The Trust Continuum And Gold's Role In Preserving Wealth

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Originally published at: https://peakprosperity.com/the-trust-continuum-and-golds-role-in-preserving-wealth/

Today, I am excited to present an in-depth discussion featuring Dave Russell, the CEO of GoldCore, on the (sorry) state of the world of money & finance and gold’s role as a protector of wealth. Dave Russell brings over 25 years of deep financial experience and has a rare ability to translate that for those of us with far less experience.

As it has for many other similarly experienced people, his journey through the financial markets led him to gold and silver. That was my journey too so I know it well. Exponential debt and weak leadership unable to stomach any near-term spending limits form a sandy foundation upon which our economic house of cards are perched. With a small amount of rummaging through the history books, gold and silver immediately emerge as rational elements in anyone’s portfolio.

In our conversation, we explore the historical context of gold and silver, their role in the current economic environment, and why they continue to be an essential part of a diversified investment portfolio. We also touch on the increasing interest from central banks, particularly in the East, and what this means for the future of these precious metals.

Most importantly, Dave expertly dissects “the trust continuum” explaining how GoldCore’s offering is neatly designed to fit neatly into a person’s portfolio of holdings. When trust is thin, or even absent, as it is with me and the shenanigans of Wall Street and the MIA regulators, it’s vital to have options where each part of a custody arrangement is both easily verified and transparent. GoldCore gets that and has designed its offerings accordingly.

Watch the full interview below

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Those of us that have been very heavy in gold for decades tend to do our homework. There are three considerations that work against having your gold stored in gold buy, sell and storage institutions;

  1. in a severe crisis and considering various scenarios, some you have outlined in your show, gold will be most likely confiscated in many countries. Governments will naturally and immediately target bank safes, private vaults and these storage institutions.
  2. careful analysis of which countries will seize gold, quite frankly leave very few choices and most often are not represented by these companies.
  3. I have always bought and sold at 1%, sometimes 1 1/2% above or below spot price. Most of the large companies demand a much larger profit margin.
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You are spot on.

Expecting people to follow rules in crises reminds me of this scene from “Hombre”:

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Have not listened to or read the content yet, but wanted to share a news flash that made my blood run cold. Listening to the super excellent expert, Dr. Suzanne Humphries, on CHD TV and just learned that once upon a time the CDC listed 216 childhood milestones across all age groups for parents and doctors to check off, now the CDC only lists half those childhood milestones - half of them just disappeared off the list.

Ya gotta be evil to get these kinds of outcomes.

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Yes sir, 2001 was a good year! Thank Gordon Brown and the short bus he rode in on.

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Can someone please help explain somethings to me about Gold . 1) Do people trust that segregated gold in a vault is safe, and not exposed to the same risks as stocks in a brokerage or 6102 confiscation? 2) Why are the gold miners not holding as much gold as they can afford, going to the capitol markets for cash to fund expenses? Ie Hold hard assets and borrow debasing fiat.

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I would not trust segregated gold. When things have been tight (2008 in particular) there were stories floating around in Australia of people waiting many months for delivery of their segregated gold/silver, a couple from a large well known mint.

I also had trouble during 2020 with a large gold dealer who I bought gold from that was allegedly in hand and then after the money was paid I guess they sold it out from under me to someone else and hoped I would accept delivery months later. Luckily for me, I had made it clear in writing that my purchase was contingent on it being in hand, otherwise their usual terms of sale would have kicked in and I could have been waiting for 6 months. Someone else I know who dealt with them ended up waiting 6 months and then then after the period had passed (and gold had dropped in price) they tried to provide different bars (which weren’t accepted - the dealer wasn’t too happy about that, but if they want to enforce their contract against customers, then they have to accept it can be enforced against them too.)

Personally, I do keep some segregated gold in another country for liquidity and to have a backup outside my home country in case things ever get to the point that I need to leave, but I don’t count on it being there. I hope it will be there when I want to sell it, but it’s another insurance policy diversification that may or may not be able to be claimed - the money has been spent in my head.

Possession is always 9/10ths of the law.

