The World Will Pivot Back to Gold

The World Will Pivot Back to Gold

In less than a day, you’ll get to know what I know.

After 12 months of late nights, early flights, and coffee replacing meals, I can finally introduce you to what I’ve been working for the better part of the year.

It’s exciting to share it.

Over the course of 2019, I’ve spoken to some BIG names in gold.

And a whole bunch of people you’ve never heard of too.

The whole point of this new service I’ve been working on, is to gather as much expert knowledge as possible, and bring that directly to you.

And that’s exactly what I explained to my publisher in this video earlier this morning.

However, exactly what will you learn from this new service?

Let me show you…

What’s left to say on gold?

Does anyone have anything new to say about gold?

I mean, it’s a dusty old metal. It’s been used as money for over 6,000 years.

It’s only the last half century that we’ve disconnected ourselves from precious metals being money.

Given the yellow metal’s extensive link with humans, you’d think there’s nothing else to say on the matter.

Well, that’s the thing.

It’s because of our disconnection with gold as money that there’s still plenty to say on the matter.

Over the past two weeks, both The Australian and the Australian Financial Review have written an article each on the potential of gold ahead.

In years gone by, you would barely see one article on gold in a year from the mainstream.

Yet, there’s been two weeks of back-to-back coverage.

Just the mainstream acknowledgement of the benefits of owning precious metals is a huge step forward.

That’s a very clear signal that investor sentiment is changing too. I’ve often written in the past how investor sentiment towards gold is a crucial part of a gold bull market too…

But today, I don’t want you to just take it from me.

Or just accept that the mainstream has cottoned on to the value of gold…

Today is about introducing you to another expert on the matter.

So far this week, there’s been Jim Rickards and Rick Rule.

Well today, allow me to show you a snippet of what Grant Williams had to say during our exclusive interview…

Gold’s not a trading vehicle

If you read history, it’s very easy to understand gold’s place in monetary history. And as I read it around the year 2000, when you could see what was going on with central banks, gold started to make sense to me.

That’s exactly how my conversation with Grant Williams began, stupidly early in the morning back in June this year.

He was in New York, I was in Melbourne. And all I wanted to know, was how did someone with Grant’s many decades of experience come to understand the role of gold.

Shae:

Before we go forward, this is a gold podcast. I actually want to talk about how you first discovered gold and why you believe gold does, or can, play an important role in the monetary system.

Grant:

I understood gold prior to that [2000], but I’d never really invested in it, because there were plenty of other things to invest in, and I didn’t feel any great need to protect any part of a portfolio. But when 2000 came around, you could see what was going on.

It started to make more and more sense to me.

The first gold I ever bought, I paid $333 for. I wanted to buy physical gold and I went and bought a gold coin, just to see how it worked, basically.

It’s funny — handing over $333 in physical cash and having someone put a gold coin in your hand is a very interesting experience.

I would recommend anyone to try it, because one of them feels like it’s worth something, and it’s not the paper money.

It just feels like it’s worth something, and I think if you do read history, monetary history, you will understand gold.

Whether you believe its place and its time has come again is another rabbit hole you have to go down, but if you read monetary history, you will understand what it has done throughout time.

That’s the important thing to me, is past being prologue, and understanding that these things are cyclical, and what’s happening before will happen again.

Grant makes an interesting point here. He talks about swapping over fiat dollars for gold. And until you’ve done that, it’s a hard feeling to describe.

Firstly, you realise just how even a small amount of gold is heavy. But also, just how much polymer money you need to hand over for even the smallest amount.

From here, I wanted to focus on a YouTube video Grant made a few years ago, called ‘Cry Wolf’. Why make it I asked, what was the point of it?

As Grant told me:

The point I was making is that we have societal upheaval, we have political upheaval, everywhere you look.

The only thing we haven’t had yet is a stock market crash.

And if we get one, then with the amount of debt that the world has taken on in the last 30 to 40 years, gold, I think, will be a solution of some sort.

I have no idea what role it’s going to take. But over the last five centuries — I had records; I had a chart that went back to 1265 in this presentation — it’s always played a part.

I just think it’s time will come again.

People get fixated about the price. People always say, ‘Well, what’s the price going to be?’ It doesn’t matter.

It’s not about the price of gold — it’s not about whether it’s $1,000 or $2,000. If you want to buy something at 1,000 because you want to sell it at 2,000, there’s all kinds of instruments you can do that with, trading vehicles.

Gold’s not a trading vehicle.

When the time comes for it to play a part in the financial system, it will be an unencumbered asset.

It won’t be about the price.

You’ll be able to exchange it for all kinds of things that you couldn’t exchange it for now, because those prices relative to gold will fall.

But it’s something that is tested over time.

And I think at some point, it will retake its place in the financial system in some way, shape or form.

Grant and I continued to talk for another 40 minutes. Throughout our interview he referred to the history of gold as money.

The takeaway from my chat with Grant, is that gold will be part of the monetary system in the future. We just don’t know what it will look like.

Until next time,

Shae Russell Signature

Shae Russell,
Editor, The Daily Reckoning Australia