How To Buy Gold and Silver – Beginner’s Guide To Investing
Both gold and silver have traditionally been considered monetary metals throughout history, and now Golds is an attractive moment. This is a monthly chart for up to 2000 years. It ranged from two thousand three hundred dollars to 2,000. Pulling back, I am going to talk about all the factors that affect the price of gold and whether we are heading for a new crash and a bull market. Now one of the main drivers is interest rates, and as we can see, all of these interest rates up to the 70s were going up a lot for several reasons.
But since then it has largely fallen to other countries around the world until it reaches that zero limit. Talking about it to the end, as well as the fact that the central bank action now means short-term and accommodation from the GFC, we see that the US Federal Reserve has begun to raise interest rates. We often quote the US when talking about gold now to many people who are interested in gold because they think they will not be able to raise higher interest rates before we go back. Price But many Fiat currencies in other parts of the world are weak compared to God. So here is a gold chart note that can be priced in Australian dollars Again here is an Australian dollar chart.
Again, countries like Venezuela, which have been experiencing high inflation recently, know that their currency is worthless gold, giving you a big new high. It all depends on the strength of your money. As I said earlier the main point to keep in mind now is interest rates but most people do not understand the difference between interest rates and real interest rates so the best way to explain this is if you have savings you can get 5% as your interest rate in a bank And if it raises inflation to 7%, you are not so good. So if everything goes up fast you have inflation of 7% so having real money in that 5% savings account where you lose value makes the real interest rate negative. So we see a chart here that goes back to real interest rates in the 70s.
Real interest rates in the provinces have been as low as 1/2 percent over the past few years, and real interest rates in Australia have risen to more than 6%, which is why you see gold as one of the reasons gold is performing so well. It includes the Aussie dollar as well as many other factors that are weakening our economy. But real interest rates are a big driver in the price of gold and next, I want to talk about GDP and good growth we have lived a long time throughout history Internet discovery You know that economies are growing massively and China is the world’s resource Acquisition has undergone a record expansion.
The more we spent, the less we worried about borrowing in the future, but now we see that GDP growth is slowing. So this is a tendency I went to negatives.during that GFC but I think you’d all agree that this is a downward sloping line and a lot of people borrowed thinking that everything will continue to grow and accelerate and now we’re starting to wonder whether or not that’s going to be the case even the world’s largest economies the US and China are now slowing down they’re not getting to that 6 7 percent growth that will be used to throughout history now what this means is that all these people that have borrowed this debt aren’t going to be able to pay it off as fast or a fall at all if we don’t have that record prosperous growth new jobs growing economy all that sort of thing if that slows down then it gets really hard to pay down your debt particularly if you’ve got interest you’ve got to pay on top of your debt so if you’ve got a credit card or a mortgage you’ve got to pay interest on that debt and as we spoke about before real interest rates you know is your wage growing faster than the interest you’ve got to pay on all your debt a ll that sort of thing comes into the equation and a lot of people’s don’t have this conversation around hey US national debts nearing 22 trillion now at what point do we say I don’t think they’re going to be able to pay this back without printing even more money risking – flailing their currency losing the purchasing power of the dollar relative to other assets and so on now as we see here since the GFC central banks have really upped their stimulus their accommodative policies so we’ve spoken about lowering interest rates to encourage people to spend money rather than give them reward in their savings accounts but also this printing of money to buy up assets because there wasn’t a demand there from the market so the central bank’s one by one taken in terms of printing money so the US Fed really stepped up their game you know in 2008 there and there we see this baton pass where now you know the ECB that are really doing the most aggressive money printing People’s Bank of China and so on but it’s one by one these countries taken in terms of sort of printing money and that money doesn’t even have to stay in that country if the ECB in Europe prints money that can flow over into the u.s.
The theory behind this is to reduce wealth by buying back stocks or assets with the money that the central banks have now printed. But what we see now is that even the central bankers admit that it did not work. It has inflated asset prices to get into the real economy and it did not benefit the average man on the street and they do not get a salary increase and they do not benefit from that funding and we see from statistics like this that the number of people on food stamps they can’t even get food Because you know the lines that stretch across the back corner of the Great Depression, people line up for soup kitchens and walnuts but in the digital age we don’t see the 45 million people in the U.S. who can’t get food every day.
