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Speaker 1: At lace a little less haunting than join us at

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Speaker 1: fifty five KRC dot com eight o.

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Speaker 2: Five on a Monday, it is that time every Monday.

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Speaker 2: This time we need to talk with Brian James from

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Speaker 2: all Worth Financial East Financial Planning. He knows about Monday money,

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Speaker 2: so that's why we call this money Monday with Brian James.

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Speaker 2: Welcome back, Brian. I hope you had a good weekend.

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Speaker 3: Good morning, happy fall and cold weather to you. Brian Thomas.

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Speaker 2: Hey, look, the federal government's still shut down.

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Speaker 3: Brian like that.

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Speaker 4: I think they figured out that the weather was not

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Speaker 4: gonna be warm today, so we're just not gonna get

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Speaker 4: out of bed.

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Speaker 2: Yeah. Well they got no kings out of their system

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Speaker 2: over the weekend. Not quite sure what that was all

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Speaker 2: about or what they hope to accomplish, but the government's

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Speaker 2: still shut down. I think one of the reasons it

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Speaker 2: was still shut down is because they knew that event

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Speaker 2: was coming. I want to show how angry and upset

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Speaker 2: American people are, generally speaking. It was top of the

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Speaker 2: our article or news report about all the different reasons

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Speaker 2: people might have shown up, and they're disparate and diverse

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Speaker 2: reasons for showing up. But the government still remains shut down,

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Speaker 2: and there doesn't seem to be any any end in sight,

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Speaker 2: I think, at least from a political standpoint. It's been

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Speaker 2: noted in the Wall Street Channel reporting on this about

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Speaker 2: running out of time to figure out how to solve

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Speaker 2: this problem. If they have enough time. So many people

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Speaker 2: got on Obamacare when the premiums were waived and was

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Speaker 2: considered free, and a lot of Republicans in Republican states also.

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Speaker 2: They also suggest there's polling out there showing strong support

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Speaker 2: for continuing these so called enhanced subsidies, notwithstanding the fact

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Speaker 2: that it's going to set us into the whole even

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Speaker 2: what three hundred and fifty plus billion dollars over the

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Speaker 2: next ten years these were set to expire. Brian, I

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Speaker 2: don't understand what the problem is. The Democrats wrote in

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Speaker 2: the original language the subsidies were are the cap on

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Speaker 2: premiums was waived because of COVID nineteen and they put

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Speaker 2: an end date that's this year. This had to come

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Speaker 2: at some point, Brian. So I don't understand. It doesn't

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Speaker 2: make any sense to me to continue to keep the

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Speaker 2: government shut down.

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Speaker 3: Yeah, I think that's where we are.

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Speaker 4: We set up a program that was very popular and

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Speaker 4: made it easy to be a part of it, and

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Speaker 4: didn't really set up the funding mechanism.

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Speaker 3: Well, we did that.

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Speaker 4: We did have the funding mechanism set up, but that

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Speaker 4: was the first thing that the Republicans were able to

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Speaker 4: unwind years ago. But they were not able to unwind

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Speaker 4: the program itself. So we have the expense without the

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Speaker 4: ability to cover that expense the way it was originally designed.

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Speaker 2: So yeah, the thing that they got rid of was, well,

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Speaker 2: the Supreme Court said you can't force someone to buy

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Speaker 2: something they don't want to buy. So the whole funding mechanism,

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Speaker 2: which is every American must buy a health insurance policy

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Speaker 2: welcome to Obamacare and market plans, that was supposed to

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Speaker 2: support all of the pre existing people that were going

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Speaker 2: to jump on and obviously create a tremendous claims demand,

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Speaker 2: you know, actuarily, it was a nightmare as the outset.

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Speaker 2: But once you were once you were legally told that

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Speaker 2: you can't use the commerce clause to force someone to

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Speaker 2: do something, then all the people that weren't forced to

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Speaker 2: buy it didn't buy it. So the rest were a

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Speaker 2: bunch of people with high claims exposure. That's a rescue disaster.

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Speaker 4: We got, and that there's a fancy insurance word called

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Speaker 4: adverse selection, which basically means if you make it this

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Speaker 4: easy for everybody to get but it's not required, then

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Speaker 4: essentially what you're going to get is the people who

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Speaker 4: need the insurance most and are the most expensive risks,

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Speaker 4: and you're not going to get the funding from the

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Speaker 4: people who would have just been writing the checks but

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Speaker 4: otherwise would be healthy and not funding the system. So ironically,

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Speaker 4: like you said, we can't force anybody to buy something

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Speaker 4: they don't want to buy, but we can force the

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Speaker 4: government to buy a lot of stuff that it doesn't

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Speaker 4: want to buy.

