The idea is that the smart money gets back into goal relatively soon. And
the central banks bought more gold in twenty twenty two that they had in decide
and that's the smart one. And even though they pooh pooh gold on CNBC
and the main financial channels, and they only ex seem to feature a gold
feature on Goldens Down, the truth of the matter is that gold does well
for preserving your well. And I'm going to digress for a minute, but
at a money manager at a major brokerage house, I mean one of the
top three that is now retired, and we had a chat on their crypto
backed gold currency. You're listening to Carrie Let's Financial Survival Network, where you
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You need the Financial Survival Network now more than ever. Go to Financial
Survival and Network dot com and get your free newsletter and gift. Financial Survival
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Financial Survival Network. I'm your host, Carrie Lutz. Well, we got
a rare treat. David Morgan is with us now the Morgan Report dot Com.
We were just talking, David. It's been twelve years, and it's
so funny because when we first met, you mentioned that, gee, this
guy sounds great, but he's late to the party. Yeah. Well,
we had met. I think it was in two thousand and ten, eleven,
somewhere in there. And now we peaked in the medals as you know,
Carrie April end of April, early May twenty eleven and silver in septembery
in Gold twenty eleven, and you know, we we were kind of me
and then people in my our genre. Uh, you know, we were
very popular when gold had eleven years up, you know, in a row,
and silver outperformed gold most of those years. We had some off years
in other words, one over the year like gold was, but it did
well, very well. And then you know, when we met, it
would have asked me that we're going to go through this long new formation,
meaning from the top all the way down, down, down down. Fine,
you get the bottom a few years, get all the way back to
what's called around trip or gold's back around the top of two thousand, and
it's going to take till twenty twenty three to do so. I would have
looked at you like get out of the business. You don't know what you're
talking about. But here we are, and the fundamentals for gold is I've
only gotten better. I called the run the gold months ago, and I'll
believe I'll be vindicated. Not that it's about me, it's the message,
not the messenger. But the idea is that the smart money gets back in
the goal relatively soon. And the central banks bought more gold in twenty twenty
two that they had in decade, and that's the smart one. And even
though they poo pood gold on CNBC and the main financial channels, and they
only seem to feature a gold feature when gold is down, the truth of
the matter is that goal does well for preserving your well. And I'm going
to digress for a minute, but at a Mney manager at a major brokerage
house, I mean one of the top three that is now retired, and
we had a chat on their crypto backed gold currency and he said, you
know, all those years I worked at X y Z financial house, you
know I put people in these stocks, in that stock, in the S
and P and everything else, because all I put him in the gold the
whole time. They will be better off now after be fair. That's from
roughly the bottom to now. But if you measure from the bottom, go
now stocks, bonds and gold, gold is outfformed everything. So now as
it outperformed a certain stock mill, but has outperformed the index, gold is
outperformed the S and P five hundred's outperformed the boy. They so back to
you, Kerry, but you know, gold, I just want to go
on a minute more, you know, especially early on he's like, oh,
he's only a gold bug. He doesn't always talking about but they can
stealthily ask the question of one of these radio hosts, especially the mainstream,
that are kind of under educated about precious metals. So if I could give
you an investment they had a compounded annual growth rate of ten percent per year,
would you be interested in it? And of course the host would say
yes. So while the one that's done that's gold, name me another one
that's done a comp how to compound it adual growth rate at ten percent?
They wouldn't be able to come up, So I don't know if you call
it zero edge. Today, the new gold rush is fat, something that
the Americans with the obesity epidemic seemed to be producing in prodigious record amounts.
And their point was that the companies making anti obesity medicines the two biggest right
now Eli Lilly with weggavi or we gov and Novardis with ozempic, and you
know, they their market caps go to the roof. You know, Eli
Lily is trading six times what it was in twenty twenty. So there's always
a gold rush going on somewhere, whether it's AI or EV's or cloud storage,
whatever it might be. But it seems like as far as figuring out
ways to get people thin again by taking a magic pill, seems to really
be the latest craze, doesn't it. It does, And I have to
give you a story. I know this is an open forum, and I'm
grateful for that, Kerry. But years ago I was getting on one of
my many flights and two Scandinavians got on board just after I sat down.
