the government’s going to say, we want them to lower rates, and then they’re going to lower rates for a time, and then there’s going to be a whiplash, and it’s going to take off again. But right now, there are a bunch of bets that the Fed is going to lower rates, and that is what bringing is what bring gold to its all time ever high.

Gold has never been, as of today, this expensive. I think it’s sitting at $2,090 right now. All right, here’s the problem. When the market does take a downturn, and again, the Fed has lowered rates only a few times in history before a big stock market correction. And those times were in the early seventy s. The early eighty s, and then once again in it was, oh, gosh, I think it was 98.

I don’t remember. I just filmed the course, like a lesson a week ago on it and brought all the charts out. There is so many people betting that the Fed is going to lower rates, but yet we still have record high inflation. We all know the reality in food and energy. They can lie to you all they want in non durable goods or furniture, electronics, all those kind of things.

But we all know our pennies are being pinched right now. Our pocketbooks are empty, and Americans are paying much higher prices all over the map. All right? So I am concerned with people that are diving in to any one asset class. I had a friend of mine, I could call him a friend, contact me and ask if he should sell his precious metals because he was looking to move into something else.

And this is what I said to him. This isn’t advice. This is just two friends talking. I felt really led to say this. First off, I have sold my precious metals a handful of times to strategically buy something and flip it. I’ll give you an example. Once, I sold $20,000 worth of silver to buy a tractor. I flipped it for $40,000. Boom. I repurchased like 25,000 in silver, and I took the other 15 as profit and flipped it again and again.

That’s what I do. I’m sure a lot of you do right. But I had a strategic reason for it. I have not gotten my portfolio so out of whack. It was like this once where I owned so much of my net worth was in one thing, right, a precious metal. But I wouldn’t let myself sell it because I still believed in the basic fundamentals, and I was the bedrock of my financial portfolio.

So what I did is I started other businesses or side hustles. I am very leery of the stock market right now. Do I believe it could still go up? Yes. Do I believe it has more opportunity to go down than go up? Yes. Because all that’s going up right now is opium. We are in a PE bubble similar to where we were with the. com era. But the problem is most investors that are pumping this up are pumping it up on applications on their phone that give them little fireworks when they buy a stock and balloons.

Go. Yes. Thank you for spending your money with us rather than the traders of old that know exactly what PE ratios are. Most investors don’t understand what that is. I know it sounds crazy, but it is true. This is why we have booms and busts. So I know this isn’t the exciting thing you’d want to hear from the ninja when gold’s hitting an all time high. And I’ve been saying I buy gold.

I’ve been saying that ever since this channel. And if you’ve been with this channel since the beginning, I know a lot of people that have bought gold and bought silver, and you are richer now because of it. And I think that is awesome. But I would be very hesitant on diving in at all time highs. I buy on weakness. Okay? But what you’re seeing is a frenzy of speculation.

Let me ask this, because type two, if you believe the Fed is going to lower rates in 2024, type three, if you believe they don’t. I’m going to take just a quick second, and I want to see you guys all type I just want to see what you think because I believe and Powell has been very clear. He’s saying you guys are really not on the right trajectory.

If you think we’re going to lower, we’re not going to lower. We’re not planning on lower. The inflation is too high. We have not gotten in control of this. Right. All right. So it’s definitely mixed. I want you to be ready for if they pivot based off of a political leaning, because it’s a trap. See, the Fed knows that they have not gotten on top of real inflation, core inflation, the real stuff, food and energy.

There’s no way they can do that without breaking the backbone of the consumer. And one of those ways is by rapidly rising the unemployment rate. Okay? Federal Reserve notes and Jerome Powell statements have actually absolutely verified what I’m telling you. You have to understand this they know that they can’t stop raising rates, or they at least must stop and pause. And there was a pause that lasted two quarters in 2004, I believe it was, and then they picked back up the trajectory, and then they halted it in 2005, and boom, they held that thing for about, I think it was at least a year, until they started rapidly dropping it.

And about the same time they started lowering rates, the stock market started selling off as well, because it had happened. Unemployment started to spike. Now, if they come out between spring and the third, it’ll happen in the second or third quarter, not the first. And this is very similar, I want you to know, and timestamp this, save this video. You guys can put it up later. We’ve got a bunch of videos that I’ve never even set up, but where I’ve said, okay, I made this call, and then it came, you know, later on.