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Speaker 3: We didn't really talk about.

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Speaker 2: That day, No, we didn't, all right, So there's the

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Speaker 2: genesis behind the shut down. We are, regardless of the

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Speaker 2: reasons why, still in a shutdown. The question is it

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Speaker 2: impacting the American people generally speaking? So in my experience

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Speaker 2: in my circles, no, because I'm not friends with or

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Speaker 2: acquainted with or close to anybody at least that's working

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Speaker 2: for the federal government. Although i do have a niece

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Speaker 2: that's currently unemployed to Washington, DC, so there's one. But

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Speaker 2: is this a large and looming problem and I suppose

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Speaker 2: ultimately it is going to impact services that more and

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Speaker 2: more people do rely on. Where is this taking us,

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Speaker 2: Brian James.

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Speaker 3: Well, it's already.

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Speaker 4: It already is impacting services that people rely on, as

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Speaker 4: evidence by the fact that Washington is actually recalling staff

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Speaker 4: just to print the CPI number, because that's how many

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Speaker 4: dominoes came out of this one report. So social security,

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Speaker 4: cost of living adjustments, inflation link bond, next year's four

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Speaker 4: to one k caps are all things that are impacted

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Speaker 4: by inflation, and somebody has to make these decisions. So yeah,

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Speaker 4: they actually are bringing people back off of furlough to make.

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Speaker 3: These decisions so that we can move forward. I don't

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Speaker 3: know that.

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Speaker 4: Maybe maybe we didn't think this one was going to

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Speaker 4: last very long. We're on day thirty. By the end

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Speaker 4: of this week we will be I believe this will

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Speaker 4: be the longest shutdown in history. If I recall correctly,

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Speaker 4: I think it was thirty four days. So end of

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Speaker 4: Friday we will be looking at the longest shutdown since

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Speaker 4: that they're not even in the same room. I feel

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Speaker 4: pretty confident we're going to break that record.

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Speaker 2: So the further workers that do the Consumer Price Index

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Speaker 2: are being brought back, So I guess they're essential and

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Speaker 2: critical to the extent they need to be there to

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Speaker 2: figure out security checks, bonds and four one K issues.

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Speaker 3: Yeah, that's exactly right.

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Speaker 4: I mean there are some things we just cannot get

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Speaker 4: away with just not doing so in some of those

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Speaker 4: things are the Bureau Labor Statistics is going to publish

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Speaker 4: the September CPI eight thirty am on Thursday the twenty fourth,

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Speaker 4: that's this Thursday, doing that anyway, despite the shutdown.

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Speaker 3: That's why they recalled the staff.

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Speaker 4: No other reports though until the service is resumed back

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Speaker 4: to normal, So that's going to keep statutory deadlines for

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Speaker 4: programs that depend on CPI. In other words, we have

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Speaker 4: things codified in the law that say we have to

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Speaker 4: do this, so there really is no choices havet to

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Speaker 4: bring these people back. So that does mean the FED

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Speaker 4: and the markets overall are kind of flying a flying blind,

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Speaker 4: flying by wire, if you will, during this shutdown. That

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Speaker 4: raises policy uncertainty heading and there's a FED meeting October

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Speaker 4: twenty eighth and twenty ninth, Well, they're going to be

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Speaker 4: struggling a little bit to get the complete picture. And

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Speaker 4: of course Social Security COLA timing as mentioned, that is

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Speaker 4: supposed to be October twenty fourth. That'll come quickly after CPI.

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Speaker 4: That's the plan right now. We'll see how this works out.

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Speaker 2: Which I'm guessing has the effect of taking some of

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Speaker 2: the sting out of the government being shut downs. If

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Speaker 2: those you know, like for example, the coal of the

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Speaker 2: cost of living adjustment for Social Security, if our seniors

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Speaker 2: get that, then they're not going to be feeling the

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Speaker 2: sting of the government shut.

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Speaker 4: Down, right And I would I would assume that the

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Speaker 4: depending on the side of the aisle you're on, as

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Speaker 4: always actually probably both sides were hoping for this, that

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Speaker 4: people would feel some pain, so they would push for

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Speaker 4: resolution one way or another. Well, this is a reason

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Speaker 4: for a large chunk of the population to go, eh,

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Speaker 4: this doesn't affect.

