Gold Hit All-Time Record High as Central Banks Buy 800 Tons in 2023 2023-12-27 01:06

While most Americans have been focusing on the rising inflation the war over in Israel as well as all these lawsuits that have been lobed against President Trump well what seems to have flown completely under the radar was the fact that both China and Russia have been stockpiling massive amounts of physical gold furthermore it's not just Russia and China looking across the entire world it seems like the central banks of most nations are increasing their stockpiles of gold in fact quote according to an October 31st update by the world gold Council Global central banks collectively bought an astonishing 800 tons of gold in the first three quarters of 2023 this is a 14% increase in gold buying compared with the same period last year and just for your reference the period last year was already a record high and then in terms of the country which is stockpiling the most well it's America's greatest geopolitical rival who also happens to Mo own the most amount of US debt communist China quote The People's Bank of China regained the title of the largest buyer globally increasing its gold reserves by 78 tons during the third quarter since the start of the year The People's Bank of China has increased its gold Holdings by 181 tons to a total of 2,192 tons furthermore it's not just the central banks of nation states that are hoarding gold individual citizens here in America are likewise buying up gold at break neck speeds for instance Costco recently began selling gold bars over on their website and in the last quarter this one retailer Costco they alone sold over $100 million worth of gold with these gold bars typically selling out within hours of going online here's in fact how Costco's Chief Financial Officer described the situation in a recent earnings call quote you've probably read about the fact that we're selling 1 ounce gold bars we sold over $ 100 million doar worth of gold during the quarter that ended on September the 30th when we load gold bars on the site they're typically gone within a few hours and indeed as Global volatility has increased both economically as well as militarily the price of gold gold which is typically seen as a hedge against both inflation as well as uncertainty has gone up as well hitting an all-time record high just earlier this month and so in order to get an idea of what's happening what this means for the common investor as well as what exactly these Central Bankers are seeing in the future well I got a chance to speak with Mr Max Baker who is the president over at American hardford Gold one of the largest gold bullion dealers here in America also by the way just for full disclosure they are my own personal gold dealer and they're also a long-term sponsor of this program however just in my opinion that only gives them more you can say credibility given the fact that in the current media environment well sponsoring a program like ours a program like facts matter actually requires a company to have a backbone which American hardford Gold does anyway back to the topic being the president of this company Max has a good feeling for the pulse of the gold market well and here's what he told us all right Max thank you so much for joining us uh to start with you know right now we're filming this interview at the beginning of December and and the price of gold is near its all-time high right now uh can you sort of give us an idea of what it looks like on the back end of the bully Market how's the volume for buying and selling right now it's uh certainly a lot of buying right now and not a not a lot of selling and um you know it's odd to see the Dollar near all-time highs and see the stock market near all-time highs and see gold near the all-time highs all at once and uh but certainly as the gold market goes a lot of buying right now a lot of preparing for 24 So you you're seeing a lot of buying not a lot of selling is that creating a squeeze on the supply side yeah it definitely uh you're seeing weight times from the mints uh for getting some of this physical product uh it's becoming tougher and tougher to source and and the weit time for getting it shipped out is is getting longer and longer what what do you think owes to the uh the spike in price right now because I I assumed when the war in the Middle East kicked off you'd see a COR lar Spike but you you didn't quite see that there was a lag of about like two three maybe even four weeks uh what do you owe right now to the uh to the near all-time high well right now uh you know people are are betting that interest rates are are done rising and that they're going to start softening going into next year and um with that you're going to start to see the dollar pull back and as you see the dollar pull back gold prices are going to rise and uh that's kind of been the story this year um Gold's been remarkably resilient the gold price has been resilient all year long um with the dollar being so high and now that you're seeing the the dollar pull back because of War you know War fears recession fears um as that dollar pulls back you're going to see gold rise what effect are you seeing from the um from well or rather are you seeing any effect from the Argentinian election I mean now after mle came into office he's you know very famously uh going to be taking an ax to the Central Bank of Argentina and that has kind of brought the um the conversation of what does a central bank do you know how does money come into existence it's brought that to the four do you find that that has any impact on the gold price or is that just more like psychological and it's just in my own head you know it's it's it's a little psychological but there's something to be said there for you know the great unknown uh of what lies ahead in election year for our country in 2024 you know your guess is as good as mine as to what's going to happen next year and we look at what happened in Argentina we may have you know some major changes across the globe uh next year and anytime you have those unknowns people are looking to to buy an insurance policy and that's exactly what gold offers you know I was reading um I I usually keep keep a breast of the quarterly reports from the central banks uh across the world in terms of their gold buying so gold buying is again uh it either reached an all-time high or or or it's near the all-time high for for the last quarter reported and what was interesting