Both were taller than me. I'm a tall man, as you know,
that blonde younger than me, fitness hell, and I was in the middle
seed. One set next to me and the other set across when the aisle
and they're talking, talking, talking, and they had they're going back home
and they had toured in the United States of America and they seeing you know,
Boston, Washington, DC, they did to Florida, made it out
west. I mean, they did the whole, the whole shamol. So
I listened carefully, and then I politely said, you know, I couldn't
help overhearing that you had toured the US of A. And you know,
if you don't mind me asking, I'd like, you know what, it's
the most profound thing that you found out about America? You know? And
of course I'm thinking, you know, maybe the Liberty Bell or the Washington
Monument or you know, the Grand Canyon or whatever. And he looks at
me and he says, all Americans are fat. I remember what I asked.
I asked him, what's the most profound thing you found American? That's
what he answered, All Americans are fat. I wasn't like a top shape,
not that I've stayed in top shape my whole life, but I've stayed
with been reasonable boundaries compared to most of less Americans. You've seen me done,
you know. Yeah, so I kind of sucked in a little gut
that I have. I mean, he said, yeah, you guys don't
even have food in your stores. You know, in my country, everything
goes labeled with the nutritional content of everything that you buy. And in your
country you sell you know, pop cut pop corn chips, and you know,
of course we do. And I didn't know if he's referring to convenience
stores or simple markets. The conversation you go on real long, but it
was just a real wake up call to me. So it goes right back
to what you what you started with about the new gold and Ellen won more
of comment. And that is unfortunately the Americans have not been taught what I
was taught, and that is self responsibility. I mean, almost everybody knows
to eat right or basically how to eat right, and you got to exercise,
and exercise could be a simple as a walking and and that's a that's
your own responsibility. But they're much more apt to do the fast food,
fast fix nature of our society, which is, you know, grab a
pill that will fix B. I don't want to do the work, and
that's unfortunate, this we both know. But yeah, those companies will probably
make a fortune, and especially if it helps people to lose weight, anything
chemically putting your body like that, I always question it. What the side
effects might be, but back to you, you know it's so true.
Hey, at one point, believe it or not, it's fifty pounds heavier
than I am right now. I was fat, obese, bordering on obesity.
I was definitely overweight by any definition. And its miserable and I found
it aging. Really, when you're obese really puts a lot of wear and
tear on your joints, on everything, inflammation. And you know, we
talk about money, and we talk about wealth, and we talk about,
you know, what's going on in the world, but what's going on in
your own life. Are you healthy or not? You know, I got
COVID. I thought I was more healthy than I was. COVID proved to
me that I needed to change my ways. And I have lost another twenty
pounds since then. And you know, I've always exercised. So you know,
we have the pillars of health, we have the pillars of financial health.
The pillars of health are number one healthy, diet, number two,
exercise, number three sleep adequate sleep, number four stress management and they're all
interrelated here. What would you say the pillars of financial health are having a
portion of your wealth in hard assets, in precious metals. What other pillars
are there, David, I will answer that you're fillers of financial health.
But before I go there, I just want to remind everyone that's not a
previous member of the mortgage Report that I've signed off from letter to one and
report one till present with this statement wishing you health above wealth, comma,
wisdom beyond knowledge. So I myself from what I've experienced in my own personal
life, but particularly my family with my dad having a massive car accident being
a quad allegiate last year. It happened his life and really put the context
of money versus health and the perspective I'll never overcome. And because you know,
my dad actually retired very well off due to some investments in back one
that I pretty much put proposed to him in the Southern phone industry, and
he did extremely well in the sou Their phone industry. And yet when he
got paralyzed, I'm sure he would have given up, you know, all
those all that financial gain to be able to walk, right. So,
so I just want to get that out there. So what you said,
you already outlined it. It's it's balance. Nature preaches balance. You too
much, you get fat, too little, you're too skinny. If you
exercise too much, you can lower your telemeres. If you exercise the right
amount, you can keep them long and strong. So there's this balance in
nature of the right amount, you know, the old adage that moderation in
all nags. You know, it's not like you can't ever have that chocolate
cake or that cheesecake or you know, I love cheesecake and I like pie
some pot but I don't eat it very often, you know, but just
mean a cat have it. But these people that order pizza three days a
week, or you know, the bass trained to bat hell. So it's
it's the adage moderation all things. It's on the financial legs. Yeah,
what are the three things that are legacy? Well, gold, land,
and fine art. Now most of us are out of the fine art category