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Speaker 2: Me right well, in that pain, I suppose going back

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Speaker 2: to the issue that's really keeping the government shut down,

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Speaker 2: these supplements for Obamacare. Twenty million or so folks getting

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Speaker 2: that right now. I mean that's big, big number, absolutely

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Speaker 2: for sure.

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Speaker 4: And so we're hung up on these the subsidies out there.

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Speaker 4: And because there are a normal enormous amount of people

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Speaker 4: who are going to go without health insurance, under the

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Speaker 4: current path, and I would find it hard to believe

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Speaker 4: that there aren't some people that, no matter what happens,

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Speaker 4: aren't going to lose it, because this is going to

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Speaker 4: have to come down to some kind of begrudging compromise

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Speaker 4: which some people are going to sacrifice the health insurance.

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Speaker 3: Those people are going to.

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Speaker 4: Get very loud, very soon, and I suspect many of

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Speaker 4: them were out marching over this past weekend.

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Speaker 2: Well, it's kind of funny in a certain way. If

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Speaker 2: it's four hundred percent of poverty level, which is the

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Speaker 2: cap that's going to go back into effect, this fault

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Speaker 2: the people who are getting supplements that make more than that,

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Speaker 2: Basically they're probably paying federal income tax.

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Speaker 4: You would think so, right, So they've got enough income

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Speaker 4: coming in it's the issue.

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Speaker 2: Yeah, And so ultimately they're getting a taxpayer supported supplement

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Speaker 2: to make it look like they don't have a premium,

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Speaker 2: but they're ultimately paying the costs of that because they

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Speaker 2: pay federal income tax, because all of this is coming

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Speaker 2: out of the federal income tax revenue.

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Speaker 3: Yeah, that's that's absolute, right. So that's why we are

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Speaker 3: doing so much about it.

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Speaker 4: It's going to move the needle for a lot of

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Speaker 4: folks for sure, and both sides are going to use

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Speaker 4: that to their advantage.

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Speaker 2: All right, So I understand the COLA and so security

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Speaker 2: with the CPI, I guess I get the bond component.

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Speaker 2: But what of the four how does this impact the

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Speaker 2: CPI index? How does it impact four one K?

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Speaker 3: Yeah, so four O one K and I and IRA

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Speaker 3: limits too.

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Speaker 4: So the IRS uses if QU three CPI in their

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Speaker 4: fall announcements to decide what the four roh one K

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Speaker 4: limits are going to be. Now, I can't say this

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Speaker 4: is gonna Nobody is protesting because they can't put enough

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Speaker 4: into their four oh one ks. And I think that's

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Speaker 4: a pretty tiny swath of the population.

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Speaker 3: But so so the.

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Speaker 4: The early actuarial calls are looking at a deferral amount

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Speaker 4: of twenty four thousand, five hundred for twenty six Now,

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Speaker 4: that would be up one thousand dollars. That's the amount

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Speaker 4: that everybody under the sun can put in. If you're

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Speaker 4: fifty plus, you could put in another eight thousand dollars,

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Speaker 4: so that would total thirty two and a half for

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Speaker 4: those over fifty.

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Speaker 3: And then the don't forget.

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Speaker 4: The Secure Act two point zero put a super ketchup

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Speaker 4: in for those age sixty to sixty three, and that

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Speaker 4: would likely if you're in that window, you're likely around

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Speaker 4: thirty five thousand, seven hundred and fifty. So again, those

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Speaker 4: numbers are going to depend on September CPI. I don't

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Speaker 4: imagine there's gonna be a whole lot of protesting over

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Speaker 4: that particular.

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Speaker 2: No, no, And I suppose you're an mbuable position if

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Speaker 2: you can afford to do that super contribution right basically

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Speaker 2: hand over thirty four thousand dollars right exactly.

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Speaker 4: And that's the concessions.

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Speaker 3: That we're given.

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Speaker 4: We for a long time have been making decisions to

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Speaker 4: allow people to make it more attractive for people to

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Speaker 4: fund their own retirements, and that's what this is all about.

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Speaker 4: This goes back to when I first started in for

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Speaker 4: a bank in the late nineties. The big hue and

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Speaker 4: cry was that they were eliminating the original pension that

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Speaker 4: had cost the head inflation and all that stuff built

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Speaker 4: into it.

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Speaker 3: And I didn't know what it meant. I was young,

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Speaker 3: I was twenty three and stupid.

