Golden Opportunity with a Silver Lining — Crisis Hedging with Precious Metals

We’re living in a time when the U.S. dollar is under pressure to support a struggling global economy. 

So, investors are joining central banks and turning to precious metals to hedge up their portfolios. 

Gold and silver are solid forms of liquid reserves. As the COVID-19 health crisis evolves into an economic pandemic … real estate investors should consider these malleable assets. 

Our good friend Dana Samuelson is here to talk about precious metals and investors like YOU. 

In this episode of The Real Estate Guys™ show, hear from:

  • Your shiny gold host, Robert Helms
  • His tarnished co-host, Russell Gray
  • Precious metals expert, Dana Samuelson

Listen


Subscribe

Broadcasting since 1997 with over 300 episodes on iTunes!

real estate podcast on itunesSubscribe on Androidyoutube_subscribe_button__2014__by_just_browsiing-d7qkda4

 

 


Review

When you give us a positive review on iTunes you help us continue to bring you high caliber guests and attract new listeners. It’s easy and takes just a minute! (Don’t know how? Follow these instructions).

Thanks!


Hedging strategies for your portfolio

Today we’re talking about the safety and hedging strategies real estate investors can employ with precious metals. 

Real estate investors tend to look at life … and investing … transactionally. But traditional investing is really about building a portfolio. 

A portfolio consists of different components. When you apply portfolio theory to your real estate investing, you can use some of the same financial strategies that paper asset investors enjoy using the real assets you prefer. 

What are real assets? Real assets are things that are physical and tangible. They don’t really rely upon a counterparty risk. 

Building a portfolio of diverse real assets is important … and today we’re talking about a component that can be an important part of your portfolio mix. 

There’s the possibility that because of this economic shutdown, the Federal Reserve is going to print so many dollars that it will begin to damage currency. How do you hedge against that?

One way is to invest in assets that don’t have counterparty risk … like precious metals. 

Dollars haven’t existed forever … but gold and silver have. 

Why gold and silver?

Our guest today knows a lot about these precious metals … Dana Samuelson. Dana is one of the best resources out there on gold and silver investing. 

“Gold and silver are malleable, so they have been used as money and currency since ancient times,” Dana says. 

Unlike paper money, gold doesn’t really change its value. It is the same today as it was a hundred years ago in terms of purchasing power … in fact, it has actually gained value against printed currencies over the hundred years. 

Gold is up over $300 an ounce in the last 12 months relative to the dollar. 

One thing investors do need to understand is that when you buy an ounce of gold, it doesn’t have an ROI. It doesn’t earn interest. 

What it does is preserve its value at whatever time, place, and currency you want to compare it to going forward. 

So, we don’t all think of gold and silver as investments as much as we do a hedge against inflation and a way to keep money safe. 

Gold and silver have always been fantastic as far as preserving purchasing power, and there are multiple ways to invest in metals. 

Ways to invest in precious metals

You can of course buy precious metals outright by the ounce. But you can also invest in funds. You can invest in ETFs. You can even invest in mining companies. 

But, many of the alternatives to buying gold and silver outright do come with some counterparty risk. That’s why buying metals outright is so popular. 

When people think of gold bullion, they think of gold bars. These bars are minted privately. Most major mints have since replaced bars with round bullion pieces in the United States. 

The U.S. mint has been making one-ounce gold and silver Eagles since 1986. Other countries … like Canada, South Africa, China, Australia, and Austria … also make round coins as alternatives to bars. 

Up until 1933, people had a choice on the street between a $20 gold coin or a $20 paper bill. 

That means that there are a lot of older, classic coins that survive today and are many times scarcer than modern bullion pieces. These coins have collector value that is above and beyond their intrinsic metal value. 

Just like in real estate, there are typically additional fees when you buy or sell coins, but those are fairly nominal. 

In the past few months, Dana has seen a strong demand for the physical product of gold and silver coins. 

Getting into the game

What advice does Dana have for new investors to the precious metals game?

“I would try and determine what your overall strategy is and how much you really want to put into this market over, say, the next six months,” Dana says. “I would definitely get started sooner rather than later.”

Dana recommends cost averaging your purchases over the next two to four months since precious metals tend to sell off with stocks as people rush to liquidity. 

Cost averaging is a great way to get in and keep your prices low. 

You can also look at the gold to silver ratio to see how many parts of silver it takes to equal one part of gold. Simply divide the gold price by the silver price. 

