➡ This article is about the value of investing in precious metals like gold and silver. The host, Dr. Andrew Kaufman, and his guest, Mark Gonzalez, discuss how these metals maintain their value even when economies face issues like inflation or currency collapse. They use the example of Venezuela’s hyperinflation, where gold’s value increased five times more than the inflation rate. They argue that owning precious metals can provide financial security and opportunities during economic crises.
➡ The text discusses the importance of owning metals like gold and silver during times of crisis, as they can help you not just survive, but thrive. It advises not to advertise your wealth and offers tips on how to store your metals safely, either at home or in secure storage locations. The text also compares investing in precious metals versus the stock market, highlighting the stability of metals in maintaining purchasing power. Lastly, it emphasizes the need for careful planning and purposeful decision-making when it comes to liquidating your metals.
➡ The text discusses the value of investing in gold and silver as a way to preserve purchasing power, as these metals can consistently buy the same amount of goods over time, unlike the fluctuating dollar. However, it warns against investing all your money in precious metals, as they’re not always immediately liquid and their price varies. It also explains the difference between physical and paper metals, with the latter involving contracts to buy these metals in the future, which can be risky but potentially profitable.
➡ Investing in gold involves buying a contract at a set price, using borrowed money to buy more than you can afford, which can be risky but also profitable. If the gold price increases, you make a profit. However, there’s a problem because the contracts reference more gold than actually exists in the vaults, which can affect the spot price. When buying physical metals, you don’t pay the spot price but a manufacturing and dealer spread, which reflects the actual value of the metals. Different types of physical metal are available for different purposes, and it’s important to have the right items for the right transactions.
➡ The text discusses the value and utility of gold and silver, including different forms like bars and constitutional silver. It explains that the value of these metals is measured in troy ounces, which are different from regular ounces. The text also mentions that while gold is valuable, it’s not practical for small purchases, unlike silver which comes in smaller, more affordable sizes. Lastly, it advises against waiting for price dips to buy these metals, instead recommending a strategy of regular purchases over time, known as dollar cost averaging.
➡ The text discusses the gold-silver ratio, which is the amount of silver needed to equal the value of gold. Historically, this ratio was around 15, but it’s currently around 63. The speaker believes that following this ratio can guide decisions about when to buy gold or silver. They also predict a major change in the monetary structure, which could impact the value of these metals.
➡ Mark is ready to help you create a personal plan that works best for you. Even though he’s busy, he’s committed to assisting those who genuinely want help. He’s not just selling products, but offering valuable advice on how to succeed. It’s highly recommended to reach out to him for this beneficial service.

Gold and silver, they keep pace with the actual purchasing power. Going into an example, in 1964 or 65, you could buy a gallon of gasoline with approximately 25 cents. Even before that, with silver at $20, 30, $35, you would find out that you consistently, consistently still get that gallon of gas. It’s not just numbers on a screen. It’s actual base value that still acquires the same products. This is the True Health Report, where critical appraisal fuels true freedom. Hello, everyone, and welcome to the True Health Report. I’m your host, Dr. Andrew Kaufman. Today we’re going to talk about a financial topic.

We know that we have been facing problems in our economy that have been ongoing, such as inflation and a mounting federal deficit. And we see looming on the horizon shortages in energy, possibly food and other elements of the supply chain. And it behooves us to think about financial security. So today we’re going to talk about precious metals, gold and silver. And if we look at their performance over the last year, we can see substantial price increases and even record high highs. But of course, a lot of volatility. And it can be a very confusing subject if you haven’t already been studying it and are a veteran stacker like we are.

So today I have Mark Gonzalez from First National Bullion. And Mark and I have met several times at various conferences, and he has been in this business quite a while and has five brick and mortar stores, coin shops selling gold, silver, and other precious metal bullions. And he’s going to give us an introductory lesson today. So welcome, Mark. All right. How’s it going out in California? It’s going great, Andy. Thanks for having me on. It’s a pleasure. Yeah, the pleasure is really mine. And this is a topic I’ve definitely wanted to cover for a while. And one of the things that made me a bit hesitant is that the financial world has its own vocabulary, and if you’re not already indoctrinated, it can be very, very confusing.

So thanks for coming on to clarify these things. And I think we should kind of start at the beginning, which is what’s the purpose or what’s the benefit of investing in precious metals in the first place? Well, okay, so right off the bat, I don’t see precious metals, and I’m sure we’ll talk about this more, but I. I don’t see precious metals as an investment or a hedge. Precious metals are the foundational cornerstone of the entire financial system and has been for a very, very long time. So what you’re doing is you’re holding, owning, by owning precious metals, you have in your possession, hopefully the actual backbone money structure.

So when you go from one system of nominal accounting to another or regime change, you’re kept intact and you carry your way through that revaluation. So let me see if I understand that in lay terms. So you’re saying that if you hold metals like gold and silver, that those are actually the real money and whatever fiat currency that a government has, like dollars or euros or rubles or rupees, that those can change over time. And in fact, if we look throughout history, right, all of those fiat currencies eventually collapsed, but the gold and silver still have their intrinsic value and will sort of give you the ability to own property regardless of what fiat or paper currency or what government is in power.

100%. Correct. Well, that’s fantastic. So is that. Now often precious metals are called a hedge against inflation. And you mentioned that you don’t think they’re a hedge. But it seems that there may be a relationship to what we just talked about in terms of overcoming currency failures that is related to inflation because inflation is an artificial created thing when fiat currency is printed or created with nothing of real substance behind it. Is that accurate? Yeah, it’s 100% accurate. So I mean, you can call it what you want. I choose to use the terminology of the actual matter of fact.

