Gold Silver Rallying Despite West Not Getting Involved | Arcadia Economics

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Summary

➡ Arcadia Economics talks about the rise in gold and silver prices last year was driven by central bank buying and Asian retail demand, not by US or European demand. If US investors and institutions join in, it could boost the metals market even more. Despite the strong dollar, gold and silver prices have remained stable. There’s been a large flow of gold and silver into the US due to fears about potential tariffs, which could impact the price mechanism in London, the largest market for physical metals.
➡ The article discusses the trend of people selling their silver back to dealers, with local shops seeing a significant increase in this activity. Online dealers like Money Metals offer higher bids for silver, but people often prefer the convenience of selling locally. The article also mentions that people are increasingly using their gold and silver as collateral for loans, a service offered by Money Metals. Despite the current selling trend, the author remains optimistic about the future demand for silver and gold, noting that these assets are still under-owned and have the potential for significant growth.
➡ People and institutions are moving away from the US Dollar and investing in alternative assets like Bitcoin due to fears of the dollar’s decline. However, the volatility of cryptocurrencies may lead investors to consider more stable assets like gold and silver. This shift is being seen not only in individuals but also in states, with several US states introducing legislation to invest in gold and silver. Despite the potential for a larger deficit, there is growing interest in sound money legislation at the state level, indicating a reawakening of the importance of stable, reliable assets.
➡ Several U.S. states are introducing legislation to support the use of gold and silver as sound money. This includes efforts to establish gold reserves, issue gold-backed currency, and eliminate taxes on precious metals. However, the success of these bills varies across states. Despite challenges, there is growing interest in sound money due to its potential to retain value and resist inflation.
➡ The company, Money Metals, believes in sound money and limited government, and aims to educate people about these concepts. They offer a range of services including selling gold and silver, storing precious metals in a secure location, providing loans against gold and silver for business purposes, and advocating for gold and silver public policy. They also offer a monthly purchase plan for gold and silver, and the opportunity to own physical precious metals inside an IRA. Their new facility is the largest precious metals depository west of New York, with state-of-the-art security measures.
➡ We stand up for our customers because we trust our product and share the same views with them. We publish more valuable metal content than anyone else in our business. We are a single place where you can find all kinds of precious metals.

 

Transcript

But it wasn’t a result really of US demand, retail demand, investment demand. It wasn’t even European demand. It was central bank buying and Asian retail demand, Chinese buying and so forth, that drove those prices, particularly gold, when it blasted through 2000 and went to 26, 2700. So really this price movement was not driven by US retail, wasn’t driven by US, even institutional, it wasn’t even Europe. So it’s interesting that all this advancement happened without that participation. And so I think that one of the potential exciting things that could happen here is that when the US investor and the institutional in the west gets back into the action at the same time as the Asian demand and the central bank demand is going on, that could be extremely exciting for the metals.

And we haven’t seen that yet. The land of Arcania. Well, hello there, my friends. Chris Marcus here with you for Arcadia Economics. And now that we are less than a week away from what has become one of the more anticipated political events, as Trump is almost in office, we’re starting to see the impacts. I mean, as I was reading about the Russian oil sanctions yesterday, seeing even before that happened, people are concerned there, they don’t know what’s going to happen. I hear a lot of policies set to change on day one. We’ve seen it impacting gold and silver as well, so that’s why I’m quite excited.

Joined by a not first time guest, we’ve had Stefan Gleason from Money Metals on before. Although, Stefan, it’s been far too long and a pleasure to have you back here today. Great to be back, Chris, thank you. Well, I appreciate you being here. And JP Cortez, who jp, you were on a month or two ago, gave us a preview of the Sound Money index, which is now out fortunately. And it’s good to have you back here and we’ll look forward to hearing more about that too. So how are you today, my friend? I’m doing well, Chris, thank you so much for having us on again.

Well, I am glad you’re here because, Stefan, you have a very unique vantage point. You’re running one of the largest metals dealers, primarily online, so we’ll have plenty to dig into there. But just as we kick off the year, we’ve seen volatility price is slightly higher now than before Trump got elected. So for all the fears about the strong dollar, gold and silver hanging in there, we see on Tuesday afternoon, gold futures 2690, silver at 3050. And Stefan, any thoughts on what you saw last year and heading into this year you might want to look out for.