because when we don't really know how to buy it into. It's probably out
of most of us middle class, working class people. But those are the
three of the wealth of the elites. But two of those are accessible to
any of us really, or any of us that can save. Then that
is gold, which basically I've brought into precious metals, and land, which
is unimproved or improved land real estate or commercial real estate, you know,
residential homes, farm in land, any of that classifies his land. And
in art I'll just leave out there. But on a financial portfolio, you
want when I think the late great Harry Brown, it was one of my
mentors and he came on. So all the permanent portfolio and the permanent portfolio,
I don't remember the percentage as folks, so forgive me, but I'll
give you the right idea. So a certain percentage was bonds, a certain
percentage with stocks, a certain percentage of real estate, a certain percentage was
precious metals. And there might have been another one like miscellaneous, like if
you wanted to do private equity or have your own business or whatever. I
don't recall if that was in there. And so he add the percentages and
then what he did on an annual basis, so you're not sitting there stressing
all you know, day, what's the price of goal doing today? And
oh my god, they took the silver market down again, and all this
stuff that many of our followers do. You just casually had a nice you
know, glass of wine or whatever, you know, mid January looking at
portfolio, and you saw the bonds in your portfolio. Instead of being thirty
percent of the portfolio, we're now forty percent. You sold off that amount
until you got the bonds back down to thirty percent. And then if you
saw your precious metals were down from fifteen percent of your portfolio to eight percent,
you put that bond money into the precious metals bring it back up to
fifteen percent. So what you were doing was obviously common sense good money management.
When things got above their cost in other words, yet a profit,
you took the profit, not all of them, and thinks so we're undervalue
allocated money too. So you were selling high and buying low every year.
And it's used to be on the on the mutual fund. So Terry CrOx
and actually had the idea. So all have good credit because Jerry was worked
with Harry and did an excellent job for him, and you could buy them.
Well, I think it's long gone now, but if you go to
office on Amazon or not, but goo google Ferment Portfolio by Harry Brown Browne.
I'm sure there's some used books out there, and I'm not saying you
should do it exactly, but it's a great way to look at the markets.
And I'm not a big bond guy. Never owned a bond in my
life outside of savings bond that we're required to buy at work at one point
in my career. But you know, stocks, I'm not against them.
Real estate, I'm not against high real estate. So it's balanced again.
And I think you have every category so well you should really over diversify or
whatever at certain times and you go back to what I outline of the purer
portfolio, and the medals have been down for so long, and you know,
bonds were the best thing could be in from nineteen eighty to forty years.
They've peaked. I wouldn't touch upon now if you pay me to be
in them, but you know, for forty years it was really one of
the best places to be. So let's say we're in that mindset for those
thirty or forty years, and you would be selling off gains in your bonds
the whole way and putting it into precious metals the last twelve years or so
and others. I mean, stock market goes up and down too, But
I think that's my best answer. I don't get that question often, and
most people wouldn't have an answer like mine because they're not as old as I
am, beasant as I am same here, I've done as many investments as
I have. But that's the answer. There's actually a play I looked it
up while you were talking, called the Lazy Portfolio ETF, and they have
what's called the Harry Brown Permanent Portfolio. Now, obviously there's no real estate
in it, but they could have been rates in there too, right,
But this is strictly a stock based portfolio. So twenty five percent gold,
twenty five percent US large cap stocks, and then fifty percent fixed income,
of which half is TLT and then half is a short term And they said
that it's it's had a net return of about six and a half percent per
year compounded over like twenty five years. But they don't have real estate in
there, obviously, And you know the fact is that ETF really aren't a
good analog for what he was trying to get at because for commodities, they
just put gold in there, and obviously if you had certain commodities, you
know you were going to do better than what gold did because they have done
well over time. Yeah, so yeah, again, I don't remember the
exact same might not have had real estate, and the original one, I
really don't know. I know he was not a big real estate guy.
I mean that's from the other books I've read by him, and also being
lucky enough to spend some one on one time with him later in his life.
I was very honored to be able to see one of my heroes and
you know, have dinner with him and that type of thing. So no,
I get it, But whether you really that shows though, is a
simple strategy like that could give the almost seven percent of compound, aren't they?
And that's beat the inflation rate for quite a while. It's probably a
little less than the inflation rate is right now. But if it's been twenty
five years where we had basically no inflation, we're any of the experts.