And it’s money. Right. So you mentioned earlier, you know the terminology words have meaning the term hedge, you know, I don’t know when it was introduced, but to have a diversified portfolio, you have a certain allotment of gold and silver as a hedge for when things get crazy, whether it be war or spikes in inflation or change in interest rates, all that kind of stuff. So yeah, it can balance out a portfolio and protect you from volatile loss. But the core purpose of metal being held is you’re actually holding the foundational money to keep yourself solvent.

And history shows that the valuation of that holding that money actually overshoots a default of a government or hyperinflation or a repricing of a currency. So not only do you protect yourself even keel, but you come out ahead. And have you looked at any of the currencies that have gone into a hyperinflation cycle? Of course, people often talk about the Weimar Republic, people talk about Venezuela and what happened to, let’s say, the price of gold during those periods? Yeah, I have actually. I, I, I did a talk on the Venezuela hyperinflation about two years ago at an event in Georgia.

So I’m Pretty familiar with that and interesting thing with that. Just, just relation to kind of where we’re at at this point in time. And I will, I will say this before I start. So the ascension of precious metals and the devaluation or destruction of everything else going into a new monetary structure, from the current paper fiat model to a central bank digital currency, digital mode, in my opinion, will and always be a managed event. So that being that. But In Venezuela in 2017, you had gold price in Bolivar go from about 11,000 Bolivar to about 17,000 Boulevard.

It kept a lot of people out of the market because the price spiked. They were looking for that pullback. It also encouraged a lot of people to sell their precious metals, fearing that, okay, I made a nice gain again, looking at it as an investment. And people went on the wrong side of the trade of what actually happened. Because six months later, the devaluation or hyperinflation of Boulevard, it rose the cost of living across the board in Venezuela, for the people living there are trading in it 5,000x, not 5,000%, but 5,000x. Yet the gold valuation of Boulevard, that’s 50,000%, right? Yeah, it’s just monstrous.

But yet the value of gold rose 25,000 times. So not only did you keep yourself, your family, your business alive to live to fight another day and come out the other side, because there’s opportunity and chaos, right? There’s a lot of opportunity and chaos, and there’s going to be opportunity for those holy precious metals in the coming chaos. So you kept your family alive, but then you also prospered significantly. So as everybody else is going out of business, as real estate’s getting cheap, assets are just out of reach for most everybody else. You’re able to buy five times the assets in a hyperinflation market.

So are you saying that the value of gold actually went up more than the inflation? Five times more. Five times more. So not only were you protected, so let’s say that you had $10,000 in or 10,000 bolivars in the bank at the time. Right? Now, at the beginning, maybe that bought you a car, but after the hyperinflation, it bought you maybe a pack of chewing gum. But if you had gold worth 10,000 bolivars at the beginning, and that could buy one car, after the hyperinflation, you’d actually be able to buy five cars. Five cars versus a pack of chewing gum.

I’ll take five cars every day. Now, some people say that during a financial collapse like we’re talking about with the massive hyperinflation that nobody’s going to be interested in your precious metals. They’re going to instead only be interested in consumable commodities like food and fuel and things like that. But is that what actually happened in Venezuela? No, of course you had commodity transfers. I mean, parallel markets pop up in situations like that. They definitely will exist. That, that’s coming to the US where that package chewing gum, right. That sack of potatoes, that, that, you know, liter of propane, that, that was tradable.

But gold, even silver was tradable as well. People were going to these parallel markets with the chains of gold necklaces, be it 14, you know, 22, 24 karat, whatever the case may be. And they’re breaking off links, they’re shaving off whatever they need. And that’s the benefit with precious metals, is you may not. Your resources that you have may not be accepted because they’re only accepted based on the receiver’s need or desire. So if I have propane, paperclips, rubber band and tinfoil, and I’m trying to acquire your seeds, but you don’t need what I have, you’re not giving me your seeds yet.

Gold and silver are universal globally. Again, as that backbone of monetary structure, you would, in most cases, unless you’re just not thinking clearly, you will accept my gold and silver knowing that there’s someone else that is going to accept it for you for whatever it is that you want. It is universal and above all. So this is a really, really powerful idea because what you’re saying is that if you have these metals in the time of chaos and collapse, that not only are you going to be able to survive, but you’ll actually be thriving while everyone else is crumbling 100%.

And I wonder, you know, of course you might ask, well, would that make you a target? So one thing is that it’s important, you know, not to advertise that you, you know, are holding a lot of this, but to, you know, only disclose with the. Whoever you’re going to have a transaction with. Would you. Would you agree with that, Mark? Yeah. Yeah. Walk softly, quietly. Never let them see you coming. And I have, I have some fairly wealthy clients, and the most wealthy of my clients, you would have no idea. You’d have no idea they were wealthy or no idea that they had pounds of gold in their basement.

I guess I should have finished that, that statement. Yeah, you would never, you would never know how wealthy they are unless they were a personal friend of yours. You just, you just wouldn’t know. It’s the One that is flashy speaks the loudest. Yeah, they’re going to be a target. So you want to kind of loose lips sink ships for sure. Do you have any recommendations now? Well, we haven’t really got into the difference between paper and physical metals yet. But since we’re kind of talking about this scenario, what do you think are the best ways to store your metals? Let’s say that you have bullion, coins, bars, things like that.

