Why Invest in Gold and Silver Compared to Crypto, Stocks or Property – An in interview with Josh Saul, gold expert, discussing the merits of including precious metals in your portfolio. Click here https://pure-gold.co/charles-kelly for a free gold, investment report, and discovery call.
In the ever-evolving landscape of investment opportunities, the age-old appeal of precious metals like gold and silver remains steadfast. Investors are often confronted with a myriad of choices, ranging from the digital allure of cryptocurrencies to the stability of stocks and the tangibility of real estate. In this comparison, we explore why investing in gold and silver continues to be a compelling option compared to the alternatives.
1. Historical Stability:
Gold and silver have stood the test of time as reliable stores of value. Throughout history, these precious metals have retained their purchasing power, acting as a hedge against inflation and economic uncertainties. Unlike cryptocurrencies, which can be highly volatile, and stocks, which are subject to market fluctuations, gold and silver have maintained a reputation for stability.
2. Tangibility and Security:
One of the key advantages of investing in physical gold and silver is the tangible nature of these assets. Unlike cryptocurrencies, which exist only in the digital realm, and stocks, which represent ownership but lack a physical presence, gold and silver can be held in hand. This tangibility not only provides a sense of security but also ensures that investors have a physical asset they can access irrespective of economic conditions.
3. Diversification:
While stocks and real estate have their merits, they can be vulnerable to economic downturns. Gold and silver, on the other hand, often move inversely to other asset classes, providing an effective means of diversification. A well-diversified portfolio that includes precious metals can potentially mitigate risks and enhance overall stability.
4. Inherent Value:
Gold and silver derive their value from their intrinsic properties rather than relying on the perceived value assigned by market sentiment, as is often the case with stocks and cryptocurrencies. The industrial uses of silver, for example, contribute to its value beyond its role as a precious metal. This intrinsic value can offer a certain level of reassurance to investors, especially during times of economic uncertainty.
5. Inflation Hedge:
Gold and silver have a long-established reputation as effective hedges against inflation. When fiat currencies lose value due to inflationary pressures, the purchasing power of gold and silver tends to rise. This characteristic makes them particularly attractive to investors seeking to protect their wealth from the eroding effects of inflation.
While the investment landscape continues to evolve with the emergence of new opportunities such as cryptocurrencies, the enduring appeal of gold and silver remains undeniable. These precious metals offer stability, tangibility, diversification, inherent value, and a time-tested hedge against inflation. Investors looking for a reliable and proven store of value should consider the enduring allure of gold and silver as foundational elements of a well-rounded investment portfolio.
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See: – Transfer Property Into A Limited Company Without Paying CGT or Stamp Duty https://youtu.be/mtGq7WaVxLA
What’s in Store in 2024? Stock Markets, Property and Gold
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Good afternoon everyone this is Charles Kelly again with you for money tips podcast today I’ve got a very special guest who’s Josh Saul the founder and CEO of the pure gold company now Josh was previously an analyst researching markets and opportunities in the city for large investment houses and he first
Became interested in Precious Metals now he often appears on as a well-informed commentator on such channels as uh and he talks about gold and silver and and buying in bullion or buying in coins but he’s a appeared on CNBC BBC and a host of other um newspapers and podcasts and
On on YouTube and he’s got quite a large following in this and I became interested in Josh because I think he gives a good overview of gold and silver uh he gives an impartial view of of things as well he’s not just saying well you can only invest in gold and silver
I’ve used the company actually myself and I found that they they’ve got a very good system where you can actually talk to somebody talk to a human being about what you want to do uh so Josh has a company called the pure gold company it provides a really good service to people
Um on precious metals gold and silver they’ve got storage facilities as well they’ve got 15 years experience in the market and he clearly understands the importance of uh personalization when it comes to investment decisions so I’ll I’ll hand over to Josh in a second but welcome Josh welcome to the the podcast
Great to have you here thanks for having me Charles right and a lot of our uh viewers and listeners are quite interested in what’s going on with gold because you hear a lot about gold there’s a lot of stuff going on in the market you hear you know we got high
Inflation we’ve got you know governments in debts and and the dollar and and this sort of thing and you hear about all these things and and Nations you know buying a lot of gold central banks but in your opinion what is this thing about gold why is it there’s such a buzz about
Gold at the moment and why why should we be looking at gold as part of our Investment Portfolio well I I was on Bloomberg last week and I was asked by a journalist the exact question and in fact the question keeps on coming up yeah you know in the face of so much