Historically that ratio has been anywhere from 20:1 to 40:1. In the past several weeks, that ratio has moved all the way up to as high as 125:1 … which means silver is dirt cheap. 

One reason silver is lagging behind gold is that gold represents true portable wealth. “You can carry $150K to $200K worth of gold in your hands. It’s about the size of a paperback novel,” Dana says. 

Silver, Dana says, is more spending money to use on the street if there is a problem with currency. 

“I would advise listeners to think about allocating 40% of their funds to gold and maybe 60% to silver right now,” Dana says. 

For more about investing in precious metals … listen to the full episode!


More From The Real Estate Guys™…

The Real Estate Guys™ radio show and podcast provides real estate investing news, education, training, and resources to help real estate investors succeed.


Love the show?  Tell the world!  When you promote the show, you help us attract more great guests for your listening pleasure!

Podcast: Ask The Guys – Scaling Up, Credit Lines, and Pandemic Prepping

Another exhilarating edition of Ask The Guys … your great questions and our questionable answers.

This time, we tackle topics about going from tiny to mighty … how to use credit lines strategically BEFORE they disappear …. how to prepare NOW for the investment problems and opportunities likely to emerge from the COVID-19 pandemic … and MORE!


More From The Real Estate Guys™…

The Real Estate Guys™ radio show and podcast provides real estate investing news, education, training, and resources to help real estate investors succeed.


Love the show?  Tell the world!  When you promote the show, you help us attract more great guests for your listening pleasure!

Podcast: Golden Opportunity with a Silver Lining – Crisis Hedging with Precious Metals

With so much pressure on the U.S. dollar to support the collapsing global economy, alert investors are joining central banks and turning to precious metals to hedge.

Gold and silver are forms of liquid reserves even Main Street real estate investors should consider as the COVID-19 health crisis mutates into an economic pandemic. So tune in as we talk precious metals with our good friend and gold expert, Dana Samuelson.


More From The Real Estate Guys™…

The Real Estate Guys™ radio show and podcast provides real estate investing news, education, training, and resources to help real estate investors succeed.


Love the show?  Tell the world!  When you promote the show, you help us attract more great guests for your listening pleasure!

Gold & Silver

Gold & Silver

 

Protect yourself against inflation and preserve wealth with precious metals … lasting assets with lasting value!

 

 

This is still true now!  Gold and silver are REAL assets with REAL value … and an unwavering rock for core stability in any investors portfolio. 

Precious metals are ALWAYS worth something … and tend to become more valuable when paper money fails.  In actuality, gold and silver HOLD their VALUE while other currencies continue to be devalued by governments and banking institutions. 

That’s why gold and silver have been at the core of wealth and monetary systems for centuries, and why  … smart investors look to these assets to preserve personal wealth and hedge against inflation. 

Precious metals like gold and silver are one of the few asset classes that hold their purchasing power in times of uncertainty. 

In fact, after the 2008 housing crisis, Gold and silver overperformed projections as demand soared for the next few years … 

And in 2020 … Public demand for deliverable hard asset precious metals is actually stronger than in 2009

And you can’t just pull out a printing press and produce more gold and silver to meet increasing demand on a moment’s notice.  

Some argue against the metals because of their lack of liquidity, but when you find yourself needing liquidity …

 You can borrow against your gold and silver reserves! 

In addition to being desirable and valuable … Silver offers significant utility as well!  It is an essential material for electronics, cell phones, solar panels, and consumer products like jewelry, silverware, and mirrors. 

As silver is more abundant than gold, it is less expensive and can be bought in more incremental varieties and liquitied in smaller incremental quantities as well. 

One thing to pay attention to for spotting opportunities in the precious metals space is the gold/silver ratio … measuring the strength of gold versus silver prices. This ratio shows investors how many ounces of silver it takes to purchase one ounce of gold. So, a ratio of 25 to 1 means it takes 25 ounces of silver to buy one ounce of gold. 

The gold/silver ratio can be a valuable tool to determine the right time to buy gold or silver.  Some investors choose to buy silver when the ratio is high and switch to buying gold when the ratio falls. No matter how you buy …

Gold and silver are lasting assets to secure your portfolio with lasting value! 

Explore the resources below to get to know this market better … 

Radio Shows

Reports & Articles

Upcoming Events

Boots-on-the-Ground Teams

Clues in The News

American Gold Exchange – Dana Samuelson

American Gold Exchange – Dana Samuelson

 

Trust American Gold Exchange when buying and selling gold, silver, platinum, and palladium coins and bars.