How do you safely store those to protect yourself? Well, home storage, home custody is always the first go to and there’s different levels for different purposes of what someone’s trying to accomplish through this transition in monetary systems. Again, chaos brings opportunities. So home storage being the number one go to that I look for. If you don’t have capability for home storage or you have different intention plans we can get into in a bit, then First National Bullion offers three convenience storage locations. One in San Diego, one in Massachusetts and one in Delaware. We would custodial hold the metal for you.

It would be titled to you and it does make ease of liquidating for whatever purpose. And I don’t feel that people should liquidate unless they have a purpose. Do not liquidate your metal just to see an increased account balance. That, that’s very naive. But as far as liquidation purposes, you don’t have to take it down to a local coin shop. If you live in a different state or even a different country and you don’t have to ship it back to us, it’s already held in our vault. So it’s just a matter of you contacting First National Bullion, contacting me, telling me what you’re looking to liquidate.

We make it happen same day. I see. Well, that sounds very convenient and I understand some people wouldn’t feel comfortable letting a third party hold this, but it provides a really valuable service. What about home storage? How, you know, do we bury it in our backyard? Do we use a safe? Are there any specific recommendations that you have to obtain the appropriate level of security? Well, I have people I work with that have done all aspects of it. So that also comes down to your personal ability. I have one client that has tremendous amount of land at a mountaintop in Mississippi and he buries everything, seals it up in the industrial food safe, all the bars and coins.

He has a, he has a treasure map that’s not going to work for everybody, especially in suburbia. It might be a little difficult in a pinch if you had to get to it and get out the door, you know, are you really going to go out there with the shovel. I think a safe really is fine. I maybe a couple different safes. There’s lots of safes that you can get, wall safes that you can hide a very. One of the truly best ways is take inventory of where you live and where you can put in, you know, false doors, false cabinets, false drawers.

I’ve even had clients wrap it up in and Saran wrap and tin foil, put it in a Ziploc freezer and label the chicken so you can have various different ways. There’s no true wrong way to do it because again, it goes back to the previous question and comment that loose lips sink ships. So if no one knows you have it, they’re not necessarily coming to get for it. And if they can’t find it kind of hiding in plain sight, they’re not going to acquire it. So I would definitely encourage people to do further research on this topic and see, you know, what are common places that criminals or burglars actually do look for hidden valuables.

Definitely don’t advertise that you possess these items. Like it’s kind of might be tempting to brag that oh, you know, I just got a few ounces of gold or, or silver or this or that, but much better to just keep it, you know, as your personal knowledge. And in terms of, you know, what are the parameters of safes, which ones are more secure, you know, issues like how heavy is the safe, how thick is the door, is it bolted to the floor? You know, those kinds of issues definitely worth doing some research about. Even if you’re doing your best to live clean, you’re still being exposed from off gassing furniture and plastics in your food, to synthetic fibers, personal care products, and even medical imaging procedures, especially fat soluble chemicals.

These toxins don’t respond to your average detox. They settle deep in your tissues and you need the right tools to clear them out. That’s why I created the ultimate detox protocol. A free 30 day roadmap that teaches you a serious nature based detox using pine targeted nutrition and a focused daily plan. You’ll choose the cleansing diet that fits your needs, support your elimination pathways and take action against the toxin load that’s been holding you back. Many people who’ve done this protocol have reported major improvements in energy, focus and digestion and even long standing symptoms they thought they’d have to live with forever.

Unfortunately, I can’t share the full scope of results people have experienced using this protocol, not on this platform. If I did, the video would surely be taken down, but trust me, it is incredibly powerful. Download it for free at the link in the show notes. Your health is your responsibility and this is the best place to start. So what about now? You said you don’t think precious metals or you don’t consider them an investment. But also many people put their money in the stock market not necessarily as an investment, but like for their retirement savings. So what are the advantages, disadvantages of saving your money for the future in precious metals versus, you know, mutual funds and the stock market? Okay, good question.

First of all, again, I mentioned that gold and silver is metal. You can treat it as an investment, you can buy etf, you can buy leverage and you can actually trade. Traditionally, metals is bought held for a duration of time, whether set up in advance or until some sort of monetary system change. And then you find an exit. Again, be purposeful with your exit. I, I’m not a big fan of the stock market lately. The put your money in the S and P and it’s just going to grow immensely. Well, I mean that’s a facade and again it goes to the illusion and appearance of, of what’s being presented to us.

So you can see these increases and the value of stock markets going into a dot com bubble and collapse or going to 2008 and collapse where again you mentioned retirement. So someone has, let’s say in 2007 they have a half a million in a 401k and then by 2011 it’s worth $55,000 yet then in 2020 or here currently it could be back up to like $800,000. So you’re seeing the digits on the screen thinking okay, great, hurrah, I won’t. But to extract value, you have a difference of nominal, the actual price point of the dollar given valuation to those stocks.

And a lot of them, when you look at profit and loss and how much debt they have, they’re really not as good as investments at all. So we’re living in kind of a fantasy land. But to extract value and go back into real world assets, 2007, 2008, a breakfast burrito when I lived in San Diego cost about $2.15. Now it’s about 15. So you have that, you have that delta indifference of what it actually purchases. It’s nice to make you feel good that you know, you went for a ride and now you’re up significantly from the initial start and all things continue to go, but to actually utilize them, you’re going to find a different story.

And that’s kind of the con of it all, where gold and silver, they keep pace with the actual purchasing power going into it. An example, up through 1964, you had silver in US dimes, quarters and halves, right? Every country did it. Mexico had the peso and the centavos where a varied contents of silver. Canada had it up to 80%. All these things are things of the past now. But in 1964, 65, you could buy a gallon of gasoline with approximately 25 cents, right? 23, 28 cents depending on where in the country and distribution and tax. And if you were to even before the rally heading into the end of the year with silver, even before that, with silver at $20, 30, $35, if you were mathematically calculate the value of the silver per quarter, you would find out that you consistently, consistently still get that gallon of gas.

