cited states also making the decision to move away from dependence on the dollar. well, the problem is that if you use dollars and you're dependent on the dollar, which south korea in many ways was, it makes you dependent on the manipulation of the dollar that is performed by the central bank in the united states, the federal reserve. so if they raise interest rates, as they're probably going to do again today, and they have been doing 4 months, it affects the movement of the dollar, the cost of loans and the south koreans discover themselves. they need to be affected by to be dependent on what a central bank in the united states does. and they simply don't want to be affected in by an institution over which they have absolutely no control. well let's leave all those issues done here. and our son take

a quick trip be on the slides because russian cosmonaut, so i've conducted their 2nd space walk of the your how about this for a work view? cosmonaut surrogate port copy. i found dimitri patel in spencer. on 7 hours out there, i signed the international space station. they were performing tasks and maintaining the functioning of the i ss such as what they're doing here, connecting tables between the module itself and the url chamber. that's the past. the provide space for entry some days ago by the way, rushes space agency. what else caused loss? so great to continue participation. i'll think orbital station until at least 2020 the right time. a moment for another visit to the cost of everything studios accounts for celia, and guess as they break down by the money in our pockets just seems to be slipping away ever quicker these. this is hard to ensure the

president hoover famously said one, we have goals because we cannot trust the government. this statement for shadow one of the most, for colleen events and us financial history, we're all americans were forced to convert their gold coins in the us dollars. because what is a dollar, if not just a piece of paper, if it's not, in fact 5 balls. i'm 50 and you're watching the cost of everything we're today. we're going to be taking a look at the price of gold and what is the real value behind this precious model?

the gold is the ultimate symbol of wealth and prosperity and throughout history it's been used for payments for worship, for creating jewelry and treasure. and today it's still has not lost. it's alert as people flock to goal during times of uncertainty. gold is virtually indestructible . so all the gold in the world is still around one form or another as jewelry or bullying ends of the world. gold council estimates the miners have historically extracted over 200000 tons of gold, leaving another 53000 tons left under ground reserves. nearly half of all the gold ever mind is held in the form of jewelry. india and china had been the largest jewelry markets for gold consumption combining for more than 50 percent of global

jewelry demand in 2020. the other big holder of gold is of course, the central banks, central banks, gold holdings account for almost one 5th of all above ground gold or 35000 tons. as of 2021. gold is a rare metal and has value for investment, jewelry, collectibles, technology and also plays a major role in modern industry. and despite its usefulness, gold is relatively rare in nature, which makes it all the more valuable. the average concentration of gold in the earth's crust is very low at 5 parts per 1000000000. in order to produce anything mine level, the gold deposit would have to be $1250.00 times more concentrated this compared to diamonds, which are where. but not that where 820-0000 parts per 1000000000. now china is the largest producer of gold in the world. money,

370 metric tons and 2021. followed by australia at $330.00 metric tons and russia at $300.00 metric tons to an all low goals. official role and the international monetary system has come to an end by the 1970s as country move away from the gold standard. the metal remained as highly regarded reserve asset. approximately 45 percent of all the world's gold is held by governments and central banks. and it's still accepted by all nations as a medium of international payment. the united states government holds more than $8133.00 tons of gold, which is the largest stock pile in the world more than twice the reserve of any other country. this is followed by germany with 3359 tons and italy with 2452 tons. gold prices are set by several banks, an oversight committee, and a panel of internal and external chair members who calculate it based on supply and

demand. and the gold futures derivative market, the cma and the us and the london bully and market association and the u. k. operate these major derivative markets, and that means that the international gold prices are set by the paper gold markets, not the actual physical gold markets. as these are futures, that means that the real supply and demand for physical gold plays no role in setting the spot gold prices. instead, the derivative markets are 99.9 percent sold in cash has the name, paper trading. other markets, such as the shanghai gold exchange and even physical gold markets worldwide are predominately market takers. this means that they take in and use the gold prizes established by the paper, gold markets and london in new york. so now let's bring in michael norman m. m. t economist and asset manager. so michael, what is the cost of gold really based on now seeing as a currency is not based on the gold standard. and the price of gold isn't like most