Uncertainty and volatility and unpredictability what do we do with our wealth you know what do we do with our investments do we act do we react do we do we be proactive and it’s it’s a really good question because in the 15 years I’ve been doing this um I’ve never
Seen as many people as many well talented and skilled people ask the very same question and there’s no real one answer um but since you ask um it’s worth it’s you know it’s certainly worth talking about how I answered that um because it was a it was a it was a live
Segment on on Bloomberg and so you know I went on to explain you know how the wealthy the smart money the professionals protect preserve um and and grow wealth during times of uncertainty without paying any tax whatsoever um so it’s normally it’s normally at the point in which I mention
Tax or hmrc that I tend to get people’s attention so what I’m going to do is I’m going to share my screen um so you can see um some slides that I’ve presented it just provides a little bit of a a visual cue um to me in terms of what I’m
What I’m talking about great I can see that and understand there’s been quite record demanding in 2023 so you seem to be very busy well yeah we’ve seen a 93% increase in um gold demand this year compared to the last year and that’s that’s been reflected um across central
Banks as well we saw 1,183 tons purchased through Central Banks all over the world last year which was the single largest amount of gold that we’ve seen purchased in any year since records began um so there’s clearly good reason for doing it um and I guess my goal right now is to explain
You know why you would do it why you wouldn’t do it and I guess the alternatives to physical gold because it’s it’s impossible to look at anything in isolation you shouldn’t do because Everything’s Relative um and um you know I aim to talk about equities and property and
Cryptocurrency um bonds um leaving your money in the bank um I’ll go into enough detail to wet people’s appetite um and then I I’ll I’ll provide some information in terms of being able to find out more um if if if your clients or the people that follow you have that
Inclination that’s great so a little bit about me um before I start start can you see what I’m can you see my screen yeah it says 15 years in the precious metals investment Market perfect so this is me um it is true I have um I guess more
Than 15 years of experience within the precious metals Market um I I started my career in the legal World um I trained as a solister um in the banking and capital markets I then moved on to become an analyst at a company called FTI Consulting um and my role there was to analyze
Companies sectors and markets relative to one another it’s quite interesting we would sell on Research to the likes of KPMG and then KPMG would then sell that into the likes of the financial times as their own research okay um and that’s that’s what gave me not only you know a
Close proximity to physical gold as an asset class but the firm I was working for was responsible for for handling the collapse of Leman brothers and General Motors so on the one hand I got to see the nuances of financial ruin but I also got to see the trend and the correlation
Between how assets reacted to that in particular physical gold okay and so that took me further into um physical gold um as a career and as an asset class and I kind of De further into granular detail in terms of how gold could protect people during times of uncertainty and also provide
Insurance during times um you know when when things are good and so I set up the pureo company um and I I set this up in in 2012 and we we specialize in providing physical gold physical silver um coins or Bars by delivery or storage um we we’re fortunate enough to
Have a really good reputation and and the reason for that is we’re one of the only companies that apply a consultative approach when talking to our clients and what that means is we get to not only do we talk to every one of our clients but we get to understand why they’re doing
What they’re doing so we get to understand the motivations for why they want to do what they’re doing yeah we give guidance in terms of why they should do it why they shouldn’t do it how to do it when to do it so there’ll there there’ll be times where we would
Suggest to kind of consider waiting to make a purchase if we believed that there was an opportunity in the gold price um via waiting and also quite the converse you know if we if we think more can be gained by by acting sooner both in terms of removing exposure and also
Picking up price gains then we may well suggest you know to move sooner and so with with a lot lot of that information that we acquire from clients in terms of you know underlying motivations for why they purchase we have real qualitative colorful data that we provide back to
The Press um clearly you know in a very private Anon Anonymous way um but we’re able to give those Trends you know as they’re happening as opposed to once it happened um and so we’ve been featured on the likes of CNBC um money week BBC
We were on gmtv a few weeks ago and as I said before I was on Bloomberg um last week um and so I’m very proud of the reputation that we’ve earned over you know the years that we’ve we’ve been in business it’s all about me all you can see is pictures of me
Okay so going back to the question that I probably confused everyone with when we first started this conversation you know what you know in the face of so much uncertainty volatility fear what does one do with with their wealth um as I said before it’s a commonly asked
Question not just from the media not just from the banks not just from the the smart money or the ultra high Network individuals but I would say that most of the people that we speak to at the moment however financially Savvy they are this is the question they tend to
