i actually there's you know if you go to read it or various talk forms you'll see a whole series of people linking to their big queen on the block chain saying help i got a few hundred big queen there and like twenty ten and they were only worth twenty dollars and i lost the password can somebody help me get these that's amazing it's so biblical in some way you know there's a pilgrimage people go on through their minds trying to find the touchstones of their own lives to unlock the past for for the big coin. you know this is going to go on for another guy very like one hundred million dollars on a limb still because it was strapped on his hard drive well actually i was going to mention that he is actually offering now a ten percent to anybody who could help him get his hard drive works in there it will soon be worth a billion dollars and you know just like i go on treasure hunt and they go down into the deep blue sea looking for hidden treasure and rex with lots of gold on

there you know they're going to be digging through the landfill to get that hard drive well you know there was another gift and that is the tax reform but we're going to get into that the next episode because you talk to michael penta when we were in new york and i'm going to save that for the next episode but because we're talking about in the second half you have a very fascinating interview with this guy with about handbags and michelle locks going to really love that interview because i want to talk about stores of value because this is been a big debate that's been raging obviously this big cash because mine. versus bitcoin cash all these sort of is it a store of value is it a means of exchange what is because well investors are dumping gold to buy bitcoin say strategist a key trend of the gold market has just been broken and big going could be to blame the gold miners e.t.f. d.d.x. is falling nearly fifteen percent from its september highs while gold has plunged to lows unseen. since the end of july this is curious says larry mcdonald head of

u.s. macro strategy at a.c.g. analytics as the move lower in gold has also been followed by a move down bond yields which according to the strategists is very rare of course after this article it did kind of swap a little bit starting to rise and it going to start to rise as well but yes well we've been saying this for quite some time there is a move out of everything into bitcoin and this is part of the big black hole is pulling gold right now gold and silver is being pulled into the big black hole because it's a superior store of value centrally and nobody wants to carry around pounds and pounds of silver in kilos of goals that really you know i mean when you can put all this on a thumb drive or memory wallet and then lose the memory wall and then end up in a landfill picking through diapers looking for an old hard drive so he says that there was an eighty two point five percent correlation between bond yields and gold

and that spend broken at the moment because of bitcoin is what he blames he also sees that there's more downside risk to gold because he says if you add up all the crypto currency and the liquid gold that is in the market right now the crypto currency is a market cap are now twenty three percent of the liquid tradeable gold that is up from two or three percent a year ago so krypto currencies are definitely eating in to the gold play well you know gold is not a finite supply you know they're adding to the tons of gold mine every year hundreds of tons of gold that it's a supplies supply is expanding in twenty eighteen what we see are central banks adding big oil into their strategic reserves alongside gold so big gold buyers like china and russia will be adding bitcoin to their strategic reserves some banks possibly in venezuela they could completely change their fortunes in the glow.

kaname by switching over to crypto switching over to bitcoin and then that will set a precedent for other countries to follow suit in fact both garia has like three billion dollars worth of big coin that they seize from some scam so that's actually the benefit you know in the early days of bitcoin one of the things that was often said by governments he said were threatened they were going to shut it down or attempt to shut it down was that it was you know a haven for you know no good do gooders like drug runners and drug cartels and hitman and all that sort of thing but a lot of those people a lot of the scam artists on line scam artists and shakedown artists are based in places like ball garia romania so the fact that they get to seize the assets of these bad guys you know you become a safe haven for bad guys and you can seize all their assets and that's right it's not a bug it's a feature look i'm talking about bad guys with money launderers and evil doers and crypto currency is let's not forget the twenty to thirty trillion dollars held offshore unaccounted for by any tax authority that money is always looking for

a safe havens that money is always buying fine art and yachts and that money is inching its way into bitcoin that's another you know ten thousand percent gain right there from current prices then you've got the hedge funds nibbling at it then you've got more apps like the one from. the cash you know the people over there where square you know they've got cash you know there's going to compete with coin base and it'll be millions more people getting into it you mentioned hedge funds hedge funds are pulling out of gold and seeking thrills elsewhere hedge funds are pulling out of gold bets as more exciting equities and crypto currencies make safe haven investments boring money managers cut their bets on a bullion rally at the fastest pace in five months as prices headed for the worst quarterly loss and the year speculators are throwing in the towel as the metal failed to sustain the gains that took futures to a one year high in september of course throwing in the towel is a good time. time to start investing right there's