The savvy investor knows that precious metals diversify any real estate investment portfolio AND protect against inflation. American Gold Exchange (AGE) is your one-stop shop for valuable coins and bullion from all over the world.

AGE specializes in dealer-to-dealer trade and direct-to-public sales. Their deeply rooted industry connections help them keep prices low and quality high.

The dedicated experts at AGE track gold market trends … so they can give you the most accurate information AND offer the best products.

Find superior quality assets effortlessly with AGE’s HUGE inventory … from U.S. silver coins to international gold bullion coins.

Get ahead of the curve in market trends by consulting with AGE.  Walk away from each transaction feeling confident and comfortable … Dana’s team always takes great care of The Real Estate Guys™ and our friends. 

Fill out the form below, and a representative at American Gold Exchange will be in touch!

 


Reviews

Here’s what your fellow listeners are saying …

“Great communication and easy to work with!  Thanks for recommending them.”  – Adam B., Listener

Robert Kiyosaki on Private Investing and the Three Kinds of Money

We’re sitting down at the Rich Dad radio studio with our long-time friend and the Rich Dad himself … Robert Kiyosaki!

As the world’s best-selling personal finance author … Robert is sharing his thoughts on the important differences between public and private investments. 

Robert calls these differences “the three kinds of money.” 

We’ll also revisit the enduring message of Robert’s record-setting book, “Rich Dad, Poor Dad,” … and talk about the dangers and opportunities facing investors today. 

In this episode of The Real Estate Guys™ show, hear from:

  • Your idea-rich host, Robert Helms
  • His humor-rich co-host, Russell Gray
  • “Rich Dad, Poor Dad” best-selling author, Robert Kiyosaki

Listen


Subscribe

Broadcasting since 1997 with over 300 episodes on iTunes!

real estate podcast on itunesSubscribe on Androidyoutube_subscribe_button__2014__by_just_browsiing-d7qkda4

 

 


Review

When you give us a positive review on iTunes you help us continue to bring you high caliber guests and attract new listeners. It’s easy and takes just a minute! (Don’t know how? Follow these instructions).

Thanks!


Public investment vs. private investment

This week we’re going to talk about the difference between public and private investments … and who better to share ideas than Robert Kiyosaki. 

Robert has been on our show more than any other guest … and for good reason! He is the best-selling personal finance author in the world. 

We’re at an interesting point in the real estate business … but also in the economy. 

One of the themes that we’ve been talking about is the idea of private versus public and investing your money in a place that you understand … and that you’re educated about. 

Robert says the first step to understanding public versus private is to understand the shadow banking system. 

“The shadow banking system is what brought down the subprime market. It wasn’t real estate that brought down the market,” Robert says. 

What the shadow banking system did was inject the veins of the world economy with the most toxic asset classes. Robert says that the way they get you is via public stock market. 

But the beauty of being a real estate guy, Robert says, is that you are actually an untraceable part of the shadow market … but you can also function as a private entity. 

“I realized that the reason I make so much more money is I’m private. I’m not in the stock market,” Robert says. 

If you buy a house and it’s a rental house, that’s not a public transaction … it’s a private transaction. 

With all the uncontrollable factors of the public sector … shenanigans, as Robert likes to say … becoming a private investor is a great option. But it’s not without risk, and it’s not without trouble. 

The pros of being public is that you can get in and out quickly. It’s easy to change your course. It’s not the same if you have bought an entire apartment complex. 

If you are going to be private … your number one priority is your financial education. 

Cash flow and education

The biggest place where people get stuck is that they don’t understand the fundamental premise of what wealth is. 

It’s cash flow. 

When you start betting on the asset price … whether it’s the price of the house or the price of the stock or with negative interest rates … you’re not investing for cash flow yield. 

Instead, you’re investing hoping that somebody will come along and pay more for that same bond than you paid for it. It’s all gambling … and they want you in their casinos. 

If you invest in things that are real and are producing fundamental profits … you have staying power. You have resilient wealth. 

Part of being a real estate investor is getting in touch with your inner investor. We call it a personal investment philosophy … figuring out what you want real estate to do for you. 

And then you get educated. 

You could look at the fact that real estate isn’t liquid as a negative … but it’s also a positive. 

