1
00:00:06,040 --> 00:00:08,280
Speaker 1: Welcome to Ask Fear and Greed, where we take your

2
00:00:08,360 --> 00:00:10,600
Speaker 1: questions and do our best to answer them. I'm Michael

3
00:00:10,640 --> 00:00:14,840
Speaker 1: Thompson and hello Sean Aylmer. Michael, great question today. This

4
00:00:14,960 --> 00:00:18,000
Speaker 1: is a question that I could have almost written myself,

5
00:00:18,200 --> 00:00:20,079
Speaker 1: right because it's the kind of thing that we would

6
00:00:20,079 --> 00:00:23,639
Speaker 1: discuss in the office. Steve on Instagram has written to

7
00:00:23,760 --> 00:00:28,120
Speaker 1: us and he says, high team, I've been hearing NonStop

8
00:00:28,200 --> 00:00:32,040
Speaker 1: about the gold price rising. Everybody wants gold. Everybody's buying

9
00:00:32,040 --> 00:00:35,080
Speaker 1: it because it's safe. I get that, But who is

10
00:00:35,200 --> 00:00:38,840
Speaker 1: actually buying it and where is it? That's my favorite

11
00:00:38,840 --> 00:00:41,839
Speaker 1: part of the question. He then says, it's not like

12
00:00:42,320 --> 00:00:44,879
Speaker 1: you can just walk into colds and woolies and get

13
00:00:44,920 --> 00:00:47,640
Speaker 1: a couple of ounces of gold from the delhi. So

14
00:00:47,800 --> 00:00:49,000
Speaker 1: how does it actually.

15
00:00:49,320 --> 00:00:51,040
Speaker 2: Well, I would have been from the deli, I don't

16
00:00:51,080 --> 00:00:54,840
Speaker 2: know more in the hardware area, wouldn't be gardening stuff.

17
00:00:54,840 --> 00:00:56,560
Speaker 1: But if you're buying it by the ounce, you would

18
00:00:56,600 --> 00:00:57,480
Speaker 1: be getting it from the deli.

19
00:00:57,560 --> 00:00:57,960
Speaker 2: That's true.

20
00:00:58,040 --> 00:01:02,080
Speaker 1: I get kind of half a kilo ham, maybe three

21
00:01:02,080 --> 00:01:04,440
Speaker 1: pieces of devon, and a couple of ounces of gold.

22
00:01:04,560 --> 00:01:06,720
Speaker 2: Maybe Steve can come back and tell us it's an

23
00:01:06,760 --> 00:01:09,919
Speaker 2: excellent question from you, because did you know that gold

24
00:01:10,319 --> 00:01:13,000
Speaker 2: is the dentest of all metals?

25
00:01:13,600 --> 00:01:16,920
Speaker 1: Ah, And the worst part was the two seconds that

26
00:01:16,959 --> 00:01:20,160
Speaker 1: it actually took me to get that. You were actually

27
00:01:20,160 --> 00:01:23,280
Speaker 1: a like, why would you start with dentse Oh? Thanks Sean.

28
00:01:23,400 --> 00:01:26,800
Speaker 2: Did you know that all the mind gold in the world,

29
00:01:27,000 --> 00:01:29,160
Speaker 2: if you could bring it all together, would fit under

30
00:01:29,160 --> 00:01:29,880
Speaker 2: the Eiffel Tower?

31
00:01:30,040 --> 00:01:33,000
Speaker 1: That's not that big a space, No, sod like a

32
00:01:33,040 --> 00:01:34,520
Speaker 1: few swimming pools.

33
00:01:34,680 --> 00:01:37,360
Speaker 2: The other one, I like one ounce of gold if

34
00:01:37,360 --> 00:01:39,520
Speaker 2: you smash that out, and you could smash it out

35
00:01:40,000 --> 00:01:45,679
Speaker 2: to really fine gold leaf the seventeen square meters. Wow?

36
00:01:45,959 --> 00:01:49,960
Speaker 1: Yeah, did you did you just spend the entire I

37
00:01:50,000 --> 00:01:51,440
Speaker 1: did just googling gold?

38
00:01:51,600 --> 00:01:55,880
Speaker 2: Did soft malleable? We love it? But the point of

39
00:01:55,920 --> 00:01:59,280
Speaker 2: the quipment? Who invests in it? Well, investors invest in it? Right,

40
00:01:59,400 --> 00:02:01,800
Speaker 2: we can all invested in fact, I've invested in gold.

