Gold, Silver, and Bitcoin: What Happens When There's Nothing Left to Buy

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2:16This is the Rich Dad Radio Show. The good news and bad news about money. Here's Robert Kiyosaki. Hello, hello, hello. Robert Kiyosaki, Rich Dad Radio Show. Broadcasting from Phoenix, Arizona. It was either heaven or hell, and today it's heaven. The best weather in the world. A very special show today because there's a lot of controversy on the issue of the dollar, which is fake. Then you have crypto, Bitcoin and Ethereum. And I think there's 2 ,500 cryptos now. And then gold and silver. So Jim Clark is one of my guests today. He's been friends for a long time. I bought, for full disclosure, I buy gold and silver from Jim.

2:59Of course, it's right down the street from me. And Damon Jones, they work together. but it's a very important show because there's another guy called Peter Schiff who's a friend of mine and Schiff's always trashing Bitcoin and as you know Trump is the Bitcoin president his two sons Don Jr. and Eric who are friends of mine they made a billion dollars in crypto not that they need the money but they're very good business people so stay tuned because you're going to hear the pros and cons from the, let's say, the gold and silver side versus the crypto side. And for full disclosures, I have both. I don't discriminate between what makes me money.

3:44I'm quite happy with it. Just do it illegal, ethically, and morally and pay your taxes. So, Jim, welcome to the show.

3:56Yeah, thank you. And then, Damon, thanks for being on the program. Thanks, Robert. Great to be here. Let's start with Damon. What's your background? How come you work for gold and silver? Why would you work for this ancient pile of rock? Well, it's interesting. My background out of college, I became a foreign currency trader. So when I was a foreign currency trader - FX, Forex trading. And you still had the German mark. You still had the lira. You still had all the currencies of Europe that you could trade. And obviously, those things have gone by the wayside. But that's how I got myself started in currencies.

4:35I then became a financial advisor. There was the lira, all the other currencies. But the euro took it. That's right. That's right. Yeah. And then I became a stockbroker. I did that for about 14 years. Even when I was a stockbroker, I still recommended precious metals. I felt they were an important part of the wealth insurance part of your portfolio. And about 17 years ago, I stumbled upon Republic Monetary Exchange, and I've been here ever since. Okay. Thank you. And Jim, give us your background, please. By the way, they're looking right down the street from on Calabac in Phoenix, Arizona. Correct.

5:20So, Robert, I've been in the precious metals business for 52 years now. So I did this right out of college, and I've never looked back, and I've never regretted one minute of it. It's been a great ride, and I wish I had 52 more years to do it. But this has been a nice long ride, and I expect to be here for several more years. But I've seen the gold and silver markets all over the map. I've seen them react and respond to various issues in the news and the buying and the selling. I've seen it all. You and I had dinner several months ago about the Hunt Brothers, how I was involved with selling them about a quarter of a billion dollars of the silver that they purchased back in 1979 and right up to 1980.

6:09so that was probably one of the more exciting periods in my life was dealing with the hunt brothers and watching silver go from five to fifty dollars an ounce in just a matter of a year or so and uh gold went from about a hundred dollars an ounce to 850 also in a matter of a few years and then i've seen it all over the map ever since then and we're in a very uh very crazy market right now as we talked about just the other day. Especially with silver. Because there are oil guys who are rich guys and they thought they could corner the market in silver. And they bought tons and tons of silver that actually were so rich, they actually tilted the market in their favor.

6:53And then somebody shut them down. And I think one of the federal judges is who put the wrong people in jail. The Hunt brothers were doing it illegally. but the U.S. government came after him and did it illegally. But I remember that time, I was just starting out, and I've been buying silver since 1965. And when I saw silver just go from nothing to, how much an ounce, Jim, did they drive it up to? It's over$65 an ounce. It was close to$67 earlier today. But this is a record high number today as we tape. How much did the Hunt Brothers drive silver up to? So they went from$5 an ounce in early 79 until January of 1980.

7:40They went from$5 an ounce to$50. And when the thieves on the Board of Governors at COMEX and all of the short sellers decided that they wanted to put the kibosh on the Hunt Brothers, they exercised rule seven which allowed them to restrict the hunt brothers from buying any more silver they could only sell so if you had short positions in silver you could buy but you nobody could institute new long positions including the hunt brothers and that's how it went from 50 an ounce to 10 an ounce in just a matter of hours and they were swindled by the exchanges and the short sellers by one to two billion dollars is the estimate.