is that you had a statement from the Dutch uh Central Bank where in they um the commissioner there alluded to them wanting to uh create sort of a internal parity between their their assets and the amount of gold they have on the books uh just in case there's some sort of a reversion to the gold standard uh do you have any any comment on that any any sort of um you know since you're in the market and I'm sure you have your P your pulse on it did you hear any Rumblings of that uh coming to fruition you know the big Rumblings I'm hearing or what you mentioned at the beginning central banks are buying gold uh you know hand over fist right now I believe it's at a 55y year high with the amount that they're buying and um you know you got to do what the central banks are doing they're uh they're preparing for something and they realize that there's an awful lot of debt out there a lot of paper debt created uh over the past uh you know three or four years and uh they're moving as much money as they can into something tangible in case there is you know kind of that big recession uh that big Market meltdown and um you know quietly behind the scenes they've been buying like crazy over the past couple years and it's it's really helped keep the gold price uh very very buoyant and near the all-time high well rather I should say that this is fake money being printed into Oblivion by those Geniuses over in Washington DC and so before they completely obliterate your life savings what I recommend you do is to convert that fake money into real money which is physical gold and silver and the best company to use is the sponsor of today's episode American Hartford gold who also happens to be my own personal gold and silver bullion dealer they have thousands of other five-star ratings across the country they have an A+ rating with a Better Business Bureau they ship quickly directly to your doorstep their product listings are awesome they're stacked with great options of gold and silver bullion and coins and they have amazing customer service when you pick up the phone and call them you feel good knowing you support a company that supports the truth getting out into the wider American audience and so calling them up is a no-brainer but best of all if you tell them that Roman sent you they will throw in up to $5,000 worth of free silver with your first purchase it's 866 242 2352 or you can simply text the word Roman R oan Roman to 65532 of course all their details will be down in the description box below and now let's head on back to the studio yeah and there's one thing i' I've been thinking about recently which is that it it seems like you know we're sort of at the tail I mean this is just my my assessment of it but we're sort of at the tail of this like kenian economic experiment that we've been going through since the 1970s and with the recent increase in rates we we actually on The Epic Times website just published this really good analysis detailing how the cost just to service our the interest on our debt here in America is now over a trillion dollars per year so it's like it just seems like we're in unless there's a drastic shift which I couldn't imagine because it would it would create such short-term pain that no politician in their right mind would would actually run on that sort of a platform or enact that sort of a platform it seems like we're sort of in this End Cycle where you know everything seems fine but then like you know overnight suddenly the payment on the interest will be five trillion a year if there's continue it's like all of a sudden it's going that direction and and in in a certain sense I would imagine that a reversion to the gold standard would be the natural sort of course of events right because that's what we had before the 1970s but then I believe maybe in like 2017 18 and going into 2020 there was a bit of a hiccup at least in my calculation along that line with the uh a mass adoption of um cryptocurrencies like Bitcoin ethereum things like that did you find that once those um those cryptocurrencies began to gain a lot of social traction some of the money and and attention that would have funneled into gold funneled instead into the cryptocurrency space that's that's a good question and um you know the the answer to that question has changed a lot over the past couple years you know when when Bitcoin was near the all time high there uh a couple years back all the headlines were it's it's digital gold it's the new gold and uh everyone was kind of pioneering uh that narrative and as we've seen over the past couple years it's been extremely volatile and you've seen you know FTX and binance and you know all all these things happen in that crypto world that have really brought the spotlight into the fact that it is not digital gold and you know people have started to pay attention to what gold really is and what that means as far as not having any counterparty risk whatsoever you know physical gold is the only thing on Earth that doesn't have counterparty risk and you know if I'm holding a cryptocurrency and a crypto wallet you know on some kind of platform I still have some counterparty risk associated with that and um I think if anything it's brought the spotlight maybe to the younger generation to realize that you know what gold really means and and when you say that it's a digital gold what does it actually mean and um so yeah a couple years ago you were seeing those headlines Non-Stop and you're not seeing those headlines quite so much anymore right yeah and that's sort of what what I was wondering about because I can imagine that as this kenian experiment you know kind of reaches its final stage you you get a reversion to something I I would have imagined before that it would have been a reversion to Gold but now I'm wondering whether it would be the adoption of something like either a cryptocurrency or and or like a a central bank crypto cryptocurrency any comment on that yeah I mean uh look here in the very near future we are going to see a digital dollar of some kind and that'll be very bullish for for physical goal just because of the Privacy associated with it um anytime someone can hold wealth at that time let's say we have a digital dollar and it's linked and the only way we can spend is if the government knows what we're spending our money on and and tracking what we're spending our money on and keeping an eye on everything if you're then able to hold hold just a portion of your wealth