And occasionally you would get a gallon of gas and a pack of gum. Occasionally you get a gallon of gas and a half. So you have to take that in consideration when you look at the percentage value gain looking at gold and silver as an investment from one point to the end. Because it’s not just numbers on a screen, it’s actual base value that still acquires the same products. So I think what you’re saying here is because the value of the dollar is always changing in terms of how much it could buy or an important term that you introduced, purchasing power, that putting your long term savings into the stock market, which goes up and down, right? That depending on when you withdraw that money, it, it may or may not actually be able to buy the same things that you could have bought it for when you put that money in.

Whereas if you have gold and silver, you’re pretty much at any point in time going to be able to purchase the same amount of things, of stuff with that amount of gold. So it really preserves the value of your savings 100%. Now gold and silver, as far as a barometer of value, it’s going to happen over time. Reintroducing the statement I mentioned before, that this transfer from where we’re at now to where we’re going, it’s always going to be a management event. I used to think that the powers that be would lose control, especially with the paper silver market.

I don’t think so anymore. I think they have it locked down and it’s going to do what they intended to do until the switch. But gold and silver are also affected by interest rates, right? They keep you in balance against the nominal because they are the notional against the declining dollar. But if the Fed was to come out and raise interest rates a half to 1%. You’re going to see a declining bolt. So they’re interest rate sens. It all comes down to the liquidation of your asset and how long you’re actually holding it. If you buy a product and sell it the next day, you lost because you have a spread.

If you’re forced to sell to put gas in the car at a down market cycle. Yeah, I mean it’s not going to work 100% of the time. So these are the things people, I caution them to take into consideration that don’t bite off more than you can chew. Yes, we want to protect ourselves, but we have to use a little bit of logic based on our personal structure. You need to make sure that you have enough in the kitty. And I don’t like keeping money in the banks because I know that they’re going to convert that to equity in the coming bail ins.

But you know, if the tree was to fall on the roof or you need a new roof while you need four car tires or the transmission blows, can you absorb that if it happened in a 30 day cycle and still function with all your obligations or would you have to liquidate something? So you want to keep yourself in a position to where you hopefully can avoid a forced liquidation. Don’t give yourself your own margin call, just go about it with a little logistic reason. Everybody seems to have their own personal feel for that. For further questions.

That’s what I’m here for. So I think what you’re saying is basically keep enough of your money in cash or in a bank account to cover your expenses, including some maybe short term emergency expenses. And don’t take every extra cent above the bare minimum and put it into precious metals because one that they’re not always immediately liquid. I mean you could certainly walk into a coin shop and sell it if you have a coin shop near you. I’d have to drive about an hour and a half, I think, to get to one, no, an hour. But the price varies over time.

Right. And if you are forced to sell it at a certain time, it might not be the best time in terms of where the price is. And I think that should kind of shift us into maybe discussing a little bit of why there’s this volatility. Now you mentioned that the interest rates, right, which is a policy of the Federal Reserve bank affects the price of these metals. But that’s not really intuitive until we explain how people invest in these metals. Because so far we’ve really just talked about Buying the actual physical metal, where you have a coin, a bullion, jewelry, silverware, something like that, where the actual metal is in your hand.

But most of people who purchase these metals are actually buying paper. And there are different types of paper investments and kind of two categories. Maybe one is the GLD and SLV certificates and then the other are the futures markets. So could you maybe just explain a little bit about like the difference between physical and paper metals and why this contributes to that volatility of the price? Absolutely. Well, ever since the 70s, coming off the foundation of exchangeable gold to foreign countries for loan, things got a little haywire and we needed to find ways to keep that Ponzi scheme going.

So enter derivatives and yeah, so gold in your hand or in a vault, if you choose to put it there. That’s the core base. You’re buying one to one. Right. You have enough money for a gold ounce or a silver ounce. You buy that, you hold it or you store it. You’re one to one. With these futures markets or ETFs, they don’t play on the same guidelines. Right. They’re synthetic. So yes, there’s model, there’s metal in the vaults that trade these contracts, but they’re allowed to issue more contracts against that metal beyond the one to one.

So you could have one ounce of silver and one ounce of gold in these vaults and you at any point in time. I’ve seen derivatives against silver on the COMEX go as high as 500 plus to 1. I’ve seen gold well over 100 to 1. So now Mark, before, can we just break this down? So you mentioned contracts, can you tell us what the contract is? Right, because that’s what. When people are buying these derivative investments, they’re actually kind of buying a contract or they’re entering into a contract to buy these metals in the future. Right.

At some predetermined point. Can you just explain what the contract is? Yeah, yeah, yeah, yeah. Okay. So essentially you’re buying a paper instrument. Instrument or entering to a contract, just like you would any other contractual obligation. Silver’s traded at 5,000 ounce per one contract. Gold is traded at 100 ounces per one contract. In the ETF structure, you’re not contractually entering to that trade by buying the trade. It’s implied when you hit the buy button of delivery because they don’t deliver. But you’re entering into a contract that you accept their word for it that they are housing all the metal that they’re issuing shares against.