Yeah, well, last year, of course, was huge gains in both gold and silver prices. But it wasn’t a result really of US Demand, retail demand, investment demand. It wasn’t even European demand. It was central bank buying and Asian retail demand, Chinese buying and so forth that drove those prices, particularly gold, when it blasted through 2000 and went to 26, 2700. So I mean, it was interesting because we had come off a three year period of very high demand in the west up until the bank crisis in 2023. And then it’s been relatively calm. I mean, it’s certainly at higher levels than five, 10 years ago in terms of retail demand.

But, but it was nothing like it was in the, in the few years prior. So really this price movement was not driven by US retail, wasn’t driven by US even institutional, it wasn’t even Europe. So it’s interesting that this, all this advancement happened without that participation. And so I think that, you know, one of the potential exciting things that could happen here is that when the, when the US Investor and the institutional in the west gets back into the action at the same time as the Asian demand and the central bank demand going on, that could be extremely exciting for, for the metals.

And we haven’t seen that yet. In fact, we actually have seen a decline even further since the Trump election as people have let out basically a collective sigh of relief around, you know, okay, you know, we’re not going off the deep end here A lot. A lot of the traditional buyers, at least at the retail level level, which we see are, tend to be more conservative. That’s not, of course, you know, the, the rule, but it, but it is certainly a tendency. And so I think that threat perception has declined a little bit among those folks and that has, has diminished, especially on the large purchase side.

We were seeing a lot more bigger purchases before the election than we’ve been seeing since then. We still have good volume, but the dollar, the dollar sizes are lower. So I think the edge has come off a little bit since the election. As people wait and see, you know what’s going to happen. Lots of excitement around the things that Trump might do to change the direction. But that said, we’ve seen a lot of volatility, we’ve seen a continually strong dollar, but we haven’t seen a major crash in the metals in the face of a strong dollar.

And I think that’s another very positive sign for what’s happening with gold and silver because all of this stuff has been happening in the face of a strong dollar. And yet gold and silver and gold in particular has gone to very bulls. So, you know, we’ll see what happens next week. Trump gets sworn in, we’ll start seeing policies. But one thing that’s very interesting, Chris, you’ve probably seen this, I’m sure you’ve seen this and, and probably had talked about on your show, but there’s been a lot of volatility in flows of gold and silver as a result of, of fears in the market around tariffs that Trump might put into place.

And, and specifically what it’s done is caused a high premium at the institutional level or at the COMEX level on silver in, and gold in the US above other markets. And that’s created a massive spread really in, in between, for example, London and New York. And what that has done, even though prices haven’t really moved a whole lot themselves, at least yet, what that has done is caused a tremendous amount of metal to be bought in other parts of the world and brought into the US because people that may be hedging or short on the COMEX are worried that they’re not going to be able to close out those contracts and will have to buy them back at much higher prices.

Basically a short squeeze type situation that could happen because people use the New York markets to hedge, but they may have gold elsewhere or silver elsewhere. And so now they’re kind of in a bad spot. And so this has caused a huge flow of gold and silver actually over the last four or five weeks to come into the US and that’s continuing to the extent that, you know, could start impacting the price mechanism in London, which is the largest market for physical metals. So, you know, while we haven’t seen a lot of change in price, these flows and situations that are developing could definitely, you know, do something, you know, pretty dramatic here.

We haven’t seen it yet other than the flows that have occurred, but that’s something we’re keeping a close eye on. And those that are savvy enough usually at the institutional level to capitalize on that can actually make quite a bit of money buying gold and silver in other parts of the world and importing it into the US and delivering it to the exchange and capturing that spread. And so there are definitely a lot of bullion banks and other players doing that. I heard that’s what JP’s been doing. Yeah, I’m sure they’re doing it in unbelievable volumes.

So, yeah, that’s kind of the big story of the month in the markets. It’s not really something that retail can participate in or, or even, you know, is affected by, you know, but, but is a big story. And you know, if, if Trump were to put a 10% tariff on silver or gold coming into the U.S. i mean, inherently that creates a premium for gold and silver in the US because you can’t get it in without paying the tariff. And so I think that’s, people are trying to get it in before that might happen. So we’ll see.

I mean there’s, there’s lots of things that, that could unfold here quickly after the inauguration. Yeah, I, I think it’s a great point. We’re already, I mean, it was one thing to talk about, well, Trump’s going to come in different policies, but now we’re seeing some of those impacts. And also a few interesting points you mentioned in there about how last year we saw the price go up while there was a lot of selling, which is somewhat ironic because certainly in the silver community we know there’s frustration when there’s a lot of retail buying and the price doesn’t go anywhere.

