Revolutionize Your Portfolio with Gold, Silver, and Bitcoin
Summary
TLDRIn this video, Alan Hibert discusses the need to rethink traditional investment portfolios due to a changing economic landscape characterized by increased inflation, volatility, and geopolitical unrest. He advocates for a diversified portfolio with a focus on antifragile assets like Bitcoin and gold, which can strengthen under stress. Hibert also highlights the risks of centralized assets, such as stocks and ETFs, and encourages viewers to consider non-Fiat money and decentralized investments for long-term financial security.
Takeaways
- 🌐 The world is entering a new era of chaos, requiring a rethinking of investment portfolios with a focus on antifragile assets.
- 📉 The 40-year trend of falling inflation and interest rates, along with low economic volatility and peace, is reversing, indicating a shift in investment strategies.
- 📈 Inflation has been generally declining since the 1980s, with a recent peak in June 2022, suggesting the need for assets that can hedge against inflation.
- 🏦 Rising interest rates are expected for the coming decades, which could impact various investment vehicles differently.
- 💵 Rising debt levels and distrust in fiat money highlight the need to diversify into non-fiat assets like gold and potentially Bitcoin.
- 💼 Central banks have been increasing their gold reserves, indicating a growing recognition of gold as a stable asset amidst economic uncertainty.
- 📊 Historical data shows that gold has significantly outperformed gold mining stocks over the long term, suggesting a preference for the metal itself over related stocks.
- 🚫 Centralized risks, such as government regulations and restrictions on ETFs, demonstrate the importance of diversifying into decentralized assets.
- 💼 Investors should consider the difference between centralized and decentralized assets, with a focus on the latter for their resilience and independence from single points of failure.
- 🔒 Diversification in the future will likely mean spreading investments across both centralized and decentralized assets to mitigate risks.
- 🌐 The video encourages viewers to study and consider decentralized assets like Bitcoin, as well as traditional safe-haven assets like gold and silver.
Q & A
What is the main theme of the video script?
-The main theme of the video script is rethinking investment portfolios in light of changing economic conditions, with a focus on diversification, antifragile assets, and the potential of investing in Bitcoin, gold, or both.
What is the significance of the 40-year trend mentioned in the script?
-The 40-year trend refers to a period of falling inflation, falling interest rates, low economic volatility, and peace which has shaped investment strategies. The script suggests that this trend is reversing, necessitating a new approach to portfolio construction.
Why is the author discussing the CPI and Fed funds rate in the script?
-The author discusses the CPI and Fed funds rate to illustrate the historical context of low inflation and interest rates, which have been beneficial for investors but are now changing, indicating a shift in the economic landscape.
What does the author mean by 'antifragile assets'?
-Antifragile assets, as discussed in the script, are investments that not only withstand market stress but also gain in value or strength as a result of volatility or uncertainty.
How does the author relate the current economic situation to the need for non-Fiat money?
-The author suggests that due to rising debt levels and the potential unreliability of Fiat money, investors should consider non-Fiat money like gold and possibly Bitcoin as a way to protect and grow their wealth.
What is the role of central banks in the context of gold holdings mentioned in the script?
-The script mentions that central banks have been significant buyers of gold in recent years, indicating a trend that is expected to continue, which could be bullish for the price of gold.
Why does the author argue against investing in gold mining stocks (miners) for the long term?
-The author presents data showing that gold has outperformed gold mining stocks by a significant margin over the past 50 years, suggesting that gold itself is a better long-term investment than the stocks of companies involved in gold mining.
What centralized risks are associated with ETFs according to the script?
-The script highlights the centralized risks of ETFs, such as the ability of governments to change rules regarding buying and selling, as exemplified by the recent restrictions on Sprott physical gold and silver funds in Europe.
What is the author's stance on the diversification of portfolios?
-The author advocates for a new kind of diversification that includes both centralized and decentralized assets, suggesting that trust in traditional centralized institutions is waning and that decentralized assets like Bitcoin and precious metals are becoming more prudent.
What action does the author suggest viewers take regarding Bitcoin and other decentralized assets?
-The author encourages viewers to study Bitcoin, decentralized assets, gold, and silver as part of a strategy to diversify their portfolios and protect against the uncertainties of the new economic era.
How does the author use historical examples to emphasize the importance of non-Fiat money?
-The author references the historical example of German children flying kites made of worthless money during the hyperinflation of 1923 to illustrate the enduring truth that printing money excessively leads to devaluation and the need for stable stores of value like gold.