So that’s what a Contract is. And when you’re able to. So that means that you basically have an agreement that in the future you could buy the actual metal at a particular price. Correct. And okay, say you want to buy gold at, you know, 4678. That’s where it’s at right now. And you’re buying 100 ounces, you buy one current direct, you buy 10. Doesn’t really matter. The price goes up. You want to take delivery. So you’re now owning an asset that has appreciated in value. If the price goes down, generally you’re not going to take delivery.

You’re just going to roll that contract over. Many of these contracts do not get delivered. It’s kind of just a shell game. Right. And what, what’s the typical duration of these contracts? Are they 60 days or 90 days? You can get 60 day contracts. You can get 90 day contracts. There’s only certain delivery months where you can actually take delivery of the metal. It’s not like you can take delivery of it every single month. And then, you know, to go a little deeper, you also have the options on the contracts. You could buy options against a futures contract, which gives you the right to take delivery, or take action converting the option to a futures contract and ultimately get delivery, but not the obligation.

That’s. That’s truly an investment. It’s, it’s. It’s a risky way to play. But if you play it right, you can make a lot. Right. So just to kind of explain this one more time in a mechanical way, if you’re an investor. So like you said that there’s a current spot price, which is really the paper price. So let’s just say for round numbers that gold is $5,000 an ounce. And so you have a contract now to purchase gold at $5,000 an ounce. For you said it was 100 ounces is the standard contract size, right. So that would be $500,000.

So you buy that contract for $500,000 and you use leverage. In other words, you take out a loan, you have to put down a certain amount, and then the rest can be in a loan. So this way you could actually buy a lot more than you can really afford. And that’s risky, but it also can make you a lot of money. Then at the end of the contract term, gold price either went up, went down, or stayed the same. Now if the price went up, then you bought it at a cheaper price. And the difference with the higher price, that’s your profit.

So at that point, you could actually say, okay, the 60 days is up. Now, I want the actual gold so that you could either hold it or you could then sell it and take your profit. If the price goes down, then you would have lost money compared to what you paid for it. So you might roll the contract over for another 60 days, hoping that the price would go up. Or you can convert it to basically a bet, Right? A future. Either take the short or the long position. And this is what many of the big banks and institutional investors do with your money.

They basically gamble it on these investments. But. But here’s the problem that you are getting at that all these contracts reference a certain, you know, amount of gold or silver. Right. 5,000 ounces of silver per contract, 100 ounces of gold per contract. But the amount of the ounces and the contracts is way more than they actually have in the physical metal in the vaults. Right. And this is run by, you know, like organizations like Comex who issue these contracts and they’re supposed to keep all this metal in their vaults so that if people want to actually buy it and get the physical metals at the end of the contract, they can, but they don’t actually have anywhere near that amount.

And this must have an effect, of course, on the spot price. Yeah. Because even though the metal’s not there, when a bank, let’s say like J.P. morgan, decides to sell millions of ounces of silver x amount of contracts, that metal doesn’t exist. But the market assumes it exists. So it’s going to have more sellers than buyer and dictate a price. And that’s how they can manage it. JP Morgan actually does this through the back door of SLV because they control slv. So they’ll lease metal from SLZ that either exists or doesn’t exist. I don’t believe it is because SEC requirements do not require a complete audit on how it works.

And then they’ll put that into their futures trading account and they’ll short it. For every ounce of silver, they’ll short 50. And it’s not real, but the market perceives it as real. So you get the desired effect. Right. So that means the price would then go down artificially. Correct. So this is, I think this kind of manipulation, it seems to me, is the biggest factor. Why there’s so much volatility in the short term in the spot price. Would you agree with that statement? 100%. Now, when you go to buy the physical metals, however, they don’t sell at the spot price, do they? No, no, they don’t.

You’re going to Pay a manufacturing and dealer spread. Now I know that this premium that we say is really thought of as a manufacturing and dealer spread, but doesn’t it really reflect the actual value of these metals versus the paper market value? Correct, because you’re actually paying for the true value of something incorporated the manufacturing and either delivery of that product. We obviously make a little bit of money, we buy it for one price and we sell it for another. An easy way that I’ve always tried to explain this to people is when you’re looking at manufacturing like you can, you can buy ore and produce the metal yourself at a cheaper cost.

You could buy a cow and slaughter it and get steak for less than the going rate. But generally you’re going to absorb that cost and go to a dealer that has bought it and it has it available to sell. Throughout that process you’re going to go to the grocery store, hopefully organic, and you’re going to buy that steak. If you buy let’s say five pounds of hamburger, you’re going to pay less per pound than the one pound. Right. So if you buy 100 ounce silver bar less manufacturing, you’re going to pay less per ounce than the 1 ounce.

I’m a big proponent of the fractional and there’s different products I think people should be holding for different purpose. That’s something that discuss with me. But I like the fractional because when you look at a historic measure of gold being the background, the backbone of all financial markets, you don’t even have to look that far. You just have to look back to the adoption of the Fed 1933, 34, 71 and 1980 to look at its reaction in stabilizing financial markets and for gold to reignite becoming US default the numbers and valuation of where it’s going. People think I’m a sane when I tell them, but they’re looking at it through a lens of current nominal structure.

Guess what? We will no longer have that current nominal structure. So sky’s the absolute limit. You will find in a parallel market situation that even one ounce of silver could be too. You’ll be able to get rid of it. It’s just it. You’re overspending probably to a significant degree. And no one’s going to have the equivalent change to give you in the form of silver that you’re paying. So again you have to not only have the right items for the right transactional use in a parallel economy and then there’s larger bars like hundred ounce silver bars.