So perhaps a takeaway here is that whether we like or think this is the way the system should work, that there are times and to some degree the retail impact often divorced from what’s happening on Comex. Yet at least they’re a situation where, you know, you had that go in the right direction for a change. Stefan, along with that, the other thing, and you touched on this a little. I’ve been hearing reports, I feel like it’s about a year and a half of a lot of selling on the retail level. So customers selling their silver back.

Now, I know each business is different and I imagine a lot of the times when people sell back, they’re probably more likely go to go to the local coin shop than an online model like you have set up. But yeah, you could share from your experience or what you’ve seen going around. Well, we’re definitely doing a lot more buying from, from the public and from our customers than we have in the past over the last year. For sure, you’re right. People for some reason. Well, it makes sense I guess. You know, they’re willing to, to buy gold and silver and have it shipped to them.

But when they’re selling back, they tend to be more comfortable going locally and just dropping it off and getting paid on the spot. And so the local dealers around the country are getting, have a deluge of inbound metal of people wanting to sell to them. And that actually, you know, of course they, people should try to try to get comfortable or figure out how to sell to an online dealer like Money Metals. Because we pay very high bids for people selling to us. Now you have to get it to us so you have to put it into a box and pack it well and send registered mail and pay insurance and so forth.

But you end up getting so much more when you sell to an online dealer like us than a local dealer who is literally choking on metal and can’t afford to buy very much more. And he keeps lowering his bids and people keep coming in and selling. Nobody’s buying, you know, from him, so he’s flipping it to wholesalers. So but that’s definitely the dynamic we’ve seen. We’ve seen more selling. Even us, even we have seen more people selling to us. But the local dealers are bearing the brunt of it. And you know that’s, that’s where you’re, you’re, you’re seeing, you know, people are getting paid 2, 3, $4 on their spot for silver and you know, 100, $200 on their spot for gold.

So it’s not a very good bid at the local level. You’re going to tend to get more from a Money Metals than any local dealer. But that’s, yeah, I think you know, people are just some of, some of his people taking profits. They, you know, they see the gold and silver are up, particularly gold all time highs. So they’re taking a little money off the table. Makes sense. People should, you know, you shouldn’t just keep your money riding all of it forever. It’s, but then also people may need a little money because of inflation and, and, and you know, say that and I personally would have thought it was people who had been holding it for 15 years waiting.

And finally it’s over 30 AL dealers I’ve talked with, they generally seem to say it’s more people who just need cash or expenses. Yeah, I think that’s true. And we’re, we’re seeing more people want to borrow against their gold and silver too. That’s something that Money Metals does. We, we provide people with a line of credit, sort of like your home equity line. You can actually use your gold and silver as collateral if it’s in Money Metals depository for a loan at a reasonable interest rate so you don’t have to sell it to get liquidity from it.

So that’s a unique service that we offer at Money Metals is you can, you can borrow up to 75% of the value against your gold and silver. So we’ve seen A real uptick in that. So that, and that’s again because people don’t really want to sell their metals, but they may need the liquidity for some reason. Okay. And one other silver retail supply question. And then JP I want to get your opinion on this one too. So you get ready over there as well, my friend. But so we’ve had a lot of this selling price has gone up.

Now on one hand maybe if you didn’t have selling things would be different, but that’s the way it happened. Yet the side effect of that is that when you look at our silver supply, we’ve seen the drain in the inventories and Stefan I, the estimates and research I’ve done, I come across about 3 billion ounces in terms of what’s out there in retail hands, which may be more, maybe less seems somewhat in the ballpark of what you’ve heard and which adding in the stockpiles brings us to about 5 million, 5 billion ounces. So I don’t, I’ve been trying to see if there’s any way to even get some gauge of how much silver has been sold back.

I don’t really know how feasible that is to do yet. Where I’m ultimately going with this is that going back to why people see, well here’s gold going up at 26, 2700 and silver’s still at 30. We still really haven’t seen that new source of demand hit silver. We had a couple of active years yet even now while the price is rising. So now on one hand you are taking some of the supply off the market which when we’re running a deficit would seem to be relevant in a longer term perspective. But anything you could comment there and what could conceivably happen and if we finally do get a bigger mainstream surge, only you reverse the selling.

Buying could be a good. Yeah, we definitely saw an increase in retail participation in gold and silver since the pandemic, basically continuing at least through 2023. As I mentioned, it’s slowed down a little bit since then but, but it’s still an extremely under owned asset extreme. I mean we think it’s Definitely less than 2% of the US public have even a single ounce of gold or silver other than perhaps jewelry. So it’s nowhere near mainstream. It’s certainly not something financial advisors are ever recommending anyone do they try to talk you out of it, they, they belittle it.

