Revolutionize Your Portfolio with Gold, Silver, and Bitcoin

Summary

In 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

00:00

🔄 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.

05:01

🏦 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.

10:03

💼 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.

Keywords

💡Portfolio

A portfolio refers to a collection of financial assets such as stocks, bonds, commodities, and cash equivalents that an investor holds. In the context of the video, the speaker discusses the need for a different kind of portfolio that is more diversified and resilient in the face of economic and geopolitical changes. The script mentions rethinking traditional investment strategies due to the changing economic landscape.

💡Diversification

Diversification is an investment strategy that involves spreading investments across various financial instruments, industries, and other categories to minimize risk. The video emphasizes the need for greater diversification, suggesting a shift from traditional centralized assets to include decentralized assets like Bitcoin and gold to hedge against volatility and potential inflation.

💡Inflation

Inflation is the rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling. The script discusses the historical trend of falling inflation and the potential for a reversal in this trend, which could impact the value of investments and the effectiveness of traditional portfolio strategies.

💡Interest Rates

Interest rates are the cost of borrowing money and are set by central banks. The script highlights the historical decline in interest rates since the 1980s and suggests a possible reversal to a period of rising rates, which could affect the attractiveness of different investment vehicles.

💡Antifragile Assets

Antifragile assets are those that not only withstand shocks and stresses but also benefit from them, becoming stronger over time. The video discusses the importance of investing in antifragile assets like gold and Bitcoin, which can potentially appreciate in value during times of economic instability and volatility.

💡Debt Levels

Debt levels refer to the total amount of money that is owed by an entity, such as a government or individual. The script points out the rising debt levels, particularly in the United States, and suggests that high debt levels and the potential loss of trust in fiat currency necessitate a shift towards non-fiat assets like gold and Bitcoin.

💡Fiat Money

Fiat money is a government-issued currency that is not backed by a physical commodity, such as gold or silver. The video argues that due to rising debt and inflation concerns, fiat money may become less reliable, prompting investors to consider non-fiat alternatives like gold and Bitcoin.

💡Centralized vs. Decentralized Assets

Centralized assets are subject to control by a central authority, such as a company or government, whereas decentralized assets operate independently of such control. The speaker in the video advocates for diversification into decentralized assets like Bitcoin to mitigate risks associated with centralized entities that may fail or be subject to regulatory changes.

💡Gold Mining Index

The Gold Mining Index is a measure of the performance of companies involved in the gold mining industry. The script uses the gold mining index to illustrate the historical underperformance of gold mining stocks compared to the price of gold itself, suggesting that direct investment in gold may be more profitable than investing in gold mining companies.

💡ETFs

ETFs, or Exchange-Traded Funds, are investment funds that are traded on stock exchanges, similar to individual stocks. The video discusses the potential risks of investing in gold and silver ETFs, such as centralized control and regulatory changes that can limit trading, suggesting that ETFs may not fully mitigate the risks associated with centralized assets.

💡Central Banks

Central banks are the main monetary authority in a country, responsible for monetary policy and regulation of the financial system. The script mentions that central banks have been increasing their gold reserves, which can be interpreted as a bullish signal for gold prices and a vote of confidence in gold as a store of value.

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

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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