now, i think the way that they look in your things, they're seeing it. oh, well, you know, jp morgan and goldman sachs will these big, but he wants to find in class. but if you know, is it just common economics is an economy as bill not just on the dollars coca cola in the big. it's built on the people that have small to medium sized businesses for students, a medium size box. and when we go to the small to medium size, that's best for that perspective. they know tiny binds the funds, have it tends to even hundreds of billions of dollars on the management and that sort of collapsing. and i don't, i think it's happening across the us economy. is it the buying this guy? imagine what's happening to the business is that these binds was supporting those businesses company doing very well. otherwise, why the buyers collapsing of more so they just use this for this document. reason debates is the website policy dot com. thank you for choosing audience. national the,

which really motivates nato visit strategic interest and geo political positioning . or is it id ology 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 president hoover famously said once, we have goal 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 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 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 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 have 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, the 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 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 rare, but not that where 820-0000 parts per 1000000000. you know, china is the largest producer of gold in the world, money, 370 metric tons and 2021 followed by australia at 330 metric tons and russia at 300 metric tons and all low goals, official role in 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. 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 and new york. so now let's bring in michael norman m. m. t economist and asset manager. and 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, okay, 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 a 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 mind supply. uh, 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 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

to 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 gold 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 of gold and 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 on to 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 nice in 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 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 and a claim on that goal. but the bank is allowed to read and score 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, um, 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 to deliver physical goals. i mean it's just not there in the balls. if you look at comics walls now, if you look is even for silver. what are the, the, the stock pile of physical goals and 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

bangs or a factor may be 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 got a 100000, but it's not necessarily there. you know, it's, it is 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 and global growth economy, you're going to see the price of gold rises. you know, it's going to be 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

the gold holder is early, but i do trade it. i mean, i used to actually even be a member of the comments in new york where you know, futures with trade. but when it goes down i, i tend to accumulate how's 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 if you could call it 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 the united states government levying 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 that, that's 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 says like the central bank for central banks, they read classified goals as a tier one asset. meaning, like, is like of the us treasury or to save this asset you could possibly have. and that kind of, that was kind of like a green light too far. and central bank said hey,

i can hold this, you know, and basically it's credited on my, on my as a full face value wherever it is, to flock to the safety of gold. but consumers might fall into the hands of scammers and actually buy some fake goals. are the only way not to be around to see what's printing was are out there. so sounds good. just so basically of course i'm going to see anything important to me. the last name was name is read, it comes to movies too

much. and we have some more more for someone who is this we which i knew people pulled up the car. i'm rick sanchez and i'm here to plan with you. whatever you do. do not watch my new show. seriously. why watch something that's so different. little opinions that he won't get anywhere else. welcome to please or do you have the state department c i a weapons, bankers, multi 1000000000 dollar corporations. choose your fax for you. go ahead. i changed and whatever you do, don't marshall state main street because i'm probably going to make you uncomfortable. my show is called stretching time, but again, you probably don't wanna watch it because it might just change the waiting thing.

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 insert it into the global market in order to wander smuggled or, and legal gold. over the last 3 years bars worth at least $50000000.00 standpoint, 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. 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 are fake. these fake brand and bars are relatively new way to flower global measures to block conflict minerals and prevent money laundering. they posed a big problem for international refiners, finance years and regulators. and today, these forwarders 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 ninety's 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 swiss 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 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 goal 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 in billable in on it. but i, i felt that a big coin was an outgrowth of the desire by the world to seek an alternative payment system to the dollar. okay, because again, it all gets back to this weapon ization of the dollar and a 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 with 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 bin point because number one gold really is. it's like an industrial metal. i mean, we need it for stuff. right? i mean, we're 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 were 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 dog 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 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 be living but it is like, 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 involve 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 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 piece. you've got a slice. now you've got people sitting around the table. everybody gets a slice,

right? but now you take away a slice where 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 the 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 invited people over your house instead of 8 people. now you got 60, you, 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 that by night, 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? 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 know that today, and he comes back another day with this very saying best get 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. 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 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, 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, like we 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 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 is go the ts like the g l d and stuff like that and there's nothing wrong with it. 6 even in 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 machines or phone apps that can scan each one and verify whether their surfaces match the refineries records. the others have proposed a global database containing information on a ritual bar produced as a way to cross check the products as an extra layer of security. 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. while 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 custody. i thanks for watching and we'll see you back here next time on the cost of everything the, the surface is an amazing work full of laughter, fun and excitement. and it's a whole lot more generations of circus artist to keep the art of life moving forward and preserving traditions at the same time. this is one of the oldest

circuses in russia. the moscow circus on ship north boulevard. some of the greatest actions of business and some of the most impress taking actions happens right here . the, what truly motivates nato, is it strategic interest and jail, political positioning, or is it id ology in a pathological hatred of russia? i will let the viewers besides, the one thing is certain, the alliance has split its very existence on the line. different take that to the bank. the question of the money. the nuclear love, seeing those words isn't like i do live, most schools do. if you look for the initial do, while i pull up a significant dealer post on zillow,

while it be almost getting used to put value when you, when you do oil change, but you also still receive, done. the newest frame only begins systems to build a new do what i see these the buses. the little gear litigation says this tutorial on both of the financial system itself.