in something private uh you can imagine that you're GNA have households All Over America buying as much gold as they can in terms of exposure to gold on in in the global sphere what I'm really surprised to read about every every few months that I I come across this stat is how few wealth managers uh hold gold in in in terms of their portfolios the last I read is that 71% of advisers have either little or no exposure to gold and so let me ask you right now gold is obviously reaching new highs um very likely given some of the you know Global instability I would imagine I mean I'm of course not a forecaster but I would imagine that it'll break through that 2060 ceiling and perhaps hit 2100 uh 2150 maybe I mean whatever I'm I'm not prog prognosticating but uh you know a guy can hope uh let me ask you this if 71% of advisers have little to no Expos exposure and gold what would it mean if if you if they see they look at the market they see gold reaching new highs and they begin shifting at least a small portion of their portfolios you know in a global level to the precious metal what can you sort of describe what that scenario would look like yeah I mean look I I understand to an extent why there's not all that exposure gold is relatively boring you know and and by Design gold is an insurance policy and it's very very boring and until it's not and these wealth advisors are just looking for yield as much yield as they can get uh try to make as much money as they can and then when things you know the tide starts to turn in terms of a recession a financial crisis you know geopolitics um some major event a bank crisis um whenever whenever those come into play they start to shift the portfolio towards gold and you will start to see that in the coming year as gold continues to rise as the dollar pulls back as we head into some kind of recession as you know politics State side with you know election year come into play you're going to start to see those portfolios gain more and more exposure and you're going to start to see gold snowball and value uh similarly similar to what we saw from 2008 to 2011 you're going to see a major move uh you know I would think by the end of 2024 about a 25% move uh towards 2500 so so your your suggest that's sort of like the analogy to the national debt where it kind of grows slowly and then it grows suddenly right yeah it would be it would be something similar where the price of gold increases and then because of that increase you have this giant portion of wealth managers 71% of whom don't have any gold if they move even let's say five 10% of their portfolio into gold it'll just create that upward pressure yeah I mean is that accurate that that's 100% look uh 2008 to 2011 we saw the dollar fall from 90 basis points down to 70 um and in that time gold went from 700 an ounce to 1,900 an ounce so you know about a three 3x move about you know what 250 280% move up um I could see something very similar over the next couple years yeah and what's funny is that a lot of people um like you mentioned you know it's it's kind of boring until it's not I remember when the Ukraine Russia war first kicked off I was sitting at my desk here at the office and a lady walked by and she you know she knows I'm I buy gold you know I mentioned on the progam and she comes up to me she's like hey you know my husband and I are thinking about buying some gold and it was funny because at that time the Russia Ukraine war kicked off and the price of gold had skyrocketed and I'm thinking to myself you know I'm like at that time I'm like um maybe I should wait until you know should I wait to buy gold or you know I'm kind of feeling it out but it's funny how like it's true when things are kind of quiet it's a great opportunity to buy gold and then when everyone's rushing into it it's like well maybe it's you know indeed like Skyrocket up to 2500 and you miss that great buying opportunity to capture that spread yeah um so let me ask you a couple of questions that I got from uh viewers of the show who are looking to to invest themselves but they have some specific questions on on the buying front this isn't like a macro question it's more like kind of more specific questions so one is can you elaborate on the concept of paper gold and and how it differs from physical gold yeah look uh do you want you know if you're going to protect your house do you want to buy stock and Smith and Wesson or do you want to buy the actual gun you know uh paper gold is for taking advantage of the price swings in gold and silver uh the actual physical goal is for for protection you know again we talk about no counterparty risk and some kind of uh financial crisis you know 2008 uh you had fed presidents talking about we are hours away from the ATMs not working um it's for that kind of scenario um to actually have the the physical protection and in your hand no counterparty risk in your gun safe there at home um and you know paper gold does have a a huge role in the international and you know our stock market as well I believe the market cap somewhere around $13 trillion do for gold uh the overall stock market uh value or market caps closer to 45 trillion so you can see the gold market is very very substantial and uh like Gold's the only real money out there everything else is just credit and um there will continue be a huge market for it particularly as we continue to create all this debt that we've created over the past couple years um so it does have its place in the market it is substantial um and again if you're looking to take advantage of of price swings get yourself you know some gold ETFs or Mining stock if you want an actual insurance policy to protect your wealth um against any kind of Black Swan event you're going to want something tangible so so just so I understand correctly if you get a gold ETF you're interested in kind of like you have uh this hypothesis that the price of gold is going to swing up whether it's like intra day or intra week and you want to kind of trade on that so you you buy into the ETF you sell the ETF Etc or you hold it for a long period of time to you know to capture that spread and then technically it's easier to sell because you don't have to go find a gold dealer or something like that yeah but then let's say you know it it really either skyrockets or or there's a like a turbulence in the market can when you hold a piece of gold like you know it's in your house whatever you know nobody can come to get