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Jan. 10, 2024 - Lionel Nation
25:18
The Most Critical Advice for Investing and Profiting in Gold and Metals in 2024
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I'm happy again, excited, beyond belief, and I don't say that calmly or wisely or sillily.
Colin Plume from Noble Gold Investments joins us.
Colin, welcome back, my friends.
Happy New Year to you.
Thank you.
Excited to be here.
Great year.
Exciting.
Got a little time off.
Now I'm ready to dive into the world of finance, talk about money and all this fun stuff that we get into.
So I appreciate it.
Okay.
I'm going to talk about something right now, which I'm sure is on everybody's top of mind awareness.
BTFP.
What the hell is that?
Yeah, so last year when all the banks had issues, liquidity issues, and for people to understand, I mean, it is sort of hard to understand how a bank could have liquidity issues.
But, you know, banks have to make money like everybody else.
And for the most part, most banks don't charge fees.
You know, FTX said they didn't charge fees either, but, you know, we'll see what happened there.
But they have to make money somehow.
So what happened was Signature Bank, Silicon Valley Bank, and there's one other bank that will come to me in a second.
They basically had all these deposits.
There is a thing called fractional reserve banking.
They used to be able to keep 10% in a deposit, but they've actually changed the rules.
They can actually lend out more than that 10%.
90% could be loaned out, but now it's even more.
I've seen banks, they've gone down to 5%.
They loan out some of the money, and then they have to make a return on some of the money.
What banks do is they go to the market and they look for returns.
Now, a typical smart bank will be diversified in investments, just like you and I are, Lionel, right?
We're not going to put all your money into one investment.
You're not going to put all in the stock market.
So they'll buy different things.
Well, these three banks, almost all of them put their money into bonds.
And what ended up happening is that the bond rates shifted.
So all that bond money that they had...
Was worth less than what they had put in.
So when the bond rates shift so dramatically, you can't liquidate those bonds unless you take a dramatic loss.
And so what happened was the market sort of knew that these banks were in trouble.
So they tried to liquidate a lot of the bonds.
They had to liquidate a lot of them at a loss, which encouraged them not having enough liquidity.
And they weren't diversified.
They bought too many bonds at the wrong time.
A bank?
Yeah, the bank did.
And they got caught in a squeeze, where a typical bank would layer their investments.
Anyone that knows anything about bonds is you can layer bonds over time and have different bonds come to fruition.
They put a big tranche in really at the wrong time, and so they got caught.
In a bad time.
And so they all had liquidity issues.
There was people waiting at the banks.
And this is going to happen again.
This is not the first time this is going to happen.
Because at the end of the day, a bank, whether people think, well, you just get money and that they should have your money, they still have to run a bank.
They still have to run it.
And the amount of red tape, the amount of...
The back-end oversight is overwhelming and too costly for any business to stay.
The cost, the back-end oversight, and the compliance reports have been coming.
I've been reading a lot about banks.
They have gone up by 60%.
And they have to accrue that cost, right?
There's still a cost there to run it day-to-day, even though they have all this money.
And they're basically giving...
You know, a lot of times we're giving the client a return.
Maybe there's a small sort of arbitrage on what they're making in their rate compared to what they give you.
But it's really not enough.
And so because of all those bank issues that happened, the Fed came up with this loan program and it was supposed to be a year.
Now this loan program from the Fed is, in December, they tripled the amount of banks asking for money.
They have $125 billion outstanding, according to December.
We haven't received January's reports.
Wow.
And this rate, this loan, this basically abridged loan, was supposed to expire in March.
It was like a one-year sort of deal for these banks to just kind of get them through the time period.
It's not going away anytime soon.
A lot of regional banks, and they won't disclose who these banks are.
There could be some bigger banks involved in this too, but my guess is a lot of mid-sized regional banks.
There's some banks that are in trouble.
They're borrowing this money, and I don't think the Fed's going to see any of that money come back anytime soon.
So this bank funding program, this BTFP...
It's been...
I don't hear anybody...
No one's talking about it.
Yeah, I mean, the Fed does a lot of these offerings to different types of industries.
You don't always hear about it, but I wanted to bring it to light and sort of talk about it today.
It's important that we keep an eye on the Fed because the Fed right now has manipulated us into a pretty bad economy.
Raising rates the way that they did.
And Powell, he didn't hide the fact that he knew that this was going to crush many industries.
He knew this was going to crush a lot of jobs.
He knew that it was going to affect business owners in a very negative way.