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Speaker 4: Now I kind of get it, but the whole point

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Speaker 4: of that frustration was that was just a well, we're

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Speaker 4: going to take the pension away but we're going to

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Speaker 4: make it better for you. We're going to increase the

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Speaker 4: match on the four oh one K and all those

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Speaker 4: kinds of things to make it more attractive for you

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Speaker 4: to fund your own retirement as opposed to relying on

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Speaker 4: your employer or the government.

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Speaker 3: That works great as long as people.

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Speaker 4: Have the money to do it and know how and

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Speaker 4: understand how important it is, and that keeps me employed.

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Speaker 2: Well, and maybe we're not doing so well. We'll probably

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Speaker 2: go out of order and just use this opportunity as

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Speaker 2: a segue to the report card Americans get when it

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Speaker 2: comes to saving for retirement. Of the topic, we'll talk

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Speaker 2: about Brian James coming up four one ks are directly

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Speaker 2: tied to the stock market more than ever? Or is

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Speaker 2: that your financial planner's problem is at the right place

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Speaker 2: to be. We'll continue with Brian James Money Monday. It's

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Speaker 2: eight sixteen right now. If I have KC the talk

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Speaker 2: station speaking of money matters for your the talk station,

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Speaker 2: Ay twenty on a Monday, we're doing Money Monday with

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Speaker 2: Brian James from all Worth Financial.

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Speaker 3: All right, Brian, I.

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Speaker 2: Said, I want to take a little bit out of

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Speaker 2: order since you mentioned about financial are about preparing for retirement.

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Speaker 2: And we have the CPI that's coming out in important

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Speaker 2: I guess necessary government work. So no worries about your

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Speaker 2: coal adjustment for Social Security. But what of our own grade,

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Speaker 2: the report card grade when it comes to Americans preparing

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Speaker 2: for retirement, generally speaking, it does not look good.

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Speaker 4: Brian, Well, yeah, and a lot of this is because

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Speaker 4: it's just hard to do this with prices being where

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Speaker 4: they are.

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Speaker 3: There's only so much money left over.

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Speaker 4: And we've made the as I was saying a little

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Speaker 4: bit a little bit ago, as a country, as a society,

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Speaker 4: we've made a pivot toward pull yourself up by your

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Speaker 4: own bootstraps.

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Speaker 3: So you need to save your own money.

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Speaker 4: But if people don't have the ability to have a

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Speaker 4: little surplus at the end of every month, and there's

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Speaker 4: not much that's going to be able to go in.

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Speaker 4: But so investors are and savers are banking up for

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Speaker 4: that by being really really aggressive in their four oh

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Speaker 4: one k. So this is a study coming from Vanguarden

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Speaker 4: Morning Star, coming through the Wall Street Journal. So workers

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Speaker 4: in their late thirties now hold about eighty eight percent

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Speaker 4: of their four roh one k assets in stocks or

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Speaker 4: stock fund equivalents, and that's up from about eighty two

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Speaker 4: percent a decade ago.

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Speaker 3: That makes logical sense to me. I'm not concerned about that.

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Speaker 4: I don't think you can be too aggressive if you're

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Speaker 4: in your late thirties when.

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Speaker 3: You're talking about a four oh one K.

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Speaker 4: And what we're really talking about here, Brian, is these

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Speaker 4: people who have eighty eight percent of their four to

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Speaker 4: one K assets and they're in their late thirties. That

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Speaker 4: means they got twelve percent on the bond side, on

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Speaker 4: the fixed income side. There's only so much you can

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Speaker 4: do with a four to oh one case. There aren't

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Speaker 4: exotic holdings out there. I personally believe if you're in

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Speaker 4: your thirties, you shouldn't have any bonds.

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Speaker 3: What point? What difference does it make?

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Speaker 4: You're looking at a thirty plus year time frame to

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Speaker 4: touch these assets, and if you're handling things the right way,

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Speaker 4: then you shouldn't be panicking when the market wobbles anyway. So, frankly,

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Speaker 4: I think if you're in your thirties, b one hundred

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Speaker 4: percent stocks. I'm fifty one, Brian, and I myself am

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Speaker 4: one hundred percent stocks. I don't care the market's going

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Speaker 4: to kick me. Around two or three more times before

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Speaker 4: I actually retire in the next ten to fifteen years.

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Speaker 4: And I'm not going to panic because I know how

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Speaker 4: the market works. I know my market history. So I

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Speaker 4: think people are simply looking at what do I need

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Speaker 4: to do to make this ship float for me, because

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Speaker 4: they don't have a pension anymore. If I'm in my

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Speaker 4: late thirties, then social Security. The best way to plan

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Speaker 4: for that is probably that it's going to be reduced

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Speaker 4: by about twenty five to thirty percent, because that's unless

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Speaker 4: we actually fix that funding mechanism and tax people more somehow.