Outlines
🔄 Shifting Portfolio Paradigms in a New Era of Chaos
The video script discusses the need for rethinking traditional investment portfolios in light of the changing economic landscape. The speaker, Alan Hibert, introduces the concept of antifragile assets, referencing an article by Charlie Morris and Alexander Chartress. The article argues that the stable economic conditions of the past 40 years, characterized by declining inflation, interest rates, and economic volatility, are reversing. Hibert presents data on CPI inflation rates and the Federal Funds rate to illustrate these trends. The script suggests that investors should consider diversifying into assets like Bitcoin and gold, which offer greater resilience in a world of increasing chaos, inflation, and geopolitical unrest.
🏦 Diversification Beyond Centralized Assets
This paragraph delves into the evolving concept of diversification, emphasizing the distinction between centralized and decentralized assets. Centralized assets, such as company stocks, carry risks associated with company failure or regulation. In contrast, decentralized assets like Bitcoin offer a different risk profile, being less susceptible to single points of failure or regulation. Hibert also touches on the trend of central banks increasing their gold reserves, suggesting a bullish outlook for gold. The speaker warns against investing in gold mining stocks or ETFs due to their inherent centralized risks, using an example of recent restrictions on trading physical gold and silver funds in Europe.
💼 Navigating Centralized Risks in Investment Vehicles
The final paragraph of the script highlights the centralized risks associated with investment vehicles like ETFs and mining stocks. It recounts an incident where European investors were restricted to selling orders only for certain gold and silver funds, illustrating how centralized control can impact investment freedom. The speaker advocates for antifragile assets that strengthen under stress and suggests shifting wealth into non-Fiat money, such as gold and potentially Bitcoin and silver. The paragraph concludes with a call to action for viewers to study decentralized assets, emphasizing the importance of diversification in a portfolio that can withstand the uncertainties of the modern financial world.
Mindmap
Keywords
💡Portfolio
💡Diversification
💡Inflation
💡Interest Rates
💡Antifragile Assets
💡Debt Levels
💡Fiat Money
💡Centralized vs. Decentralized Assets
💡Gold Mining Index
💡ETFs
💡Central Banks
Highlights
The need for rethinking portfolios in a new world of chaos with greater diversification.
Discussion of investing in Bitcoin, gold, or both based on an article by Charlie Morris and Alexander Chartress on antifragile assets.
Regime change after 40 years of falling inflation, interest rates, and economic volatility, with a shift towards inflation, volatility, and geopolitical unrest.
Analysis of the historical decline in CPI year-over-year percentage change since 1980, with a recent peak in June 2022.
Historical peak of the Fed funds rate in December 1980 at 22% and the subsequent 40-year trend of falling interest rates.
The potential for a reversal of the 40-year trend and the implication for investors to adapt to a new economic environment.
Concerns about rising debt levels and the unreliability of fiat money, suggesting a shift towards non-fiat assets like gold and possibly Bitcoin.
Historical reminder of the hyperinflation in Germany in 1923, illustrating the timeless truth about the dangers of printing money excessively.
The distinction between centralized and decentralized assets, with Bitcoin being an example of the latter.
Central banks as new major buyers of gold, topping up their reserves, and the bullish impact on gold prices.
The performance comparison between gold and gold mining stocks, with gold significantly outperforming over the long term.
The risks associated with ETFs and miners, including centralized risks and regulatory changes affecting investment decisions.
The incident where European investors could only place sell orders on Sprott physical gold and silver funds, highlighting centralized control over investments.
The importance of antifragile assets that strengthen under stress and the relevance to the current economic climate.
The recommendation to shift wealth into non-fiat money, including gold, Bitcoin, and silver, as a hedge against centralized financial systems.
The necessity for a new kind of portfolio diversification that includes decentralized assets in response to the erosion of trust in centralized institutions.
A call to action for viewers to study Bitcoin, decentralized assets, gold, and silver as part of a modern investment strategy.