Most businesses are borrowing a little bit of money for equipment, for R&D, for whatever they're going to do to grow their business.
And so he put a monkey wrench in the whole thing about a year and a half ago.
I mean, I think, listen, everybody wants their dollar to be strong, but if the government continues to borrow money...
And overspend on everything which they've done and put us $33 trillion in debt.
The least that we can do is have money at a rate we can afford so we can grow and try to keep up with it.
It's unusual for us in this country that inflation in most countries that are growing, even countries that are growing exponentially, have much higher...
reported inflationary rates than we do.
And businesses are able to grow, they just keep moving in that direction.
But the way he did it, he more than doubled the rates, kind of crushing the economy, and really put people in a bad position over the last year and a half.
And now people are in a position right now where they don't know where to go, they don't know where the economy is going to go this year, they don't know what the stock market is going to do.
Really concerned about some of the banks and their stability.
Do you have a suggestion, Colin Plum?
I think it's, you know, I would never recommend keeping more in one bank than you need.
You know, you want to be spread out, number one.
You want to have money in different banks.
You just never know what's going to happen.
Two, you know, I think that this returns that they're giving the banks, this false hope of 5%.
Really means if the bank's paying you 4% or 5% of the bank, that means inflation's much higher, probably 30% or 40% higher.
And you've got to get assets that are going to try to keep up with that heavy inflation.
And I think as much as everyone's talked about inflation and food and energy costs, no one's really talked about how gold and silver really haven't moved up as much as some of these other items.
And they're equally as needed.
We need gold for so many things, and it's a currency in this world.
I don't understand, Lionel, why it's sitting in the 20s.
It doesn't make sense to me, but I think silver is one of the most undervalued assets in the world because it's used in so many things.
I mean, everything we're talking about, all technology, cell phones and everything, they use silver, solar panels, all this stuff that we're trying to bring energy costs down.
They use a lot of silver.
I think you've just got to be careful which bank you're in and be careful what they're offering to you.
I think it was end of February last year, we saw a lot of bank problems.
I think we're going to run into that situation here again.
I know that the Fed has suggested they're going to lower rates, but they also suggested that they could not lower rates.
If inflation were to pick up in their eyes...
They're not going to lower rates.
So time will tell.
There's a big meeting at the end of this month, and I think it's going to tell a lot for what happens this year.
If they come back and inflation's a little bit lower, or maybe it stays stagnant, maybe they don't do anything.
But the Fed, you never know what they're going to do.
And if they report a little bit, maybe core CPI is a little higher than they thought, maybe they don't.
Maybe they don't lower interest rates.
And then we're in the same position we've been in where people are really in trouble.
Real estate right now can't survive the way rates are.
I have friends in the real estate business, professional people that have been in the business 15, 20 years, that haven't sold a property of anything in a year.
Zero transactions.
Just nothing happening.
You know, it's just the slowdown.
It's just too much for anybody to take.
And, you know, the banks, you know, going back to the banks, they need transactions.
They need loans.
You know, that's part of the way that they make money.
They make money in the fees of loans.
And loan volume and transaction volume in real estate, residential, and commercial is down 70%, 80%.
You know, obviously there's some pockets where things are moving a little bit better.
But generally overall...
And these are people that have been professionals, been in this space for a long time, and just no activity, and they're just waiting for this Fed meeting.
They're living off the Fed, so to speak.
So I think we're in unusual times where the Fed can literally make or break a whole industry of people working.
And that's the point we're at, Lionel, right now, is that one more year of interest rates at this, You'll see another 5,000 to 10,000 real estate agents get out of the business.
You'll see loan brokers quitting.
I mean, you'll see big banks, institutions fall.
So this end of January Fed meeting is monumental for 2024's economy.
And isn't it funny, Colin Plum, how nobody really...
I don't know who said it.
They said that the Federal Reserve is as federal as Federal Express.
Most people have no idea what this thing is.
It's not the Constitution.
Ron Paul talks about it.
But it's this thing.
It's there.
And it is our lifeblood.
It is our heart, our engine, our brain.
We're tied to it as tied to anything else.
As a baby and a bottle.
I mean, that's as bad as it is for us right now.
Right now, we have people who are saying, okay, Colin Flume, I want you to help me out here.
Would it be a good idea, perhaps, to brace myself, to hedge, to do something, to invest in metals, gold, silver?
Do you think you can help me?
Do you think that might be a good idea right now?