I do have clients that buy those generally they store them. That’s the type of asset that you’re looking to take advantage of the coming market collapse because everything has to go closer to true value in order for this switch from the nominal paper system to the nominal digital system. And we can talk about that if you’d like. And you know, you kind of think 2008 to 2011. From 2008 to 2011, equity stocks alike, real estate, they dropped an average of about 55, 60%. Yet silver rose 7x, gold rose 3. So you got that yin and yang putting back reference to Venezuela.

You know, whenever you have a currency default, it’s not just a market collapse. Right. Gold went 25x higher. It outpaced the cost of living increase in Venezuela five times. So my clients that get larger products, it’s intentional because they’re looking to buy apartment complexes. Right. That, that’s the purpose. If you’re, if that’s not of an interest of yours and you’re just trying to get by, then I would say we look at the smaller stuff, the ounce to even, even lower. So let’s talk about that a little bit because obviously there are a lot of different types of physical metal you can have.

And you mentioned a couple, right? You mentioned bullion and those come in a variety of shapes and sizes, right? So you can get a kilogram bar of silver or 100 ounce bar of silver. Right. Which is quite heavy and awkward to carry around. And at the current prices that’s worth about $7,000, right? Correct. So you’re not going to go into a grocery store and hand a hundred ounce bar and have them be able to make change. Now you could of course cut slivers off the hundred ounce bar, but then it’s not very recognizable to other people and they’re going to think, you know, are you just handing me some lead or is this really silver? So what are the, the different sizes and forms that you can get and what do you think is the most practical for day to day transactions versus big ticket items? Okay, so not all mints will produce these products, but many of them do.

You will have starting at the smallest, you’re going to have gram silver and gold, right about the, a little smaller than your, your pinky nail. Those are pretty good. Like come in little sheets that you could break off tabs and things like that. They can and I’m actually a big fan of those, those sheets that you break off tabs. But they’re, they’re very difficult to find out. But I got those for a lot of My clients in preparation of what’s coming. Because you’re just like $100 bill, $100 bill. And that’s literally what you’re going to like.

You’re going to have, if not more. So you have your grammar. I. Then you have your 10,110 ounce, quarter ounce, half ounce, full ounce, 10 ounce bar. Some mints make five ounce bars. Kilo, 100 ounce and then thousand ounce. Now you’re talking about a silver and gold. Silver. No, silver. That’s, that’s for silver. A thousand ounce bar of gold would be quite, quite valuable. Yeah, forget about that. It’s not minted with gold. You’re looking at the, the top tier is going to be 100 and 100 ounce bars of gold are few and far between that I know of and I’ve only seen a couple in my lifetime.

But all the other previous, you know, valuations. Kilo, 10 ounce, 1 ounce, you know, all the way down to, you know, half, quarter and grammar. Now let’s just clarify that when you’re saying ounces here, it’s not exactly the same ounces that we’re used to. These are troy ounces, correct? Correct. And so it’s a slightly different number. And then do you know offhand how many grams are in a troy ounce? Off the top of my head, I do not recall, to be honest. And I knew you were going to ask me that and I just. You knew? I didn’t intend to.

My mind blanked. It’s around like maybe 29 or 30, something like that, I think. Yeah, but so you know, for gold, if you’re thinking of using, you know, gold as a metal to buy groceries where that would be basically 1 gram or maybe a tenth of an ounce would still be $500. That would be a big grocery bill or $466, something like that at today’s spot price. But silver comes more readily in a variety of sizes at much lower values that you could use it for small things. You didn’t mention Constitutional silver. Can you tell us what that is and what your opinion about the utility of that is? Constitutional or junk silver? Well, constitutional silver is government mint.

So that includes Royal Mint, Britannia, Canadian Mint, Maple, US Mint, Eagle. Right. That’s constitutional. I think what you’re referring to is the constitutional up through 1964. Yeah, I mean, I mean the junk, the junk silver. Right. Quarters, dimes, half dollars. I, I actually like it. And you can get, you can acquire because it’s fractional silver. Again, I’m a, I’m a a fan of fractional silver so you can get acquire the junk silver or constitutional silver at a better premium, spread a lower cost per ounce than you can the pure stuff that produces the 10, the quarter and the half, etc.

I like constitutional silver, I really do. And I think everybody should have a little bit just as a cost point. But as far as Constitution Institutional silver, and I’ll state this for your, for your listeners. So how the system was structured and it operated well up through the end of 1964 is whether you. You’re looking at $1 face value. So $1 face value, meaning the mint mark. So 10 dimes is $1 face value, 4 quarters, half, etc. Any combination you have industry standard of 0.715 ounces in that when it comes time to sell or extract value, it was minted higher.

But due to where it’s industry across the board, globally at.715. So that’s how you can figure out the value of what you’re holding. Right? You take the price of silver and factor in what’s point 71, 1 5% of that and then you can fractionalize it down to a dime a quarter or a half dollar. And that’s how you can easily see that a 64 quarter is still keeping pace with that gallon of gas. In fact, in fact, right now it’s overshooting. You’re getting about two and a half gallons per quarter. Now, do you think the difficulty of that math of multiplying by 0.71 discourages some people from this, this particular purchase 100 because people are, are they.

They kind of want to avoid what they don’t know or seems too complicated, but it’s really not. You just, you just have to review it to yourself a few times. And it’s not uncommon that with many topics, that being one of them, that I have to re enter myself consistently with my clients. And the question keeps coming back. And that’s fine. I don’t have a problem doing it. I’ve been doing this for the Greater part of 25 years. So to me it’s second nature to someone else. It can be a little bit difficult. Well, I think it has so much utility and I think if we were in a situation where you would be doing transactions with these junk silver dimes and quarters that everybody will know how much they’re worth and you won’t have to do a bunch of math in your head.