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Your mention of having feelers out and Chinese purchases of masks and gloves during the early part of 2020 reminded me of some funny observations.

My wife and I were on top of Covid very early in January 2020 and went on a stockpiling spree. We got some funny comments about all the toilet paper we were buying from the delivery guys. I guess they understood in March.

But we also noticed a lot of Chinese nationals emptying stores of N95 masks. We went and bought a box of N95s and were halfway home when we thought we should go back and buy a box for our relatives. When we got to the car park there was this well dressed Chinese woman with a shopping cart overflowing will all the PPE equipment held by the store. I wonder what the checkout staff thought.

But the funniest thing was a conversation between a 12 year old Chinese girl and a young female staff member at the local supermarket in January 2020. The Chinese girl asked the employee in very broken English where they kept their face masks and the employee sent her down the beauty aisle. It was amusing to watch the confusion. Same planet, two entirely different worlds.

Wherever we looked (Australia) Chinese nationals were emptying shelves of PPE.

I am certain it was coordinated, e.g.

Anyhow, the point is, we were in the know and saw numerous grossly abnormal interactions that we could interpret correctly, but which were completely confusing to others around us who had no idea what was going on because Covid hadn’t hit the MSM yet.

One wonders what one misses on a daily basis because one isn’t clued into/looking out for something important. When you knew what to look for, it stuck out like a sore thumb, but otherwise…

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The coin and small bullion market is interesting. We all know big sales take in tonnage but the local coin dealer never feels the pinch in those swaps. It’s like a gentleman’s agreement is keeping the wolves at bay. I suspect that could all end around 3k AU… I’ve been around long enough to see a rush on pm’s, it goes faster than you think.

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Chris, have you looked into the work John Titus did regarding the M2 money printing in late 2019? If I understand him correctly, he gives an explanation for the M2 money printing and it is not stupidity nor lying.

I was following John closely around that time and he claims that the money printing was a result of a new policy that was adopted at Jackson Hole, at a federal reserve meeting in September 2019. The policy defined a method for passing Tier 1 money (Reserves) directly to the large investment firms, which then could be spent as Tier 2 money (dollars) to buy assets (stocks, bonds and real estate). Obviously, this is illegal on many levels by breaking all trust in the dollar, and no one is talking about it!
This explains why the sudden increase in Reserves did not cause an immediate increase in inflation. It also explains the sudden increase in residential purchases by black rock and vanguard. 44% of residential purchases are by large investment firms, with this free money. In fact, there is a paper trail from the 12 billionaires in Silicon Valley Bank, showing Reserves flowing into private accounts.

I’m sure I am butchering the explanation but John has written several detailed articles explaining this. I would love to get your take on John Titus’s work. You have a great mind for this type of info.

Regarding the gold price breakout…isn’t this a result of foreign countries depleting the US gold reserves, pegging the BRICS to the weight of gold, then sitting back and letting gold prices rise? This benefits the foreign countries in 2 ways they get rich and the U S get poor. Collapsing our financial markets.

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Re the “get rich quick aspect” , or perhaps we should say the potential for a rapid jump in price, I see two possibilities

  1. The unappreciated embedded call option, as Chris elegantly puts it, which is related to gold being used to back currencies once again.

  2. The paper markets losing control of their decades long ability to control (suppress) the price. Like releasing a balloon that has been held under water, gold will be more able to reflect a genuine market value

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It is becoming increasingly improbable that the fiat system will survive the current US Total Debt situation. However, my concern is the reaction of politicians in office when they realize what is happening. I do not know how they will react. The Puerto Rico debt mess showed that all debt in excess of required government services would not be serviced. However this did not come about due to machinations by the US Treasury. But I think that this is a precedent. For the USA it would mean minimal government services such as only defense, judicial/law enforcement functions, and utilities. If I remember correctly that was how the bankruptcy court was going to address PR debt before US Treasury intervention. Our currency of ledger created money with debt being an equal asset means that any debt not serviced reduces wealth by an equal amount. How would this be handled?
Would it be by bankruptcy (not servicing debt) or Force Majeure. As you point out, someone has to eat the loss. Sure, foreign held debt would be sacrificed first, but the ramifications are enormous. If all US debt was to become worthless, what exactly would it do to national wealth. So this brings me back to my concern: how would politician office holders react?