I don't agree that true inflection rache as low as the Yeah, right,
we both agree on that. Just to make clarity, Wait a minute,
David, you said you didn't trust your placer, right, Yeah, I
don't. I don't trust much of anything that was for the federal government are
most state governments. But regardless, the idea is sound and I'm glad you
looked it up. Thanks, Kurt. Yeah, so so another old saw
and I knew you knew this when we talked about it before, is that
one ounce should buy a very fine men's suit. One ounce of gold And
in fact, now you know, yeah, you could buy suits Italian super
designers like Kittans for fourteen thousand dollars new, but a good suit really probably
a thousand, maybe fifteen hundred. Get a really good men's suit. You
go to the outlet, probably get it for seven to fifty. So golden
is really pulled ahead of what it used to be as far as buying one
ounce buying a fine men's suit, Well that could be true. I mean,
I don't look at one data point. I'm too you know, studied
as an engineer, you'd want to take a database of several things, like
you know, the Hamburg or index and whatever. I don't know whether our
barney costs. I've never owned one. Maybe they're two thousand. I was
going to say two thousands. Probably about it right, But regardless, the
idea is the same. It preserves your well. And in the suit category,
maybe you'll value I'm not arguing with you. But in the food category
maybe under value. You know, we don't know, but that's I like
to take a broad base. But the suit. Analogy is good because people
can relate to and so again no argument. But I would say what that
gold is very undervalued relative the money because if you look at what's the paper
price of gold is a very easy equation. I put it out when my
first Internet articles is still floating out there and cyberspased somewhere, called the engineering
the price of Gold. Then you take what the Austrians call base money or
true money supply, which is M zero. So that's the amount of paper.
So that's you put that on an numerator. Then you can take the
amount of gold and you divide it. That's the denominator. And if you
do that division problem, you come out with fourteen thousand dollars announces, which
is the high price that you just match. So that's a two thousand now.
So from that metric, it's seven times under value. And the reason
I say that is you go back into history, you'll see where that metric
worked. In other words, as Mike Maloney says, gold catches up and
does a financial accounting for all the bad printing that's gone on for years.
Yeah, I did in nineteen eighty. It can do that same map.
It's really an arithmetic edition. If you do that in nineteen eighty, what
you'll find was that the paper price of gold was four hundred dollars announce.
Then it peaked at eight fifty in the spot mark at January twenty first,
nineteen eighty, which is over double the theoretical true gold price. And we
could have gone back on a gold standard. So that was nine years from
the time Nixon close to the gold window, and you would have been able
to peg the price of the golden let's say eight hundred, and been well
above the requirement for a paper price of gold. You would add twice as
much. You can think of it in two one of you think of it
several ways, mainly say well, we have prices, must goals. We
need to meet our obligations because really four hundred is the paper price of gold
and we're pegging at an eight hundred. Or you could say, you know,
we can inflate a lot more paper until we get into trouble. We
could double the money supply of still cover ourselves in gold. So that didn't
happen. Obviously. Yes, it was a one day event, but gold
hung in there pretty well. I remember selling I was gonna say a lot
of mine. I'd have that much, but that was in the futures market.
I did well, and and I had physical goal of also and I
sold some of that physical around the seven hundred dollar mark. But at that
time wasn't like I had to do it like the day after the peak.
There were months there where it was floating into seven hundred. Silver is a
different story, but silver was claw bared. I think the commodity exchange feared
silver far more than the third because when the hunts really had them by the
you know, add them, basically, they didn't know what to do.
They panic, they hadn't panic. They all the rules crashed it they So
you know, one thing that we've seen, though, is that our sector
that you and I follow, intimately involved in, the precious metals miners,
are in the dumps here. I mean the major is the medium ones,
Okay, they're doing all right, but the others are the juniors are just
they're a world of pain. That's the worst it's been to my knowledge.
I mean, there's a metric you can look at. There's a barren gold
index, which hasn't been around all that long. But if you look at
the discrepancy of the change between the price of the metal and the price of
mining shares. They've never had this big a gap before, which really spells
opportunity. And it's of course disheartening to me because that's basically the majority of
what I do. Of Course, I look out ahead. I looked out
ahead on this green Revolution thing, and will be on an interview later today.