a concept in investing called capitulation when all the sellers have sold there's no more sellers left you know and then any buying on the margins will start to rally and you start the whole process over again on the bull side so i think twenty eighteen actually in a contrarian point of view will see gold it all time highs which would be roughly a sixty percent move from here let's say which is not very interesting if you're a crypto is enthusiastic but nevertheless it would hit a new all time high yes some of the old coins especially because they're lower market cap. will rise like up to seventy five percent in a day so it's pretty crazy but speaking of bitcoin and hedge funds bill miller's hedge fund has half of his money and big queen bill miller is giant in the investing space he was at legg mason for thirty five years he founded their s. and p. five hundred investment fund at legg mason and remarkably he says that there are

fifty percent in bitcoin right now partly because of the price rise he got in i guess and before six thousand dollars. between a thousand and six thousand dollars he got in and it's because of the price rises now makes up as a percentage of his fund it's fifty percent bill miller was beating the market for decades and then he had it down here for a couple down years he kind of retired and now he's reborn rising like a phoenix in the crypto space and as his performance numbers come in pentair a capital i think is the name of the group they reported twenty four thousand percent return on their crypto portfolio versus let's say quantum fund which is george soros and jim rogers they were considered to be one of the best minds in finance they generated something like a forty six hundred return percent return over the life of that fund or approximately ten years they're considered geniuses. here tara returned twenty four

thousand percent in less than three years or maybe just for one year so this obviously is going to attract that multi-trillion dollar hedge fund market plus money managers like bin miller plus sovereign wealth funds remember that some more trillions of dollars waiting to be invested in crypto plus the central banks so the amount of buying pressure ready to come into the space is in the multi hundred trillion people are piling in and now they're piling in against the likes of bill miller and all the early holders and the the people who have been around in the space who have survived at least five or six down markets of fifty sixty seventy up to ninety percent so people are piling in and i do notice something that's happening is that they're just looking at the price of whatever a small whatever one of the thousand all coins or tokens is and they're thinking all of it will go as high as big corn and they missed the big queen ride so they're going to invest and anything that's under like one hundred dollars and hope it

rises and there it has of course as they all pile in it's their tiny markets and the pile in and drive the price up so there is a bit of a. you know speculative bubble going on there in terms of some of the coins well you know people compare let's say like coin charlie at least going with silver and bitcoin being the gold of the space and then interesting comparison there because if you follow gold and silver you know that when gold moves so over will react more aggressively on a percentage basis and i think going forward anyone who's interested in this point is a core position and you nibble away at these other coins but you need to own as a core position big coin and then learn as much as you possibly can about bitcoin then you can learn about why these other coins are different than bitcoin but because it is the gateway into this whole universe and you must begin there well you as when you are a banker. you saw that

a lot of people would say oh warren buffett's shares in berkshire hathaway are way too expensive it's like three hundred thousand dollars that's too expensive to buy all the nineteen million nine hundred eighty s. they were at two thousand and they were considered you know a lot of brokers and i was working on wall street would say are you kidding it's too high you know now they're pushing you know three hundred thousand dollars prices really a meaningless metric in many ways. but that unit bias some call it they say because of the multi tens of thousands and this was an eight hundred therefore it's cheaper that's not correct there's no correlation between price and value and you say cheaper i like that and i want to say the correlation between price and value that will offset the bias towards lower prices our friend michelle block over at miss talk dot com thinks that buying a coach can bag or something like that for sixty five dollars there was a famous bit where he's like look why are women spending twenty five thousand dollars on this jerk birkin handbag guess when you can get this one looks perfectly

fine to me for sixty five dollars yes and you do talk about this in the second half but before we go tell us what is that password stacy is my goddess stacy is my goddess hyphen slash five seven four hyphen dot net stay sing. well the states in for the second half are going to be talking about and bags they'll go away. when lawmakers manufacture consent to stick to the public well. when the ruling classes protect themselves. with the final merry go round listen to the one percent.

with no middle of the room six. million more you mean. everybody i'm stephen baldwin task hollywood guy you'll suspect a very proud american first of all i'm just george washington and r.v.'s to say this is my buddy max famous financial guru well just a little bit different i'm not a. good one there are no windows up with all the drama happening in our country i'm shooting the road have some fun meet everyday americans. and hopefully start to bridge the gap this is the great american people. on the.

grass cutting exists in that way to light it up and then i am. i was trying to lift us out. of that. bus that. climbing you when you get the whole way what it would be it's not but showing you i need you to close up. i don't know. both. nasa yes to. check i. don't. give you some light to explain your money if. you figure. nothing discussed but the custos threatening just throw away young.

