Ep. 221 - Gold and Currency Trends: What Investors Should Know

  📍 📍 Good day. This is Gabriel Shahin, Certified Financial Planner, and your host of More Knowledge, More Wealth, here on every weekend, talking about all important topics of personal finance. My job is to go over the knowledge you need to increase your wealth. Now, to the listener, you can always reach out to myself or any one of our colleagues here at Falkland Wealth Planning.

Our phone number is 855 963 2533. 26. That's 8 5 5 96. Falcon like the bird, or visit our website@falconwealthplanning.com. That's falcon wp.com for short. Where you can get this episode or any one of our previous episodes as well, and you can get us on podcasts, iHeartRadio, along with Spotify. And we have this Knowledge Center on our website as well, which connects you to YouTube with a bunch of videos that can help you in your financial situation.

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And most importantly, just put ease of a situation that may be so clear to us, but not so clear to you. You don't do this every single day because there is just lots going on. In the world today, and I'll give you just an example of this. So this past weekend, we did a, uh, secret, uh, secret, uh, white elephant exchange, I believe what it is, where people could steal the presents from other family members and things like that.

Well, I got a big family member, uh, members here. Uh, so we had about 30 people at the event. My family alone was a family of five. And so, uh, 30 people and we did this exchange event. It was really cool, a lot of fun. And the conversation came up where somebody showed me at their house, where the event was held at, that they bought these coins from Costco.

Gold coins, an ounce, 99. 999 percent gold. And the crazy part is they bought it for like 19. 50. Like, that's crazy. Like I was thinking to myself, man, if they bought it with a credit card, certain credit cards can give 3 percent cash back. And on top of that, at the time, gold fluctuates so much. What if it was trading at 2000, which, oh, by the way, it's over 2000 right now.

So it's like, and keep in mind, depending on when you hear this, it might be less than that, but the idea is, man, this could have been a steal of a century. 3 percent back on 2000 is like 60 bucks off spot price. Like, not a bad deal. So you got Costco getting involved in this. And so anyway, I was telling the person, I'm like, what are you doing?

Well, you know, when the world apocalypse happens, when America, you see how crazy our president is, you see how crazy our government is, you see how crazy things are getting, it's not safe. America's gonna go down, go under. I'm like, well, calm down. So what, you're gonna take this gold coin over to the Starbucks?

Like I don't understand you're gonna take that gold coin to the bank for your mortgage payment You can't get gold coins at banks for a reason. I mean you gotta understand the gold standard Was it was converted to dollars? That's why those ten thousand dollar bills were made in the 60s You know, they made them a while back before that as well, but the idea is people were converting gold to cash So yes, we have Fort Knox.

Yes other places in the world. Yes, China's stocking up on gold I get that it's strengthened their economy to show that they're converting their money into physical gold bullions I get all that but for this person my cousin to think that these gold coins It was like limit to per person I got to and my wife got to and I gave my mom money And she bought two and I'm like so six has two I was like you spent twelve thousand dollars on coins That's crazy.

The banks are earning 5 percent right now. You took it from your 5 percent savings? It just kind of blew my mind a little bit. So the idea of this is, you know, he made a comment He's like China's gonna be the gold standard or the the the money back for the nation It's gonna be the new reserve currency.

That's what he said. It took me a while to find the words there It's gonna be the new World currency. And then he started saying all the stuff and nothing really quite made sense to it as well, only because I was thinking to myself, you know, China came in to the IMF not too long ago, you know, and they're saying how America dropped all America lost its power.

Well, not really. We went from like 58 percent to 56 percent and every other country had to give a percentage so China can enter. And so it's like it's funny how people hear and interpret what they want to interpret. So America still is The world currency, nothing has changed there. And so the idea to think that you're going to have to have gold because America is no longer the reserve currency.

Let's just say that we do are no longer the world currency. Let's just say that were to happen. Okay. Now, who was before America? Did you know it was the UK? It was Britain for about a hundred years it was that. So it's like, did their currency disappear? Heck, the pound is still worth more than the dollar.

You get what I'm saying? It's just kind of funny that people are like suggesting, there's this even thought that just because, and if we were, not the world currency, the reserve currency, that all of a sudden like, are, are we just gonna disappear? Like all the things that we produce in America that, oh, by the way, everybody wants to buy all the people that want to move here, move their companies here, sell here, open markets, free markets, capitalism, it's just going to stop, like, and what China is going to do, it's a communist country, they're not always trusted, just geographically, they're like far from a lot of places, like, it's just America, quite frankly, it's quite central.

If you think about it, and so, and it's protected. You know what I mean? Like the only way you can get to America is through Canada or Mexico for the most part. Like literally. Right? Like Russia has to worry about China. China has to worry about India. Like, all these things, like, demographics matter.