They, you know, they divert you to the paper versions of it and so forth. So I mean I, there’s definitely a Massive potential increase in retail participation that we have not seen. Maybe we won’t see it for a few years at the scale that I think it can have eventually. But you know, if it goes from one and a half percent to 3% that own it, that’s a double. I mean there’s, there’s literally not nearly anywhere near enough metal available for that, at least in the form that people would, would want it. So, you know, I’m very bullish about the demand picture for, on the, on the investment side for silver and gold in the US over the next few years.

And that’s why we built Money Metals Depository, which is, already has a lot of metal in it, but we have capacity to store, you know, hundreds of billions of dollars worth of gold and silver in Idaho in this new facility. So, you know, we’re not seeing, we’re not seeing that transition to it going mainstream. And you know, I think we still have a little bit of time before that’s going to happen. So. But when it does happen, it’s a very small market. You know, there’s very little knowledge about how to buy it, where to, where to buy it, how to sell, what to buy.

That’s another important thing. Half the market is the, is the scammers that are selling the rare coins at high premiums. They’re on cable tv. Be very wary of those people. They’re, they’re charging you 50 to 100% more than the actual value of the metal. It’s a self perpetuating problem. We can get into that, you know, another time. But that’s something else we’re seeing that’s very, that’s, that’s a problem and that’s bringing discredit to our industry. It’s leading a lot of people down the wrong path. But I think, you know, we will see this market over the next five or ten years really blossom.

Yeah, well, I mean at the end of the day, I mean we’ve had cost of production go up, we’ve seen pricing go up. Although if you had to really pick the single biggest thing, we still have the pile of debt growing that no one’s taking the loss yet. So hey, we got silver back over 30. So JP, we’re, we’re making progress. I mean we shouldn’t have people completely depressed about silver prices here at this point in time. It’s been tougher times. But anyway, anything you could add there and thoughts on any of these dynamics that are going on right now? Yeah, I think Stefan mostly hit it, but I think something Else to consider would be the gold silver ratio, of course.

And then I think too, there’s a lot of. We’ve seen a lot of inflows into alternative assets. I think the trend, the theme has largely been from individuals to states to countries, to conglomerates of countries. The theme has been de dollarization Institutions and individuals are trying to de dollarize, trying to reduce some of the exposure that they have to the US Dollar. And that has ultimately led to investment in a lot of alternative assets. For example, we’ve seen inflows into things like crypto, Bitcoin specifically. And I think that what we’re seeing is a largely unsophisticated investment group that’s looking for alternatives.

They know that their dollar is withering away. They know that the dollar on its deathbed. And they’re saying to themselves, how do I protect my savings? People are running into bitcoin and things like that, and choosing that as an alternative might be a good idea. But many of these investors haven’t experienced the drawdown like crypto and like these bitcoin markets have. So I think that another potential catalyst that we’ll see here is this reversion. Once bitcoin takes one of these 70, 60% drawdowns, we’re going to see all of these investors that rushed into these markets who are saying, wait, I may have gotten this play wrong.

I know that the answer should be something that is subject or rather resistant to inflation. I know that safety of principle and lack of and reducing counterparty risk is important. But maybe the answer isn’t bitcoin. Maybe the answer is silver or gold. And I think that we’re going to see that’s a potential catalyst that we’ll see, especially as a younger generation gets more into investing, starting to look for assets like this. As for the last several decades here in the United States, home ownership has been the primary means of which an individual has to preserve their wealth or to even make it grow.

That door has been shut for so many Americans around the country, and now they’re exploring alternatives. I think gold and silver are obvious alternatives. For thousands of years have held their value. And I think that this is. It’s an exciting time that we’re seeing with what’s happening in the manipulation in interest rates, with this obvious debt that the government continues to grow, and of course, the structural deficit here that exists at a time where America is trending more towards electrification. So I think as a question of price predictions or general sentiment, I’m very bullish on both gold and silver.

With the understanding that this debt will continue, the government will continue to grow, despite the candidate that was more likely to reduce the size of government or reduce the debt. I’m not, I’m not particularly hopeful in their capacity or even the will to do that. So I think the, the, the investment case for gold and silver remains strong. Yeah, I know what you mean. And I’m certainly in the camp that Doge board or not, I think there’s some mechanics that cut it. You’re still probably going to end up with a bigger deficit. So, and that’s actually a really great point.

