There are two driving forces for the pricing of any commodity. The real value is based on the cost of production and availability and the speculative value is based on public opinion. Precious metals will always have *some* value because of the industrial uses. Their prices as an investment are severely inflated due to speculation.
Any financial adviser will always tell you it is a great time to buy or sell anything. They make money on the transactions regardless of the direction of price swings. If you believe that you have some special insight as to the direction that the prices will take, I invite you to go sit in a room with all the people who bought beanie babies while the prices were hot.
Precious metals prices are just as artificially maintained as currencies through public and private investors holding it in reserve. They use their reserves to manipulate the prices. They make automated trades that you cannot possibly react in time with to take advantage of their manipulations. If they want to buy more, they sell off some to drive the prices down, then buy more at the lower price. They make purchases to drive the prices up before they sell some off to make more profit off the sales. Sometimes they don't actually buy or sell to manipulate the prices but just say they are going to and get it in the news and let the media do their work for them. It is a rigged game.
This is not saying that you can't do well with investing in precious metals. If you want to diversify into them you can, but be smart about it. Buy it at commodity prices and not with some silly "investment grade coins" or the like. The easiest way to get into it is to go down to your local pawn shop or jewelry store and buy scrap. People are always selling some off. That's where we went when I was taking a jewelry making class. They are just as happy to sell to you as the big buyers. Often happier as they get their money at the current day's price and can sell at a bit of a premium over wholesale prices.
@davidkirtley -- you clearly missed the most important statement in the entire video.
Mr. Schectman said in no uncertain terms: "It's not return ON your investment, it's return OF your investment." If you don't understand what that means, stick with fiat currency and enjoy the decline.
Schectman's advice on precious metals was definitely not to speculate, but to protect. Why? Because those studied in history will see the obvious parallels of debt, debauchery, and debasement in the US today and thus, also see the cliff approaching quickly. Whether it's scrap metals (as you have suggested), or bullion, or an ETF that is redeemable in physical metal -- Eric Sprott's offerings in Gold, Silver, Platinum, etc. come to mind -- the hour-long discussion didn't strike me as an advert but rather, information from a man whose run a successful company for 35 years. I suspect he knows a thing or two of what he says.
I guess you're welcome to ignore the advice, or at least the information he provides, but that would definitely be at your own peril.
And I think you missed my point as well. While it is always going to retain some value, there is no guarantee that it will be anywhere near the current pricing.
The problem in an emergency is, in financial terms, called liquidity. You have to find someone who wants it more than what you want to trade for it. In the event of a crisis, you may or may not find someone who will exchange metals at a price you might feel that it is worth if at all. They have very few practical uses in an emergency. That greatly reduces your leverage in negotiation.
There is no perfect investment that doesn't come with its own set of risks. In the event of a total collapse of the economy, I don't see a lot of feasibility of walking up somewhere and trying to redeem an ETF.
It really depends on the scenario. In some possible settings, lead might be a better investment.
@davidkirtley -- I sincerely think you should go back and watch the video again -- all of it. Then if you still don't get it, watch it one more time.
I fully comprehend what you're saying from the most myopic, most rudimentary standpoint. Unfortunately, your understanding is flawed -- you should avoid thinking the video is "doom porn" for the end time prepper. This is not about a few gold coins buried in your backyard or stuffed into the far recesses of your mattress.
What Mr. Schectman has laid out for you is that the paper you're holding will soon be worthless. Or perhaps more plainly, the US dollar is going away, a force beyond your control or mine. And global elites have a plan to change your Amazon-ordering, take-out eating lifestyle of convenience and luxury. You're far too comfortable and privileged.
Of course you don't have to believe that -- it's true, I don't have a crystal ball. Klaus Schwab said "You'll own nothing and be happy!" But that's not something I will accept, at least, not at this stage of my life.
One thing we certainly agree on is lead, if nothing else, to defend what is the last beacon of hope for freedom across the entire globe. The founding fathers foresaw all of this tribulation, and probably expected a bit more fortitude from its progeny before we got to this point. But here we are, and we must consider ourselves the front line. Hope to see you in the trenches.
I personally believe that there will be, in the near future, a move to end personal ownership of gold and other precious metals in the US. They did it before and I think that they will do it again. Maybe because I am old enough to remember a time in my life when it was illegal to hold gold (with a few exceptions).
It will be couched in either saving us from the Russians and Chinese with BRICS, or the fight against crime and drugs. Maybe to "save the electronics industry."
Their goal is to make it impossible to make untraceable transactions and to take money in and out of the US. That's part of the reason that they just created 87,000 IRS positions. We already have a huge problem with seizures getting out of hand through civil forfeiture.