Since the market moves slowly, you don’t have to jump on a deal this minute or it’s gone. 

Instead, you get educated. You study markets. You study properties. You study how the rent works … and then you can grow wealthy over time. It doesn’t have to be an overnight success. 

Three types of money

Robert says that he believes there are three types of money today. 

The first is God’s money … gold and silver. It will be here long after we are gone. 

Then, there’s government money … flat currency … fake money. The only reason fake money exists is for paying taxes. 

The third type of money is people’s money … things like Bitcoin and other cyber money. 

Keeping these three types of money in mind can help you develop your investment philosophy as you move forward. 

Robert often says that only lazy people invest their own money … which is why we are big fans of syndication. 

Syndication is a great way to get private. You can invest or create investments that aren’t public investments. 

Whatever you do … whatever your personal investment philosophy … get educated, get private, and get out and make some equity happen. 

Hear more from Robert Kyosaki by listening in to our full episode!

More From The Real Estate Guys™…

The Real Estate Guys™ radio show and podcast provides real estate investing news, education, training, and resources to help real estate investors succeed.


Love the show?  Tell the world!  When you promote the show, you help us attract more great guests for your listening pleasure!

Cashing in on the silver BOOM …

In case you missed it, silver exploded nearly five percent higher … in a single day … which takes its impressive year-to-date gain to nearly twenty percent.

Of course, we’re not into using precious metals as trading vehicles to churn out short-term dollar-denominated capital gains.

We think real investing is about acquiring streams of passive cash flow. Rental income is sustainable, resilient wealth that doesn’t gyrate up and down with every Presidential tweet or bloviation by a Federal Reserve governor.

Nonetheless, we do think silver and gold can serve a powerful purpose in a strategic real estate investor’s portfolio. In fact, we’ll probably make this our presentation topic at the upcoming New Orleans Investment Conference.

But there’s another big silver boom happening … and it’s one that’s attracting gobs of capital and produces very strong cash flows.

A recent research report from Jones Lang Lasalle (JLL) described healthcare as an undeniable force in the U.S. economy and “the largest employer in the U.S.”

JLL says the healthcare’s bright outlook is rooted in powerful demographics…

“Underlying the forecast for growth in healthcare spending are … the growing and aging U.S. population.”

It’s the “silver tsunami” our friend and residential assisted living investing expert, Gene Guarino, talks about all the time.

And by the numbers, it’s a sector likely to be growing for awhile

“… the American population over 65 years of age is projected to almost double, from 50 million to nearly 95 million …”

“… the 95 and older population is expected to nearly triple, from 6.5 million to 19 million.”

Maybe that’s old news. (Sorry, was that a pun?)

But the point is … those demographics drive big expenditures

“Healthcare spending is expected to grow by more than nearly $2 trillion in the next decade.”

Of course, just because big money is flowing into a mega-sector, you still need to figure out how to stake your claim and get into the cash flow.

On this count, the report contains some valuable insights …

“Healthcare delivery continues to evolve toward a more decentralized model away from inpatient care and hospitals.”

Why? Because that’s what the customer WANTS …

“Healthcare consumers increasingly expect … a better experience when seeking care.”

“This trend is leading to new real estate strategies that include moving to … smaller-scale … centers.”

Of course, they’re not talking about residential assisted living homes. At least not yet.

But McMansions converted into a cash-flowing group home provides both care and community to a growing demographic … and fit well into the micro-trend.

We’re guessing big players like JLL and their institutional clients just aren’t interested in owning a dozen single-family homes each cranking out $10,000 a month of net spendable cash.

That’s because as great as this sounds to Mom and Pop investors and syndicators on Main Street, it’s small potatoes to big institutional players.

Yet we think it’s probable somewhere down the line that the big players will find a way to get in on the action … the same way huge private equity funds found their way into single-family homes.

But that day isn’t here yet. This means there’s still a lot of room for Main Street investors and syndicators to get in on the action.

And unlike many industries which can be offshored, tariffed, or cut out of the family budget in tough times … healthcare is an industry that will remain local and likely to enjoy continued public, corporate, and political support.

Residential assisted living is one of our favorite niches. We’re seeing many individual investors and syndicators having success in this space.

The demographics driving this sector are powerful and undeniable.

As baby-boomers have moved through the seasons of life, they’ve created huge economic bonanzas for industries which find ways to serve them.

Healthcare could end up being the biggest baby-boomer bonanza of them all.