And there was an, or, excuse me, an article today. Clint S wrote a great article on how sound money checks the government far more than Doge ever could. Right. We’re talking about the fraud that enables all of the other fraud, the government’s capacity to overspend or to blow to bureaucracy or to fight wars of choice. All of that is enabled by endless printing of money. And so sound money, obviously, while I hope that Vivek Ramaswamy and Elon Musk and that team of people that are market minded, that are entrepreneurs, while I hope or while I believe that that is a better alternative than a state run by bureaucracy, I’m not necessarily sure that there’s political will to do what they’re talking about doing.

You can’t have a serious conversation about America’s spending without touching entitlements and without touching military spending. And neither of those will happen. There’s the political will to change or reform those spending sectors, isn’t there? So I’m hopeful. But Doge is a funny example of this very American thing that we do where we are willing to establish another agency to address the already too many agencies that exist within the government. The good news is though, that is a great irony. But what we are seeing is a major wave of new interest at the state level for sound money legislation, which when we started this 10 years ago, when money medals got into the public policy process, particularly focused on the states, there was almost nothing happening.

Literally, you know, maybe a bill a year, usually a sales tax bill or something. Now we’re looking at dozens of bills like, and five or five or six or seven are passing every year, you know, prompted largely by the efforts that JP and Money Metals have been making at the grassroots and at the state level. But you know, I know that this is part of what JP wants to talk about, but we’re seeing an explosion of interest among state policymakers and a will to pass these laws. And so that’s One of the great things that. One of the great encouragements of the last few years is that we’re seeing a reawakening of the understanding of the importance of sound money.

We’re not seeing it in Washington, but we’re seeing it at the state level. And that’s. And I think the, the huge part, I think of what Stefan just said, this exciting thing, is that it started, you know, in, in 2018 when we passed the original, or worked to pass the original Wyoming Legal Tender Act. We’ve seen an explosion in these projects where back in 2017, I was running around with a model bill that was asking states to invest state funds in gold and silver. 1%, a de minimis amount, just anything at all, own a single ounce of gold.

And at the time, gold was twelve hundred dollars an ounce. When I was begging these legislators to please consider this idea today, obviously we know that the price of gold is sitting at 26, $2,700 an ounce. So the money managers in this state were derelict in the fiduciary duty that they have to protect the citizens and the reserves of their state. Fortunately, we’re seeing that on top of all of these sales tax bills that have passed, which have been plenty, There are now 45 states in the United States that have either fully or partially ended this tax, apart from capital gains bills, which states have now pivoted to ending capital gains taxes on the backside of the transaction.

Because of course, we know when someone uses gold and silver in some states, they’re charged a sales tax to buy the metal. And then in many states, they’re charged capital gains tax when they use or sell the metal if they experience a gain. And this friction makes it unworkable as money. So states, of course, are introducing a ton of legislation to address this taxation problem, which we believe is the biggest source of friction and the biggest impediment to gold and silver being used as money. But it’s not just taxation either. These are states that, like I mentioned earlier, it’s not just BRICS countries.

It’s not just countries with an adversarial relationship to the United States. It’s states themselves that are looking at their balance sheet and saying we own too many dollar denominated assets and we don’t own enough gold. And they’re actively taking steps to mitigate that. Utah just recently passed legislation approving a $180 million investment in physical gold. Tennessee has empowered their state treasurer to invest in gold. And just this year, the state. The 2025 legislative season in the United States started in full last week and already we have four states that have introduced legislation that are trying to create strategic gold reserves for their state.

In some cases $10 million, in some cases just 1% of whatever the state funds are. But more and more states are looking around and looking to see at what central banks around the world are doing, what the greatest entrepreneurs and investors are looking at. And they’re all looking around and saying, wait, the smartest investors, the smartest money managers are buying gold. We should be too. Yeah. And I find it’s interesting every time I get one of your press releases about that and you see the commentary from the people who signed the bill, they sound like they’re from the BRICS nations.

They’re saying the same exact things. And jp, what, what has it been happening with Texas? I know they’ve been moving things forward, talking about some sort of gold and silver backed currency. Where, where are they at right now? So Texas, obviously their sound money bona fides came in the establishment of the Texan, the Texas Bullion depository in the mid 2010s. Since then, Texas has been pretty quiet on the sound money front. States all around them have introduced and passed legislation on this issue. But there hasn’t been a to out of Texas until this year. This year they’ve as by my count, there are already five bills that have been introduced in the state of Texas that promote sound money in one way or the other.