41
00:02:01,920 --> 00:02:04,680
Speaker 2: You probably have invested in gold. Has Sean got a

42
00:02:04,720 --> 00:02:05,480
Speaker 2: gold ring?

43
00:02:05,600 --> 00:02:06,120
Speaker 1: Jewelry?

44
00:02:06,320 --> 00:02:06,720
Speaker 2: Yes?

45
00:02:07,120 --> 00:02:11,519
Speaker 1: Okay, I mean that's but we're talking very small quantities.

46
00:02:11,840 --> 00:02:17,840
Speaker 2: Fifty percent of gold is in jewelry. No, yeah, it's

47
00:02:17,840 --> 00:02:21,480
Speaker 2: a bit less than fifty percent. Really, so most of us,

48
00:02:21,520 --> 00:02:24,480
Speaker 2: not most of us that many people have bought jewelry

49
00:02:24,520 --> 00:02:26,960
Speaker 2: and that's an investment in gold, and so a wedding

50
00:02:27,040 --> 00:02:30,520
Speaker 2: ring could well be worth more than it was given

51
00:02:30,520 --> 00:02:33,160
Speaker 2: the price of goal probably is worth more. So there's that.

52
00:02:33,360 --> 00:02:35,359
Speaker 2: What's kind of more interesting though, is where is it?

53
00:02:35,680 --> 00:02:40,120
Speaker 1: Yes? Because I have an image in my head and

54
00:02:40,160 --> 00:02:42,960
Speaker 1: it is probably an image because of the maybe Goldfinger

55
00:02:44,560 --> 00:02:48,480
Speaker 1: James Bond was it nine and sixty four or somewhere

56
00:02:48,480 --> 00:02:52,880
Speaker 1: al yep, and it's Fort Knox. I'm just picturing, but

57
00:02:52,960 --> 00:02:55,720
Speaker 1: you're right, the gold bully and the bars stacked up

58
00:02:55,760 --> 00:02:58,520
Speaker 1: and Goldfinger an odd job breaking in there with.

59
00:02:58,520 --> 00:03:01,720
Speaker 2: A yeah, that's it to get there. So Fort Knox

60
00:03:01,760 --> 00:03:04,640
Speaker 2: is probably the biggest holder of gold. Bank of England

61
00:03:04,680 --> 00:03:06,720
Speaker 2: is another really big holder of gold. In fact, the

62
00:03:06,720 --> 00:03:09,959
Speaker 2: Reserve Bank I think has about eighty tons of gold.

63
00:03:10,440 --> 00:03:12,320
Speaker 2: So ninety nine point nine percent of the Reserve Bank's

64
00:03:12,320 --> 00:03:15,239
Speaker 2: gold is with the Bank of England. So we don't

65
00:03:15,240 --> 00:03:16,760
Speaker 2: hold life keeping now we used to hold it. I

66
00:03:16,760 --> 00:03:18,040
Speaker 2: told you the story when I used to work at

67
00:03:18,040 --> 00:03:21,000
Speaker 2: the Reserve Bank and when you first started in orientation,

68
00:03:21,120 --> 00:03:23,120
Speaker 2: you'd go in and they say lookause the gold bars

69
00:03:23,120 --> 00:03:25,040
Speaker 2: and you go, wow, can I touch it? And they

70
00:03:25,120 --> 00:03:27,160
Speaker 2: go no, they're just like gold bars.

71
00:03:27,520 --> 00:03:30,000
Speaker 1: But if you stick around for thirty years one of.

72
00:03:29,919 --> 00:03:34,800
Speaker 2: These, that's right anyway, So you can buy jewelry. That's

73
00:03:34,800 --> 00:03:38,080
Speaker 2: one way you invest You can invest in a Northern Star,

74
00:03:38,440 --> 00:03:41,560
Speaker 2: a gold mining company, you don't actually hold the gold.

75
00:03:41,680 --> 00:03:46,880
Speaker 2: Then you can invest in an ETF exchange traded fund

76
00:03:47,040 --> 00:03:53,480
Speaker 2: a gold ETF. The fund owner or issuer actually holds

77
00:03:53,680 --> 00:03:57,680
Speaker 2: the gold, so they might purchase a gold bar. Now

78
00:03:57,720 --> 00:03:59,960
Speaker 2: it's not like you purchaser and they send it express

79
00:04:00,040 --> 00:04:04,600
Speaker 2: male to Mostly the gold doesn't ever move. It's just

80
00:04:04,920 --> 00:04:08,800
Speaker 2: that gold bar there that belonged to that ETF or

81
00:04:08,840 --> 00:04:10,040
Speaker 2: to that investor.