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Speaker 4: So if I have to grow my own assets, I

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Speaker 4: may as well do it the best way possible, and

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Speaker 4: that is stocks, not bond. So I'm not concerned about

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Speaker 4: that particular point.

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Speaker 2: Okay, Now when it comes to the folks that are

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Speaker 2: looking at a very small amount left over after the

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Speaker 2: necessary bills are concerned. Is there a recommendation you can

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Speaker 2: give to those folks in order to at least start

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Speaker 2: the process. I mean, if you have just a little bit,

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Speaker 2: it's better than doing nothing in further in so of

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Speaker 2: your retirement. I mean, I I fortunately was really not

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Speaker 2: placed in that position too much. Most notably because I

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Speaker 2: married out of my element, both of us at a

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Speaker 2: salary that we could afford to put there collectively some

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Speaker 2: portion of our total pile of money toward retirement. So

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Speaker 2: not everybody has the benefit of that.

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Speaker 3: Yeah, that's absolutely true, and those are the people.

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Speaker 4: Unfortunately, they're going to be struggling because our our retirement

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Speaker 4: system we have chosen as a society by the leaders

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Speaker 4: we've put in office. We have chosen to build it

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Speaker 4: all based off of the success of public traded companies.

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Speaker 4: That's and investors are simply reacting to what is put

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Speaker 4: in front of them. There just isn't much else out

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Speaker 4: there that you can do when when prices are rising

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Speaker 4: as fast as they are, when it's as expensive to

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Speaker 4: live as it currently is, you just need something that's

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Speaker 4: going to keep up with it, and stock market is

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Speaker 4: just about the only thing out there to do that.

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Speaker 3: And go ahead.

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Speaker 2: I was just going to say, wasn't it designed for

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Speaker 2: that purpose to boast in bolster capitalism and hopefully to

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Speaker 2: encourage investment in my American companies because we started this process.

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Speaker 2: You know, the best place to invest in the world

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Speaker 2: in terms of return on investment is going to be

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Speaker 2: American companies.

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Speaker 4: Yeah, and it still is and it will be for

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Speaker 4: a long time to come because just because of what

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Speaker 4: we have spent hundreds of years building. But what that does,

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Speaker 4: that's what this is why I always refer to us

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Speaker 4: as the we're the United States a profit margin. That

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Speaker 4: means every decision that we make it has an eye

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Speaker 4: toward making sure that our publicly traded companies that feel

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Speaker 4: like they can make a profit to keep them here. Frankly,

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Speaker 4: because there's nothing stopping a company, and this could happen,

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Speaker 4: right for those who are worried about you know, the

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Speaker 4: United States is going to need to tax itself to

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Speaker 4: death and so forth. So I don't want to be

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Speaker 4: in the US stock market. Well why wouldn't you, Because

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Speaker 4: there's no entity more able to pick up and move

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Speaker 4: than the richest ones on the face of the earth.

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Speaker 4: So if our tax policies become such that it's unattractive

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Speaker 4: to do business here, then they simply won't. They'll pick

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Speaker 4: up and move to another company, keep or to another country,

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Speaker 4: keep selling the same products and services that they do

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Speaker 4: in a more taxable or a more tax efficient manner.

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Speaker 4: So I would still say the US stock market is

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Speaker 4: the safest growth oriented type of market to be in.

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Speaker 4: Because of that flexibility, those companies won't they don't have

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Speaker 4: to stay us.

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Speaker 3: And I'm not saying this is going to happen anytime soon.

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Speaker 4: I'm just saying that I don't think they're sweating it

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Speaker 4: too much that they'd be painted into a corner and

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Speaker 4: simply have to pay more taxes without some kind of

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Speaker 4: a reaction.

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Speaker 2: All right, Brian James, I'll hold you over for one

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Speaker 2: more segment, and I want to address something else that

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Speaker 2: I know people can invest in relative comparative or compared

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Speaker 2: to this stock market. But I'm scratching my head over

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Speaker 2: whether or not people might already be invested in it.

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Speaker 2: Stick around more with Brian James from Alworth Financial. It's

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Speaker 2: eight twenty five right now, fifty five kr CD talk Station.

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Speaker 1: Fifty five station eight twenty nine, fifty five care CD

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Speaker 1: Talk Station Brian Thomas and Brian James, Money Monday, getting

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Speaker 1: one more segment in Brian James, we don't talk about

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Speaker 1: very often, and I think when we have talked about

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Speaker 1: it as an investment vehicle, I think you've kind of

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Speaker 1: and I don't want to put words in your mouth.