So whether it’s medical office, residential assisted living, or some other healthcare related real estate play …

… this is one silver boom tailor made for strategic real estate investors and syndicators.

Until next time … good investing!


More From The Real Estate Guys™…

The Real Estate Guys™ radio show and podcast provides real estate investing news, education, training, and resources to help real estate investors succeed.


Love the show?  Tell the world!  When you promote the show, you help us attract more great guests for your listening pleasure!

Physical Precious Metals – A Guide to Getting Started

Physical Precious Metals – A Guide to Getting Started

 

Gold, silver, platinum, and palladium … oh my!

Diversify your investment portfolio with a real asset that stands the test of time.

Physical precious metals are widely traded and competitively priced. This makes coins and bullion … from gold and silver to platinum and palladium … a great arena for beginning investors.

Dana Samuelson has worked for some of the most influential precious metals trading companies. In this exclusive guide, Dana shares knowledge gleaned from more than thirty years of experience with YOU.

Jump in and learn:

  • The do’s and don’ts of dealing in precious metals
  • Which products Dana recommends and why
  • Why scarcer, historical coins are viable investment options
  • And much more!

Simply fill out the form below to get your free copy of “Physical Precious Metals – A Guide to Getting Started…”

 


Precious Metals for Real Estate Investors

In our latest episode, we’re chasing shiny objects. Gold, silver, palladium, and platinum, to be specific.

Now, you might be wondering how precious metals investing is relevant to you as a real estate investor. But guess what? When people want somewhere to hide equity, and don’t want to put money into stocks and bonds, they turn to gold.

Precious metals play an essential role in the worldwide economic sea. They act as a hedge against falling currency and a way to diversify.

So, we invited a special guest to explain how the precious metals business works … and give you the information you need to decide whether gold and silver might be a great investment for YOU.

In this episode of The Real Estate Guys™ show you’ll hear from:

  • Your golden host, Robert Helms
  • His silvering co-host, financial strategist Russell Gray
  • Precious metals expert Dana Samuelson

Listen

 


Subscribe

Broadcasting since 1997 with over 300 episodes on iTunes!

real estate podcast on itunesSubscribe on Androidyoutube_subscribe_button__2014__by_just_browsiing-d7qkda4

 

 


Review

When you give us a positive review on iTunes you help us continue to bring you high caliber guests and attract new listeners. It’s easy and takes just a minute! (Don’t know how? Follow these instructions).

Thanks!


Basics of precious metals investing

We met with Dana Samuelson at the 44th annual New Orleans Investment Conference. It’s our 6th year attending, but Dana’s been around since 1983, when he started working in the precious metals business for Jim Blanchard.

Dana owns a national mail-order business, through which he buys and sells modern bullion coins. He is also an expert in classic U.S. and European gold coins.

We asked him to explain the goal of precious metal investments.

Gold is not necessarily an investment, Dana says. But, “We live in a world of enormous debt, so precious metals are a good insurance policy,” he says.

Dana says investing 5 to 10 percent of your net worth in precious metals offers a way to keep your equity solid, even when the value of paper assets is fluctuating.

He calls gold a “safe, proven, real money investment.”

There are different ways to invest … you can collect precious metals bit by bit over time, or you can pick up larger amounts during periodic price dips.

Gold and silver are slightly different investments. For one thing, gold is more portable than silver. A handful of gold equals a wheelbarrow of silver.

Another difference … people tend to put their equity in gold over silver when the stock market and the dollar aren’t doing well.

The gold-silver price ratio can be used to determine the relative value of gold to silver. To find the ratio, simply divide the gold price by the silver price.

Traditionally, this ratio has been 20:1. Today, it usually hits somewhere between 60:1 and 80:1. Right now, the ratio is on the high end, about 85:1, which means silver is cheap relative to gold.

It’s a good number to look at when you’re trying to figure out what … and when … to buy.

Different methods for precious metals investing

Gold and silver come in many forms.

There are gold bars, which are now mainly produced by mints around the world and have to meet purity and weight integrity standards.

There are also smaller American Gold Eagles and Canadian Gold Maple Leafs, modern bullion coins that are sold by the ounce, half-ounce, quarter-ounce, and eighth-ounce.

Since these are smaller than gold bars, you don’t have to report to the government when you buy them, typically.

Dana calls these bullion coins “bread and butter” products. They’re reliable, widely available, competitively priced, and have long-term value and viability.