You know, they’ll say, oh, you know, it’s worth 20 bucks and then two of them are 40 bucks and you know, it’ll work out that way in practical concerns. So I agree that it’s good to hold some of those. Now we’re getting low on time here and there are a couple more big topics I wanted to cover. So I think it behooves us because you were talking about, you know, it’s better to plan ahead and not have to, you know, liquidate your metals for a crisis because it may not be the best time in terms of the short term price trends.

But what about purchasing? Do you, are you a fan of, you know, buying the dip where you monitor the price and wait for it to hit its relative low? Or are you a fan of dollar cost averaging which is where you just make smaller purchases on a regular basis regardless of what the current price is and over time you know that it’ll average out that you’ll be getting a reasonable price. Yeah, I’m a fan of dollar cost averaging. I don’t necessarily recommend people go all in at once. Now if you don’t have any precious metals, you haven’t acquired any, and let’s say you have a million dollar portfolio that you want to put into precious metals.

A bigger chunk should probably grow right off the bat because the dollar cost averaging, this is structured over a period of time looking at price and comfortability. I, I don’t think we have a lot of time before we transition to this digital structure. So time is not on your side with that. Now here’s the thing with waiting to buy the dips in 2020, the week before they shut the world down, you had a major market event I, where the equity market crisis. Yeah. From a Friday to a Monday and it was just, it was a massive margin event.

Equity markets opened up, limit down. Silver opened up nearly 40%, gold opened up nearly 30% down. And it was such a windfall in the price reduction. And the reason the price reduction is, is whenever you have a margin event or a market downturn of size and the entire market is leveraged up based upon loan, you have a commitment of performance that you must maintain a certain amount of equitable balance against that loan or overall value. And if you drop below that, you have to cover it and raise your equity up or the, or you get foreclosed upon.

So in other words, you have to start paying the loans that you took to buy the, the metal contracts. Well, just in the equity markets. But where are you going to get the funds? You go to a cash ready instrument which is gold and silver. Right. And the Paper contracts against that. You saw even crypto sell sold off because hedge funds now have crypto on their balance sheet. So that’s why metal sold you sell what you need to, not necessarily what you want to, to create liquidity and cash to cover losses in other un. So that being explained, silver opens up from a Friday to a Monday at about $11 and 4 cents.

I remember this day vividly, vividly. By the end of the day we closed about 80, 80 cents higher, just below 12 bucks. Yet if you were to buy an ounce of silver at the, at the end of that day, no one would sell it to you for anything less than 21 $22 because. Yeah, so it. Because there just wasn’t enough around. And that’s the balance of fictitious paper versus actual physical. That is something at some point is going to show its face again. I’m surprised it hasn’t with the current pullback in silver off 120, I really am.

Premiums are rising slightly, but they’re still reasonable based on historic norms for where we’re at. And that can also happen on the upswing as well. Tom, it didn’t happen the last trip above 20 and other times I’ve been on the record stating this, but again, it will happen. There’s a point in time at the higher end of silver, even gold, they almost become unattainable. I used to say that when silver is 100, you’re going to pay me too. Well, that didn’t happen. But there’s a threshold of resistance where the system, the system breaks just not having enough metal.

So expect higher premiums, get used to being comfortable with uncomfortable on market swings. And as far as circuit breakers to stop the tradable limits of both gold and silver, that crap’s out the window. Since December, everything’s changed. We’ve seen gold and silver travel beyond their circuit breakers and the machines to keep pumping. Yes, that is definitely what we’ve seen and my guess is that we’re going to see more of that. I think we have enough time for one more question and this one is one that I think is very practical to understand if you are going to put your money and buy some of these metals, which is the gold silver ratio.

The gold silver ratio is something that had been defined in the Constitution before 1933, when money was divorced from gold and silver. And this is why we call it constitutional silver, when the minted coin still had silver in it. But what would you say, do you think following the gold to silver ratio is useful in making decisions about, you know, which metal to buy and when to buy it. Do you think that the historical ratio will be restored at some point? Can you give us a little few thoughts on that? Yeah, I do. So gold, silver ratio.

How many ounces of silver in one hand does it take to equal the same value of gold? One ounce of gold and the other. The historic ratio is 15. That was our coinage act. Roman Empire set it at 12. We are currently right around 63, I think. So let’s just digest that for a second. So it was such that 15 ounces of silver. Right. Would you could trade that for one ounce of gold or vice versa. But now it’s more than four times as much silver to equal one ounce of gold. Exactly. And that gold and silver ratio has come down from 80, almost 100.

So we are on the downtrend. Right. And it went into the 40s earlier this year. Didn’t did and I was successful with actually the client that I mentioned that has all the property at Barry’s Gold. We started moving his. His silver to gold. And we’re very successful holding off on other transactions. We have specific targets in mind. But Back to the 2008 example where real estate pulled back significantly, gold and silver rose. That gold to silver ratio went from about 88, 90 to 1 in 2008 to 31 in in 2011. We are, but we’re not just going through.

I want to make this clear to your viewers, we’re not just what’s coming is not just an up and down of 2008 or 2008 or 2000 market collapse, where things go down, stabilize, and come back up. Yes, that will happen, but you’re going to have a complete change of the monetary structure. My guess at the bottom, after a major market event that’s going to drain people’s wealth because you got to clear the debt associated with the current structure to move forward. That’s what the Great Depression was about. They kept rates at zero, but they didn’t lend.