welcome back to the kaiser report imax guys are the day after christmas show with santa claus get you did santa bring you one of these oh this looks nice let's learn more about it from jeff burke jeff welcome imax could be in new york all right jeff burk also talk about handbags and the birkin bag what is the birkin bag phenomenon from a business point in a fashion standpoint this this bag was conceived burma's for back because. this is sure is named after the famous celebrity actress jane birkin allegedly made by irma's on her behalf but what this bag has done it is rained world champion of

luxury and sophistication to women around the world if you are a guy who deals in bags types about high end bags if you've got i guess an instagram presence yes we do and a quarter you say you do fifty five million dollars in revenue since two thousand and one two thousand and twelve to two thousand and twelve excuse me in bags yes and this bag would go for what in your market in our marketplace. if someone walked into erma's and bought that at the store which is otherwise impossible to do it's a twelve thousand dollars bag the customers around the world that want us to get that on their behalf depending on how hot the color was that's a hot color they're paying us between eighteen and twenty five thousand for a twelve thousand or so and this is a limited edition obviously bag right that mean they know these all broken bags they sure are these are variations on that theme that's right so and his own broken get a kickback on all this jane birkin jane burke oh jane burke and i. don't apologize

she sold the rights to the company years ago really yeah ok and so this is the reason we're talking about this today is because. you know this goes back to one of our. mike said locke who we had on and he said he couldn't believe that women pay these prices and collectors pay prices for handbags. these extraordinary levels but why not i mean these are these are socially collectibles right yes they're and they're in high demand super high so why wouldn't people pay up for them i mean it's really as far as arm is concerned is not just a question of ability to pay it's how they select the customers that they give the opportunity to pay for the bag you no matter what your celebrity status is or affluence you can just roll in urban and say hey i'm wealthy what i hear about this broken back is i want to buy one today why not there's a very limited supply the one in your hand i'm going to have to guess takes between forty five to forty eight hours to make those handles literally takes six hours to

make of rolling on a craftsman only so what that is a very limited supply and what her mrs has is an articulated system that they're saving that twelve thousand dollar bag for the v.i.p. customer this coming in to buy fifteen to twenty five thousand dollars of other stuff tabletop bedding apparel things like that oh right ok and what is the pay to pay to pay system the pay to pay system is something we've coined about what i just articulated to another example is this bag right here is what is called industry was an exotic being crocodile alligator ostrich it has a us retail of about sixty five thousand dollars and in order to be able to get the opportunity to buy something like this the customer is going to have to be spending in the store sixty five to one hundred thousand dollars and other stuff in that calendar year in order to be offered the opportunity to buy one so now we're going to an idea how this all works and this is another variation on it want to look at tell us about this fabulous bag this this fabulous bag is actually

a fabulous bag if you're a birkin geek it's a color called the goon and they only made it for a few years and they stopped i think in two thousand and nine and when i gave you that estimate before that someone pays us between eighteen and twenty five even though this is a used bag in our. which is an unused bag even though this is a used bag the color isn't super high demand because they simply don't make the color anymore and women are willing to pay it for used bag because there's no woman who got this crazy color who didn't use it so the opportunity to get something in the news condition is almost impossible is it is the market primarily women oh yeah and men buying on the back for their work for women ok and so if this is do people actually go around the street carrying a sixty five thousand dollars bag hopefully not in the rain. this is alligator so it should do well as opposed. in a lot of people talk about the birkin is an investment and i think i don't know if it's technically an investment but you do have to treat it well if you want to

retain destruct. right and this is is there like you know collectible cars or ferrari's and whatnot there are certain years that are better than others vintage years yeah there's not applied to this market i would say that the irma's birken customer is a parallel universe to the guys you're talking about that they could sustain something how does a nine hundred sixty seven mustang still worth ninety thousand dollars guys who support the marketplace i would say there isn't so much of into year for this stuff as much as there are vintage editions you know this for example to go and i told you about it was a very short run that this particular color was made so it's more the collection in the color than the year itself so how did you get into this i've been a luxury in finance my whole life provided a.b.l. financing to some of the biggest retailers know she goes companies in the world and we took a lot of merchandise in possession back reselling it and my wife started taking around on e bay and with watches and jewelry and we sold