They don't want any way to move sizeable amounts of money undetected. Now they want to get the reporting levels down to transactions as low as $600. They certainly don't want you walking around with a $3000 gold coin in your pocket.
Let me be clear, there is no "total collapse of the economy" other than a event so extreme (think extinction of the dinosaurs). As long as humans exist, there is an economy. Money (or currency) is an arbitrary tool used to conduct a more efficient economy, and it has strengths and pitfalls. As long as one man owns a saw, trees will be felled or pruned and though the measurement of the economy may shrink, or swell, there will be an economy...Money or currency really does not matter much..what matters most is it retains a relative value over a useful period of time. I am a not an either / or kinda guy... I don't have a crystal ball.. Yes, I know the seeing stones are not all accounted for, and I need to be careful. I am a both kinda guy. Should I save in gold or fiat? Both.. Should I invest in bonds or stocks? both...Should I own land and house? both.. should I have skills or tools? Both.. . Though to your argument.. "In the event of a crisis, you may or may not find someone who will exchange metals at a price you might feel that it is worth if at all. They have very few practical uses in an emergency". Yes.. this is called the coincidence of wants. Why precious metals are money and the BEST form of money is exactly this reason. It does not rust, rot, melt, dissolve, combust, have complicated storage requirements..unless extra ordinary processes are applied. Should you have silver or lead? Both. Should you have a rifle or shotgun? Both.. Should you plan for the best or the worst?Both. Play it safe or take some risk? Both..
I thought the interview was very informative and also disturbing. For years we've been hearing about the financial collapse coming, the unbelievable, out of control debt and such, but it seems to be ignored and downplayed by controlled media. I asked my financial advisor about this not long ago and he didn't seem to be worried about the big collapse coming. I think we're going to be blindsided by this and maybe they don't want us to know how bad it really is. I got the feeling Andy was honorable and well informed and more trustworthy than the vast majority of financial pundits. CBDC's are being planned and the digital prison is quietly, seductively being implemented around the globe but they'll try to say "nothing to see here".
This is bang on. And your financial advisor probably isn't lying to you. They probably just have no idea. To quote (paraphrase) our friend Peter Grandich, "99.9% of financial advisors are part of the 'don't worry, be happy' crowd who, when thrown off the Empire State Building, will say on the way down, 'so far, so good.'"
Excellent interview, giving clarity and updates on whats happening and coming.
I asked a financial guy recently and he said have small silver coins for the emergency stage, then gold for when chaos stop and rebuilding starts …
To quote the greatest philosopher of the age
"We don't need no water, let the mother fucker burn"
There are two driving forces for the pricing of any commodity. The real value is based on the cost of production and availability and the speculative value is based on public opinion. Precious metals will always have *some* value because of the industrial uses. Their prices as an investment are severely inflated due to speculation.
Any financial adviser will always tell you it is a great time to buy or sell anything. They make money on the transactions regardless of the direction of price swings. If you believe that you have some special insight as to the direction that the prices will take, I invite you to go sit in a room with all the people who bought beanie babies while the prices were hot.
Precious metals prices are just as artificially maintained as currencies through public and private investors holding it in reserve. They use their reserves to manipulate the prices. They make automated trades that you cannot possibly react in time with to take advantage of their manipulations. If they want to buy more, they sell off some to drive the prices down, then buy more at the lower price. They make purchases to drive the prices up before they sell some off to make more profit off the sales. Sometimes they don't actually buy or sell to manipulate the prices but just say they are going to and get it in the news and let the media do their work for them. It is a rigged game.
This is not saying that you can't do well with investing in precious metals. If you want to diversify into them you can, but be smart about it. Buy it at commodity prices and not with some silly "investment grade coins" or the like. The easiest way to get into it is to go down to your local pawn shop or jewelry store and buy scrap. People are always selling some off. That's where we went when I was taking a jewelry making class. They are just as happy to sell to you as the big buyers. Often happier as they get their money at the current day's price and can sell at a bit of a premium over wholesale prices.
@davidkirtley -- you clearly missed the most important statement in the entire video.
Mr. Schectman said in no uncertain terms: "It's not return ON your investment, it's return OF your investment." If you don't understand what that means, stick with fiat currency and enjoy the decline.
Schectman's advice on precious metals was definitely not to speculate, but to protect. Why? Because those studied in history will see the obvious parallels of debt, debauchery, and debasement in the US today and thus, also see the cliff approaching quickly. Whether it's scrap metals (as you have suggested), or bullion, or an ETF that is redeemable in physical metal -- Eric Sprott's offerings in Gold, Silver, Platinum, etc. come to mind -- the hour-long discussion didn't strike me as an advert but rather, information from a man whose run a successful company for 35 years. I suspect he knows a thing or two of what he says.