Ask so it’s the question that I think is worth answering and I I get it you know we’ve the UK has had an embarrassment of riches you know from having five prime ministers in a really short period of time to seeing you know record high inflation um relative to um to to
Earnings um and then of course the potential for a debt crisis um we’ve had various experts kind of paint a very glum picture moving forward and so I get it you know when you when you start to look at the Alternatives in terms of you
Know what to what to invest in how to do it it’s it’s it’s not a foregone conclusion you know there there aren’t there doesn’t seem to be any kind of lwh hanging fruit I would also say that we haven’t seen inflation at these levels for quite a few years
Yeah and when inflation you know we hear of reports of 9% and 10% and whichever metric you choose to believe um you know at the very least it sits at around 6% as we speak but we’ve also got to take into account the fact that you know
Energy costs are 400% higher so if we take into account everything I would I would reasonably say that inflation probably sits at around 8 or %. and so I believe that puts a lot of pressure on people to to do things with their money right whereas two or three years ago when
Inflation was very very low that pressure may have not it might not have been as strong as it is at the moment that pressure can lead to wealth destruction through making the wrong decisions purely from ticking a box and saying I’ve at least I’ve done it at
Least I’ve got my money working for me but it’s only working for you you know if it’s protected preserved and stands a chance of increasing um otherwise um what you end up doing um is you end up investing in a reward um a reward free risk um this is something that Dr John
Husman um articulated he’s a fund manager um and he said that you know when you look at asset classes at the moment you’re looking at reward free risks taking on risk for little reward can I also say about inflation that you know the chanc is saying you know we
Get inflation under control and this sort of thing but it doesn’t seem to be going away it’s gone up in the Euro Zone and in Germany in particular so I’m I’m not sure if inflation is actually really under control and as you say the real inflation the food inflation and the
Energy costs are you know they they’ve tweaked these inflation figures over the years so I I don’t think we’re out of the woods and you know a lot of people are still uh nervous about things and and it’s question of navigating your way through this this Jungle of problems and
And and inflation of course is eating away at people’s money I I know people have got hundreds of thousands in the bank where that the bank didn’t even put the rate up when rates were going up they were leaving that they said no that account we haven’t changed that account
I went down with her an old lady and she she you I said we just move your money we said no no I want to keep it there I know where it is and that’s the apathy that a lot of investors have any car sorry if there’s a bit of noise here
There’s a bit of drilling going on upstairs I don’t know what I thought they’d finished morning but I can’t hear it at all I can’t hear at all um I couldn’t agree more um I’m going to try and avoid getting into the granular detail of inflation because I could be
Here all day but you know suffice to say I know of lots of people that and clients that operate within the food industry they have restaurants they have supply chain businesses and inflation for certain foods have increased by 50 or 60 % to the point where people that
Have kind of a narrow menu of things that they sell they’ve gone out of business because there’s no way they can pass on a 50% increase to their customers um without going out business correct and so you’re correct you know the measure that they use for inflation
Is completely arbitrary um but if we take into account a best case scenario and make our case based on that then you know I feel like at least we’re comparing you know the reality of the situation with a best case scenario for inflation okay um and you know there’s
Been so much stuff that’s happened over the last 12 to 24 months of course we saw we saw silan Valley silan Valley Bank collapse um the beginning of one of the biggest um scams and lack of liquidity um crisis within cryptocurrency but at the same time we’ve seen you know share values in
Credit Swiss and Metro Bank Fall by 30% we’ve seen businesses on the High Street close at record pace and so I get why it’s confusing out there um because it it is you know what does one do I think the only real certainty in today’s market is is
Uncertainty um and actually you know uncertainty is is kind of represented in whole by by Black Swan events the unknown unknowns and you know whether or not we’re talking about brexit or covid or the pumping of money into the money supply as a result of covid and then the
Furlow schemes and what have you these are all things that no one could have predicted you know you’ve got Equity Corrections and property Corrections you know this within reason people can predict give will take a few years because the market are cyclical we know that we understand it but these sorts of
Things that never happened before you can’t predict but what we’re s what we’re now starting to appreciate is that we can anticipate them because they’re now starting to happen with increasingly with increasing frequency we don’t know what’s going to happen but we do know that over the next 18 months or so
There’ll probably be another blacks one you know if we go back we rewind kind of a couple of years ago um we had Russia we had Ukraine then we had what’s going on in the Middle East these are all things again that we couldn’t have really predicted but we’re now starting
