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Rebel News Podcast
China and the UAE are stockpiling gold. Are you?
00:30:08
As the currency weakens and economic uncertainty grows, countries like China and the UAE are rapidly stockpiling precious metals to protect their wealth and strengthen their financial positions.
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- [00:04]
Jerry Coraya
If you cannot hold it, you don't own it.
- [00:06]
Jeremy Wiseman
Central banks have been buying gold like crazy.
- [00:08]
Jerry Coraya
Value your wealth in ounces versus depreciating currencies.
- [00:16]
Jeremy Wiseman
Welcome to the Real Money Show. My name is Jeremy Wiseman. I'm joined by Jerry Coraya. And it is kind of a quarterly wrap up. But boy, oh boy, we've got a lot to get into today. So let's get started right away. Let's do it. Central. Should we start with central bank reserves?
- [00:33]
Jerry Coraya
I think we should go there.
- [00:34]
Jeremy Wiseman
Okay, so basically what we're looking at right now, especially from the microcosm of our desks, is there's a lot of people who are concerned about the market. A lot of people thinking, well that's it for the bull market. It's probably over. We saw silver get up to 120, we saw gold get over 5,000 and doesn't look like much is happening. So you know, what gives? And we're always thinking to ourselves, well if you only knew what we knew, you would be extremely bullish. So that's why there's a lot of stuff today to get to. So let's start with reserves. Reserves continue to build. Jerry, there's been some great articles, a great article out by Deutsche bank this week about reserves, how it's something historic. Not in a way historic in a new historic sense, but in a. This is how history goes.
- [01:26]
Jerry Coraya
Right.
- [01:27]
Jeremy Wiseman
Tell us a little bit about what's happening in the world of reserves. Adding.
- [01:31]
Jerry Coraya
Yeah, so we saw the reserve starting to add. We can go back 17 years ago with the, you know, move of de dollarization and trade wars and all of this uncertainty. As you add uncertainty, you have the central banks beginning to accumulate reserves. Now what is a reserve? It's capital, tier one capital that is decoupled from, from the banking system, from currencies and it's there for your liquidity. And you're, we're talking about diversification here obviously. So we have to incorporate this in our own, you know, in our own portfolio mindset as well.
- [02:05]
Jeremy Wiseman
Let's start with this. Why are they doing it? Why have they been accumulating basically on net since 2008? They became net buyers of gold. Why?
- [02:15]
Jerry Coraya
Yeah, you, you have a lot of the deglobalization topic today. However, if we look back through throughout the last 15 to 20 years, we have a great chart from GoldPrice.org where we simply see what gold and silver have done versus every single major currency in the world. And there is no, there is no secret now that every central bank with their monetary policy and the government's fiscal policies are on the course of devaluing their currencies, which means the loss of the country's purchasing power and more importantly to us is the loss of our currencies, our purchasing power. So these are the reasons why we need to diversify. Countries are diversifying and the end and converting. You're not buying gold and silver, you're converting out of fiat paper currencies and now you are valuing your wealth in ounces. So this trend will continue because the trend has always been this way. Going back thousands of years, all fiat currencies end up to go to the value of zero, their intrinsic value. But as we are reviewing the, the last quarter, you know, where you're into April, heading into May, reviewing the last quarter, we saw, you know, prices shooting up in precious metals, driven primarily because of central bank buying. The dollarization, even the globalization efforts, all of this uncertainty drives central banks towards accumulating.
- [03:40]
Jeremy Wiseman
So definitely, you know, hedging the decline of currencies, even, even your own, your own, your own currency. Central banks have been buying, but there's also been a reaction. They've been selling us Treasuries. They're de dollarizing is, is a big theme that will play in, into the, the petrodollar which we'll hopefully get a chance to talk to in a little bit. But they continue to buy as the world continues to move towards mercantilism.
- [04:10]
Jerry Coraya
That's right.
- [04:10]
Jeremy Wiseman
Let's just pull up the. There was an article out by Deutsche Bank. I just want to read the quote here. It says, but it's worth considering whether the buildup in physical gold in, in emerging markets might be a precursor to a potential return of gold as an anchor for an alternative future monetary system. Since the collapse of Bretton woods, gold has not had a formal role in international monetary architecture. But history has long alternated between periods of fiat and physical backed money. It would be consistent with, not counter to history to expect gold to return at some stage. So when we look at back to the beginning of 2008 and the financial crisis and you start to see banks starting to accumulate gold, it's almost an admission that hey, this monetary regime is over. We have to get ready for the next one. The next one is going to be, well, we have to go back to sound money. We need some sort of backing. But here's the question, okay, they've been accumulating gold, but how much is enough? When have you, when have you accumulated enough? When will that stop? Being a, a big reason why gold's prices keep rising. How much of a percentage does a central bank need to have?