Many people do not know such crazy statistics now. Another thing that governments have begun to talk about is that universal basic incomes may not even be able to sustain people. Maybe we should pay a salary from different countries in each country. We have various government programs. Everyone has got their opinion on this. But I think this is just another sign that money laundering and tactical economics are not. Should we give people money to work, even when we are in these conversations? Because at the moment the rich are getting rich and the cash flow is nothing more than what people are talking about. We talked about this last straw.
Many people are unaware of the special drawings that the Central Bank makes when it comes to printing money. This has been going on for some time and it is now a basket of money made by the International Monetary Fund. The money is being printed and everyone is saying hey it’s not working and next time they go one step further and the IMF comes out Hey we’m pumping money into the system with this special draw It’s just a basket of money again and this is often confusing words for people but Don’t complicate it I’ve made a few videos about this. I especially recommend my top ten documentaries. Steve Kane talking about a professor of Australian economics is a modern credit.
Jubilee people are now heavily in debt and we fear they will not be able to repay it. And it’s a tool to pay off their debts, so if we do a modern debt jubilee, if we wipe the slide, tell them you no longer have that debt, we will wipe it off your balance sheet. You need to go out and spend money and boost the economy and new jobs and growth. Therefore, some theories about modern debt jubilees are again strongly believed by some. Others may think it would be a scary idea, but if you read further I would like to say that the second reason why people are attracted to gold is that it is an asset that cannot be confiscated by your governments or other countries as a protection against the uncertain geopolitics you know.
Now, this is interesting because many countries have asked for their gold and they have been detained in another jurisdiction and they will get the answer that there is no gold in your custody again and I am saying that some of the statistics we see are crazy coming out of other countries right now We see that China and Russia have stockpiles of gold, and they want to turn the world’s reserves from the United States, especially as they benefit from our oil prices.
Dollars So Australia has a lot of gold reserves We are a resource-rich country but in fact, these superpowers in China and Russia have stocks of gold in their reserves and many are waiting to ask you. What they are now predicting is that the next point is that the central banks still have gold reserves because the central bank has been asked about keeping gold, and why did President Ron Paul ask Ben Bernanke, chairman of the Federal Reserve? The central bank is holding the gold in his hand and he says he can’t answer and has this blank look on his face.
Since it is only a tradition, why is it not backed up at all because money has deviated from that gold standard? If all goes well he says it’s a tradition in some West Ham that it’s a no-confidence motion against their system and we often see when these central bankers step down that people like Alan Greenspan come out openly and say that QE failed to print money. I don’t think Janet Yellen, who says she recommends buying, will come out and cause another financial crisis in our lifetime.
The next year she comes out and says our situation is worse, we’re going into a crisis because you think they have no idea what they are talking about. They say one thing you know about the mainstream media when they are in office. They go out and start talking about buying gold. This is another cause of concern for people. Now we come to the part where we talk about the middle ground. You can see the distribution of gold from the industry here. Jewelry is available especially in countries like India and then we have coins and bars Central Bank purchases.
Then electronics and other industrial applications now have a similar story to silver. Solar panels and renewable energy have been used by many of you and it is a growing industry as well as electronics and others. So they have real industrial real use opportunities as well as this financial aspect. We should talk next about the ratio of gold to silver, so people guess that in the real world the abundance of these metals comes out of the earth at a rate of about 10 somewhere.An ounce of silver for every ounce is an ounce of silver for every 10 ounces, ranging from silver to gold, and when it reaches the 80s it is traditionally marked when we see another ball selling precious metals. You know we have a huge bull market after GFC when the gold and silver ratio came to Haiti and here we are currently at a new record high of about 85.
So many people say that this is a good indicator of the long-term perspective you traditionally know. The metal is going to roll over and overtake silver gold because it is coming from a lower level and the ratio of silver to gold is falling to these levels. Now the next question we ask a lot is how do I get exposed and for example there is a huge range of gold and silver in this country in Australia and the miners have a range of precious metal dealers, so the first way is to buy bullion online.