To anticipate that every 12 to 18 months there’s something that comes along that we couldn’t have predicted and actually in a way you know um that provides us with a degree of certainty in a very very uncertain world yeah whenever we whenever we talk to clients um we we don’t just talk
About gold in fact the majority of what we talk about is the wide spectrum of Alternatives available within the market because as I said before Charles I don’t think it’s possible to just look at one asset class in isolation I think Everything’s Relative um and as a person as opposed
To just a company that sells physical gold I have equities I’ve invested in bonds I’ve had balets before so so in a way I’m also an investor and you know if you look at if we go back and you look at 2008 you look at 1980 you look at the
Dot crash These are times where the wealthy get a lot wealthier and so I I I I get how the future looks grim and uncertain but actually it’s not all bad you know there is huge amounts of opportunity during uncertainty and volatility the question is knowing what that opportunity looks like and being
Able to quantify it in terms of timing because as I’m sure you can agree a great opportunity might not be so great you know if you apply the wrong timing correct so timing I think is absolutely critical but I think you know as I said before when I’m talking to my clients we
Start with the Alternatives and so you know when we look at equities for example um I see huge amounts of opportunity in the equity Market in probably two to three years time I don’t want to get too overly technical but what I will say with equities is that
There’s a there’s a gentleman called Michael Barry um they made a film about him um the film was called um The Big Short and if if anyone hasn’t seen that film i’ I’d strongly suggest to see it because it breaks down the intricacies of the market in such simplistic
Language that actually you know you’ll start to think that you can understand everything and actually in reality it’s possible you know if you strip out all the jargon um in this film and it’s based on real life it’s based on a true story Michael Barry was a small minority
Of um of the market that believed that we were going to see a big crash and as a result of that he was ba he was betting or buying Insurance products for very cheap because you you know no one else was buying them that the market
Would collapse um and today he has one of the largest funds within the market as a result of getting that right the reason I mentioned that is because he has just placed 1.23 billion um against the same thing happening either within the debt Market or the equity market and
So you know lots of people have opinions lots of people have predictions um but I think it’s quite rare that you have people that back it up with their own money um and um just because he’s got it right before doesn’t mean that he’s going to get it right again but you know
He’s put down 1.23 billion that you know he thinks this is going to happen and actually because of his reputation a lot of people are now starting to listen to what you know he he says um but it’s not just that you know if you if you’re if you’re looking at
Equities the the way in which which you value a company one of the metrics is the price to earnings which is the price of a share relative to a company’s earnings or future earnings and as as as Society has advanced and technology has become more sophisticated the gap
Between the value of a company and how much it earns has become really really wide for some people you know if you were to talk to a stock broker you know 50 years ago it would be completely absurd to them how you could have a company um whose share price was really
High um but actually the company made no money right it’s all based on future earnings you know so you know when Amazon first came out it wasn’t making any making any money but the share price was high based on future potential earnings and so the problem the problem
The reason I’m mentioning that is that when you see a huge disconnect between between the value of a share and its earnings what you face is the potential for a market crash whenever we’ve seen the S&P 500 breach 30 times price to earnings over the last 75 years we’ve seen a
Market crash from anywhere between 20% to 50% this has happened on five occasions on every single one of those occasions um the market breached 30 at the moment we’re at 33 this is what lot people called a PE ratio which for some companies is is is very high it’s an enormous PE ratio
Whereas the oldfashioned Brokers might say well PE ratio of 10 to 20 is good but some of these companies that you see in the top companies have huge PE ratios 30 40 50 100% and actually the the the global median is 15 so right now we’re more
Than twice the global median so if you were to project if you were to use those stats and you were to project um you know where you would be with the S&P 500 if you were to invest today for the next 10 years um it look it’s it gives a
Figure of around minus 4.2% if you take into account the adjusted um cyclical inflation figures anyway I don’t want to get I don’t want to get too technical but what I wanted to do was just back up why I believe that equities will be you know an unbelievable opportunity but I think
That if you were to jump if you were to jump in right now because you think there may well be a deal you know all things are relative I believe that there may well be a lot more opportunity in two or three years time when things have
Really bottled out you think it would take that long before things bottom out even if there were a a crash this year I don’t know I think you know timing is really difficult because the globalization of information has become so accessible that I believe that these
Sorts of Trends are likely to happen a lot quicker than they than they ever have done okay you know people are able to act and react a lot quicker than they would have done you know 20 or 30 years ago so it depends you know when when