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Speaker 1: That's what you're there for to correct me if I'm wrong,

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Speaker 1: but considering it probably not a good idea, but one

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Speaker 1: of the things I'm looking at. Since January twenty twenty three,

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Speaker 1: the price of gold has gone through the roof. I mean,

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Speaker 1: it was trading at eighteen hundred dollars in January twenty

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Speaker 1: three and it's at right now forty three hundred dollars

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Speaker 1: an ounce. So people who've been in that investment for

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Speaker 1: the last couple of years have obviously seen a pretty

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Speaker 1: significant return, at least in so far as a component

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Speaker 1: of a four to oh one k or retirement investment vehicle.

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Speaker 1: Is that something you can you should consider. I mean,

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Speaker 1: the idea of sitting on physical gold always looked stupid

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Speaker 1: to me because you can't eat it. In a bad situation,

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Speaker 1: the fiat currency goes belly up. It may be worth something,

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Speaker 1: but you can't eat it. You can't slice off a

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Speaker 1: piece of it to buy something. I wouldn't accept it

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Speaker 1: as payment for anything. I'd be looking for food and

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Speaker 1: ammunition and whatever else hell else it is. I'd find

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Speaker 1: myself needed in a desperate situation. But in terms of

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Speaker 1: an investment vehicle, Brian, where are you on gold? And

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Speaker 1: why has it gone up so much?

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Speaker 3: Well, gold gold, yeah, is gaining a lot of attention.

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Speaker 4: As you mentioned, it's over four thousand bucks per troy

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Speaker 4: ounce for the first time, and this is about the

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Speaker 4: strongest year since the late seventies.

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Speaker 3: Because of that rise, and of.

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Speaker 4: Course there are other there are new ways to get

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Speaker 4: a hold of it as well, so that's driving demand.

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Speaker 4: It used to be you can only buy gold bullion

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Speaker 4: and stick it in the safe for the safety deposit

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Speaker 4: box forever, but now you can use exchange traded funds.

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Speaker 4: Gold backed exchange traded funds saw their largest semi annual

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Speaker 4: inflow in several years this year.

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Speaker 3: Of course, not too surprised to hear that.

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Speaker 4: With everything, So the reason this is happening is all

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Speaker 4: of of course, all when gold runs whenever there's instability

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Speaker 4: in the win so geopolitical macroeconomic uncertainty. These are the

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Speaker 4: weakening dollar, inflation concerns, central bank diversification, and just sort

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Speaker 4: of the general chaos that our current government is in

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Speaker 4: for a lot of reasons. So gold can be appealing

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Speaker 4: as a head. You're kind of a safe haven when

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Speaker 4: when interest rates are low, when confidence and major currencies

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Speaker 4: kind of falls apart a little bit. But to your point,

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Speaker 4: it's not an entity. It's not a vehicle that you

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Speaker 4: can use. You can't expect it to come out with

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Speaker 4: a new product. It's not going to generate dividends. It's

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Speaker 4: not going to find a new market. It's simply something.

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Speaker 4: It's a commodity. It's it's worth what people think it's worth.

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Speaker 4: So those are the most dangerous kind of investments to

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Speaker 4: invest in after the run has happened, meaning that since

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Speaker 4: it's only worth what people think it's worth, the herd

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Speaker 4: is eventually gonna peter out, there's going to be fewer

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Speaker 4: people rushing into it.

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Speaker 2: Well, let me ask you this. There is I mean

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Speaker 2: ignoring the demand for jewelry, gold and jewelry whatever. That's

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Speaker 2: it's a luxury item that people can do with that.

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Speaker 2: I guess what do we know? What like some idea

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Speaker 2: of what the global demand is for industrial use in

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Speaker 2: other words, the stuff that we really need to use

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Speaker 2: gold for. If we knew that number, we could kind

442
00:18:31,520 --> 00:18:33,439
Speaker 2: of separate the wheat from the chaff and remove some

443
00:18:33,480 --> 00:18:34,960
Speaker 2: of that flexibility out in there.

444
00:18:35,280 --> 00:18:36,880
Speaker 3: Yeah, and it is, of course used.