it but if you have the ETF is it ever convertible into gold or it's just a piece of paper that's tied to the price of gold and and that's it like it's backed by nothing like just a piece of paper that that's tied to the price of gold that's it you're never gonna get physical delivery of that asset I see so so it's very much like a just this like a a stock in a company basically absolutely just a stock and and and gold yeah and you're betting that's going going up or down okay another question that has come up uh pretty frequently why are premiums different on bullion bars and bullion rounds versus state issued coins usually on state issued coins the premium is significantly higher it just all comes down to demand you know uh the market wants government-backed assets or government minted assets those carry a significant premium because there's more demand for them they also buy back for substantially more uh than maybe a private mint bar or private mint round oh interesting and in terms of buy buying it back how easy is it to sell to sell gold this is another question that often comes in if you know if stuff really hits the fan how easy is it to convert your gold into cash or you know some some cash equivalent uh extremely easy I mean depending on you know your the city you live in the town you live in chances are you have a gold buyer or seller there locally uh where you can take a couple silver eagles down and liquidate pretty easily um and then obviously you can jump online and and find a number of reput reputable dealers that you know will will buy that in a heartbeat and we offer a two-way Marketplace here at American Heart for gold with all of our clients we have a buyback commitment to all of them and you know that 2A Marketplace gold is always in demand and we always want your gold so for instance with you because you you don't have a physical location let's say in New York City if I were to to sell you my precious metal through that buyback program would we would just agree on a price and would package it up and send it off to to an address that's right uh you know if you're a client of ours or a client of another company You're simply going to call American Harford gold or another company and say hey what's the gold price today I've got x amount uh of this coin or this bar um what's the price we agree on the price what the Market's you know trading at that day um and then we send you all the uh shipping uh uh boxes all that good stuff the label um that's fully insured that'll get you the next day within 48 hours we'll have the metal in our hand and we'll issue a check or a wire and then another question that people often ask is how can people be sure that the gold and silver is the real deal so you know let's say they they buy from you or some other gold dealer and they get a ship to their house how do they know that uh you know it's not some fake Chinese gold for instance great question and that's why you want to only deal with reputable dealers uh always do your research on who you're dealing with who you're sending money to uh you want to deal with companies that have been in business for years and years companies that have you know A+ reputations with the BBB thousands of client reviews uh you need to do your research on who you buy from and then obviously you know what kind of assets are they selling you are they s selling you government-backed assets are they selling you assets that you've never heard of from some private mint so it all comes down to who you're doing business with and um certainly as a consumer research is very important so so that's on the front end on the consumer end on the back end do you guys test all the bars and uh and coins that come in absolutely you can do assay tests uh we have uh uh lasers that can tell you if it's real or not we can drill into bars there's uh three or four different methods we use to to verify all the metal that comes in and out of our vault it's all done uh with a series of checks and balances uh all of the metals come into our vault via camera and they're all checked in Via camera camera and it's all filed away and uh it's a pretty interesting process and that's why you know Metals move a little slow because every time we take Metals in or they leave the Vault it's a whole process of people under camera that's signed off on it's got to go through several uh hurdles before it makes it to your front door and then last question that has come up quite often is um kind kind of a simple one on the on the website typically when you're buying gold it's listed in troy ounces rather than regular ounces what's the difference there a troy ounce is about 10% heavier uh than a than a basic ounce and I actually had to look this up because I didn't have my my facts right I learned it a long time ago uh it's actually 480 grains of barley and that was arrived at in a French town called Troy long ago so 480 grains of barley was a troy ounce it's about 10% heavier than than your just basic ounce oh okay because when I first started buying I thought it was you know I thought it was like a trick that it's actually less than an ounce it's like oh a troy ounce what does that mean but but it's actually more yeah yeah all right Max thank you so much uh for for the um the macro picture and and also the micro and yeah I mean listen I personally hope you're right that by the end of 2024 we'll have a 25% swing in the price that's that's definitely what I'm hoping for you know I it's it's um it's tough obviously I'm in the gold business I see things unfolding to where gold could be 2500 but it is a little uh sobering when you realize if Gold's at 2500 Gold's at 3,000 an ounce what does everything else look like what do we look like you know geopolitically what does the dollar look like what does the stock market look like if gold is crushing all-time highs like it did you know from 08 to 11 what does the rest of the world look like so that's a bit concerning but yeah you know the writing's on the wall uh things are are lining up for a perfect storm for gold in 2024 now if you'd like to learn more about either these Central Bankers buying up gold bullion about Costco selling out gold bullion or if you'd like to learn more about American hardford Gold I'll throw all those links down into the description box below this video for you to peruse at your own Leisure and then until next time I'm your host Roman from The Epic Times stay informed most importantly Stay Free [Music] oh