When you’re looking at the debt Market which is highly relevant to bonds interest rates have gone up people are as a result really worried about their um their mortgage payments but that hasn’t yet affected everyone and so it might not affect people probably for another two or three years when they’re
Coming off their fix rate products yeah yeah so for me that’s the reason why it may well be slightly prolonged just because people feel it at different pinch points but if we talk about you know if we’re talking about bonds because bonds right now they’re paying more than they
Were a few years ago and so they they have to be an obvious contender you know some would see putting money into government bonds as a lowrisk strategy um lower return um if you’re putting it um within a guilt or a government institution um but you’re locking it up
And you know if you are earning kind of four or five% you’re locking up your money into a guaranteed loss to inflation product and so if we are motivated to come across that opportunity it might be a property it might be um an equity it
Might be you know crypto or it might be something that you haven’t even anticipated having your money in a fixed term bond will will remove some of that agility you know you you’re not going to be able to act quickly but you know the the the other side of things is that you
Know putting in a Government Bond May well be relatively safer than putting in a corporate bond now corporate bonds the way we we see it is they’re paying a lot more but they’re paying more because they reflect a lot more risk high risk and you know the the worry for me with
Corporate bonds is that as interest rates have increased to its peak they’ve now started to they’ve now started to Plateau um the cost of a company’s debt has increased so if we see companies like um for example pizz Express dominoes they want to raise money on the
Bomb Market they’re having to pay as of maybe last year um maybe 7% in order to attract investors um to invest in in in one of these companies but the co because the cost of that debt is so high and because people are now spending a lot less money because they’re worried
About inflation and there needs to be some sort of a compromise the money that these businesses are taking in in terms of spend is decreasing but they’re only overheads are increasing because the cost of debt is increasing and this therefore affects profit and so yeah looking at it in really simplistic terms
It puts companies in a far more precarious position than we’ve seen them in you know for you know decades because of you know the the margin the margins between how much they’re making and and what they’re outgoings are yeah the debt has brought down companies that have
Been trading very well your photo showed War I think I believe war was a had a good trading record but it was brought down by its debt and we see everr this large Chinese property company defaulting on on Bonds on their bond uh commitment so yeah I mean I I mean your
Money is tied up in a bond but you can sell a bond you can sell it on but the value of that Bond can go up or down so it’s not purely risk-free in that respect um but I think a lot of people would not understand bonds and would
Probably not buy bonds directly but we know that pension funds use them because there’s there’s a guarantee there it locks in a guarantee to meet their commitments but it’s a very I think in a lot of people’s mind it’s a bit of a gray area but it it does I think as you
Know it will predict what may be happening in the market with with the bond rates and and how bonds are performing yeah I agree um I also agree that it’s it’s become a complicated area of the market where you know there are more people that see the risk than they do the
Reward right and so you know again if we’re looking at other Alternatives within the market one may well consider that you know the banks right now are paying more than they have done over the last 10 years in in you know with some savings accounts depending on who they are you
Know some of them are paying up to 4% yeah um and so I believe you’ve got more flexibility with a savings account than you do a bond because you you know know there’s nothing to sell effectively you can just take your money out of the bank
And so you have got more flexibility I would say that the trade-off though is that you’ll probably you’re going to get less interest with a sings account than you would do a bond so your your your loss to inflation is higher but the other thing that would be
Remiss of me not to mention and it’s it’s the I would say it’s the number one motivator at the moment for people wanting to take money out the bank is counter party risk I.E the risk that Banks May well fail and that might seem really distant or arbitrary or abstract
But we’ve seen it before you know we saw of Northern Rock we saw we saw it of Leman brothers and Meredith Whitney who predicted the crash back in 2008 um she believes that we are going to see a considerable consolidation within the banking industry when she uses the word consolidation what I hear
Is we’re going to see a lot we’re going to we’re going to end up a lot less Banks than we see at the moment which means that some of them are going to disappear um and maybe that’s a good thing you know I’m not going to comment
Either way but we’ve seen share price in Metro drop by 30% we’ve seen share share price in credit Swiss also um fall considerably and so you know moving back to Opportunities would it be an opportunity to buy a Bank St today possibly you know would the market
Continue to fall likely would there be opportunity in a year or two years time in my opinion highly likely um and so there’s opportunity there but at the same time when people are putting money into a bank and they know that they’re not covered for anything beyond
