Gold hits new all-time highs, crypto hits new highs, and the dollar hits new lows. What's going on? Is it a bubble? Is this a bear market? What are the reasons why people are buying gold and crypto?
00:01:04.460When he left Chicago, people were frightened.
00:01:07.320I was at a meeting, at a Goldman Sachs meeting at St. Regis in Chicago, right on the water.
00:01:10.800And literally, everybody who was on the stage, whether it was the Walsh family or the Reinsdorf or the Crow family, the name Ken Golden kept coming up of why they're leaving Chicago.
00:01:23.040Here's what Ken had to say about gold.
00:01:29.660And the appreciation in other dollar substitutes, to use that word loosely, in items like crypto, for example, is unbelievable.
00:01:41.660So we're seeing substantial asset inflation away from the dollar as people are looking for ways to effectively de-dollarize or de-risk their portfolios vis-a-vis U.S. sovereign risk.
00:02:03.880No, but it's a life of its own as you see sovereigns around the world, as you see central banks around the world, as you see individual investors around the world go,
00:02:13.740you know what, I now view gold as a safe harbor asset in a way that the dollar used to be viewed.
00:02:21.780That's what's really concerning to me.
00:02:41.380I've never seen a market where the equity market is rallying to all-time highs.
00:02:48.360We've made all-time highs in all three of the major indices.
00:02:51.760At the same time, breaking records, gold's up 50% year over year, incredible.
00:02:56.300And cryptocurrency making new highs as well.
00:02:58.640And there's one theory I have, and I just have to feel like there's a lot of liquidity sloshing out there.
00:03:04.260That's why people felt they missed this whole AI move up.
00:03:07.740And now we're hearing it might be a bubble.
00:03:09.180By the way, Jensen Yuang was just on CNBC a couple hours ago, an hour ago, saying that we're just in the beginning phases of the AI rally, which is very promising.
00:03:50.380It started here, and it's never really rallied long.
00:03:52.960It rallied a little bit coming out of COVID, but this is the continuation of a weaker U.S. dollar for whatever reason.
00:03:59.040Geopolitics, as Fisher just said, central banks are buying gold and crypto.
00:04:05.120That's why we're seeing brand new highs because they're worried about, I believe, what the tariff situation could end up being if it becomes even more exacerbated by Trump.
00:04:15.380Yeah, so Bitcoin hits an all-time high of $123,000.
00:04:25.000You had some comments to make earlier when you said gold going up, the way – what it's – compared to the dollar the last few years, what number did you state earlier?
00:04:37.120I mean there's been a marketing campaign to not look at gold as a form of money because I don't think that the government likes when you own gold or when the consensus is for people to obtain gold.
00:04:45.700But the value of the dollar versus gold, the dollar has lost 50 percent of its value against gold over the last three years.
00:04:53.940And I agree, Eric, that it could be for the tariffs because gold is a good indicator of future inflation.
00:04:59.420Gold actually started rising quickly in 2019, so it almost predicted the money printing in 2020 very interestingly.
00:05:05.380So it could be for the tariffs, but also I think this is interesting that for the first time since 1996, the central banks have more gold on their balance sheet than treasuries.
00:05:15.460And I almost see it as like a credit default swap situation where they didn't let the price of the bonds move until they got themselves positioned to where they had enough of them to where it wouldn't hurt them if they let the market do what it did.
00:05:27.300So if you see right here, the net balance of gold owned by central banks has gone crazy over the last 10 years.
00:05:34.040So I think maybe now they're in a position where they're comfortable letting it go to its natural price because they will have gotten hurt before if they let it go to its natural price because there's a lot of short selling suppressing the price.
00:06:08.180The crypto versus gold has a lot of upside is my point.
00:06:12.640And as the banks and central banks around the world get more comfortable with owning Bitcoin and making sure that the government doesn't get involved in regulating Bitcoin, right?
00:06:31.960So the more people get comfortable with it, the more it's going to increase versus – and you may see the trade go from sell gold, buy Bitcoin.
00:06:40.000That could be – it could be the hedge against whatever bad things are happening in the general economy.
00:06:45.020Maybe they just move the hedge from gold into crypto.
00:07:38.100We have $2 trillion companies, but we printed a bunch of money, and the price became an illusion.
00:07:43.940So when you say de-dollarize, it's also de-risk from a socialist government policy if the next socialist president we have chooses, as Biden did, to print the hell out of money to just crop dust the American people with relief payments.
00:08:03.340So when you say de-dollarize, what you're really saying is stepping away from the inflationary risk of the dollar that a lunatic president on the socialist side could just decide to print the hell out of it.
00:08:17.520Well, why do you have to print when you have – when you had COVID?
00:08:20.320Or if you have great global wars where a whole bunch of equipment is needed, you – two countries beat the crap out of each other, and then you need all this relief to rebuild the countries.
00:09:14.660Gang, before we get into it, two things.
00:09:16.520Number one, see this shirt I'm wearing with the vitamin logo here on The Future Looks Bright?
00:09:20.900I have probably 30 shirts in my closet.
00:09:23.220My wife says, babe, these shirts are my favorites.
00:09:27.240When you wear them once, okay, you're going to see how it feels, how smooth it is.
00:09:32.660You're going to feel like someone's hugging you all day, telling you how awesome you are, okay?
00:09:36.980If you haven't yet ordered – I think some of the sizes are gone, but we do still have some left.
00:09:41.580This is the business show that we're talking about here.
00:09:43.900You got them in white with the gold logo.
00:09:46.540The Future Looks Bright on the bottom of the shirt.
00:09:49.000You got them in black, which looks great, and you got them in blue.
00:09:51.860Black goes with gold, and we have the blue as well.
00:09:54.500You may as well order all three of them if you are somebody that's in business and you're regularly wearing business shirts.
00:10:00.200And then we got some of that blue jacket that's left and that whole business series that's going to be there.
00:10:04.240Now, you can go to vtmerch.com to place your order.
00:10:06.900Number two, if you're with us right now and you're an entrepreneur, small business owner, we have a circle on Manac dedicated to just business owners, okay?
00:10:32.140We're talking ideas, notes, PDFs, different things that I do.
00:10:35.920I post all the stuff in here, and you can join for free to see what we're talking about.
00:10:41.280And if you want to be able to network and message each other, it's $5 a month for you guys to be able to talk to each other in that circle.
00:10:47.100If you enjoyed this video, you want to watch more videos like this, click here.
00:10:49.780And if you want to watch the entire podcast, click here.