I'll critical metal minerals and I don't know what the guy expects, but
you know me, I mean, and I am independent. I don't work
for publishing house, but regardless, it's a ruse. But anyway, I
digress to come back. Yeah, I'm concerned. You know, there's just
these things just don't add up. Carry Yeah, they certainly don't. So
looking ahead as much as we can, for whatever it's worth, how do
you see the situation unfolding? I mean, I heard about the bricks and
the so called goldback currency, but you got like failing economies trying to do
a synergistic play that somehow the sum of all their currencies is going to be
worth more than the individual currencies themselves. It seems destined to failure. Well,
it's sorry. This having massive problems because the productive capacity of trying at
this point is as too much capacity, there's enough demand. So and they
have a huge depth problems in thirty percent of their cots built on real estate,
and the big real estate that firms are blowing up, and so they're
really in a very very precarious situation. The banking sector hasn't reflected the amount
of pain that's in the real estate sector, but it will. So you
know, if you're going to base your bricks on you know, all these
countries that recently joined at of course, Brazil, Russia, India, China
and South Africa and one of your stalwarts, China, which is the second
largest economy in the world, going down to tubes, how's that going to
work. It's not not going to work. Now. The part that does
work, it's interexchange between their own currencies. So you can trade resilient currency
for Chinese currency, Chinese currency for Russian rubles, Russian rubles for South African
rand, North African rand for you know whatever, pasos, and that's fine,
and that alleviates them having to go through the dollar, which is good
for those countries. The problem is that even though it's a unified currency,
it's just like the euro because they have different cultures, have different work ethics,
they have different holidays, they have different productive capacities. And because of
that, you are let's say, at Greece in the Euro and you're Germany
and the Euro. Who's getting a better deal. Well, yeah, you
can pick about it, but they're not the same. And that's the problem.
So you got problem. Got a country that let's say, uses their
paso to buy your rubles, and the production capacity of the paso is not
the same as the ruble, then how valid is you know? The reason
that the US dollar is the best shirt in the hamper as this oppression is
because all these other countries are inflating faster. We're inflating like like hell,
won't have it. But when you consider what Zibabwe did with their inflation compared
to the dollars, dollars are real key or the lira, you know,
Turkish lira or whatever. So and is that true, David, In every
case, No it's not. But that's the way the index reacts is that
these other currencies are devaluing faster than the dollar, and because of that fact,
the dollar looks better than the rest of them, not because of there
destroying the dollars just destroying at a lower rate. And of course the main
reason, as we all know, all they should be said is because we
do have the luxury of being the reserve currency just being diminished by the bricks.
But the bricks currency taking over, it's not going to happen, at
least not for a long long time in my view. And I'll change my
mind I get better data or something appears that I'd missed. But these dollar
debts are that the dollars are dominated. So if you're an Indonesia or you
know, in each country that has dollar nominated debt, you've got to take
those ruples or those pasos or whatever your currency is converting the dollars to pay
off the dollar debt. Yeah, I pay your dollar debt off with the
ricks currency. Can't be done. Yeah yeah, and yeah, like in
the long run, maybe it'll have some effect. But yeah, we always
say now that it's the dollar is the best looking house in Baltimore, Right,
I like that one. So all right, So Morgan Report dot com
that's where we find you these days. Yeah, I'm going to put out
a special for my expires. I'm going to let them have a free report
basically, the cost of the report is the cost of a one hour consultation.
Anyone that resigns, I'm going to give them a one hour consultation,
one on one with me, not one of my staff. And I do
that for a couple of reasons. One, I want to build that report,
and secondly, I want to make sure to get started right with the
right equities, because you know, everyone would love to get rich in the
juniors, but it's the wrong time of the season to be heavily invested in
the juniors. I want to be in the top tiers, in the mid
tiers, you want to be the junior producers as your more specative for part
of your portfolio. And I want to get everyone started correctly. So I'm
going to make that offer here with them and probably by the end of this
month, probably rather thirty days. Well that's accomplished, then we'll probably go
to the general public and I'll do not quite the same because people are loyal
to me. I'm more loyal to put something along the lines of a half
hour consultation, and you could say a lot. So trying to give back
as much as I can, I still have to keep this business afloat.
There's a lot of people. Yeah, they're liable. Keep the lights on,
not just about me and sure that's it. So thank you for letting
me get that into Curry. Hey my pleasure. Well, hey, you
got a question for David myself? Email me k l at Terry LUTs dot
com. Hey, you'll find a link to david site in the show notes
to this interview on Financial Survival Network dot com. Just click through and you'll
get to them. While you're there, sign up for a free newsletter David
always a pleasure. Thanks so much for coming by. We'll talk to you
getting real soon. Great cry, Thank you, thanks for listening to carry
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