a couple of these for girlfriends or is it needed money at the time and she was just blown apart by the feedback and she took a quick analysis like who are all the second place people out here doing that they seem to be like women with a not so great website and maybe on e bay and that was likely to thirteen and she said you know no one's doing this on instagram yet i could figure out the hash tag of house tag berkin hash tag thirty five centimeter birkin on and so forth and she started buying and selling them and she had a theory on how to execute and that's where we've stayed ever since i miss summerson my situation you wife is the brains of the operation. absolutely. lets me stay up front while she's moving every way all right so how do people know that you're going to deliver such an extravagant product you know what's the trust factor you have like a rating system how do you how does that work you know that's and also question it was hard in the beginning because. we were always forty percent of our business is

international thirty five percent it was just the middle east alone so yeah even today as big as we are and we have a superior reputation in this genre you know what makes a woman and when it's ours take that leap of faith to wire a seventy thousand dollars without using her credit card and it's every single woman it's a sophisticated customer generally they're a highly educated customer and they do their diligence and what we do is real and our service is exemplary do you buy bags that's our difference if i if i say so one of the things we're known about is our superior collection there's tons of people around the world who do what we do and a lot of them have friendly relationships with do you have a black mat so black yes we do trade it back and forth to do you have the biggest market maker in the world in these bags we by accident set up an international trading platform on our instagram account where buyers and traders could move products in and out it's amazing to me that you create such a big market on one style of bank i mean armies do they do other styles of bags or

is this their signature back sure no there's a few other bags that we still still sell if people come out because for it's called the kelly and it constance and there's less down the food chain in those other. least expensive bags you can go buy that was the dermis so there isn't the inaccessibility for this or the mystique that this bag is they're amazed that i think the big bag in the big name in bags and for the forseeable future really won't change the way that they're doing business they won't change this pay to pay system that they had because their wall street stock darling you must be aware of this i mean they've cast such a huge shadow over prada you know the image and caring and it's a lot because of this mystique that they have this is a james for ownership product jane birkin the wife of sarah's games borg that jane birkin the jane birkin the is that the right jane burke actress musician cultural icon the english woman french she's right a french guy james burke and she's american she was right to the series games board

i believe i don't know if we'll find out more details about this and do you have any personal favorites yourself do you follow this market or are you just basically . were you expand into anything else are you going to stay pretty much in this in this area would it be an expansion into something something else more and more a guy centric for example is clearly very female centric is there anything else that you would look at it's an awesome question it's a debate that we have almost every week you know what do we do now we have a community but by my metrics and i do a lot of research irma's is very cagey they don't give out production data they don't talk about what they do when they do how they do it but by my long research even though i'm proud of what we did i believe we have less than five percent of the bags that are being bought and sold all over the world i think we have a lot to do by just getting off instagram but as a man i appreciate his commitment to quality i appreciate them as a company i've got enormous briefcase that i'll never sell. so there's a maybe if you start on the same cache you'd be surprised you know my wife put up

my briefcase a couple times and we had some pretty aggressive people. asking for what what what is the future of this whole market do you see it is it totally reliant on the luxury goods market in other words if the luxury be seen during twenty twenty two thousand recession for example how did that impact your business although you came in a little later the genesis of this is two thousand and twelve i was up to my eyeballs in the luxury whose business in two thousand and eight i have a lot of comments around the ok dancer question about this point going forward i think the real future for luxury isn't so much as the fashion consumer i think still we and someone like a philips auctions who's done dynamite with the collectible watches they just got paul newman rolex for it seventeen million i don't want to say we're recession proof but i would suggest that our customer and the watch auction customer is almost impervious to this and what these people are spending big for now we set the world record for three hundred thousand dollars bag last year in the wall street

journal broken with these super want to willing to do and excited to do is get something that nobody else has it's not so much a symbol of getting this bag carrying it isn't so much a symbol of hey i'm wealthy i could do this i have a competency i know how to get. right and they hold their value pretty well super well so any idea like on an annualized basis what the appreciations band any numbers on that there is if you went and googled. birken is an investment fund thousands of articles on how it's outpace the s. and p. residence in the last thirty years outpace gold outpaced oil. it's all true the bag right there is a used bag also that white one and that was probably a five thousand dollar back when it was made in two thousand and three and we're going to sell it for nineteen so take that for discount people find a way to do it on a stick around muscling the interface starts off instagram but he has a whole community like these car geeks were talking about this whole community of blogs and forums where women are going on twenty four seven all over the world can

you trust this reseller have you had experience with this reseller fair enough jeff thanks for being on the show thank you also and that's going to do it for this edition of the kaiser report with me max kaiser and stacy herbert like to thank our guest jeff burke he's the man with the bags if you want to reach us on twitter it's guys report all next time.

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