Now we are friends with Ainsley. He allows you to be exposed to precious metals. Because the basic method is to buy a few simple billions. But we also have these semi-numerical or numerical coins which are collections and can be more expensive than metal. Buy the right one, it will again go for the basic option of getting gold and silver to do a lot of research. If you do not have these, there are storage options that you can store in these mixed transactions. Safe at home and the next primary way to connect with space are miners, and in Australia, we see Aussie dollar gold prices at record highs.
This means that these companies are selling at record profits. So My Northern Star Evolution These are all companies I invested in years ago and have benefited greatly from their Australian base nature due to their Aussie dollar and there are great companies in Australia as well as around the world in the US as well if you want to do your research now When we talk a lot about the cryptocurrency on the channel it is very risky when you go down these little cap coins. So they are Kanish min miners and explorers and these guys are at risk of reaping the benefits if they find gold if it increases their production again, then the price will go up dramatically ou hear these great stories about exploration companies attacking gold and raising prices by 10 or 100 times.
Because there is always the risk and uncertainty of a return if you need to do a lot of research, enter by guessing the Kanish or Explorer space. Next up as a beginner, I would not recommend it. We have the SNP. And if you have a stock exchange account, these are funds or products traded on different stock exchanges. It’s a very easy way to get exposure and it’s something that many people have gone through these days. So you have a basket of metal exposed or miners Kanish gold miners silver miners all these things leverage products as well as everything these days sensible. have. But many are skeptical of the SNP. I think that is negative. This is because it pushes the demand for these exchange-traded funds more than real metals. If money is trying to buy gold as a relatively small market value then it is this SEP.
Will be much higher in price than. They are either money settled or re-assumed and in fact, not all of the iron is behind them. Many traders, for example, can sell more than the total annual silver production because they can do it with their deep pockets because their other accounts do not want them to trade that silver. Some mergers and the biggest thing in history have happened between Berrick and Wrestling, and traditionally this means that we are at the beginning of a new cycle. So you know that the price of gold goes down when small companies go, consolidations and acquisitions and acquisitions big people buy small people and it creates a new boom as we enter a new cycle. So one thing to be aware of about this is that it is very similar to cryptography.
Money World When the price of Bitcoin is falling and those who can’t afford to mine should remove their ribs. If the world price of gold and silver were the same, they would not be worth exploring.They don’t make unprofitable profits and they buy now knowing that there are always fraudsters and someone who has been just a gap of ten years. I remember watching videos in 2009 and people promised us up to 6,000 gold and a hundred dollars worth of silver. People have promised that gold and silver will explode in the next few years. So you have to be careful who is buying your gold and silver or who are the miners you are chasing I will try to sell you something that is not fast. I want to give you a well-rounded educational video to let you be a judge now. The argument is that gold and silver have been suppressed and if these traders do not admit their guilt over the manipulation of the metal market, perhaps they will go for those prices because of the monetary price printing and interest rate policy. If these people are trying to sell you something or if any of these people can be right with their high price forecasts, why should the metal handle not happen and to what extent did it handle it again and again in the cryptocurrency I just touched you several times now I will let you be the judge.
If you are new to the channel this is something we often talk about and many people come out and say bitcoin and cryptocurrencies are the canaries of the coal mine. Such a huge price increase showed the world that there is a huge demand for alternative Fiat currency and that maybe that money will directly turn into gold and silver and instead people are so sick of price suppression that I did not feel it was a real market. Instead, they went into Bitcoin. Now I think both assets will coexist but the crypto markets are still very small with the majority of investments coming from hedge funds and pension funds, and if you look at their asset allocation, the average asset allocation for gold is about half a percent Point out the zero percent asset allocation for silver.
Five or ten percent of the good balance between these two traditional levels should now have a bit of gold and silver. Prices will go up dramatically. We are talking about ten or twenty times as much for gold. I’m not sure this will happen again, but if there is a large amount of money we are talking about when billions or trillions of people are looking for a home, they will not be able to get into Bitcoin if these other conditions work. Very small ones are more likely to go to Bitcoin for gold and silver and precious metals. To wrap it all up if you believe you could be on a path or a recession and an economic downturn.
If you believe that interest rates will be even lower than usual, if you want to deal with inflation, the uncertainty here and some countries only have money with money in a savings account with negative interest rates if you do not already have these negative interest rates. What is needed is gold, which is starting to look like a very attractive option.