445
00:18:37,119 --> 00:18:39,240
Speaker 4: When we talk about it, we're usually talking about the

446
00:18:40,119 --> 00:18:43,399
Speaker 4: herd stampeding into it because of the because of the

447
00:18:43,680 --> 00:18:47,240
Speaker 4: general uncertainty that's out there, right, So, but to give

448
00:18:47,320 --> 00:18:50,000
Speaker 4: give some numbers. So in twenty twenty four, for example,

449
00:18:50,680 --> 00:18:54,359
Speaker 4: in jewelry, technology and other industrial that there's a lot.

450
00:18:54,359 --> 00:18:56,840
Speaker 4: It's used a lot in dentistry and non electronic types

451
00:18:56,880 --> 00:18:57,680
Speaker 4: of things, exactly.

452
00:18:57,960 --> 00:18:59,560
Speaker 3: Yeah, so there's plenty of uses.

453
00:18:59,320 --> 00:19:01,480
Speaker 4: Out there, but that was only seven percent of total

454
00:19:01,480 --> 00:19:05,160
Speaker 4: demand in twenty twenty four. Oh really, yeah, back those

455
00:19:05,200 --> 00:19:08,119
Speaker 4: types of electronics and that kind of thing. The demand

456
00:19:08,200 --> 00:19:10,560
Speaker 4: largely comes from people kind of wanting to hoard it.

457
00:19:10,600 --> 00:19:12,960
Speaker 3: That's there. Not as much gold as you might think

458
00:19:13,000 --> 00:19:13,679
Speaker 3: out there too.

459
00:19:13,600 --> 00:19:16,120
Speaker 2: Well, And that's the thing that always bothered me about

460
00:19:16,119 --> 00:19:18,280
Speaker 2: it as an investmentry, because it is volatile in the

461
00:19:18,320 --> 00:19:20,600
Speaker 2: sense that there are the gold bugs out there who

462
00:19:20,760 --> 00:19:23,320
Speaker 2: do believe the fiat currency is going to collapse. It's

463
00:19:23,320 --> 00:19:27,960
Speaker 2: like bitcoin, though it's always expressed in fiat currency value.

464
00:19:29,320 --> 00:19:31,439
Speaker 4: That's right, And that's one of the reasons if you're

465
00:19:31,440 --> 00:19:34,119
Speaker 4: buying gold, you're kind of resistant to fiat currency in general.

466
00:19:34,160 --> 00:19:36,520
Speaker 4: You're wanting to go back to, you know, something that

467
00:19:36,560 --> 00:19:39,399
Speaker 4: had some kind of standard besides a general agreement of

468
00:19:39,440 --> 00:19:41,359
Speaker 4: what something is worth. But ironically that's the same thing

469
00:19:41,400 --> 00:19:43,960
Speaker 4: that gold is. That's what a commodity is. Everybody agrees

470
00:19:44,000 --> 00:19:47,760
Speaker 4: it's worth this particular amount, and that causes price wings

471
00:19:47,760 --> 00:19:50,960
Speaker 4: that will trigger runs in that same asset as well

472
00:19:50,960 --> 00:19:53,040
Speaker 4: as you know, runs in and runs out. And so

473
00:19:53,119 --> 00:19:55,080
Speaker 4: that would probably be the next step is when does

474
00:19:55,119 --> 00:19:58,480
Speaker 4: the herd decide that this demand cycle is over for

475
00:19:58,560 --> 00:19:59,400
Speaker 4: it and goes the other way.

476
00:19:59,520 --> 00:20:03,399
Speaker 2: Well, and it's one of a seemingly unlimited multitude of

477
00:20:03,720 --> 00:20:06,119
Speaker 2: items that are used, you know, every single day in

478
00:20:06,200 --> 00:20:09,879
Speaker 2: manufacturing or otherwise, like platinum, and you know, rare earth

479
00:20:10,000 --> 00:20:12,280
Speaker 2: minerals are obviously in high demand now. So there's a

480
00:20:12,280 --> 00:20:14,360
Speaker 2: whole bunch of things that could sort of you could

481
00:20:14,440 --> 00:20:17,439
Speaker 2: you could choose other than gold is something to invest in,

482
00:20:17,520 --> 00:20:20,119
Speaker 2: right if you're just paying attention to where the demand is, right.

483
00:20:20,000 --> 00:20:22,320
Speaker 4: Negele like i said that the gold is not used

484
00:20:22,320 --> 00:20:26,480
Speaker 4: in that many industrial type uses, such as some of

485
00:20:26,480 --> 00:20:28,840
Speaker 4: the other things like that that all the devices of

486
00:20:28,880 --> 00:20:31,120
Speaker 4: the stuff that goes into cell phones that we always argue.