The most meaningful one by my measure that I can see is the most maybe simple bill of the year that I’ve seen so far introduced. This is a very short bill that says that the state of Texas will invest $5 billion in precious metals, $4 billion in gold, $1 billion in silver, and that’s the entire bill. And this is just one example of these bills like ones that we introduced in Wyoming and ones that we introduced in North Dakota that are efforting to make a gold reserve possible. There are also other pieces of legislation introduced in Texas.

They’re considering establishing issuing gold backed currency and various matters like that. That’s an issue that other states have been considering as well. So we’re obviously in support of any measure that promotes sound money and eases access and use of sound money. So the Texas bills, obviously we’re hopeful that those will pass. But the thing about this legislation in general, and not just Texas, this past year there were 68 bills that were introduced across 28 states this year. I mentioned that we’re only a week into the session and we’re already approaching almost 30 pieces of legislation in almost 16 states that have already introduced legislation like this.

And all of this legislation comes with varying degrees of viability of each given bill. So us being a small team, we have to focus our bandwidth on the bills that we found the most success with. And in our case that has been bills around taxation in many cases. So the five states that are still charging that sales tax, Kentucky, Maine, Hawaii, Vermont and New Mexico, of those five, the majority of them are going to introduce legislation to eliminate that tax this year. Capital gains as well. Many of them also introducing legislation to end that bucket too.

Jp I’m actually sad to say California’s gotten worse. California has what is called a threshold sales tax. So not all of the items are exempt from sales tax. There’s a, a rules or conditions around what is exempt. Some states will exempt things based on the item. Some states will invest or exempt things based on a dollar threshold. In California’s, up until I believe two years ago, that threshold was $1500. If you bought more than $1500 in the state, your, your purchase order was tax or excuse me, your purchase was tax free. However, their legislation has a little wrinkle in it that moves that threshold based on the inflation rate.

So since inflation was high in California and the United States states by rule that threshold went from $1,500 to have a tax exempt purchase to $2,000. They increased the amount required for you to have a tax free purchase in California because of the federal government’s own policies. It’s the most backwards things that actively harms investors in gold and silver. And there’s actually six states, including California that have these thresholds. So we call that a poor tax. So basically you tax the people who make smaller purchases and you exempt the people, you know that, that make larger ones.

The problem is with California, as much as we’d like to knock that out and just say make everything exempt, we think that if we pass, we had a bill introduced in California saying hey, that we want to change this. They’d say wait, why are we letting anybody off the tax? You know, this is like a 70% socialist state. Unfortunately. I grew up there. I know a lot about California. I love California in many ways. But, but you know, that’s, that’s a one where I think it’s probably best left alone for now because it could backfire. Yeah, well J.P.

you mentioned that they’re doing things to harm their citizens and seems like the California government, there are many things that they’re doing that aren’t so great for the citizens, unfortunately. Although, jp, perhaps I could just scroll down here and we’ll put this link in the description field below. But for people who would love to find out more about the great work that you’ve done here and helping. I mean, it’s not easy to educate a congressman, as anybody knows, so perhaps you could just share what else is on here. I think just one last point. I want to be a little more optimistic than Stefan just was.

It is true the socialist state of California is not a sound money stronghold. But what I found through the 10 years, now that the sound or coming up, we’re on year 11, now that the Sound Money Defense League has been in existence, we’ve found that sound money is not necessarily a partisan issue, Right? While California is a deep blue state, so is New Jersey, a state with one of the highest tax impositions on its citizens in the country. And just this year, Governor Murphy of New Jersey signed a bill eliminating the sales tax on purchases of precious metals.

So to be sure, Wisconsin, another blue to purple state that recently passed legislation like this. And on the flip side, legislation in Tennessee, legislation in Kentucky, legislation in Mississippi, these are deep red states that you would think would have a fidelity to sound money or the Constitution or issues like this. It takes many times, many, several years to pass legislation in a state like this. So this issue is not split along party lines. You know, even in blue states, we’re having great success. Not because of us necessarily, but because inflation affects everyone. No one is immune, almost no one is immune from the effects of inflation.

Wage earners, savers, people on fixed income, these are people that are being actively harmed by policies, intentional policies to devalue America’s money. So we, you know, it’s not a question of just going into the red states where we’re sure we can win. We’re picking up wins everywhere we go. And that has been, like Stefan mentioned, it’s been a gradual increase every single year of these states that are not only introducing this legislation, but also actively passing it. And that ranges, like I mentioned, everything from the tax bills to the extension of tax bills and sales tax exemptions that already exist, to in some cases, issuing of currency, bolstering state reserves and pension funds with physical gold, state bullion, depository bills.