You can also buy generic 1-ounce rounds from private mints, usually silver.

Many people like to have a viable alternative to paper money, Dana says. Aside from widely available bullion coins, investors can also go the numismatic route.

U.S. coins minted before 1964 are 95% silver by weight. And gold coins minted before 1933, when the U.S. went off the gold standard, are increasingly valuable.

The coin-collecting route is great because of basic supply-demand principles … as time goes by, fewer older coins are available, so not only are these older coins made from precious metals, but they also hold an inherently higher value because they’re increasingly scarce.

How to get started with precious metals

Gold has been a form of money literally since the concept of money first originated. It’s a currency of last resort because it’s one of the few forms of currency that doesn’t need a government guarantee to back it.

Gold and silver are the most popular precious metals. We asked Dana about the other two sister precious metals, platinum and palladium.

These are much, much scarcer than gold, Dana says, but they’re valuable because they’re scarce … and because they’re necessary. Both metals are used in catalytic converters for automobiles.

How can someone new to precious metals get started? “Find a reputable, long-term dealer,” Dana says.

He offers his precious metal trading business as an example. They follow principles of transparent pricing, guarantees for sold items, and guaranteed buy-backs for anything they sell.

And perhaps consider staying away from eBay.

“I can tell a counterfeit a mile away,” Dana says. eBay can be sketchy … and it’s harder for amateurs to tell real from fake. To be extra safe, stick with established, hard-to-counterfeit products like bullion coins.

Investors also need to think about storage. “Gold is pretty compact. It doesn’t take up a ton of space,” Dana notes. Silver, on the other hand, is bulkier.

Some banks are writing coins out of safe-deposit box charters. So you have a few options for storage …

  • Find a bank that offers storage options for coins and bullion
  • Get a secure home safe
  • Go with a storage company … new storage options around the country are a great option for those dealing with a high volume of precious metals

Also consider that there may be reporting requirements when you move money in and out of the country, due to the Patriot Act.

“The most important thing is to think about what you’re trying to do and find a dealer to help you walk through your options” for purchasing, storage, and selling the asset in the future, Dana says.

“Use common sense.” After all, Dana points out, “You’re your own best doctor.”

A final note for those still dubious about precious metals.

We know it might not seem immediately logical to take your equity … and then just put it away in gold and let it sit. There’s no cashflow, there are no tax benefits … so why do it?

A few big reasons. Putting your equity in precious metals allows you to …

  • Invest outside of the traditional banking system
  • Get away from inherent risk and keep your equity stable
  • Diversify your equity in terms of currency types
  • Parks your equity until you need it in a low-risk currency form

To learn more, check out Dana’s report on investing in precious metals.

Now, go out and make some equity happen!


More From The Real Estate Guys™…

The Real Estate Guys™ radio show and podcast provides real estate investing news, education, training, and resources to help real estate investors succeed.


Love the show?  Tell the world!  When you promote the show, you help us attract more great guests for your listening pleasure!

12/29/13: Thinking Outside the Buck – How Savers Can Avoid Being Losers

Robert Kiyosaki says, “Savers are losers”.   Does this mean you should consume more than you produce, or that saving is bad?  Of course not.

There are multiple meanings to the Savers are Losers concept.  In addition to drawing a distinction between working for money (saving) versus having money work for you (investing), there’s the problem of money versus currency.

As real estate investors, we put a lot of time and effort into “making money”.  And while it’s fun to consume, most of us create profits with the idea of accumulating and storing wealth…at least temporarily until the next great investment comes along.

The challenge comes when the vehicle we use to store the value of our profits (paper currency) is being consistently devalued by its issuer.

With central banks (like The Federal Reserve) around the world “printing currency” at unprecedented rates, everyone doing business in currency (like the dollar) is affected.  And the dollar has the greatest effect of all because it’s used globally as the world’s reserve currency.

So while most folks are simply simply focused on how to earn and accumulate more money, we thought it would be a good idea to think about what “money” is, and whether the dollar is the best or only vehicle to use as money.

So put on your golden thinking cap, and get ready to think outside the buck…

Sitting behind The Real Estate Guys™ silver microphones for this episode:

  • Your precious silver-tongued host, Robert Helms
  • His generic round co-host, Russell Gray
  • Special guest and golden boy, Anthem Blanchard

As real estate prices rise (denominated in dollars) and equity happens, real estate investors are going to be the proud owners of bulging balance sheets.  Finally!