Yeah, well, it comes down to what you believe is important.
Everybody's got a different philosophy on investing.
And there's people that are willing to take bigger risks.
And you've seen it.
You see it in the crypto market.
You see people that have taken on these risks and done really well.
But I also think people that are closer to retirement have to be more cautious.
They have to really protect what they have and think globally.
And I think that...
We're all tied to debt and how this debt affects us day to day.
And I think that we're in a position right now where if you want to protect your downside risk, you look at assets that can stand the test of time.
And I think that's why precious metals are so good because it doesn't matter what happens with interest rates.
They're not tied to this.
They're totally independent.
And I'm someone that owns.
I would say a pretty good amount of real estate.
I also have money in the stock market because I do what I say.
I'm diversified.
But I always like knowing when I look at my asset value, I always like knowing that my gold and silver just kind of steadily goes up over time and I don't have any debt on it.
I don't have to worry about refinancing it.
I don't have to worry about that interest rate.
It's one of the true assets you own by yourself and it's own debt free.
And I think that does give people a lot of peace of mind.
I don't necessarily agree with Dave Ramsey about paying off your house and some of the things that he talks about, but I will tell you there is peace of mind in some of the things that he says, which is the great thing about investing is you can Believes some things and not others, but he believes in people paying off their house and getting out of debt.
And I think that there is something nice about the metals aspect, that you have an asset that's liquid, that's debt-free.
Now, my argument always with the Ramseys is you're rushing to pay off your home if you have a 3% interest rate and gold can make 10%, 12%, 15% or silver.
There's an arbitrage there, that 3 to 10. Why would you want to pay that off when you're getting that?
And also, at the end of the day, if you need money, why would you want it going towards your house?
I have arguments of why you don't want to rush your house off, and I get it.
And I get the peace of mind.
But I think ultimately, right now, we're in an unusual time in that.
They're talking about these digital currencies.
They're talking about changing from the dollar to different currencies.
A lot of places all over the world are moving away from U.S. Treasuries.
Right now, our total...
We used to have, in the world, U.S. Treasuries used to be between 70% and 75% of the world's U.S. Treasuries.
We're at about 58.5% right now.
Most countries have divested away from U.S. debt.
That's sort of an interesting thing if you think about it.
Because if you compare us, you probably would think we're a big country, we're the U.S., we're probably safer.
But yet, they are divesting away.
What are they investing into?
I can tell you a lot of them are investing into gold.
A lot of them are moving into different asset classes.
They're moving away.
Getting away some of their risk away from our treasuries.
And I think they are believing that our treasuries aren't going to be as safe in the future as some of the other assets are out there.
And that's just globally.
That's not me speaking.
That's the truth.
Those are the numbers.
And central banks have probably some of the smartest economists in the world working for them.
And why are they going away from something that's traditionally a safe haven?
Would you say European bonds are safer?
Would you say Chinese bonds are safer?
No, I mean, definitely not.
But yes, there has been a shrinking.
The global world has spoken, and they are moving away from U.S. Treasuries.
So I think there's something to be said.
They think there's something happening with our economy, and they're looking for something safer.
If someone wants to...
Take your advice.
And by the way, you're not giving advice.
You're just saying these are your options and I appreciate that.
You've never been a hard sell.
You're not one of these.
You say these are the options.
This is what I think makes sense.
This is up to you.
Right now, there's somebody who's listening, somebody who's watching who says, you know what?
Now's the time to do it.
Sometimes they just never got into metals or gold or silver.
What do they do?
How can...
LionelNationGold.com help or calling 877-646-5347.
What do you do?
What can they do?
I think the first thing is call in and talk to somebody.
Say that you heard it on the show, that you heard us on this interview.
Get some information.
Talk to the people on my staff and find out we have some promotions going on.
See what promotions we have.
Find out what products we're selling.
Find out...
You know, there's gold, silver, platinum, platinum.
What are people doing?
They're doing a little bit of this, a combination.
Find out.
Ask those questions.
Maybe you have something that you prefer.
Maybe you have a percentage that you want one over another.
But ultimately, I think having a good conversation with a live person.
And, you know, I always say that, like, we have good people in the world.
But also, I forget that, you know, we spend time with people.
We don't rush people into a decision.
And we're in a space, you know, the gold space is an industry that is unregulated.
We really want people to feel comfortable with what they're buying.
We want you to ask questions.
We want you to go into all the detail.
We want to spend time with you.
We're not going to rush you into a decision.