All of these issues. And all of this, I think, speaks to the larger renaissance that’s happening within money. Right? The idea that we can reimagine a money that holds its value, the American system of chasing aggregate demand and money velocity being the most important facets of the way we measure the health or the value of a money is just, it’s backwards in its foundation. So a money that sustains value, a money that retains its purchasing power over time while subject to market competition, that’s ultimately what we want. That’s ultimately what international countries and states here in the US are pushing towards and actively working towards.

And I think that all of that right as going back to gold and silver as an investment, it just speaks to how bullish we are. We’re still so early in this reawakening where it’s just trickles right now of people that are waking up to the importance and the need for sound money, about how sound money is a necessary condition for human prosperity. And that number we expect to continue to rise as legislators and individuals learn more about these issues and are actively faced with the consequences of current policy, which is to print and to devalue. I would just say one thing and I know you got to go, Chris, but one, one important part of this story that is worth mentioning is the role of the grassroots.

These things are not just happening just because, I mean there is momentum and there is interest and people hear about it. But the secret to these successes that we’ve achieved with, you know, not just us, but that we’ve been part instrumental in achieving has been the grassroots mobilization or money metals customers. Our email lists, we’ve done mail outs to, you know, we have almost a million customers across the and so these are people that are highly invested and interested in removing gold and silver tax taxes from gold and silver and some of these other things. And we’ve been able to engage them in these battles and telling them who they should contact, who they should lobby, whether it be the governor, the chairman, their own member.

And this is something at the state level that are not used to seeing a lot of the time that kind of organization and grassroots. And so that’s a very important factor in what has created this environment that’s allowed us to move these bills forward. Yeah, well, I certainly appreciate, and I think a lot of people watching appreciate that you guys are out there doing that. And perhaps just in wrapping up Stefan, you could let people know a where they can find money metals and certainly if they need storage or gold and silver, you have them covered on that.

And I will be happy to publicly give you my bullion dealer marketer of the year award because I seen a wide array of them and I think what you guys do is great because there’s also a lot of education and giving people market coverage And a lot of good things and mentioned the site. We will accept the award. We hereby accept your award. Thank you. And it’s only January. There’s we Money Metals. Part of our mission is education and, and, and you know, sound money. It’s why we got as own as owners of this business. My business partners and I got into this because of our belief in sound money and limited government and, and you know, sort of Austrian economics and so forth and you know, so that’s part of who we are.

And so we’ve tried to be very overt about, you know, how, why these things are important. Educating people with content not just being about selling or, or asking people to, to you know, engage with us with their transactions. We’re trying to educate people and also involve them. And so moneymetals.com if you go there, you can, you can get on our email list that will also enable you to be alerted of legislative developments that are happening in your state. So go to moneymels.com at the bottom of the page there’s a, there’s an email opt in. You’ll probably see a pop up as well get on the email list.

We just launched Money Metals Depository. There’s a video there at the bottom of the homepage. It’s about seven minutes long. I think you’re, you’re going to take a look at it Chris, maybe even include part of it in the, in this podcast. But there’s a, there’s a pretty interesting look inside of our new facility which is twice the size of Fort Knox except we’re audited and the gold is actually there and we can provide proof of that. You can come and check on your property which you can’t do at Fort Knox. But anyway, really appreciate being on here and, and go to moneymetals.com and definitely get on our email list.

Well, I appreciate what both of you guys are doing and certainly a great resource for anyone that is interested in gold and silver which gee, I think there should at least be some interest whether people buy it or not given what’s happening in the world. I think it’s a darn relevant topic. So I thank you guys both for being here and like you mentioned Stefan, I will link to that video and so people can take a look at your new storage facility. Now in the early 2000s and leading up to the financial crisis, myself and my brother Stefan and brother in law Clint, we were all precious metals investors because we were concerned about the state of things.

We saw, you know, the inflation that was coming potentially you know, financial crisis at some point, and really, precious metals was just a way to kind of protect ourselves. A hard asset like gold and silver just seemed to make a lot of sense, just really as a diversification. And then when the opportunity arose to get into this industry, it just seemed like a perfect fit, really. There were a lot of companies out there that were promoting rare coins and high premium products that aren’t necessarily good investments. And so we saw a gap in the market at that time and wanted to fill it by providing people with value and basically giving them access to gold and silver very close to the actual melt value of the metal, which is the way that people should be investing in gold and silver.