commodities where it's dictated by simple supply and demand factors as well. it's silly is, i mean, you know, in the broad sense, but ok, so you have demand that comes from the jewelry demand. that's about half the annual consumption of gold comes from jewelry demand. the other demand comes from an investment demand. and you know, we've seen that pick up recently in a, another area where we see have seen demand really pick up is from central banks. and that was a big increase last year. and i think this also plays into the reality of foreign central banks wanting to diversified in reserves. now because of, you know, sanctions everywhere basically. um, yeah. so you have those 3 and on the, on the supply side where you still have mines supply, which i went up

a little bit last year. i think about 2 percent, but mind supplies still exceeds demand. not buy a lot, but um, you know, it's, it's above demand, i think, is like 4600 tons annually demand is about 4200 tons, something like that. and you also have recycling, you know, and as the price goes up, you know, people hold gold, they decide to recycle, it could be in the form of jewelry. it could be in the form of whatever. but that's basically where the price comes from it. i would say on the, on the margin, you also have some speculative activity that can influence price in the short term . and now how plentiful is the supply of gold in the world relative to demand? is it truly as rare as we all think it's supposed to be? when you think about it, like every else of goal that has ever been mine,

since the beginning of time is still around, you know, it's not like petroleum where you burn it and it's got, i mean, so there's a huge amount of supply. but most of it is being hearty and you know, news supply gets utilized in industrial use. yeah, i forgot to mention that as one of the demand factors that, you know, technology also uses gold components and stuff that are made out of golden telephones and computers. and stuff like that, that, that's a small part of the demand, but it's, it's a growing part of the demand. so potentially, there's a huge supply of gold, but people tend to hold onto it as an investment, as a quote unquote store of value. you know, and as we see central banks continuing to diverse, there was a diversified air reserves. i think that's going to be a factor i,

i don't think that's going to go away. i think, i think it's really and it's nascent stages. and how is the price of gold set by the banks that oversight committees? well, the banks, it's interesting because a, and this has been a topic that has popped up many times that you often hear in spoken about as you know, manipulation by the banks of a lot of people may not realize. a if you buy gold and have a bank hold it for you, that they may not have that physical goal. i mean you have a certificate at a claim on that goal. but the bank is allowed to re, it's called real life publication, which means they could live that out. not only to one party, they could lend that out to many parties. and so this, you know, this activity tends to put downward pressure on the price because let's say they

have a certain amount of physical gold, but they're lending out multiples of what they have. okay? so it kind of keeps the price depressed, and i think that's what these, these people talk about, goldman if relation i think that's what they're referring to. potentially though. i mean if it ever came to the point where you had a deliberate physical goal, i mean it's just not there in the balls. if you look at comics, false, now if you look is even for silver. what are the, the, the stop pile of physical goals in those balls is a fraction of what is out standing in terms of like, futures contracts and swap contracts and stuff like that. so you can say that the bags are a factor, maybe a somewhat of a barish factor in their, you know, how they re high propagate the goal. they're lending out way more than what they physically whole. i mean, you get, you know, if you, if you bought gold from

a bag and you think they have it, you bet they, they give you a certificates and yeah, you, you gotta hold it out. but it's not necessarily there. you know, it's, it's lend. 6 to joe and bob and frank. so you know that put some pressure on gold, but ultimately again, it really comes down to supply and demand. and i think getting back to what i said earlier, if you have a growth economy, a low growth economy, you're going to see the price, the goal rises, you know, it's going to be a steady slow trend. and um, i think, you know, what i would recommend to investors is like when you see declines and the price of the gold holder is early. but i do trade it. i mean, i used to actually even be a member of the comics in new york where you know, futures with trade. but when it goes down i, i tend to accumulate. how is the gold and silver markets manipulated by central

banks around the world? and what are some of the recent exec impulse of price manipulation? i don't know the good call and manipulation i, i think that it is more a function of their desire to diversify their reserves. and again, this gets back to what we've seen over the last few years with united states government levying sanctions. you know, on russia, on iran or north korea on china. so it's become more evident that any time in the past that there is risk in holding dollars even though the dollar is the global reserve currency. it, you know, most transactions in the global financial system occurred in us dollars, although that, that is starting to change to you starting to see these uh, these new relationships pop up. but there is, there is a recognition now on the part of central banks that, you know, there's,

there's some geo political risk. there's some sanction risk inherent in the dog. and so they want to diversify into some other assets. so we're seeing goal become a part of that. and also i have to say, i don't remember, i think it was like 2 years ago that the bank of international settlement sounds like the central bank for central banks. and they re classified goals as a tier one asset, meaning like is like the us treasury or the safest asset you could possibly have. and that kind of, that was kind of like a green light too far in central bank said hey, i can hold this, you know, and basically it's credited on my, on my uh, balance sheet as a full face value. whereas before, you know, some assets like treasury's basically their credit debt, the full face value. okay,