Geographical location matters. And so I was like thinking, like, let's just say worst case scenario, which is absolutely ridiculous, but like I'm just here trying to talk to my cousin. So, and I thought of a perfect way to articulate doing it. And I hopefully didn't feel too bad about buying all that gold.

And if you bought all that gold All power to you. By the way, folks, if you're just joining me, you're listening to Gabriel Shane, Certified Financial Planner and your host of More Knowledge, More Wealth. You're on every week and talking about all important topics of personal finance. And so I thought I would just go over and give you the history of the gold, uh, of the currency reserves.

Okay, so America. Uh, has been, uh, the head of, uh, uh, leading the, uh, uh, the reserve currency since 1920. Okay? So, we've had over 110 years where we've been, uh, the leading currency. And I just told you before that was The UK. Okay, so that was from 19, obviously 1920, but it went back 105 years to 18 teen. Okay So yet again just important to highlight that the Brits are still around.

Okay, so before that was actually French, the France, and it wasn't until the French Revolution, the Napoleon Wars is when that stopped. So it was from 1720 to 1815, 95 years. It's funny, it's almost like an average of 100 years, it looks like. So the franc was the reserve currency. Well, what about before that?

Or you had, at that point, Spain, Spain. Well, let me make sure. Nope. You had the Dutch. The Dutch for 80 years had to have 1640 to 1720. Okay. So that's yet again, important to note, right? Um, let's continue the conversation before that was, then it was Spain. Okay. So Spain then had it for 110 years, 1530 to 1640.

And then before that was Portuguese. The real, okay. Right? So the real currency, which, oh, by the way, is still around, kind of, sort of, it's not really still around, uh, and, and the same thing with, uh, Spain and the franc, so, uh, so that's a thing. People will be like, well, those aren't around. Well, that's because of the euro.

That happened. You know what I mean? Like the euro did have a major impact in that. So you have some people that are always trying to sell you stuff that says, Oh, well, you know, it's not always as safe because yet again, look at their currencies where you have the glider, the Dutch glider, the Spain, uh, Pesada.

And then you had the, the real Portuguese real, uh, Portuguese, um, Yeah, obviously they were very powerful back then, you know, they colonized in South America and that's why people in Brazil speak Portuguese, but the idea is, is that, uh, Spain, France and Dutch as of 1992, I believe, or was it 2002, uh, 1992, uh, now have the Euro, so the idea To say that they're no longer around.

It's not true. They just converted to a unified dollar just like America did with or trying to copy what America did. So it's just, yet again, funny how people are trying to say that. And by the way, the, the, the first central bank was established in 1609 at the Bank of Amsterdam. So you could see that during this time of growth, this economic growth and world growth and just all the nations working and trading together, that these countries.

Even though there are shifts in power, because I personally think there is no denying that eventually China will have a larger economy than us. Naturally, with 1. 3 billion people in America with 350 billion, or 350 million. I mean, their 3 is almost more than all of America. You get what I'm saying? And we have a large baby boomer generation here in America as well.

So I think that is inevitable to happen, naturally. Right? I mean, they're, let's just say they grew at 3 percent versus our 3%. Their 3 percent is much larger, just based on population usage. Now obviously our GDP is larger. Right. And, but their GDP, they get upset when it's under seven, ours is like two or three.

So it's a matter of time before they do take over folks. I'm going to bring this up and this is going to tie into your situation because of how you need to look at what you're currently. What you need to look at your current portfolio, your current holding, your current safe reserves. I think it's important because a lot of people miss the mark and miss the idea, miss the concept of what you should be doing and take an encounter where world events are happening.

This is, I think, where the biggest mistake is and what people are doing currently. And folks, if you need help with this, if you want us to bring this up related to your specific situation, see how you're invested, see how you can take advantage of global growth. Give us a call. We would love to help. Our phone number is 855 963 2526.

That's 855 96 Falcon. Like the bird. Or visit our website at falconwealthplanning. com. That's Falcon, WB. com for short. Folks, we're going to go on a quick break and we'll be right back in a few words. 📍 📍

Welcome back folks. This is Gabriel Shane, Certified Financial Planner, your host to more knowledge, more wealth here on every weekend. Talk about all important topics of personal finance. In that first segment, I was talking to you how we did a gift exchange, white elephant exchange at my cousin's house.

And then my cousin was telling me about these six pieces of one ounce gold coins that he got through Costco. Whether it's a good deal or not is besides the point. Whether they were smart was besides the point. My comment to him is why are you doing this? And he started talking about all these things in politics, some of it I didn't even know what he was talking about, right, wrong, I don't even know, because he was talking at such a unique level and perspective.