Transcripts
rethinking portfolios the things that
have worked for the last 40 years won't
work in our new world of chaos you need
a different kind of portfolio one with
much greater
[Music]
diversification hello gold silver family
Alan Hibert here with another video and
today I want to present to you the case
for investing in Bitcoin or gold or both
and this isn't just my idea it actually
comes from an article I found so let's
pull it up here uh we've got Charlie
Morris and Alexander chartress I don't
know if that's how you say his name they
discuss the arguments for antifragile
assets so I want to go through a part of
this article and use it as a springboard
for looking at some charts some data
sets and some other articles that might
inform your thinking uh when you're
developing your portfolio so let's take
a look here these are four of the little
paragraphs from the article I want to
focus on and we'll take a look at them
one at a time first of all regime change
we've had 40 Years of falling inflation
falling interest rates low economic
volatility and crucially peace okay so
let's actually look at these real quick
before we go any further so falling
inflation falling interest rates let's
look at inflation this here is the CPI
uh year-over-year percentage change and
you can see that since 1980 since this
peak in 1980 around
14.7% year-over-year that's massive 14%
inflation since then it's pretty much
been dropping inflation we've pretty
much had low inflation ever since then
so that's what they're talking about the
exception being this recent Peak where
we hit about 9% year-over-year that was
June of
2022 so we have largely enjoyed low
inflation measured as consumer prices
also they mentioned falling interest
rates okay so let's look at those very
quickly here is the Fed funds rate this
is daily and you can see that they
peaked or it peaked rather in December
of 1980 at 22%
22% what a massive interest rate and
that was part of a long-term cycle of
rising interest rates and now we've had
about 40 years or so of falling interest
rates and it seems like things are
reversing so yes nowadays there is talk
about getting a rate cut from the FED
possibly later this year in
2024 but I believe that interest rates
are going to be rising generally
speaking for the next decade or two or
three or four it's hard to say but we
are probably entering a period of rising
interest rates okay let's go back to
their article here so this pattern
that's reversing right okay so this
pattern has been Mana from Mana from
heaven for investors it is also over the
next few decades will be full of
inflation volatility and geopolitical
unrest that means you need anti Fred
schedule assets okay so I agree with
this take here it seems like everything
is reversing a 40-year trend that's a
pretty large Trend I that's basically
two generations so we've had two
generations of investors building their
portfolio around a certain belief system
about how the world works okay that may
have largely been true and that may have
largely worked for 40 years but it seems
like things are shifting and a new
mindset a new approach to constructing
your portfolio will be necessary moving
right along here Rising debt levels no
one cares about structural deficits
anymore does it matter yes says Charlie
a lot with debt at these levels and
Rising you can't trust Fiat money
anymore okay so let's look at debt
quickly uh we're looking here so this is
total public debt in the United States
we're up over 34 A5 trillion closing in
on 35 trillion and you can see it just
it's almost going straight up I mean
it's funny but it's not funny uh it does
seem like anyone who could do anything
to slow this down has no interest in
doing so okay so we have Rising debt and
if you can't trust Fiat you need to
shift some of your wealth into non Fiat
money why yes we do mean gold and maybe
Bitcoin so yeah speaking of not trusting
Fiat money anymore quick reminder German
kids flying a kite made of worthless
money during hyperinflation 1923 so yes
this was a hundred years ago but some
basic Financial truths don't change
right some basic economic principles
will always exist and you can't print
your way to Prosperity so when you print
too much you get kids making kites out
of money or
currency all right
so uh we do mean gold and maybe Bitcoin
so uh rethinking portfolios the things
that have worked for the last 40 years
won't work in our new world of chaos you
need a different kind of portfolio one
with much greater diversification
and so in terms of Greater
diversification what does that mean
because typically
diversification has meant something
different than what it's probably going
to mean going forward I would say going
forward the form of diversification you
want and it's not just one but it's
really the difference between
centralized assets and decentralized
assets so any stock of any company is
necessarily centralized that company
could fail the CEO could experience some
kind of catastrophe that company could
be regulated uh there's all kinds of
centralized risk that comes with that
whereas something like Bitcoin which is
not a company can't really be regulated
in its entire entirety I mean you might
have to get 200 countries on board to
try to coordinate the regulation and you
know there is no single company or CEO
that would have to follow it so even if
you did regulate it in that sense that
wouldn't affect what it does that
wouldn't affect fect its monetary Supply
that wouldn't affect how it operates it
would only affect whether or not people
want to use it so it's a very different
kind of
risk let's take a look here uh reserves
gold has a new major class of buyer and
central banks topping up their reserves
I do want to look at central banks
topping up their reserves we've seen
since 2018 it's been the last six years
or so that central banks have been
buying gold and we have here a record
percentage of central Bankers expecting
gold Holdings to increase hi I just
wanted to take a moment and thank you
for subscribing and mention that if
you'd like to help our Channel please
consider my company goldsilver.com the
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doing with my own Investments thanks for
making goldsilver.com your dealer and
now back to the video gold Holdings to
increase so this is forward looking
right so we're not looking back at the