Of course, we’ve seen this movie before, so while we enjoy booms, we’re very aware of the boom / bust cycle that is inherent in an unsound money system. If you don’t know what that means, don’t worry about it for now.  Just remember that there are booms and busts (ups and downs), and when a market is booming, you ride it up.  Along the way, you’re extracting profits and storing them up for the next bust, so you can go out into the wreckage and snap up bargains.

So as prices rise and lending comes back into the market, investors will have the ability to realize profits (through sales) or extract equity (through refinancing).  Even buy and hold investors (presuming positive cash flow) will be stacking up dollars because the more properties you own, the more cash reserves and operating “float” you hold.

Most people hold this cash in currency, like dollars.  In fact, for most people, dollars are the ONLY measurement of wealth.

But thinking outside the buck, we wonder if it might make sense to store a percentage of those profits and reserves in something other than currency?

After watching the “bail-in” that victimized savers in Cypress last year, the concept of “counter-party risk” changed our perception of risk when dealing with banks.  Especially considering the miniscule reserves held by the FDIC against the huge amount of bank deposits insured.  We already know banks can fail because hundreds did during the Great Recession.  What if the insurer fails?

Soif money in the bank isn’t as safe as…well, money in the bank…then where can you store wealth until you’re ready to use it again?

And even if money in the bank is safe from the bank failing to return it (counter party risk), what happens if when the bank returns it, it isn’t worth as much as when you deposited it?  Think about putting $5 in a bank account in 1965 when gas was 25 cents a gallon.  For five bucks, you could fill up a 20 gallon gas tank!  That’s a lot of driving!

But today, $5 won’t buy you 2 gallons of gas.  So even if the bank gives you your five dollars back, it’s lost its purchasing power.  This is what many baby boomer savers are discovering as the try to sail off into their golden years.  They have more money than they’ve ever had, but it won’t buy as much.

So we sit down to talk with Anthem Blanchard, who literally grew up in the precious metals business.  His father, James Blanchard, was a pioneer in restoring Americans’ right to own gold.  For you young folks out there, you may not know that from 1933 until 1971 is was illegal for U.S. citizens to own gold.

Really.

It’s a long and sad story, but the short of it is that when the U.S. was founded and for most of world history, gold and silver were regarded as “money”.  And dollars were just paper coupons redeemable for real money (gold and silver).  But in 1933, the U.S. decided it was bad for people to own gold, so they made it illegal.

The reason that happened is at the heart of the challenge faced by savers today:  governments wanted to spend more money than they have.  Shocker. And it’s obviously going on today in record fashion.

So alert investors are looking for alternatives.  In fact, it’s gotten so bad that even consumers are looking for alternatives.  There’s a reason Bitcoins are gaining so much popularity.  It’s a currency that isn’t controlled (yet) by government.

The fact that Bitcoins are creating such a stir tells you that people are concerned about the dollar.  And it isn’t convenience.  Because while tech is cool, dollars are effectively virtual too.  Just think about credit cards, debit card, wire transfer, online payments, etc.  All digital.

The issue with Bitcoins are they aren’t real and they don’t have government backing.  We’re not here to put down Bitcoins, but compared to the thousands of years of human history with gold and silver, we’d rather look to precious metals as an alternative to dollars for storing and transporting wealth.

Of course, because metals are tangible, they aren’t easy to use in commerce.  But that’s changing!

Just as innovators came up with Bitcoins as an alternative to the dollar, creative entrepreneurs are coming with technologies to make using precious metals more convenient.  Anthem Blanchard is one of those innovators.

So listen into this edition of The Real Estate Guys™ radio show as we discuss precious metals as an alternative to the dollar for the long term storage of wealth, and how technological innovations can make the use of precious metals in daily commerce less expensive and more convenient.

Listen Now:

  • Want more? Sign up for The Real Estate Guysfree newsletter
  • Don’t miss an episode of The Real Estate Guys™ radio show! Subscribe to the free podcast
  •  Stay connected with The Real Estate Guys™ on Facebook!

The Real Estate Guys™ radio show and podcast provides real estate investing news, education, training and resources that help real estate investors succeed. Visit our Feedback page and tell us what you think!

If you like this topic, be sure to check out our special report: Real Asset Investing – How to Grow and Protect Your Wealth Against a Falling DollarClick here to request now.

Next Page »