I don't know what every government congressman has done and where their money is at and the things that they're lobbying towards. I had no idea. I almost wanted to ask him, where are you getting your information from? And so, uh, I know what he would say. He would say, Oh, where are you getting it? You're supposed to know about this.

I'm shocked. You're not doing this. I didn't, I have a comment in my family. I don't argue for free. Okay. Like seriously, like you're just wanting validation that you did something smart. Okay. Well, my job with my clients is to make sure they're doing something smart, not validation of what they're doing. So if they're doing it right, I will validate it.

If it's wrong, no, you'll be told what is the best thing for you and your family, ignoring all bias information that's out there. So the idea was, well, when America goes to hell is essentially what my cousin was saying. Is that now I have these 12, 000 worth of coins that I can, I guess, I don't know, pay for your mortgage.

Like, well, the banks will be out of business at that point. Like, who cares what do they do for closing your house? They're out of business. Like, you know what I mean? They probably at that point took all your money in there anyways. And that's the point of why he got gold, right? I mean, so, so make nonsense.

Number one. Right? Uh, is, is already, uh, debunked. And so, and we continue to have this conversation. And I started talking about, if America is not the world currency, then who cares? Right? Guess who was it before us? The Brits, and the pound is still there, and same with the France, and same with the Netherlands, and same with, uh, uh, who was the other one?

Portugal. When all their, their currency, where did that go? That ended up being the Euro. So the idea with all this is just crazy. So, but it gets you thinking. There is some validity to what he's saying. Other countries may be doing better than America, which would essentially devalue the dollar. Okay, well what are you saying, Gabriel?

All I'm saying is It's normal when you look at the currency exchanges from our country to another look at Qatar I mean Qatar has the strongest currency right now in the world when you compare it to the dollar. I believe it's like 0. 65 one dollar gets you 65 cents of the Qatar dollar You get what I'm saying?

So, it's, it's, it's not the end of the world. Now, if everybody went to the Qatar Dole, that would be a different situation, but they have also interesting governments over there, and some rules, and also have some issues over there. So, yet again, it comes to trust. We look at America, and you're probably looking at the government, and says, man, we don't trust these guys.

They're crazy. We're being lied to. Look at the stuff I'm reading on X. Look at the stuff that I'm, uh, reading on social media. Look at the stuff that's coming out about our government. Look at the stuff I keep reading, seeing on TVs, listening on the radio, podcasts, whatever the case is. Well, guess what?

Every country does it, and we are still one of the most trusted governments here. We're still one of the few governments that imprison billionaires, put powerful people behind jail, and hold our leaders in some type of liability. And so the idea to think that we're not, or the only country that is corrupt, that's incorrect.

Every country is corrupt. We're just the least corrupt. You know what I mean? Because it's human nature in this, in that type of whatever politics is. That's why I would never get into politics. Because I feel like it's just the worst situation you can get into. So what's my point with this? Okay, so now we have established there's garbage everywhere.

Okay, so does that mean you're just going to, what, live as a hermit in Antarctica? Maybe that's not a country that's a corrupt. Okay. Well, that's not realistic either. So what options are there? Well, how about you hedge your bets? Okay. Well, how do you do that? Well, you do that through putting your money where your mouth is.

What does that mean? Well, hey cousin, you think America's going to hell? What's gonna be great? China. Well, why don't you put your money in China? Why don't you invest in China? If you're so confident on their government, like why don't you put your money where your mouth is? You know why people are lately starting to respect China a little bit more?

Even our president recently, who still called them a dictator? Because at least he has control over his country. Which is the point my cousin was trying to make. Okay, China, you have control over your company through communism, right? Through control, through government control. You have that through dictatorship.

Guess what? Things get done over there. People comply in China. If not, there's problems. You get what I'm saying? We're having an opposite issue with that here in America. To my cousin's point, right or wrong or indifferent, he's saying he sees a future there. Okay, well outside of him moving there, which he's not, you can invest there.

You get the idea? Uh, somebody, I think, John Bon Jovi or somebody said, Trump gets elected, I'm moving to Australia. Okay, some of you may say, all power, uh, with you, go ahead, leave, um, don't come back. Other people say, hey, can I come with you? So, the idea is, why there? You know, whatever his reasons are, because it's safer, better, uh, cleaner for the environment, better economy, which it's true.

The garbage man over there makes 150, 000 a year. I get it. Taxes are through the roof, but I get it. The concept is, if you like it so much, if you feel the economy's good, and by the way, they didn't have a recession for like 30 years in Australia. Okay, part of the reason because everybody had money part of the reason because they forced everybody to save kind of like how we Save to social security.

They save in the stock market. We keep pumping money in there. It helps the economy very well yet again If it's that great invest in australia, you like japan go to japan You like the uk invest in the uk invest in france invest in canada best in mexico That's in somewhere in south america. Am I missing any places?