last six years of a new trend we're
actually looking forward here and a
record percentage of central Bankers are
expecting gold Holdings to increase so
yes we do have a a big buyer on the
streets central banks and of course that
is going to be bullish for the price of
gold going back here what does this mean
what does this mean for regular
investors how can we profit from it ETFs
or miners question mark well maybe let's
look at these two and see if these are
good sources of profit first I actually
want to focus on the miners I want to
share with you guys a chart that you
probably have seen before either on this
channel or in Mike's latest book this
here is the price of gold in gold and
the price of The Baron's gold mining
index in blue and they're index to
August 13th 1971 right before Nixon uh
severed the convertibility of the dollar
to gold and what you can see here is
even though that they started at the
same level they've separated and the gap
between them has progressively widened
all the way until 2021 2022 and if this
chart continued it would continue to get
even wider to this day and this chart is
logarithmic so this Gap here if you just
look at the distance it doesn't look
that big necessarily but when you
realize that the scale here is a fact of
10 between these lines you realize that
gold has outperformed mining Stocks by
almost one full order of magnitude this
here is a difference if you divide 3933
by 460 that's about eight and a half so
gold has done eight and a half times
better not eight and a half percent
eight and a half times so 850 per. so uh
it doesn't seem like minors are
something you would want to hold for the
long term right not 50 years or
something like that in the short term
sure that might make sense I mean of
course it would for some people you
either have to have inside knowledge or
a lot of skill or a lot of luck or some
combination of the three but for the
average investor who doesn't have a
distinct advantage and who is investing
over the long term it doesn't really
make sense to hold minors or at least
the data would suggest that going back
what about ETFs can you profit using
ETFs well what we just talked about a
second ago with diversification and the
idea of centralized versus decentralized
risk if you're holding an ETF you're
exposing yourself to more centralized
risks you're not really solving the
problem and I'll give you one
example the Tweet came up uh just a
couple weeks ago Europeans can now only
place sell orders on Sprout physical
gold and silver funds there's a link to
an article here I want to highlight WTF
Europeans can now only place sell orders
on Sprat physical gold and silver funds
so more buying so what is going on here
uh this is what happens when the elites
are on the wrong side of the trade
heavily short gold and silver while
those markets have traded against them
they simply change the rules so again
another example of that centralized risk
so June 1st just a couple weeks ago the
information below was sent to King World
News by one of our Global readers from
Norway who has traded Sprouts 100%
physically backed gold and silver for
many years he can now only place sell
orders for Sprouts pslv and phys gold
and silver funds okay only sell
orders apparently European investors can
still buy GLD and SLV which is
suspicious because those funds are not
trusted by many investors including
institutional investors who believe GLD
and SLV don't hold the physical gold and
silver they claim to possess and have
nowhere near the transparency of the
Sprat physical gold and silver
funds okay so in regard to GLD and
SLV uh again centralized risk okay so
whether or not you think they have the
metal the physical metal backing the
paper you know that that's your decision
but the point is there is a centralized
risk there and so centralized
governments can just change the rules on
what you're allowed to do with these
ETFs whether you're allowed to buy sell
both or
neither and uh yeah it's a form of
centralized risk so if you're holding
ETFs you're not necessarily diversifying
in that way we just talked about so
here's part of the email I'm not going
to read the whole thing no longer
possible to buy any us or Canadian
closed end funds in the EU or
E uh this is nuts here's a screenshot
which he translates your order was not
placed due to current EU regulations it
is not possible to invest in this
security only sell orders are possible
this applies to all us and Canadian
closed end funds okay so there you go so
going back to what we just looked
at ETFs and miners maybe aren't really
solving the problem there are three
things I would highlight here no pun
intended number one you need antifragile
assets I would agree with that and
antifragile if you're not familiar with
that term something that's antifragile
gets stronger when you stress it so yeah
when you when you stress something it
gets stronger over time uh people are
anti fragile whereas something like a uh
a glass or a piece of ceramic is fragile
right and uh sometimes companies are
anti- fragile sometimes they're not
sometimes civilizations are fragile
sometimes they're anti- fragile depends
on a lot of
factors number two you need to shift
some of your wealth into non- Fiat
money despite the fact that that's
almost an oxymoron
or it's almost redundant rather uh yeah
it's almost redundant so non-fat is
money well sort of anyways but I would
agree with that you need to shift some
of your wealth into non-fat money gold
maybe Bitcoin of course I would include
silver in this and number three you need
a different kind of portfolio one with
much greater diversification so yes not
just greater diversification but a new
kind of diversification that often or
historically hasn't been thought about
for the last 40 years there was so much
trust in centralized institutions
whether it's government or companies or
currencies in general that you almost
didn't need to diversify against them
we're entering a period now where trust
is at an all-time low and holding
decentralized assets seems very prudent
almost almost a necessity so I want to
leave you guys with one
thing a giant Bitcoin logo projected on
the European Central Bank look at that
study Bitcoin study Bitcoin study
decentralized assets study gold and
silver thank you guys for watching and
I'll see you in the next video
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