Best guess is probably 1 to 2% of Americans even own a single ounce of gold or silver. And we intend to change that. So this new facility that we just recently completed and moved into is literally the largest precious metals depository west of New York. And frankly, what we have here is even more modern and state of the art in terms of technology and controls and things that you would expect to see in a world class precious metals facility. And it’s in Eagle, Idaho. It’s twice the size of Fort Knox. Our vaults are audited. The vaults at Fort Knox are not audited or haven’t been for many decades.

So we think we’re doing a good job here. This is a 37,000 square foot facility. About a quarter of that is Class 3 Vaults, which is very unique in our industry. It’s certainly the newest and most advanced in terms of, you know, the security measures that are in place. First would be the physical air, the steel and the concrete that’s involved in our vault systems. And then there’s electronic security. These would be things like, you know, motion detectors, laser curtains. And then there’s our human security. We have dedicated security personnel with law enforcement experience. We buy and we sell.

But a lot of people would like to store their precious metals in a secure location. And so that’s really the main driver behind Muddy Metals Depository. We house metal and store metal for our clients, and we’ve got ample space for that. And then also the rest of the operation can run out of the same building. And it’s really exciting to be. So most of our customers are just making individual purchases, but we have an option where people can sign up essentially for a monthly subscription or an automatic purchase. And the nice thing about the monthly plan is that you can just set it and forget it.

You can put it on autopilot, sign up for a certain amount every Month, whether it be gold or silver, whatever items you choose. And boom, you know, it’s happens automatically. We either ship it to you or we can store it. And we’re really proud of that because it’s very unique in our industry. Most people have not figured out a way to offer that kind of solution at scale the way we have. And it’s a wonderful way to be saving in real money, gold and silver. Many people do not know this, but you can actually own physical precious metals inside an ira.

You can maintain all the same tax advantages, but it gives you just another investment choice when it comes time to take a minimum required distribution. You can actually distribute the metal to yourself. You don’t necessarily have to sell it and take dollars. We partner with several different IRA custodians. We ourselves are not an IRA trustee, but we can act as the dealer. We of course can act as the storage entity. A big portion of the metal that we hold here in Money Metals Depository is for IRA clients. If you have gold or silver in our depository and you want a line of credit against it, we’re able to do that as long as it’s for commercial or investment purposes.

In many cases, that’s a great solution for folks who don’t want to actually have to sell their precious metals in order to pull cash out of it. And it’s an interest only loan, it’s a revolving loan, meaning you can pull out your line of credit and you can pay it back down at your option. It’s not something that you have to keep fully drawn. It’s available to you when you need it and that way you can minimize interest and pay it down when you don’t. The Sound Money Defense League is a public policy project of Money Metals and it’s an extension of our belief as people who believe in sound money constitutional money, gold and silver, and want to see that restored as money again in America.

One of the things that we’re very proud of is our public policy efforts to go around to various states throughout the country and help enact sound money legislation. The Sound Money Defense League has been working to enact reforms primarily at the state level, but also at the federal level, to remove taxes from gold and silver, to encourage the ownership of gold and silver, to encourage states to hold gold and silver as a reserve asset, to affirm that gold and silver are money as the US Constitution prescribes already. And so the Sound Money Defense League is out there using our own know how in public policy.

My background, I was in public policy for 15 years before I launched Money Metals. And so we’re using the grassroots organizing skills, the legislation, testifying and promotion and so forth to enact these reforms. And we’ve been extremely successful in recent years. We’ve been passing several laws each year promoting sound money at the state level. And I can tell you that many of the successes that we’ve had at the Sound Money Defense League and passing new laws would not have been possible without the grassroots support and involvement of our customers. We sell gold and silver, but we’re also, and most importantly, we’re in the credibility and trust business.

We do everything we say we’re going to do. We ship timely, we communicate well. It’s a nerve wracking process for many folks, especially the first time they’re investing in precious metals. And it’s a big goal of ours to make folks comfortable when they’re making this kind of investment and making this kind of decision for themselves. Money Metals offers all of the offerings that somebody interested in precious metals needs. We provide great pricing, fast delivery. We have a fully integrated storage offering. We provide a loan program for people that want to borrow against their gold and silver for business purposes.

We have a monthly purchase plan that allows people to put their investing on autopilot. We advocate for gold and silver public policy around the country. We’re the only ones doing that. We’re advocating for our customers because we, we believe in our product and we are aligned with our customers. We are the most prolific publisher of precious metals content in our industry. We are a one stop shop for precious metals all under one roof.
[tr:tra].

See more of Arcadia Economics on their Public Channel and the MPN Arcadia Economics channel.

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