487
00:20:30,920 --> 00:20:33,600
Speaker 3: About, Right, gold is just not a thing. Copper, on

488
00:20:33,640 --> 00:20:35,040
Speaker 3: the other hand, Copper is everywhere.

489
00:20:35,080 --> 00:20:38,840
Speaker 4: Copper is an indicator of economic feast or famine based

490
00:20:38,880 --> 00:20:41,520
Speaker 4: on how much copper we're consuming. That usually drives the economy,

491
00:20:41,560 --> 00:20:43,919
Speaker 4: but gold doesn't show up anywhere except for in the

492
00:20:43,960 --> 00:20:45,280
Speaker 4: overall investor sentiment.

493
00:20:45,520 --> 00:20:48,720
Speaker 2: And going back to my let's say my financial planner,

494
00:20:48,760 --> 00:20:51,000
Speaker 2: a good you know, fee based financial planner that is

495
00:20:51,000 --> 00:20:55,480
Speaker 2: a fuciary obligation to you. Are they including typically one

496
00:20:55,520 --> 00:20:58,000
Speaker 2: of these mixed mutual funds that you mentioned that it

497
00:20:58,000 --> 00:21:03,920
Speaker 2: contains some of these industrial need always in demand gold, platinum,

498
00:21:03,960 --> 00:21:07,720
Speaker 2: and other minerals and items. Am I invested in that

499
00:21:07,800 --> 00:21:08,400
Speaker 2: for example?

500
00:21:08,600 --> 00:21:10,960
Speaker 4: Yeah, probably a small percentage, but it's not going to

501
00:21:11,000 --> 00:21:13,840
Speaker 4: be gold, because again, gold is it's just functioning like

502
00:21:13,880 --> 00:21:16,040
Speaker 4: a commodity. But for those other types of things, and

503
00:21:16,240 --> 00:21:17,720
Speaker 4: there's lots of ways to do it. You don't have

504
00:21:17,760 --> 00:21:20,040
Speaker 4: to invest strictly in that asset, and you might invest

505
00:21:20,080 --> 00:21:23,520
Speaker 4: in a miner of whatever that asset is, some company

506
00:21:23,560 --> 00:21:25,399
Speaker 4: that produces it, pulls it out of the ground and

507
00:21:25,440 --> 00:21:27,760
Speaker 4: processes it and makes it ready for industry. That's different

508
00:21:28,040 --> 00:21:30,440
Speaker 4: than simply buying gold bullion and sticking in a box

509
00:21:30,480 --> 00:21:33,000
Speaker 4: somewhere and declaring what it's worth on a daily basis.

510
00:21:33,040 --> 00:21:34,680
Speaker 2: All right, well, I'm glad I asked you the question.

511
00:21:34,760 --> 00:21:36,800
Speaker 2: Brian James. Always appreciate you coming on the show, and

512
00:21:37,040 --> 00:21:39,480
Speaker 2: you want to say good morning to your group of

513
00:21:39,520 --> 00:21:41,920
Speaker 2: secret female Money Monday fans.

514
00:21:42,080 --> 00:21:45,640
Speaker 4: Hello ladies, I hope you enjoyed our special edition last week.

515
00:21:46,320 --> 00:21:49,359
Speaker 4: Tang of questions from the audience. That kind of came

516
00:21:49,400 --> 00:21:50,560
Speaker 4: out of the blue, but that was fun to do

517
00:21:50,600 --> 00:21:51,679
Speaker 4: and I hope you found that useful.

518
00:21:51,760 --> 00:21:54,040
Speaker 2: Thanks versus Federal credit Unions. Go ahead and check out

519
00:21:54,040 --> 00:21:56,239
Speaker 2: the podcast from last week's discussion with Brian James. We'll

520
00:21:56,280 --> 00:21:58,920
Speaker 2: get another one next Monday, Bunny Monday, Brian James, thanks

521
00:21:58,960 --> 00:22:00,719
Speaker 2: for what you do. Appreciate all worth learning you out.

522
00:22:00,800 --> 00:22:02,639
Speaker 2: We will have another discussion again on Monday. Have a

523
00:22:02,680 --> 00:22:03,120
Speaker 2: great week.

524
00:22:03,200 --> 00:22:04,800
Speaker 3: Thanks for the microphone. Talk to you next week.

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00:22:04,880 --> 00:22:06,760
Speaker 2: Looking forward to It's eight thirty five right now. I'm

526
00:22:06,760 --> 00:22:07,639
Speaker 2: always looking forward talking to