- [05:25]
Jerry Coraya
Well this is, this article that Deutsche bank wrote coincides. So the article that they wrote was called $8,000 gold and 40% gold reserves. So we're talking about these reserves that central bank have. Bloomberg echoed the very same sentiment a couple days later. It was from the money Distilled newsletter, John Stipak, he's one of the editorial editors and he wrote that you know, from the beginning of the year people don't really understand what's been going on. You know gold's supposed to go up during war. That's not the case. You know, this is a bigger picture involving oil moving away from the petrodollar. We'll get into that a little bit. But as de globalization and trade got more uncertain and being sanctioned and kicked off the swift system, central banks have been net buying. And if we go back 17, 19 years ago, Central banks have historically held anywhere from as far as their central bank reserves go. The volume of the central bank reserves of gold held anywhere from 40 to 70%. Now in the last 10, 10 to 15 years these emerging market central banks who have acquired, been acquiring gold hand over fist have seen their reserves now double. So imagine US individuals holding gold. You've doubled your money. How wouldn't we. That would be amazing just considering that this is collateral, this is growing, that's
- [06:54]
Jeremy Wiseman
the price has risen, the values doubled. But then they've also added accumulated as well.
- [06:58]
Jerry Coraya
They've accumulated. Now they're sitting at central banks are holding about 30% of you know, their central bank reserves are in gold. US dollar holdings on the other hand they're diminishing, they're being slashed in half. People are moving away from currencies and industries and countries are moving away from fiat currencies holding neutrality high quality liquid assets which is your reserve currency. Now here's the question that Deutsche bank poses. Deutsche bank reckons there has some way to go. And for a start prior to the 1990s gold share of central bank reserves went 40% to 70%. That means there we have at least another 10% to go in order to revert to the mean the average. So here we go. If reserves for countries were to move up from 30 to 40% that's 10% allocation shift. That's a 33% price hike in gold. That alone takes gold from where we at to today 4,600 US per ounce to 6,100 US per ounce. That's Simply just because of participation. And that's, that's bar. Barring retail flows, institutional front running and even derivatives squeezes, silver squeeze, gold squeezes alike. But that was the 40% that range. Let's talk about the 70% range allocation. If central banks were to bump up their allocation of gold reserves to 70% that would bring gold to 10,700. And these are forecasts that we have seen barring even revaluation. And if we bring in the whole, you know, the system of revalue, revaluing gold, remember under Bretton woods, under a gold standard, gold wasn't at 5 to 10% reserves, which is probably what your financial planner recommends, maybe even two or not even any at all in reserves. The smart money is piling into gold. Right now we're holding 30 into gold. But back in Britain, word system, it was 50 to 70% of the entire system. That pushes gold anywhere from 20,000 up to 46,000. It depends on what we need to back up the N2 money supply. But the theme here, we're seeing reserves being accumulated. This is continuing and going on into the, into the push of the second. Into the second half of the, of, sorry the second quarter. But these trends will continue. Central banks will continue to buy. They bought even despite prices dropping. And this should encourage you us as well to continue to convert out of fiat currency.
- [09:27]
Jeremy Wiseman
Yeah, and this comes from gold telegraph. Central banks added gold holdings at the fastest pace in more than a year in the first quarter. Now another country that has been accumulating physical gold is the United Arab Emirates who just left opec. This is. Now we're starting to connect dots here. Okay so last year the UAE accumulated, added I think 30% to their, their holdings. We're talking tens of billions of dollars. They've continued to do that through this year. And then bang, bang, they said we're pulling out of opec.
- [10:09]
Jerry Coraya
They set up their hedge prior to. And what BBC called it, it was a great headline. Yeah, they, they said Arab Emirates leaves the oil cartel. Opec.
- [10:20]
Jeremy Wiseman
That's right.
- [10:21]
Jerry Coraya
Cartel.
- [10:21]
Jeremy Wiseman
They said, they called it a cartel. The BBC called OPEC a cartel. And now we're getting word that it may not just be the uae, but Venezuela might leave too. So all of a sudden you're turning the tap on. They have no reason to hold back and be part of the cartel. And this starts to lead to, I mean by the way, that almost seems like these Domin were, were set up well ahead in advance. Certainly you had seen that Venezuela, Maduro taken out Cuba, right Cuba lift sanctions from Russia oil or lng. And then now the uae, and then you also had the pipeline through Saudi Arabia.