It’s for a very special, important reason, not while Google is destroying this channel, because of what I said about the warning I came out with, with the illnesses that are coming next year. But I want you to know that if they pivot, what you think is a pivot, and it’s not a pivot, it’s a very short term one or two quarters of lowering rates. And they say that the reason why they believe they’re doing it is because the environment, the current economic environment, they believe that this will help benefit homebuyers and will help benefit the economy at large.

Then we’re screwed. This is a trap, and I’m willing to put my rep on the line for that kind of stuff. Not a lot of people do it. They build these big channels and they have no sack. They’re a talking head. And again, I’m not telling you not to go buy gold. You’re not going to see me putting affiliate links on or whatever. Is it already in the auto description? I can’t stop that’s.

Just already set up with YouTube. But I’m not buying right now. I told you when gold a month and a half ago, six months or six weeks ago. Let me know if you guys remember. I said when gold was at 1840, I was buying gold. I said I put in a purchase for gold at 1840, and that was my number. And since then, it has rocketed up. Now, I’m not selling that gold either, but these kind of bets make me very nervous, okay? And I want to make this warning very real, and that’s why I repeated it through probably six videos between this channel.

And if you haven’t seen my other channel, which is blowing up, thank you, everyone, because there’s no games being played on it with the Algo. It’s the Real Estate Ninja, where I give totally different stories and videos there. If you don’t mind going and checking out, I’d appreciate it. I’ll even put a link down in the pinned comments after this. I make this call because this is very pivotal in investing in real estate and getting ready for this real estate crash.

Because a lot of would be home flippers and investors are going to fall for this trap. Doesn’t mean you can’t go buy real estate if you don’t buy it properly inside the 1% rule and all of that stuff and make a ton of money. But I really want you to be focusing on the right movement. I go over to my real estate course. There is a specific way that the Fed is lowering rates and other metrics that have to line up that bring us to exactly where we were during 2007 all the way to 2012.

One of the greatest times to buy real estate ever. This time is going to be bigger, but it’s going to have this little flipping of the switch. I believe if it doesn’t happen, if the Fed holds rates and does not raise or lower at all, I believe that you may see, because if the Fed does raise rates, that’s going to hurt the price of gold. However, I want to caveat it with this.

There has never been a time on the gold to real estate price index since the 60s where gold has been this strong and going up in price concurrently with real estate. So what does that mean? Because all of the time they’re inversely correlated on a chart, right? This is what it means the next time it moves and gold either goes down less than real estate on a percentage basis, or gold holds steady or even goes higher in price.

As real estate keeps falling in price, the amount that you’re going to be able to transfer that wealth, transfer from the value in dollars of gold into the value of dollars in real estate in that next cycle will be insane. From 2006 to 2012, when real estate had peaked in six, that’s exactly when it peaked Kilo index to where it bottomed in 2011. I apologize. Gold was sitting at $670 an ounce, and by the time real estate had bottomed, gold had peaked at $20 less than where we are today.

You had almost a three times purchasing power bonus in gold to real estate. This is why these cycles are so very vital. This is why I teach real estate cycles again. I’m closing off the entire course January 1. No more new enrollments because another company is coming along and taking the course to the whole next level. Thank heavens. But I’ve made it available for one year for people to prepare.

I put a link down below it’s, I think $299 for that course and two bonus courses. But I want to just again, let me ask you this. Who here owns Gold hashtag Gold or put a Gold emoji down below? I’m just curious how many people if you don’t say I don’t. I’m just so curious how many people now, with that being said, I’m seeing somebody bringing up silver.

I love silver more than gold. I know that sounds crazy, but silver is just so darn volatile. That’s why I love it. All right. If you love silver, hashtag silver down below. But I’m just using gold because today gold’s hitting its all time high. Silver is still half of what it’s worth. Half of what? No, it’s half of its all time high. I’m a silver guy, all right, but I’ll be honest with you, it gets really expensive vaulting it.

But the point is that, again, I’m not a buyer today of gold. I’m a holder of gold. And I’ve made lots of money. And I know you guys have, too, and you’re super excited. But if it pulls back, don’t worry, because there’s going to be a slingshot in that, too. This is all rampant speculation on the price. All right, guys, I hope you got something out of this.

I thank you so much for watching. I’m going to put that link down to the course. I’ll put the link down to the Real estate channel, too, if you want. The economic Ninja is out. .

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