8:26But they were doing nothing more than what people are doing today, is that they wanted to hedge their dollars with something of solid value, and that would be silver. In fact, Bunker Hunt told me once that he thought silver was more valuable than gold. And to some respects, he's right, because the uses for silver are much greater now than ever. You have in the medical field, you have solar panels, iPhones, all of the instruments that we're using now in everyday use is off the charts as to the amount that's needed. And there's a great shortfall from what is being produced each year to what is actually coming to the market.

9:14So we're in a very topsy-turvy situation right now in the markets. Who screwed the Hunt brothers? It was the exchange and the board of governors who were shorting silver all the way up to the top. And they instituted rule seven, which didn't allow the Hunt brothers to support their positions. And they were controlling roughly a hundred million dollars, a hundred million ounces of silver, which was a huge amount at the time. It's not so much today because there's a lot more above ground silver known, but because they were short, they were protecting themselves. And if the hunts couldn't buy anymore, the only thing that could happen is that the price could come crashing down.

10:00And it did just that. And the trade houses, the hedge funds, the various institutions that trade precious metals, they were bailed out of their short positions which they were deep underwater with and they came out clean as a whistle and the hunt brothers lost uh one to two billion dollars which at that time was a lot of money uh today it's not so much when you think about it all the billionaires that are involved in the silver market that that's why i'm saying it's in a topsy-turvy uh market right now that you've got all these different reasons for owning silver and people that are shorting silver.

10:45And it's like nothing I've ever seen before. Right. And silver is a structural metal. In other words, it's used, the Chinese are hoarding it right now because if they can have silver at a good price where they're buying even the liquid Dore bars and all those things. Well, not only that, I don't know if you heard, but China's silver export ban starts January 1st. Yeah. Silver is the most valuable metal, and I agree with the Hunt brothers. I think silver is more valuable than gold. But I started buying in 65 just because, and this is from Jim Clark here, you hold up a little quarter or a half dollar.

11:24In 1964, it was silver. Then 65, it turned to copper. and that was Gresham's law is when bad money enters the system good money goes into hiding so the government has been playing games with money and silver is such an essential metal for industry versus gold the other part is that every time you fire a tomahawk missile into these war areas I think so many ounces of silver blow up out there and it takes a long time to and produce silver. And we're burning it up at high speed right now. That's why the Chinese are hoarding it. And so the people holding, hoarding gold are kind of out of it. And then one more, I don't know what you call it, but J.P.

12:14Morgan, they got sued how much for manipulating silver? I think they had to pay a$900 million fine for spoofing silver. Yeah, because J.P. Morgan was manipulating the price of silver. And guess what? So they sued him to get almost a billion dollars in fines. And they're the same guy still selling the SLV, which is fake silver, paper silver. So it's one of the most volatile, misunderstood metals, yet it's structural. It's used in everything we do today. And the more, as we go to AI, artificial intelligence, silver goes up in value, yet the price is suppressed. So I think that's one of the most important investments people can make today.

13:01So that's my silver. So if the government weren't printing up so many Federal Reserve notes and with just a printing press and a keystroke just adding billions and trillions of dollars to the national debt and to their balance sheet, and then buying silver and gold with that paper, we wouldn't have the situation that we're in today because not only do we have fundamental demand for silver like we've never seen before, but you also have the investors who want out of their paper money and have something that's tangible. And I recognized that in 1972 when I bought my first gold and silver was like a dollar and a quarter an ounce and gold was around$45 an ounce.

13:50And we had the problem then when Nixon took us off the gold standard in 1971. A lot of the grandparents that we would recognize today, they were buying silver and gold and passing it on as generational wealth. And we're seeing third generation young people bringing silver and gold that their grandparents had set aside for them back in the early 1970s. And you and I have had that conversation before. We bought our first gold at about the same time in the early 70s, and we have not looked back. And a tube of gold piece, one-ounce gold pieces, costs less than a tube of silver pieces of the same ounces today.

14:32Yeah. So before we go to break here, I wrote about in this book here, Rich Dad, Poor Dad, that savers were losers. The reason I say that is because our illustrious academic system says, you know, save money. And what these idiots in the school system don't realize, that you're not saving money today. You're saving fake money, the U.S. dollar. And as a national debt goes past$38 trillion on one side, but on the balance sheet, our national debt is like$260 trillion. they're going to keep printing more money and people keep trying to save us dollars or yen or euros and all this it's really stupid stupid stupid stupid but they want to save money with fake money and that's and that's why i'm a german uh damon on because i think you better understand because we i buy gold silver and bitcoin and ethereum and i make money all the time but But why not make money than save fake money?