And they actually called in notes to get control of that made gold illegal to own. I don’t believe that was a confiscation because the treasury actually owned the property that you circulated, much like the Federal Reserve owns the $100 bill that you circulated. So they reclaimed their property. Yes, it hurt. Then they revalued the gold to $35 from 20, which mathematically covered 40% of the incoming monetary structure. This is where I get my numbers and I just want to let your viewers know the gold price will rise to cover an Average if not exceed 40% of the US monetary default.

Right. That’s how it works. 40 is a magic number. Isaac Newton pinned this in 1717 when he was the headmaster of the Royal Mint. Physical golden, gold and silver from that period of time circulated, circulated at 40% of the entire money stock. When the Federal Reserve was created, their charter required them to maintain 40% gold holdings versus the notes issued. It happened again in 34. I believe it happened on the back door in 1980. But you can’t prove it. Right? We didn’t have a structural change. But coming off the gold structure in 71-1980 as everybody knows, gold rose significantly.

So did silver, closing at approximately 850 for gold and roughly 15 or $50 silver. So if you look at the gold to silver ratio, that went back to 16. Right. So everything goes to that true historic norm. And if you looked at what would the gold price of 850 gold per the US ounces B, you have to look at the US because we’re the dominant factor in this nominal situation. What would that price cover of our monetary base? And it was 20, 25% of M2 and it was 50% of treasury debt. You have to add those two together to get your 75 divided in half.

It was 37.5. So we got close, right? And I, I believe they kind of cook the books behind the scenes in the accounting leverage. And that’s what they’re going to do again and they’re probably going to do it with the stablecoin act again looking at the US where one treasury backs one stablecoin and you’re going to have this at will banking option. It won’t be pleasant getting to this experience. So grow eyes in the back of your head. You’re going to have this at will digital banking option until some, some event removes the current system as an option.

And now digital is your only option. And you watch in my opinion how fast that 1 to 1 backing goes 1 to 21 to 31 to 40. That’s the same constructual design as adding or reducing zeros or moving the decimal to change the value of genesis to what it actually creates. And that’s how Venezuela solved their currency prioritism. That’s how Zimbabwe they just adjust the value, the creation or the accounting leisure of debt of what it actually made. The opposite side of this is when this happens, say you go to bed and $1 buys a dollar.

The next day it takes 10 to buy the same the opposite side of this because everything’s A business, everything’s accounting. They’re str framework for everything we do in life. There are no coincidences. You know this the opposite side of that 1 to 10, you take it in the shorts, you’re paying 10 times more is it’s only going to take that one nominal value, that $1 of reserve asset at the Federal reserve level and the banking system to eliminate the $10 of debt it holds. That’s a revaluation. Gold and silver rise to meet that, gold rises to cover 40% on average of it.

Silver rises to bring the gold to silver ratio back to 15. So again, opportunity and chaos is just how far do you want to go? Do you want to own malls and apartment complexes and the like? Are you just looking to get by with you and your family? That’s where I can help. Right. And so how would you, I mean, would you advise people or. I’m sure you see people do this that they might decide to purchase gold or silver depending on what the ratio is. Do you think? Oh, 100%. Yeah, 100%. I have points to do that.

Is there a threshold that you think is helpful to decide which one to buy? Obviously if the ratio is higher, it would favor purchasing gold and if the ratio is lower, it would favor purchasing silver. All questions depending on someone’s personal structure and what they hold of metal. What I’m working on doing is my goal with my clients is kind of like cost averaging into a market where we’re not doing everything all at once. We’re kind of tear stepping down to the bottom when we see opportunity. I think anything around a 50 to 1 gold to silver ratio, it might be time, depending on your portfolio of precious metals, to maneuver some of that of the gold into silver and lock in that price.

I think you’re definitely going to get a better one. That’s why you don’t do it all at once. And if you were to go from silver back into gold, which is a little, little more difficult due to spread, if you were to go back into gold, if we ever got back above 80 would be a good time to do that maneuver. But don’t get anxious for it, just let it happen because it’s going to happen. The monetary restructuring of a nominal value per gold at the backbone, it’s a story as old at time, so these things will happen.

All right, well, this is such useful information and I feel like we could easily go another hour or more. So viewers, please, if you want us to do a part 2 and cover additional subjects, please put that in the comments. And if we get enough enthusiasm, I’m sure I could cajole Mark to come back another time. Sure. In closing up, would you tell the audience where they can find out more about about your excellent analysis and where they can learn about your offerings? And if they want to do business with you, the easiest way is just reach out to me personally.

So I sent you a link. I believe it’d be put in the show notes, but it’s a link that comes directly to a landing page that I have access to. It’s for me and it’s very simple. Just name, phone number, email, there’s a comment section. So please put in there that you saw me on Dr. Kaufman’s show and it’s going to come across my email. We’ll schedule a time to speak, find out exactly what your personal plan is, what you’re working with, and build some sort of formula to find out what’s going to work best. And it’s really as simple as that.

The busier I get, it may be a little bit hard to get ahold of, but I always take care of those that generally want to be helped. So you can see we’re not just talking about, you know, send them a message, I want 10 ounces of this or that. It’s Mark is actually offering to help you plan and strategize how you’re going to do this the most successfully. And I think, you know, that’s a hugely valuable proposition. So I hope several of you take advantage of it. I’m not getting any kickbacks from this, although I definitely feel the goodwill and would highly trust doing business with Mark and encourage you to get in touch with him.

So, once again, thanks so much for sharing this valuable information with us, and I’ll see everyone on the next True Health Report.
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