82
00:04:09,720 --> 00:04:12,720
Speaker 1: And typically it is staying in Fort Knox or staying

83
00:04:12,880 --> 00:04:15,120
Speaker 1: in the Bank of England's vaults or yes.

84
00:04:15,000 --> 00:04:17,599
Speaker 2: Yeah, okay, yeah yeah. As an individual, you can buy

85
00:04:17,600 --> 00:04:20,600
Speaker 2: something called a gold certificate. You've got to trust the

86
00:04:20,640 --> 00:04:23,000
Speaker 2: person selling it to you. But like the Perth Mint,

87
00:04:23,040 --> 00:04:25,280
Speaker 2: which is the Straightia's biggest mint, you can buy a

88
00:04:25,320 --> 00:04:29,440
Speaker 2: gold certificate and they would have gold bars there and

89
00:04:29,760 --> 00:04:33,440
Speaker 2: the certificate says Michael Thompson, you own that gold bars.

90
00:04:33,520 --> 00:04:35,680
Speaker 2: You can do that as well, but you would never

91
00:04:35,720 --> 00:04:37,839
Speaker 2: actually physically take it and put on the mantel piece.

92
00:04:38,320 --> 00:04:43,120
Speaker 1: Okay, just sits because I am a frequent purchaser. Not

93
00:04:43,160 --> 00:04:46,120
Speaker 1: of gold, No, not of gold, but of those tickets

94
00:04:46,160 --> 00:04:49,279
Speaker 1: in the like the art union raffles and things where

95
00:04:49,279 --> 00:04:50,560
Speaker 1: you'll often try and win a.

96
00:04:50,680 --> 00:04:52,960
Speaker 2: You're going to say, timu bo gold.

97
00:04:53,920 --> 00:04:57,279
Speaker 1: Yeah, it arrives. It's very light for gold. No, it's

98
00:04:57,320 --> 00:04:59,080
Speaker 1: like where you're buying a ticket and you're hoping to

99
00:04:59,120 --> 00:05:01,680
Speaker 1: win this kind of massive house on the gold coast

100
00:05:01,760 --> 00:05:05,000
Speaker 1: and the jeep and five hundred thousand dollars worth of

101
00:05:05,000 --> 00:05:08,440
Speaker 1: gold bullion. And I've always had it in my head

102
00:05:08,839 --> 00:05:11,719
Speaker 1: that you could actually then own the gold bully in

103
00:05:12,400 --> 00:05:14,320
Speaker 1: and hold it and touch it. But I'm assuming in

104
00:05:14,360 --> 00:05:17,200
Speaker 1: this case it is yours on paper, it is sitting

105
00:05:17,200 --> 00:05:17,719
Speaker 1: in a vault.

106
00:05:17,800 --> 00:05:20,760
Speaker 2: Yes, disappoint you don't really get to take I mean

107
00:05:20,839 --> 00:05:22,800
Speaker 2: I suppose you could, if you own it, you could

108
00:05:22,839 --> 00:05:25,520
Speaker 2: take it out, but you'd be pretty stupidicular and to go.

109
00:05:25,640 --> 00:05:27,039
Speaker 1: I demand my goal.

110
00:05:27,279 --> 00:05:29,799
Speaker 2: I think that my bedroom is safer than Fort Knox.

111
00:05:29,880 --> 00:05:35,400
Speaker 1: Yeah, put it under the mattress, slightly bumpy. Okay, have

112
00:05:35,480 --> 00:05:38,120
Speaker 1: you done any more gold research or have you exhausted

113
00:05:38,160 --> 00:05:39,880
Speaker 1: your supplies of gold knowledge?

114
00:05:40,080 --> 00:05:43,440
Speaker 2: Now it's kind of gold really rare. In fact, there's

115
00:05:43,480 --> 00:05:49,839
Speaker 2: a lot of gold seawaters. Seawater contains gold. Did you

116
00:05:49,880 --> 00:05:52,440
Speaker 2: know that? Okay, I didn't know that, But to extract

117
00:05:52,480 --> 00:05:55,960
Speaker 2: it would cost a lot now, so it's not actually

118
00:05:56,000 --> 00:05:59,240
Speaker 2: super rare, but getting to it is really really difficult.