15:37I don't understand people. And silver today, in my opinion, and we don't give recommendations. We're not an investment advisory show. I would rather have everybody can afford silver yet. It's still$65 an ounce. You can still afford that. Where Bitcoin's up at$90 ,000 and gold's at$4 ,000. So even a poor person can afford silver. but they'll hang on to the stupid peso, the yen, the dollar, or the euro. So we come back, we're going into what's better for you. Like I said, I think Peter Schiff is funny that Trump called him a loser because he trashed it. So we come back a little bit more with Jim Clark and David Jones on advantages of gold, silver, and a new field called crypto.

16:26Because if you know what you're doing, you can make money in all of it, and you can lose money in all of them. Can I just say something real quick, Robert, before we break away? And we talked about this before, my book, Real Money for Free People. I talk about the hunt situation in the book, and I'm recommending that you could go to our website, realmoneyforfreepeople.com. And if you like, I'll send your listeners a signed copy of this book as a courtesy to you. You'll send anybody who calls in for the book a signed copy? Well, yeah, they could go online. They could subscribe to our newsletter.

17:03They can order the book, and I'll do it as a courtesy to you. I'll send them a signed copy. And what's the website? It's realmoneyforfreepeople.com. That's the name of the website. Right. And your company is called Republic Monetary Exchange. Correct. And that's rmegold.com. Yeah. So all you people who are losers out there saving dollars, working hard for dollars, or the euro or the yen or the peso, So this is your show because you're being screwed because your mommy and daddy told you to work hard for money and pay your taxes. So we come back more as to why you should buy gold, silver or Bitcoin.

17:40We'll be right back.

17:47Welcome back. Today is a very important show of the Rich Dad Radio Show. It's not really a radio. It's a podcast show. But we have my old friend Jim Clark and Damon Jones. and we're talking about is gold silver or bitcoin better for you and gold and silver have been money for thousands of years bitcoin is about 15 years and money is flying all over the reason that's happening is 1971 nixon took the dollar off the gold standard and money became debt and then what happened in 64 or 65, they took our real silver money and they turned it into copper. So they've been playing games with our money and when you play games with money, the rich get richer and the poor middle class get poorer.

18:34So that's what we see happening today. I can't believe the homelessness spreading across this country because every time you print money, guys like us get richer but the working class people, people are still working for money getting poorer. So let's go into the future since silver and gold have been ancient money. So Damien, what's happening in the future? What do you see happening now? What are the Chinese or Samsung? So yeah, there's a lot going on in Asia with regard to silver. And you talked earlier about Bunker Hunt and how he felt that silver was more valuable than gold. And part of the reason for that is silver is used in so much industry.

19:12And when you dig gold out of the ground, guess what? It ends up in a vault somewhere. When you dig silver out of the ground, at least half of it is being used in something. Well, that's just getting – the demand for that physical silver is just going up higher and higher for industrial purposes. So what China has done – One thing, Damien, is the more we go into the information age, the more valuable silver becomes than gold. That's right. Because silver allows everything to function, whether it's your semiconductors, whether it's your solar panels, electricity. you need solar. Rockets. Yeah. With the new technology that's coming out, the battery technology and the solar technology, that's just requiring more and more silver.

19:56So what China has done is basically understands, like we understand now, that silver is a critical mineral. And they've proceeded to put an export ban on silver starting January 1st. The Chinese did. Chinese did. And this also coincides with BYD, which is a Chinese company, which is the largest manufacturer of batteries. They are going to be introducing the silver solid state battery. And it requires a tremendous amount of silver to make these batteries, but they're really efficient. We're talking thousand mile range. We're talking 10 minute charges. These are going going to be the batteries that everybody's going to want for their EVs.

20:37Well, the key is you got to have the silver. And that's why companies that are in China, in Japan, instead of going to the LBMA, instead of going to COMEX, they're actually going to the sources of silver now. They need to tie up that silver for their critical components. So they're going right to the source. We're just talking about one company, but there are literally thousands of companies that need silver. And they're going to go where the silver is being mined, and they're going to buy it before we have the opportunity to get it, if they can. Right. Jim, any comments on the future of silver?

21:21Silver is ancient. Yeah. Yeah. Silver has actually been around and used as money longer than gold has. We know at least 6 ,000 years with gold and probably another 2 ,000 to 4 ,000 with silver. And a lot of people call it the poor man's gold, or you and I call them the silver stackers, when you can have a tube of silver pieces for$1 ,200 to$1 ,500, as opposed to one gold piece, you could get maybe a quarter of an ounce or a half an ounce for the same amount of money that you would pay for a tube of silver eagles. So I like both of them. And the attention to silver has been like nothing else I've ever seen in my 52 years.