Unlike many of our competitors or a lot of the other industries where they're trying to kind of hard sell you into a purchase.
We want you to feel comfortable in answering those questions and maybe talk to your spouse or partner or whatever it is and come to an informed decision about what we do.
The nice thing is the items you're going to buy from us are not exclusive to us.
Anybody will buy these.
They're bullion coins and bars.
What you want to avoid, if I'm giving someone advice, if you call around, you'll see a lot of advertisers.
You've got to be careful if a company tells you to buy a very specific coin.
This coin's going to change the world.
This coin's going to go to the moon.
This is where there's companies offering right now, many, many companies that say they're going to give you $10,000 in free gold and silver.
And so it sounds good, but what you don't realize, and I just saw a video on the internet.
There's a whistleblower out there that's, he's gone on the, on these.
Gone public about this.
And basically, those companies are charging 50% plus commissions.
So they're able to give you $10,000 or $20,000 in free gold, but it's really half.
And it's because they're charging a massive commission in those products.
So if anybody's recommending that or if you see that, it is too good to be true.
I can promise you that.
They don't have anything that we don't.
They're just able to convince you to buy some Strange coin.
So avoid all that stuff.
Buy bullion coins and bars.
Gold, silver, platinum, plenty.
Whatever you decide.
Just be careful.
And call around.
Ask questions.
Go to the BBB.
Check out reviews.
I think if you do all those things, you'll make an informed decision.
And you'll get the right amount of gold from the right company.
And you want a partner that's going to be there for you for the long term.
So all they have to do is, again, call 877- 646, the number here that's at the bottom of the screen, 877-646-5347.
I mentioned you saw this, you heard this with Lionel.
Make sure that we heard it together so the proper credit or whatever is afforded.
Or go to LionelNationGold.com and they can ask questions.
Why you are so experienced, why you are so good in the industry, I'm not saying it just because you're here, but it's true, is you are not the hard sell.
You want people to come back.
You want them to feel comfortable.
You want them to refer others.
You want to be there for the long run.
That's why you're there.
I can't say that enough because this can scare people.
Yeah, no, it's a big decision.
And so we want to be, if you talk to another company and you want to get a second opinion, you know, something doesn't feel right, call us.
And we'll, you know, maybe they're a good company.
You know, there's good companies out there who will recommend, hey, you got a good price, you did the right thing, or maybe they're not.
But get a second opinion.
Call us.
We'll be happy to help you.
I think you're going to learn a lot from the people on the phone.
It's a family business and we appreciate your partnership and love your show and love coming on and just talking about what's happening in the world and trying to shed some light on some of the things the Fed's doing because obviously if you're not watching this every day, you don't know.
You're not watching the banks.
Precisely.
But that's something that I do, and I want to expose that and give people that information out there.
So always a pleasure to be on and fun to talk about what's happening.
Well, this has been the most...
And by the way, one last question.
What should we look at?
We've got about 300 days until the election.
What are you looking for?
What normally happens?
What normally accompanies the end of, if you will, as we approach elections?
What should people be paying attention to?
Well, I'd say that if they lower interest rates at the end of this month in this big Fed meeting and they continue to do it, and then if they do a money printing, like a quantitative easing, we know that this is all rigged towards a certain way because the economy will go crazy.
Gold will go nuts.
The last time they did quantitative easing, 2009 to 11, gold was up more than 20% for multiple years.
If they expand the money supply, which would be counterintuitive to what people would think they would do because we're $33, $32 trillion in debt, then we sort of know where the Fed is leading, where they want to be.
In terms of the election.
I don't know what's going to happen.
I don't have a crystal ball, but if those things happen, then we know.
And if there's any quantitative, if there's any opening up of the economy or any kind of money where they say we're going to expand the money supply, just hold on to your hats.
I wouldn't be surprised if gold hits 2,900 or 3,000 in that kind of environment this year if they really open up the money supply.
A lot of ifs here.
Well, Colin Plume from Noble Gold Investments.
We ask everyone to go to LionelNationGold.com.
LionelNationGold.com.
Right there on the screen.
Or call 877-646-5347.
877-646-5347.
Operators are standing by.
Plenty of free parking, as we used to say.
And it's always a pleasure to speak with you.
You are such a gem.
I mean it.
I'm not just saying it.
You are aces in my book, and it's such a pleasure.
Happy New Year to you, my friend, to you and your family, and let's chat again.
Colin Plum, Noble Gold Investments.
Thank you, sir.
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