so masses are credited some discount, maybe 10 percent, 15 percent. but one goal was re classified as a tier one as it, i mean it's basically like hold in treasury. so that, that also triggered this trend of accumulation by central bank central bank buying last year was big. and you know, the main buyers really were, were russia and china. thank you so much, michael. michael will stick around with us because when we come back with today's markets and inflation, there is a demand to flock to the safety of gold. but consumers might fall into the hands of scammers and actually buy some fake the show. they just don't

have to shape out the application and engagement equals betrayals. when so many find themselves will support we choose to look for common ground, the the welcome back to the costs of every thing. unlike all things of value,

gold is frequently counterfeited throughout history by people trying to exploit it . and especially with today's high inflation environment, there is a high demand to flock to the safety of gold, an ample opportunities for scamarus to sell faith gold to unsuspecting consumers. gold bars that are fraudulently stand with the brands, a major refineries are being insert it into the global market in order to longer smuggled or in legal gold. over the last 3 years bars worth at least $50000000.00 stamp with the swiss refinery in brands. and logos, but not actually produced by those facilities have been identified and found in the voltage. jp morgan, at least a 1000 of the bars have been found, which has a very small share output from the gold industry, which roughly produces $2000000.00 bars each year. but because these forgeries are high enters finance tiers and regulators a to that percent, also known as

a for nines, counterfeit borrowing 8 or 99.9 percent peer high gold prizes have now triggered a boom and illegal 90 since the mid to thousands. however, without the stamp of a prestigious refinery. so gold will be priced at a discount in the underground market by pirating swift and other brands. metals that have in mind or processed in places that would otherwise not be legal like in certain parts of africa, venezuela or north? correct korea can then be injected into the market in certain parts of south east asia. it is not uncommon for individuals to use gold instead of cash for big purchases and real estate. it's one of the only investment tools that is readily available to the public without access to bankers and banks. and now we welcome back michael norman m n t. economists and asset manager, how would you say bitcoin is compared to gold as a store of value?

as we often hear people comparing gold decline, which is now called digital gold. do you agree with that sentiment? no, and, and i, oh, let me tell you i went bit coined came about and i never personally invested in bitcoin. i let, let me just say, uh, you know, i'm in billable in on it. but i, i felt that a big coin was just out growth of the desire by the world just seeking alternative payment system to the dollar. okay. because again, it all gets back to this weapon ization of the dollar of the global financial system, which the united states controls in a very heavy handed fashion. i have say, you know, if you're not with us, we'll take you off a swear to sanction this will sanction your companies all this stuff, right? so what i saw a big point, 1st of all the technology, the block chain that, that's

a really interesting technology and you know, i'm not a tech geek. i can't really get into that, but i've heard it, you know, spoken about it and using other applications. other than crypto, right? but for me there's really no comparison between gold and been calling because number one gold really is. it's like an industrial metal. i mean, we need it for stuff. right? i mean, the data for jewelry we needed for technology, you know, okay, set aside the investment aspect, whatever. but big point to me, and this is why i don't think it's going to go away like the fluctuations. i understand it got crazy. and i kept saying, you know, it's not going to go away. there were people who are saying it's going to go to 0 and pop up uh, maybe some of the other trip those you know, that came along like, don't coined at all as i started to get like goofy, you know, the big point was the original one and i, i do think it is a reflection of the desire to to find

a new payment system that is outside the control of, you know, one government or one entity i, i think that's what it is and you know, i don't be living, but it is like i don't think it is going to replace like the dollar. all right, but it's going to be around and, and it'll be used and it might have balls into something else. the other thing i didn't like about big coin was this is limited. there's only like, what is it like 24000000 or something? i don't know is like a, it's fine. i just realize you do fine. i didn't get back into this thing again where there's not going to be enough. i was explaining it like you got a pizza, right? pizza got a slice. now you got a people sitting around the table. everybody gets a slice, right? but now you take away a slice, but you still have a piece,