I guess you're welcome to ignore the advice, or at least the information he provides, but that would definitely be at your own peril.
And I think you missed my point as well. While it is always going to retain some value, there is no guarantee that it will be anywhere near the current pricing.
The problem in an emergency is, in financial terms, called liquidity. You have to find someone who wants it more than what you want to trade for it. In the event of a crisis, you may or may not find someone who will exchange metals at a price you might feel that it is worth if at all. They have very few practical uses in an emergency. That greatly reduces your leverage in negotiation.
There is no perfect investment that doesn't come with its own set of risks. In the event of a total collapse of the economy, I don't see a lot of feasibility of walking up somewhere and trying to redeem an ETF.
It really depends on the scenario. In some possible settings, lead might be a better investment.
@davidkirtley -- I sincerely think you should go back and watch the video again -- all of it. Then if you still don't get it, watch it one more time.
I fully comprehend what you're saying from the most myopic, most rudimentary standpoint. Unfortunately, your understanding is flawed -- you should avoid thinking the video is "doom porn" for the end time prepper. This is not about a few gold coins buried in your backyard or stuffed into the far recesses of your mattress.
What Mr. Schectman has laid out for you is that the paper you're holding will soon be worthless. Or perhaps more plainly, the US dollar is going away, a force beyond your control or mine. And global elites have a plan to change your Amazon-ordering, take-out eating lifestyle of convenience and luxury. You're far too comfortable and privileged.
Of course you don't have to believe that -- it's true, I don't have a crystal ball. Klaus Schwab said "You'll own nothing and be happy!" But that's not something I will accept, at least, not at this stage of my life.
One thing we certainly agree on is lead, if nothing else, to defend what is the last beacon of hope for freedom across the entire globe. The founding fathers foresaw all of this tribulation, and probably expected a bit more fortitude from its progeny before we got to this point. But here we are, and we must consider ourselves the front line. Hope to see you in the trenches.
I personally believe that there will be, in the near future, a move to end personal ownership of gold and other precious metals in the US. They did it before and I think that they will do it again. Maybe because I am old enough to remember a time in my life when it was illegal to hold gold (with a few exceptions).
It will be couched in either saving us from the Russians and Chinese with BRICS, or the fight against crime and drugs. Maybe to "save the electronics industry."
Their goal is to make it impossible to make untraceable transactions and to take money in and out of the US. That's part of the reason that they just created 87,000 IRS positions. We already have a huge problem with seizures getting out of hand through civil forfeiture.
They don't want any way to move sizeable amounts of money undetected. Now they want to get the reporting levels down to transactions as low as $600. They certainly don't want you walking around with a $3000 gold coin in your pocket.
Let me be clear, there is no "total collapse of the economy" other than a event so extreme (think extinction of the dinosaurs). As long as humans exist, there is an economy. Money (or currency) is an arbitrary tool used to conduct a more efficient economy, and it has strengths and pitfalls. As long as one man owns a saw, trees will be felled or pruned and though the measurement of the economy may shrink, or swell, there will be an economy...Money or currency really does not matter much..what matters most is it retains a relative value over a useful period of time. I am a not an either / or kinda guy... I don't have a crystal ball.. Yes, I know the seeing stones are not all accounted for, and I need to be careful. I am a both kinda guy. Should I save in gold or fiat? Both.. Should I invest in bonds or stocks? both...Should I own land and house? both.. should I have skills or tools? Both.. . Though to your argument.. "In the event of a crisis, you may or may not find someone who will exchange metals at a price you might feel that it is worth if at all. They have very few practical uses in an emergency". Yes.. this is called the coincidence of wants. Why precious metals are money and the BEST form of money is exactly this reason. It does not rust, rot, melt, dissolve, combust, have complicated storage requirements..unless extra ordinary processes are applied. Should you have silver or lead? Both. Should you have a rifle or shotgun? Both.. Should you plan for the best or the worst?Both. Play it safe or take some risk? Both..
I thought the interview was very informative and also disturbing. For years we've been hearing about the financial collapse coming, the unbelievable, out of control debt and such, but it seems to be ignored and downplayed by controlled media. I asked my financial advisor about this not long ago and he didn't seem to be worried about the big collapse coming. I think we're going to be blindsided by this and maybe they don't want us to know how bad it really is. I got the feeling Andy was honorable and well informed and more trustworthy than the vast majority of financial pundits. CBDC's are being planned and the digital prison is quietly, seductively being implemented around the globe but they'll try to say "nothing to see here".
This is bang on. And your financial advisor probably isn't lying to you. They probably just have no idea. To quote (paraphrase) our friend Peter Grandich, "99.9% of financial advisors are part of the 'don't worry, be happy' crowd who, when thrown off the Empire State Building, will say on the way down, 'so far, so good.'"
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