You want russia do russia? Like, wherever. You want Kazakhstan? Knock yourself out. India? Go ahead. Singapore? Good luck. All I'm saying is, you know what this all is, what I'm painting the map of? Is the world. And the one benefit of what I'm talking about is diversification. Investing is no different. Putting all your eggs in one basket in the U.

S., there is risk to that. My cousin is right. Putting all your money in China and Australia, there's risk to that. You bet your rear. How about you diversify? Isn't his concern the same concern that we have in the stock market? Isn't his concern the same concern that everybody should be having? It's realistic.

I didn't tell you if my cousin was poor or the richest man in the world, but when did you see, think those concerns are the same between the two people are concerned in general. So what's the best way to do it is truly to stay. Diversified. By the way, folks, if you're just joining me, you listen to Gabriel Shane, certified financial planner, and your host of more knowledge, more wealth here on every weekend, talking about all important topics of personal finance.

And today I'm just talking about the simple idea of people who are concerned about America. I'm not saying go open up a Swiss bank account or a Cayman Islands bank account or wherever bank account, put your money over there. I'm saying just diversify it out. Because you got to understand these people who are investing in these stocks or mutual funds or ETFs of international companies, these intercon and, uh, international companies are still making money.

They're still posing profits. They're just reporting it to America and the stock price goes up. If something happens to them, their value is within those shares. If you're a shareholder, whether it's the shareholder through mutual funds or through ETFs or whatever it may be, you participate. I wouldn't worry too much in that regards.

And yet again, the fact and the idea to think that America would just go under is crazy. It's one of the most fertile lands. It's geographically located perfectly. What, from New York, five hours to, uh, England and Europe and so on and so forth? Fourteen hours, maybe twelve hours to certain Asian countries like Japan or China.

From California, you have Canada, you have South America. We are close. We're not that bad. It's not a bad location. And our government is free markets. You have people from other countries that want to trade and invest and operate in America. Chinese companies included, Korean companies including, Japanese companies, hello, German companies.

For a reason, people spend here. You get what I'm saying? So the idea and the thought and the logic is, if they're smart enough to choose America to diversify away from their own country that, oh by the way, you may think is better than ours, Why aren't we smart enough to do the same? Diversification is key in everything.

You have all your money in one bank, I'd probably recommend putting in a couple banks. You saw what happened to some of these other banks in 2008 even earlier in 2023 with the First Republic Bank and Silicon Valley Bank and some of these other ones. So the idea is just diversify. Right. Some people have more than one car, right?

Because maybe two people drive, but you probably get away with one car. But why do you have to just in case the other is needed? At the same time, you need to be somewhere else. Just everything out there is about bettering your current situation. Some people have a job right now, and they're looking to continue to enhance their education.

It could be for their company associate equity, but I'd recommend that. It's a little bit extra work. You don't just come home, crack open a beer, and watch TV. But you're enhancing yourself. Go get a master's, go get a certification, especially, and I guarantee you, 30 percent of you listening to this will have their company pay for that education, for that certification.

Make yourself better, so you're more appealing. And maybe you can, in an easy world, advance within the current company that you're in. Or, you can look somewhere else. You want to know your value? Every five years, see what you're worth. Put a resume out there and do feelers. See if you can get something better.

And I'm not saying be disloyal to your workers. I would just casually even bring it up. You know what? My dad always told me, or I have this friend, they don't need to know I'm your friend on a podcast that you may have never met, I have this friend who told me every five years I should, uh, just see what I'm worth and just put a bunch of feelers out there.

And just say, hey, that's about two years away. Next Christmas, hey, it's about a year away. Next holiday goes by. Hey, uh, you know what? Next, early next year, I'm just gonna see what's out in the marketplace. I've been telling ya. And heck, I haven't got a raise. I haven't got promoted. You shouldn't be surprised.

You get what I'm saying? Takes a little bit of work. Gets you out of your comfort zone. But it's enhancing your situation, folks, if you need help with this, just these types of ideas, these types of thoughts, these types of weights, just increase your overall situation. If you notice, this has nothing to do with the stock market, your portfolio, your tax situation, but enhancing you making your mind strong, opening your horizons to what's going on in the world and how you can answer situation.

That is what we do folks. And that's why we'd like to offer you a free financial assessment to help relate the show to your specific situation. Folks. Give us a call. Our phone number is 8 5 5 9 6 3 25 26. That's 8 5 5 96 Falcon like the bird or visit our website at falconwealthfunding. com. That's falconwp.

com for short. We'll give you one to two meetings, one to two hours at no cost. Folks, we've got offices all over, it doesn't matter where you're located, we can help. Folks, that was a fast, fast show and thank you for tuning in with me. I want you to always feel free and feel comfortable to reach out to myself or any one of our colleagues here.

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