85,000 if that bank goes under you you have to say goodbye to anything that you leave with them over and above the 85,000 and this this goes back to the saying before when I said this kind of amounts to nothing more than a reward free risk you’re risking everything for
No reward you’re losing to inflation but yet you’ve got counterparty risk and so this this is a really important factor um we’ve also got clients that are skeptical as to whether or not the money um under 85,000 would be covered if we saw a situation where more than two or
Three Banks were to collapse let’s face it the deposit protection scheme is academic at best we hope it will never be tested um because we you know we know that in order for the the free market economy um to survive it needs to have confidence and so without a guarantee no
One’s going to put money in Banks and if no one puts money in Banks then the system collapses and so they have to say that it’s guaranteed or covered because without it there wouldn’t be a system whether or not whether or not that would step in to cover you is another issue
But moreover you know removing the speculation because one will never know and hopefully we’ll never find out what I can say what what I think is probably more realistic is in in a situation where you’ve got money in a High Street Bank and a bank unfortunately goes
Under we don’t know how long it’s going to take for us to be able to access that money it it well be four weeks it might be four months it might be eight months and the problem with that is that we’ve all got things that we need to pay for
Right we got we got to pay for mortgages we have to pay for survival and and living and you know that that kind of Rises this that kind of raises the potential of a significant cash flow issue within people’s kind of daily lives you know that you know when when
You’ve got a cash flow issue with business you know they may well be making lots and lots of money but if their cash flow is disigned they can go bankrupt just because it’s not coming in um quick enough for them to pay out um their their obligations yeah so you know that that’s
A consideration yeah I think people realize most people know that if everybody went to the bank and took their money out that the bank haven’t got it they’ve lent that money out and you know when you deposit money with a bank you’re you’re an unsecured creditor
Um and we’ve seen more than one Bank go down in America and and quite a few banks are at risk at the moment from the the amount of commercial loans that they’ve got on things like offices which are unoccupied and youve got large property companies in trouble so there
There are there are some risks with banks but what what we don’t know is if if there was a run on Banks and a few of them went down would the government rather than bail out these Banks would they bail in and would you end up with
Maybe shares in those Banks rather than cash that that’s that’s an unknown factor but as you said it’s it’s something that you hope you never use like a nuclear Det terent you hope that they never have to to do this but I would say that when banks have got into
Trouble in the UK they’ve usually been taken over by another bank uh so we haven’t had a situation as far in my memory where a bank has literally gone under and people have lost all their money so hopefully that there’ll be more of a consolidation as you said of of of
The banks into into fewer Banks and people won’t lose all of their savings but you should be aware that you only ComEd up to £85,000 and you should spread your money around that would be the normal advice yeah and I would also say you know look these risks are
Minimized if you’re keeping money in Banks short term that risk risk generally is minimized you know if if you’re keeping money in a bank short term and you’re always going to have to have money in bank accounts to pay you know overheads obligations and commitments um so moving on to um
Crypto which is um an asset class that would say is not for the faint-hearted um a lot of people have speculated within cryptocurrency um far more people than I would say actually understand it um I’ve seen people that have made money I’ve seen a lot more people that have lost a
Lot of money and so cryptocurrency in terms of blockchain unbelievable technology certainly here for the long term um although I don’t believe cryptocurrency should be looked at as a store of wealth um as it was first communicated you know 10 or 15 years ago just because you haven’t got that track record the
Volatility is huge you know we’ve seen situations where people have lost 80 or 90% you know overnight um we’ve also seen people that have gone from 100% down to zero um you know our clients if they’re deciding to take a risk with cryptocurrency it’s more a question of
How much can I afford to lose and they’ll spread that across you know various different coins I I wouldn’t say that’s a bad idea at all but I think you need to go in with your eyes open manage your own expectations and understand that um there’s a reasonable chance of loss there’s a
Minimal chance of huge growth the chance is there far more than winning the lottery but you know to some extent it is a punt it’s not only people that are invested in cryptocurrencies it’s funds and hedge funds that and and they’ve launched an ETF in America they’ve approved an ETF for cryptocurrency and
If you talk to a cryptocurrency buff they they are 100% convinced that this is the thing that this is going to go up to hundreds of th the Bitcoin is going to go up to hundreds of thousands if not millions and that the rest of the currencies are going to collapse and
It’s all doom and gloom but I I don’t know I’m I don’t know enough about it to invest I’d personally rather have a gold coin in my hand than a than a notional Bitcoin is it a currency even you know can you really use that as a currency c
