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president hoover famously said once, 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 for forced to convert their gold coins into us dollars. because what is a dollar, if not just a piece of paper, if it's not backed 5 volts, i'm christy, 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 the gold is the ultimate symbol of wealth and prosperity and throughout history its been used for payments for worship, for creating jewelry and treasure. and today it still has not lost, it's alert as people flocked to gold drain times of uncertainty. gold is virtually

indestructible. so all the gold in the world is still around a one form or another as a jewelry or bully ends. the world gold council estimates that miners have historically extracted over 200000 tons of gold, leaving another 53000 tons left underground 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 hold of gold is of course, the central banks, central banks, gold holdings account for almost one 5th of all above ground. bold 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 as 5 parts per 1000000000. in order to produce anything minimal, 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 moved 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 in the us and the london bullying market association in 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 shovel in cash has the name paper trading. the other markets, such as the shanghai boat exchange and even physical gold markets worldwide are per donnelly, market takers, this means that they take in and use the gold price is established by the paper, gold markets and london and 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. well, it's really 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, 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 the man i think is like 4600 tons annually demand is about 4200 tons. something like. a and you also have recycling, um, you know, and as the price goes up, the, you know, people whole goal,

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 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. look at 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 it 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, 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 a 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 changed 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 does this 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 banks are a factor, may be somewhat of a barriers factor in their, you know, how they re high propagate the goal. they're lending out way more than what they physically. oh, i mean, you get, you know, if you, if you bought gold from a bank and you think they have it, you bet they, they give you a certificates and yeah, you, you got a 100 ounces, but it's not necessarily there. you know, it's, it is lend. 6 to the 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 global growth economy,

you're going to see the price, the goal rises. you know, it's going to be a, uh, a steady slow trend. and i think, you know, what i would recommend to investors is like when you see declines in the price of blah blah, i'm not a gold holder as 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, teachers would trade. but when goes out i, i tend to accumulate at how is that gold and silver markets manipulated by central banks around the world. and what are some of the recent examples of price manipulation? i don't know the good call and installation 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 loving sanctions, you know, on russia, on iran,

or north korea or 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. all of that. that is starting to change to you starting to see these uh, these new relationships uh 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 settlements, that's like the central bank for central banks. and they re classified

goals as a tier one asset. meaning like, it's like a us treasury or the safest asset you could possibly have. and that kind of, that was kind of like a green light to foreign 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, you get the full face value, ok, some assets are credited with some discount, maybe 10 percent, 15 percent, but you wouldn't. goal was re classified as a tier one as it, i mean it's basically like holding 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 to 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

the, the claims of the king of the belgians leopold the 2nd to the congo were finally authorized by the leading european countries in 18. 85 in the very heart of the african continent states under the rule of the belgian monarch was declared. since

the beginning, the congo free state was total may him for the local population and functioned as a universal concentration camp. the majority of the population, including women and children, were forced to work on the rubber plantations. those who failed to fulfill their quota were beaten and mutilated to keep the congo these people under control. they king set up the so called forest bleak which were punitive detachments that cast terror on the captured country and its inhabitants, fearing that their subordinates would simply waste bullets hunting for wild animals . the officers demanded that the soldiers gave an answer for every bullet use, and as proof presented a job hand of an african, it was not uncommon when drying to justify the use of the munition. the colonist amputated the hands of not only those who were dead, but also of those who were kept alive. the atrocious exploitation of the congo

turned into a real genocide. you know, late 20 years, the policy of the belgians led to the death of nearly 10000000 people alongside the holocaust. the genocide of the congo population is considered to be one of that green mist pages in the history of mankind. the or 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 and major refineries are being inserted into the global market in order to wander smuggled or, and legal gold. over the last 3 years bars worth at least $50000000.00 stand for 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

highly sophisticated, thousands more, maybe undetected even now. the, in the past thing, gold bars were produced with cheaper metal and plated with gold. and they were easy to detect. however, these counterfeit uses real gold with very high purity and only the markings and logos or fake. these fake brand and bars are relatively new way to cloud global measures. to block counts like minerals and prevent money laundering. they posed a big problem for international refiners, finance years, and regulators. today, these foreigners are very precise with small and perfections that are easy to miss . the most reliable way to identify fix is to test their purity. gold on the world market varies and levels of purity with the most professionally produced killer bars at 99.99 percent,

also known as the 4 nine's counterfeit bars will show up as 99.98 or 99.9 percent pure high gold prizes have now triggered a boom and illegal lining since the mid to thousands. however, without the stem 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 are 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 or in certain parts of southeast 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 to 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. let me just say, you know, i'm ambivalent on it, but i, i felt that a big coin was just out grows 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, 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 your office, swear to sanction. this will sanction your company's all this stuff, right? so when 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, is not going to go away. there were people who are saying it's going to go to 0 and above, above. maybe some of the other group, 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 do think it is a reflection of with the desire to um, 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 big let me put it this way. i don't think it is going to replace like the dollar. 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 f as soon as you do find, i didn't get back into this thing and get 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 where you drive 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 fords, license, but there's a people you see to buy. so everything is not enough to go around. you want to apply to grow like now let's say you were invited people over your house instead of 8 people. now you got 60, you need 2 pieces, right? for everybody to get a slice. so that's what the money does, it, it grows with the system. but if you limit that, if you make the buying 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 buying and investing gold? and 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 visitor 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 know that today, and he comes back another day with this very same basket, his thoughts, but they're much cheaper. and yeah, you buy him. 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. he invested in the stock market. yeah. over the course of a long life. he's 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 month 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, when 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, we're 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, and i would go the route like, you know, not that i know better than any one, 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 mode mining because it's one company that they

don't hedge. so it's like an outright play on gold. they've paid dividend. and like when gold prices go down, i accumulate, you know, there's other ways you can play gold like there's go, the ts like the g l, d and stuff like that. and there's nothing wrong with it. 6 and it's 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. 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 temper proof ink on its bars. these display different features when viewed under

certain lights or through filters. others perform a micro surface scan on the bars and supply machine or phone apps that can scan each one and verify whether their surfaces match the refineries records. others have proposed in global database containing information on every killer bar produced as a way to cross check the products as an extra layer of security. and so while 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 and 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. i'm custody, i, thanks for watching and we'll see you back here next time on the cost of everything . the what truly motivates nato isn't strategic interested in jail, political positioning, or is it audiology in a pathological hatred of russia? i will let the viewers decide, but one thing is, certain. the alliance has split its very existence on the line. you can take that to the bank, the,

the person says washington coordinates of the attack on the presidential office and must go. thank here is calling orders from overseas multiple the system. well, that's the aim states of doing thoughts as the inverse is foreign minister and is indeed the chinese on ok. you study counts a positive expressed as a me think of the strong high corporation organization. the model, $1000.00 palestinians are held behind bonds without charge or trial. we reports on the reality of these readings, extension system and speak to a lawyer defending this is amounts for psychological terms because when you're out of state independent and you don't know why you are interested and when you would be ever since. this is a very harsh.