This Gold / Wealthy TRUTH Will Shock You | The Economic Ninja
Summary
Transcript
Today we’re going to talk about the ultra wealthy and gold. And what you may hear is about to shock you, especially if you own gold or you own silver. Hashtag either of those if you own them down below. So I could see who is listening to this video that actually owns gold because this story may blow your mind. And then I’ve got some figures and statistics that will show you that what’s coming with the ultra wealthy will be mind blowingly crazy because they are about to become penniless.
The story is out of yahoo. And it’s entitled how much are the ultra wealthy really investing in gold? It says anyone hawking gold would have you believe that it’s the favorite investment of the ultra rich. That goes for everyone selling gold services, gold investing advice or anything else related to the shiny yellow metal. Remember, I’ve been reporting on the facts that central banks have been buying gold like crazy.
Governments and central banks are buying gold. All right, check this out. Says, but due to the uber wealthy actually invest much money, do they actually invest much money in gold? And among those who do hold some gold and what do they like about it? Says real estate consultancy. Very interesting. Knight Frank surveys wealthy individuals every year to understand where they’re investing in the current market. It turns out the ultra high net worth individual with a net worth over 30 million does own a little gold.
They just don’t own giant vaults and swim in it like Scrooge McDuck. On average, the ultra high net worth individuals hold about 2% of their net worth in gold. While that’s more than they keep in cryptocurrencies, which is at 1%, it’s less than they keep in any other classes. In fact, wealthy investors even put more money into investments of passion. This is what I can’t wait to share with you, such as fine art, wine and cars, than they do in gold.
These investments of passion make up 3% of the average wealthy investors portfolio. Okay, so this story is trying to pound gold a little bit, right? And this is where it gets really exciting. They say that wealthy investors own more gold than they do cryptocurrencies, but they own more lambos, art and wine than they do in gold. All right, so here we go. I’m going to take you to a couple of things.
They own rolexes, right? Look at the Rolex indicator. Right now. It’s starting to roll over. It’s going down in price on a percentage basis, Rolexes are losing value. But check this out. It’s even better than that. Here’s a story from December of 2008. Remind you Lehman Brothers had already crashed. It’s entitled recession hits luxury and used car market says sales of Alfa Romeo’s and Lamborghinis are falling sharply as city bankers hit by the credit crunch, cut back luxury spending, an upmarket car dealer said today, adding to the bad news for the ailing car industry, he said HR Owens, which has eight dealerships across London and specializes in Bugattis, said significant falls in sales of the past two months.
Could see it tumble into the red in the second half of the year. Good news. I can already tell you what happened. It fell into the red, right? I hear this from Lamborghini salesmen all the time. Lamborghinis don’t go down in value. I’m like, obviously you didn’t work here during the great recession, which none of them have, because I could, they could have then told me, yes, they fall in value.
Right? So there’s Lamborghinis done. Rolexes. Those turned over, the Rolex indicator. It’s actually a real thing. Go back and look at a chart of 2007 to 2010. It was impressive. Went down. Right. Could we be on the verge of another crash? This is out of the art newspaper, and it is from last July. Now look at this. Last July. This is the title. Could we be on the verge of another art market crash? It says, with auction sales faltering and a respected commercial gallery going into administration, Ben Lewis sees echoes of the slump of 2008.
Says the art market seems to be on the blink these days. And I have been asking myself whether it will slump as it did in 2008 when I made the documentary the Great Contemporary art bubble, which followed the market from its peak in the spring of 2008 to the bust in the autumn that year. Now, isn’t that interesting? Both Lamborghinis, Bugattis and Art fell in the year of 2008, right? Not well before it was as the crash was happening.
Why? Because of credit. Credit tightens, stocks go down, wealthy people are highly, highly leveraged. This story is talking about gold and how the ultra wealthy only own 2% of their net worth in gold. But they love these things of passion. Well, see, the author of that story probably is too young to remember the great Recession and what happened to all these investments of passion. Also, I must tell you, in 2007, 2008, there weren’t stories abounding in every single newspaper around the country that central banks are buying up gold hand over fist.
That didn’t exact. That didn’t happen back, back then. So right here, they talk about the crash of 2008. Check this out. It says there’s been a brace of bad news. The veteran New York art advisor Leah are sorry. Lisa Schiff has closed her business with at least $5 million in debt. This is happening right now. Simon Lee’s blue chip Mayfair gallery has gone into administration. Christie’s modern and contemporary auction in June last June was down 66% on last year.
There are so many stories of works by market favorites such as Jean Michael Basque and Gerard Richter going unsold that they constitute circumstantial evidence. And no surprise here, the NFT market has gone completely belly up. I warned about that as well. Point being, is this, that story that I read in the beginning, the art, this right here. How much are the ultra wealthy really investing in gold? Well, that’s actually technically a hit piece on gold.
But here’s the good news. I just destroyed that narrative. It’s over. Here’s the great news. I don’t care about what the ultra wealthy you’re investing in. I care about what I’m investing in and what the common man and woman, all of us are investing in. We’re buying an asset that’s going up in value as they’re owning things and trying to sell them at Sotheby’s. And they’re going no bid.
Rolexes are dropping. Lambos are dropping. Arts dropping. You know what’s not dropping? Gold. That’s the truth. And now you’re armed with it. I hope you got something out of this. Hashtag gold, if you got gold. And then hashtag we’re going to buy all their stuff. As our gold goes up and their crap goes down, the economic ninja is out. .
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