You Can’t Eat Gold | 419

I want to talk about gold in this episode and the basic concept behind it. Where it’s good and where it’s far off the mark. It’s about buying real assets.

But here’s the thing, you can’t eat gold, silver, and even property. And this is the key thing that we are going to focus on in this video.

Hello, my fellow Ripplers! This is Chris Miles. Your Cash Flow Expert and Anti-Financial Advisor. And I want to welcome you out for a wonderful show. Show that is for you and it’s about you. Those of you that work so hard for your money, and you’re ready for your money to start working harder for you. Now! You want to be able to work because you want to not because you have to. You want to create that freedom. That cash flow. That prosperity. Today! Not 30 or 40 years from now, but right now. So you can have all that freedom to do what you want. To be with those that you love. Doing what you love, right? But on top of that, it’s so much more than creating your own freedom for yourself and be able to live and consume and buy hot, you know, hot cars and airplanes and all that kind of stuff, right?

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So today I want to talk about a concept. Really, this is probably going to be a long podcast. This might be one of my shorter ones, for sure. But I want to talk about, you know, gold, silver, and those kinds of things, and really the basic concept behind it and where it’s good and where people that talk about it. Even the people that seem to be smart about investing could be far off the Mark here. So, you know, I actually just saw a video recently with my wife. She showed it to me where Kiyosaki in an interview last May. He said, Hey, you know what, right now I think buying gold, silver, you know, oil, you know, that kind of stuff is great. You know, buying real assets, which I 100% agree with. I think you should buy real assets, not the paper versions of them. Right?

Now, I’m not talking about buying like the, oil, you know, the oil ETF and things like that, right. Or gold or silver ETFs and things like that. Don’t buy mutual fund versions of these things. This is not what we’re talking about here. He’s talking about buying real assets, including real estate, right? Things of that nature. And which I definitely agree with. Now, I don’t always agree with Kiyosaki at every aspect. And that’s fine. He’s got his opinions and I’ve got mine and he could be right and I could be wrong and I could be right and he could be wrong. And it doesn’t matter. Right? What really matters is that I like to always go back to the core principles of wealth. The core principles of what really makes money work. Now, he mentioned that gold and silver would be great. He actually mentioned that silver would be better than in gold.

And he’s been saying this for years and I’ve been saying something similar too. It’s interesting because gold up until recently looked like it was doing way better than silver, you know, because when people are running away from the markets, right? A lot of times, especially they see money being printed like crazy. They start running off to gold and silver and I’ve had clients ask me this. They’ve been asking me this for months. And I’m like Chris, with all this money being printed by the feds and allowing the government to start pumping cash out to the people, do you think gold and silver is the place to be? My answer is this. Is that, do not bank on buying gold and silver. You know, now, again, I’m not giving investment advice or anything like that, but if you’re trying to play and ride the markets, this could be a very risky venture.

Plus, you got to understand that these things do not create income, passive income. To me, that’s where there’s real financial freedom. And it doesn’t mean that gold silver couldn’t be good. Right? He even mentioned Bitcoin, by the way. He mentioned Bitcoin as well. Hey, I’ve even done some stuff with Bitcoin and made some money off of it. Right? You know, which is funny because two and a half years ago, I said, don’t buy it well after it crashed, that’s what I did. I said, Hey, I’ll put a little bit of money in, but very tiny amount of money. This is like money that if it disappeared, I wouldn’t even know it’s gone. Right? I actually made some money off of it. Cause the Bitcoin did go up from where I thought it was a low and I was right.

But here’s the thing, is that, you cannot eat Bitcoin. You cannot eat gold. You cannot eat silver. You can’t even eat a property for that matter. Although at least to the income coming off of it can help. The truth is, is that you can only eat food, right? And this is the key thing I want to focus on because so many people think, Oh, gold and silver, that’s the place to be, especially as a, as a good hedge. I totally agree. When I buy gold and silver, I actually look at it as an inflation hedge. I look at it as Jerome Powell, insurance, right? When the feds keep printing more and more money, I look at it as like an insurance policy. I buy as a protection against me. Now I’m going to put all my money there. No way, no way. This is like a small teeny piece of my portfolio. Really. It’s actually a piece of my savings.