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Fifteen or so years ago I recall meeting fellow Americans in private vaults in foreign countries who had removed their gold from Perth, Australia. The reason was that all dealings at the Pert Mint required passport and personal details. Everyone understands that registration of gold is like registration of firearms. The main purpose is confiscation. One only needs to look at the OBAMA HEATH CARE BILL passed. Neatly hidden in this massive bill is the mandate that no more than 2 one ounce gold coins can be taken in or out of the US without custom declaration. Place of gold storage must be seriously discussed.

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Just as a thought (and something I do) I would like to add to your comment.

In Europe (and I doubt it is much different in the USA or Canada) governments will know who owns gold just by analyzing bank transfer data or by looking into the purchase logs which EU companies have to hold for a minimum of 7 years. Exactly the reason why I also own some externaly vaulted metals, in my case I chose Singapore due to the favorable legislation and the physical location. Good luck to the Dutch government to try and get the assets.

Now to be clear, I own gold/silver in a few forms but mostly physical, although a lot has been lost boating. I also own it digitaly through the Kinesis platform, but more as a liquidity option worldwide if something happens to my bank accounts. Some stocks (miners, so not realy metal ownership) to play the market and finaly some vaulted stuff on the other side of the globe as a safety play. All has to do with metals, but still I try to diversify within that space. All holding options have their role in that sense.

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In some countries one is allowed to walk into establishments that are willing to give one say 15-30 k cash for your gold. One can visit many such establishments in one city in a relatively short time. There is no documentation required. This will probably all change in a crisis. But at that point gold may have to hold value for the future. Once cash disappears the only things of value will be total independent living far away from any city. In Switzerland they passed into law by the public referendum forbidding the government to go cashless. Interesting times.

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Chris I’m curious in what ratio you hold gold to silver as denominated in USD. If any other tribe members feel strongly about their ratios I’m curious about those, too. I’m 3:2 gold to silver but really just by happenstance rather than by design.

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@cmartenson as blockchain continues to evolve i believe the continuum discuss in the interview will need to include decentralized finance Web3 digital valulted 1:1 gold and silver. Kinesis has the marketing for sure but for me the Lode.one ecosystem to buy store spend precious metals is more intriguing and useful as a diversifying.
Hope one day you can interview someone who can pro/con the top digital PM projects.
When you follow the money, not sure physical gold silver dealers are objective at the digital end of the spectrum.

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If you follow the corruption, dishonesty, fraud and deception in all
Governments, banking systems, finance, stock markets and so on, one has to understand and acknowledge the dark side of human nature. So, giving trust to “blockchains” with so many hidden unknowns, is beyond my comprehension.

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I’m about 3.5 to 1, gold to silver in USD. When I purchased (over time) the ratio was 2.5 to 1. I suspect silver has some catching up to do.

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i get it - not for everyone BUT if you have enough physical from a security /safety standpoint in your house or buried somewhere and maybe you want to travel and have gold/silver on your phone to spend, Maybe one does not trust banks and would like to spread that dishonest fraud corruption risk around then storing cash you want to use in PMs that you can access like a checking account (via CC) is an option. our lives dictates risk/reward decisions all the time nothing is safe. I am just guessing all the time where to have assets to get from this side to the other side of this shitshow. Like micro computers in 1981 I think the blockchain is here to stay and cryptos are here to stay. I want to keep current enough so I can adjust as needed - not be a blockchain crypto wiz trading coins. Maybe there will be a way with defi web3 to stay off Cabal radar for a little longer than those with using traditional Cabal run systems.
I get that this is not for everyone BUT an option worth knowing about so the PP Tribe can make fully informed decisions not biased by only a PM sales person (absolutely need that sales person too)
Hope that helps to understand what is bouncing around in my 24/7 risk mind.
May we all get enough to the other side

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