so somebody's not going to get a piece or everybody's going to get a little bit smaller piece. okay, now you take away, let's say you take away for license, but there's a people you see to buy. so everything, there's not enough to go around. you want to apply to grow like now let's say you invited people over your house instead of 8 people. now you got 16, you need 2 pieces, right? for everybody to get a slice. so that's a fee of money does it? it grows with the system. but if you limit that, if you make the bind i, then some people are going to get maybe all the slices, or maybe 7 and what are the rest of us are going to share like that one slice? it's terrible. and are there any downsides to buy and investing gold? i don't think there's necessarily a downside. i, i just think there's, there's better investments, like i prefer high quality stocks. you know, stocks of companies that are dominated in their industry. and then

i do like what warren buffett does, like he tells a hold a parable about this, about mister market. you know, mister market comes around knocking at your door. he's got a basket of stocks and he, uh, what offers a price and you're like, no, not today. and he comes back another day with this very same basket, his thoughts, but they're much cheaper. and yeah, you buy and so like you live, how can you argue with this guy? like he's the richest man in the world? he never created anything, never invented any new technology, no new industry, no company invested in the stock market. the over the course of a long life is like 92 years old or something like that. um, so i like and again there's nothing i'm not against gold, it's just like a small part of my portfolio and i do it with gold stocks like i own new my mining and you know,

they paid dividends. i like stocks of major companies that pay dividends. and i'm a very patient investor and like when, when the market goes down, my most people freak out. like i get excited because it's like on sale. you know, and i, i've always, that is like investor behavior is strange to me because as consumers were all very, very savvy, like we never buy unless it's on sale. and we, we literally taught the retail industry how to behave in order to get us to buy, okay, but when it comes to investing, we do the exact opposite, likely buy when it's really expensive and then we sell out when it's low. so i would say for gold like i would go the route like, you know, not that i know better than anyone, but i think you know what i've been doing uh works and that's i buy like mining companies. i happen to like new mug mining because it's one company that they don't

hedge. so it's like an outright play on gold. they pay a dividend. and like when gold prices go down, i accumulate, you know, there's other ways you can play gold like there's gold gts like the g, l, d, and stuff like that. and there's nothing wrong with having it. uh, in your portfolio. i would keep it, you know, fairly low percentage, and i would also, i mean me personally, i'll just repeat it. i don't think it's an inflation is, i think it's more of a growth indicator. so when the economy is in, it is in a growth trajectory. those, those investments like gold will do, it will do well. it will do. thank you so much, michael, for your time and insights today. great conversation refineries are now responding to the counterfeiting problems with technology metal. laura has begun to put spots of tamper proof ink on

a spars. these display different features when viewed under certain lights or through filters. others perform a micro surface scan on the bars and supply machines or phone apps that can scan each one and verify whether their surfaces match the refineries records. others have proposed a global database containing information on every killa bar produced as a way to cross check the products as an extra layer of security. so well, this is a constant game of cat and mouse going on between counterfeiters and authority. gold remains the ultimate winner as it is desired by all, and is the back stop for the world 12th, even though we're no longer on the gold standard. well, going off the gold standard, put the nation out of the great depression and allow the us government to adjust the supply of money in the economy and influence interest rates. there are negative side effects. now that the currency is in fact by gold. it is much easier to print and borrow money,

and that is why the us is debt is over $22.00 trillion dollars. more dollars in the economy also creates inflation and cheapens the dollars value. but today, the world economies are now too complex to rely on the limited gold reserves or any other commodity custody. i, thanks for watching and we'll see you back here next time on the cost of everything . the more expensive. and i'm going to plan with you whatever you do. you do not watch my yourself seriously. why watch something that's so different. whitelisted opinions that he won't get anywhere else. welcome to please or do you have the state department c i a weapons makers, multi 1000000000 dollar corporations. choose your fax for you. go ahead. change and

whatever you do. don't want marshall state main street because i'm probably going to make you uncomfortable. my show is called stretching time, but again, it's not, we don't want to watch it because it might just change the way you the russian states never is as tight as soon as the most sense community best can hold us all sense. i'm up the same assistance must be the one else calls question about this, even though we will then in the european union, the kremlin machine, the state on the russians cruising and split the r t spoke neck, keeping our video agency roughly all the band on youtube tv

services, for what question did you say a request, which is the major ukrainian cities report explosions as our rates i really saw in the, across the country overnight? key of official xavier strikes of the most intense since this started well, the strikes come a day after i'd thrown at the presidential office of law. them we're putting in the russians call. talk to say he was tardy. died by you print the russians and foster to the us us car washington would react if the white horse came under such

a similar attack. most of by the administration refuses to condemn p if.