119
00:05:59,640 --> 00:06:03,960
Speaker 1: And a lot of products have traces of gold. Say

120
00:06:03,960 --> 00:06:07,080
Speaker 1: for a mobile phone, for instance, there is gold contained

121
00:06:07,080 --> 00:06:09,359
Speaker 1: in that as well. So when we're talking about the

122
00:06:09,360 --> 00:06:11,520
Speaker 1: fact that half of the world's gold is in jewelry

123
00:06:11,720 --> 00:06:13,279
Speaker 1: and there's a lot in these vaults, there would also

124
00:06:13,360 --> 00:06:17,320
Speaker 1: been increasing amount used in technology and the electrification of stuff.

125
00:06:17,120 --> 00:06:19,640
Speaker 2: Right, Yeah, totally, and that's because of the properties that

126
00:06:19,680 --> 00:06:23,640
Speaker 2: it has density things like that. You know. Actually, gold

127
00:06:23,839 --> 00:06:28,240
Speaker 2: literally backed currencies up until about nineteen forty eight or

128
00:06:28,279 --> 00:06:32,440
Speaker 2: something or other, So a currency value depended on how

129
00:06:32,480 --> 00:06:34,800
Speaker 2: much gold the central bank had, and that's part of

130
00:06:34,800 --> 00:06:38,680
Speaker 2: the reasons central banks had all this gold. Now they've

131
00:06:38,680 --> 00:06:40,840
Speaker 2: sort offloaded it over the years and they called them

132
00:06:40,920 --> 00:06:44,520
Speaker 2: fiat currencies now, so they're not backed by gold. But

133
00:06:44,640 --> 00:06:46,560
Speaker 2: that's kind of one of the reasons why gold was

134
00:06:46,560 --> 00:06:49,440
Speaker 2: so valuable, apart from it being rare, but just the

135
00:06:49,480 --> 00:06:53,560
Speaker 2: fact that did back currencies, that is great, it's cool.

136
00:06:53,640 --> 00:06:57,240
Speaker 1: All right, we could do a series of episodes on gold, but.

137
00:06:58,800 --> 00:07:00,880
Speaker 2: A limited bad knowledge.

138
00:07:01,480 --> 00:07:04,320
Speaker 1: I think though we've adequately answered Steve's question. You can't

139
00:07:04,320 --> 00:07:06,440
Speaker 1: buy it from Cole's Nope, you can't get it from

140
00:07:06,480 --> 00:07:10,640
Speaker 1: Willie's No, not from Bunning's team, who's right out, but

141
00:07:11,040 --> 00:07:15,320
Speaker 1: potentially from the Reserve Bank, via the stores.

142
00:07:14,880 --> 00:07:17,160
Speaker 2: In the Bank of England, Bank of England, maybe a

143
00:07:17,200 --> 00:07:20,040
Speaker 2: gold certificate from the Perth Mint. Maybe you buy an

144
00:07:20,080 --> 00:07:22,760
Speaker 2: ETF you could buy into a gold company yep. But

145
00:07:23,240 --> 00:07:26,400
Speaker 2: alas Steve, I don't think unless you're buying jewelry, you're

146
00:07:26,400 --> 00:07:28,600
Speaker 2: ever going to get a gold bull him.

147
00:07:28,480 --> 00:07:32,200
Speaker 1: Bar unless you are goldfinger and odd job and breaking

148
00:07:32,200 --> 00:07:33,800
Speaker 1: into Fortnock. So you haven't seen.

149
00:07:35,360 --> 00:07:35,760
Speaker 2: Years ago.

150
00:07:35,920 --> 00:07:38,440
Speaker 1: Okay, all right, maybe that's your homework. Maybe all right,

151
00:07:38,680 --> 00:07:41,160
Speaker 1: Thank you Steve for the question. Thank you Sean for

152
00:07:41,320 --> 00:07:42,280
Speaker 1: all of your research.

153
00:07:42,800 --> 00:07:43,600
Speaker 2: Thank you Michael.

154
00:07:43,680 --> 00:07:45,360
Speaker 1: Remember, if you've got something that you would like to know,

155
00:07:45,400 --> 00:07:49,280
Speaker 1: then please send through your question on LinkedIn, Instagram, Facebook,

156
00:07:49,320 --> 00:07:51,360
Speaker 1: or at Fear and Greed dot com dot au. I'm

157
00:07:51,360 --> 00:07:53,520
Speaker 1: Michael Thompson and this is ask Fear and Greed