I I don’t think so look I I I understand that crypto is in a way a currency um and it’s used as one I just see that you hear of a lot of these success stories where people have made kind of you know 30,000 per but do they ever get out at
The right time no for two reasons first of all you know once you started to find a really quick and easy way to make money you don’t stop doing it until end up losing that money and number two it becomes really difficult to exit the market when you want to exit the market
Because it’s an immature Market you know there’s not a huge amount of TR record and so what one has to look at it with with their eyes open you know I think the the issue with cryptocurrency is that it’s grabed so much media attention that you
Get people that think I earn £3,000 a month I’ve I’ve I’ve heard and I’ve read stories of people people basically becoming multi-millionaires from putting in as little as a couple of thousand Pounds into coins and actually this is going to answer all my dreams and prayers and you
Get people that put in that money into crypto and you know they could lose 80% overnight could go up by 100% but it can also drop by 100% too yeah a lot of it’s fomos and they’re worried about losing out and um but it could be another South
Bubble or the Dutch tulip bubble we don’t know I mean maybe I’m wrong but um anyway you’ve covered crypto I think you given a good uh explanation of crypto yeah the other thing as well I saw that I saw a really great documentary the other day um about
Cryptocurrency and it said that actually um over the last five years or so 75% of cryptocurrencies that were um that were um IED were scamed and so you know they are created in you know really um disguised ways where it’s almost you know impossible to determine if
Something is real or or if it’s not um you know svb um was a a big example of that the documentary that I saw the other day was one called bit Hond um where the market really believed that they were investing in this technology within cryptocurrency and because it’s
So unregulated it turned out that actually the technology didn’t exist um the people and the founders didn’t really have any background and didn’t have the background they said they had and actually the whole thing was just smokes and mirrors and you know when that was discovered basically everything
Went to zero and the founders ended up in jail but people lost their livelihoods yeah anyway we move on um property is a really is an interesting one because this is one asset class that I I really do get behind um property is fungible um it’s income generating um it
Provokes emotion you know we love the look of property you know if we’re buying one for oursel you know one can fall in love with it and so property in my opinion will never fall to zero it’s a tangible asset class it’s worth its cost in bricks and water um but you know
There’s a time and there’s a place you know during the 1980s you know the wealthy became very wealthy um from acquiring property that people were selling because you know those people that were selling could not afford to live in those properties anymore yeah mortgages went I remember when mortgages were
16% yes right 16% 177% back then I think the difference between then and now is that people have a lot higher debt they have a lot more debt in relation to their income and so I guess it’s just a question of you know what your Mor
Payments were and what they will be and so a 400% increase in anything is iol through people will either react to that when it happens and if they do they’ll end up on the back foot because they’re going to have to undersell their property to get funding quick enough to
Be able to avoid foreclosure and you know other um um other um negative implications um or people will plan for it but either way I can’t see a situation where people aren’t making decisions to either downsize move property um reduce debt um in order to reduce their exposure to an increase in
Debt and the only way they can do that is pay down mortgage which I think is just really difficult to do um unless you sell your property um but what that does mean is that I believe there’s a lot of opportunity in the property Market if one can be patient enough to
Wait to pick up those opportunities I believe that real you know real value um can be acquired um and I think it’s a question of you know I was saying this the other day to to um to to one of one of my clients um value is is you know price is
What you pay for a property and and value is what you get the wealthy invest based on value not based on price and so they’re influenced very very differently um when looking at asset classes you know everyday people that are pressurized by inflation to do something almost anything they end up buying and
Mistiming opportunities which then creates you know wealth destruction whereas the wealthy can sit there patiently bu their time wait for those opportunities um because you know know they’re not they’re not influenced by the same pressures yes correct so unfortunately this kind of brings us full circle back to where we
Started in terms of you know what on Earth do we do you know if we’ve if we accept the fact that you know these are all these are all asset classes that have their time and their place but we accept that actually there’s more to lose than there is to gain from
Investing in them right now yeah what do we do and so there are two solutions that I see as as viable in terms of limiting risk but maximizing reward before I go on to that it’s worth talking about what the smart money are doing because effectively we take our
Cue from what the professionals do um not necessarily what they’re saying and
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