22:05That there are more players in the market. There are a lot of paper contracts that are coming back to roost now. And I think that's why we see the price at$65. It's not going to surprise me to see in the first quarter next year silver well over$100. And I think maybe on its way to$200 or$300, maybe not next year, but sometime in the near future. But it's not that silver has become more valuable, although it is that. The price is reflective because of the paper money that has become worth less and less. That's why we have record prices that investors all over the world are saying, we don't want America's paper dollars.

22:52And as Dan was talking before about the currencies that have gone by the wayside over the years, just since he was in the foreign exchange business, the dollar at some point is going to go by the wayside. And who's ever holding them is going to be holding the bag. If you're holding gold and silver, it's an asset that speaks for itself. itself it's a uh it's an asset that has intrinsic value within its own uh metal content and it never goes to zero the value of gold and silver will always be something in relationship to the medium medium of exchange that we use in our case it's the u.s dollar and if they keep printing up more and more dollars i believe that the attention to gold and silver will be much greater than ever And I also think Bitcoin, that when it came around 16 years ago, it was because the same investors that are buying silver and gold, they said, well, can we have something else that is outside of the dollar?

23:55And the Bitcoin having 21 million units maximum, that's how it came about. So that's the granddaddy of all of the crypto money. And we've had 2 ,500 others that have come on board since then. Well, that's going to increase. As the technology comes about to create more crypto money, there's going to be more and more of these cryptos. So it's almost like there's going to be an unlimited amount of crypto money in circulation. Whereas gold and silver, you've got to go actually mine that, not mine it in the sense that you mine a Bitcoin and you use a lot of energy to do so. You're going to have to use a lot of energy to dig down and find the gold and silver.

24:37And the earth only has so much of it. And once it's gone, it's pretty much gone. And it's not even going to be so much, what is the price of silver? What is the availability of it? What is the availability of gold? And it may not be there in the not-too-distant future. Because who's going to want to trade their gold and silver and get Federal Reserve notes that can be printed unlimited amounts at any given point? Do you own any Bitcoin or Ethereum or all that stuff? I own none of it, and I never have. Damon, do you own any? I sold my Bitcoin. I sold it early. I used to mine for Bitcoin. I never bought any Bitcoin.

25:15So I own Bitcoin. I made a fortune in it. Yeah. But you have to know when to enter and when to exit. And the difference between, and the big difference too is that with silver and gold, you have storage problems. I had a friend who stood on stage one day and he says, I keep all my gold and serve at my house. I said, why don't you tell people to come on over? You know, because that's what they're going to do. And so Bitcoin's advantage is basically electronic money. And it can hide and you can carry it in your wallet. So there's advantages to both. But just you'll have to understand, there's no such thing as save money.

25:55Even gold and silver was up and down. And today, after the Hunt brothers tried to corner the market, Silver is still around where it was 20, 30 years ago. And everybody in the world can afford an ounce of silver, 64 bucks. It may take them a year to pay for it, some of these people. What is better to have silver than paper? The biggest storage. So, I mean, how much do people pay for storage of gold and silver, Jim? I don't know. I don't get into those topics of I don't want to know where people put their gold and silver. and that's their business. I recommend typically a floor safe or something secure and you have an alarm and all of that, but I don't know what they pay for storage fees for it.

26:43You don't want to store it at home because you're inviting people over for entertainment here. You just want to be very discreet with what you own, right? Especially if it's a physical asset. Well, my biggest problem is I started buying silver in 65 and then Jim knows I'd go to his store, Republic Monetary Exchange on Camelback in Phoenix, and they come in these green boxes. And pretty soon these freaking green boxes, they were stacking to the ceiling. What am I going to do with this here? So I have to go rent a vault outside of Phoenix to hide it there. And it's a good problem because I've made a lot of money just buying the stuff, but storage also becomes an expense.

27:26you don't have a Bitcoin or Ethereum or crypto. Well, that is the bad news that it's hard to store silver, but the good news is it's priced in ounces. So if you have a lot of silver and you have a lot of pounds of silver, you're in good shape no matter where you have it. And the reason I bought silver eagles, US coins, is because if the dollar did collapse or the yen collapsed or the euro collapsed, I can still walk around with silver dollars in my hand and trade. But you walk around with a dead money like the Weimar Republic, which brought, you know, Weimar Republic is what brought Hitler to power.