If you remember, I had just a few weeks back, did a show called how to diversify your savings. Right? I mentioned gold and silver a little bit there. You know, I do diversify and put a tiny amount of that money in gold, silver as an inflation hedge in case the dollars gets wasted. Now I’ve got my life insurance that also does do well in addition to that. So I’m not so worried about all my money becoming worthless, right? But definitely I don’t believe in being very heavy, like very, very cash heavy where it’s just sitting in cash, earning point, nothing percent in the bank, you know, I’ll keep some money there, but I’ve got moneys elsewhere. You know, that’s why I have the life insurance to help pay me much better. Tax-free dividends. I’ve also got some gold and silver, you know, for that reason, it’s almost like this insurance policy to protect it.

I look at as the same investment strategy as this. If you guys know who Mark Cuban is, he was on the TV show. Shark tank. Well, still is. I should say. Owner of the Dallas Mavericks, you know, very outspoken guy. It’s interesting because when he sold his company off, right, he sold it to Yahoo. Back in, right around Y2K. And when he sold it, they paid him in Yahoo stock. They didn’t pay him cash. They paid him in Yahoo stock. Now 2005 comes around. Google hits the scene, right? Google started becoming the big monster of choice where Yahoo just disappears into nothing. That’s a little bit. Well, their stock tanks while Google’s is going up from 2005 on that’s when Google stock came out. Well, you know, what’s interesting is you think Mark Cuban would have lost money. And technically he did at the same time, he didn’t. Because what he also did with that stock, that Yahoo stock, he also bought of his own money.

Put options. Put options for those you don’t know, it’s essentially you’re gambling on that stock going down. You’re betting against that stock. So he bought a put option where it makes money. If the market goes down and when you buy an option, an option has much bigger volatility, more influx, than you would get with a stock. So if the stock goes up, then the put option goes down big time. If the stock goes down, the put option goes, goes up big time. So you make money when the market, when the stock drops. And this is something I tell you when I was teaching people how to trade stocks and options is, Hey, buy a put option against this stock to protect yourself. So it was kind of this married put strategy. Well, that’s what he did. He did a married put about the stock, where he had the stock ownership and he bought the put option against it.

So when Yahoo tanked, his put option made a lot more money, or at least pretty good close to the amount of money he was losing in the Yahoo stock. Which allowed him to have more cash which allowed him to still have money there. That is exactly how I see gold and silver. Gold and silver is the same thing. Essentially, when the, you know, the dollar is tanking was losing value. Usually, usually. Not all the time. Gold and silver goes up in value, right? When that, because people go running to flee to those areas to go buy more and that drives the price up. Well, cool. When it does that, that means the price of your cash goes up essentially, right? Again, I don’t like to be heavy in those metals because the truth is you can’t eat it and there’s no real utility without the ability to exchange it. It doesn’t matter.

So I’m thinking like doomsday. Right? Okay. So I always like to go to the doomsday part because I want to expect the best, but prepare for the worst. So when I look at it, I think of, okay, I’m going to buy physical gold and silver I’ll even buy 10 of ounces. That’s easier to trade because we ever got the point where the dollar say worst case collapses. No one wants to even use the dollar anymore. But gold and silver still has intrinsic value, which over history it has. Great. I can use it to exchange. Here’s a key point though. What happens if people are starving? And we saw this when COVID first started, you remember the toilet paper shortage. It didn’t matter how much gold and silver you had. You couldn’t buy toilet paper because it wasn’t there. Right? This is true.

Even with like certain meats. I mean, we couldn’t even find chicken. You know, like the type of chicken we buy, it was gone at all the grocery stores. What do you do then? See, understand that just because you have money or just because you have gold, silver Bitcoin, doesn’t matter just because you have those things. It doesn’t mean you get the very necessities of life. And this is what I mean by you cannot eat gold. You can’t eat this stuff. Now. I’m not saying you don’t have it. I’m not saying it’s not a good inflation hedge, but I’m not buying it as like the way to bank and essentially have my own money. Even Bitcoin. I’m not even using it as a way to exchange money digitally. The truth is by the way, the U S is probably gonna create their own digital currency in the next few years. Anyways.

That’s why they’re hiring. That’s what they’re recruiting people out of these types of digital currency companies to help them do this. Like it’s already written on the wall. You can already kind of see it happening. We’re going to go the digital currency at some point. Anyways, we’ve got a coin shortage for that matter. I mean, come on. How do we get a coin shortage? Seriously? So there’s something going on, right? This is why, again, I don’t trust on just banking on things. You know, things don’t matter. It’s about what you can exchange it for. If I were to give you any good investment advice. And I don’t say this often, I’m saying you’re gonna invest in anything. Buy food. Buy food that could be sustainable. You know, you might buy food that could be considered a luxury. You know, my wife even talk about buying chocolate, you know, she’d have the stores of chocolate saying, Hey, you know what people, if they’re at the point where they’re starving, chocolate could be like a delicacy at that point. Which is true, you know, so, okay, cool.

That’s, I’m not saying you buy chocolate. I’m just saying, if anything, guys make sure that as part of your reserves, right? Not just your investments, but part of your reserves. Gold and silver is fine or whatever. You want to have a little inflation hedge on your money. But I would say first and foremost, build up your food storage. Maybe a few or ways to be able to have few and take care of your needs. Essentially emergency prep, right? I’m not saying you go totally extreme. I’m not saying guns and ammo and all that kind of stuff too. Although that might not be a bad idea either. That’s stuff that we definitely look at buying as well, but I’m talking about like actual food. By the way, inflation hedge wise. Guess what usually goes up and costs first when there’s inflation. Food. So if there’s a shortage on food, then there’s definitely a price hike.

But even regardless. Even if there’s not a shortage on food, food goes up with inflation. So at least you got something like that. Now I’m not talking about buying junk that expires tomorrow. And you could do like what we do, where we rotate through the food. Cause sometimes the expiration dates on good foods might be less than a year or two, you know? So you might have to rotate it. Like keep that storage of the food up. Keep storage of water. You know, if you’ve watched the movie Dune, right? If you remember Dune back from the eighties, that was gold. Was water because it was a precious resource. If there’s a drought, we need water. Right? And that’s a basic necessity of life.

So guys, when I’m talking about this, I’m really talking about having your basic necessities met. Money can’t always give you everything you need in life. In fact, there are many times when money doesn’t matter. People, if they can’t eat gold, they can’t drink silver. You know, but you can’t drink silver. But if you can’t have those things, you cannot survive. People will go for their basic necessities. Make sure that’s there first. Make sure you have your basic necessities. Don’t go hoarding. And I’m not saying like, just stuff your house full. And then you can walk for it. Do everything with proper wisdom in order, right? But I’m telling you if you’re looking for a good investment to invest in, great buy a little gold and silver, if you want, but go towards food and water first. Go for those basic necessities first, because if anything happens, power goes out and you can’t get to the ATMs. Hey, people may not be using gold and silver. They may not care. You want to go for something that people value and necessities of life are part of that value.

So, anyways, guys, that’s kinda my thing here today. That’s something that’s been on my mind for months. I’ve been wanting to share with you guys, but you know, Hey, it’s always good to play good offense, but make sure you have a good defense too, right? And no team can win with only a good offense and that we’re not win easily with a good offense. You’ve got to have both. You’ve got both. You have peace of mind. You have security and you have confidence. And when you have that confidence, you move forward differently. You make better financial decisions and you make more money. It’s just like, love begets love. Hate begets hate. Well money begets money. When you have those things in place and you have confidence in place, more will come, more security will come and everything that you need is there. So guys, I hope you make it a wonderful and prosperous week. And we’ll see you later.