- [11:03]
Jerry Coraya
So, so it's a complete identity shift for. If you think about the United Arab Emirates, the identity of many of these, the Arab League has always been oil. But when you think of oil, you think of, okay, the Straits opening and closing, you know, volatility, maybe even rumors of war and war that can dictate central bank moves. You know, the oil prices are rising. It's hitting 120. So therefore the Fed, like this week did, could not cut interest rates. They had to keep rates higher for longer to show that they're actually trying to fight this inflationary zombie. But things are also changing there as well. In the film, you're talking about all
- [11:38]
Jeremy Wiseman
these narrative changes, right? Is the US protecting the, the, the petrodollar where they have the military hold guns to people's, people's heads on, on what they want to do. That seems to be changing. All these countries are selling the US Dollar without any repercussion, no consequences. If you, if you decide you don't want to hold US Treasuries, you have, I think, to your point, central banks coming out and wanting to keep interest rates high and fight that quote, unquote, inflation. And then even Tiff Mecklem, the, the bank of Canada was discussing, well, you know, oil causes inflation. Well, what an admission all of a sudden. And maybe you should lower the taxes on it if that's the case. Or, you know, if oil, if gas prices have doubled, then guess what, you're paying twice as much in taxes too. So that means that the government is causing its own inflation, which in some ways just leads to this idea that they're trying to hold on to this narrative. And you want to know another narrative? I was just reading Judy, she. Shelton. You should look up Judy Shelton on X. She was talking about, you know, nowhere in the law does it actually say that the Federal Reserve is independent. No, it doesn't say it anywhere. It's just something that they would say to Congress to protect themselves.
- [12:54]
Jerry Coraya
But it's been such a popular, popular thing to say.
- [12:58]
Jeremy Wiseman
Here's the thing. So it turns out, turns out for the first time. I didn't know, I didn't know this. Powell didn't show up to testify to Congress. That's, that's craziness.
- [13:10]
Jerry Coraya
And now he refuses to step down.
- [13:12]
Jeremy Wiseman
Why are they getting so desperate that they're shirking the rules?
- [13:17]
Jerry Coraya
And it's these institutions that we are that are all on the front line, the Federal Reserve, you have opec, you have the UN you even have NATO. For example, yesterday there was a tweet that commented that he. That US May be signaling the end of u. S. Involvement in NATO and to pull out the troops out of Germany. So this whole effort, and this links back to this petrodollar. Should petro oil be the collateral for the US Dollar? Was that ever in the constitution? Is oil a collateral? Actually, no. It was Henry Kissinger that put that, the petrodollar into place. And it really gives a very small entity a lot of power. The power that controls the nation's money and it controls the. The choke points.
- [14:06]
Jeremy Wiseman
The.
- [14:07]
Jerry Coraya
The strait of Hormuz choke point or.
- [14:09]
Jeremy Wiseman
Or the comics choke point.
- [14:11]
Jerry Coraya
Or the comics choke point.
- [14:12]
Jeremy Wiseman
Yeah, we haven't even told. We haven't even told everyone about the. The. The silver act. They've put forth a bill called the silver act. And the whole idea behind it is to create competition outside of the comics in New York. Now, it's easier said than done because it's a place where all of the liqu. You know, wholesalers, you know, delivery, all of the logistics of everything, it all resides refiners and such. It all refine resides in New York. But what it does open the door to is with enough political will or deep enough pockets, you could eventually say, well, you know what? We want an exchange down here down in Texas. And all of a sudden that opens up the competition. So if we're talking about choke points, that's a choke point too, you know. Now with that said, there seems to be a war on that choke point because they used to have like 300 million or 200 million ounces. They're down to about, I think, less than 70 million ounces of silver. If you don't have physical silver in there, you can't do the paper. And if you can't do the paper, you're making it less volatile. And someone out there, a lot of. A lot of companies and a lot of nations are saying, we need that silver really bad. One such company is hyperscale.
- [15:31]
Jerry Coraya
Wow.
- [15:32]
Jeremy Wiseman
Talk to us about hyperscale now.
- [15:33]
Jerry Coraya
Hyperscale. They're. They're known for their technology. They're, you know, well known in the technology space for their AI developments. And this is the. Probably the third, as we call it, and as many are calling it the third. The third tectonic force for things converging in precious metals. And all roads lead to hard assets. This company called Hyperscale just added silver. Now get this, they need silver because they're an AI. Not only do they need silver, they need copper, they need iron, they need steel, they need the whole list, aluminum, graphite, nickel, lithium. The list goes on of all these critical minerals. And the latest one that was added to the critical minerals list was silver late last year. And whether the AI is a bubble or not, the, the fact of the matter remains is that all of these countries, from the US to Big Tech to China are fully committed to commit 600 plus billion dollars a year to scale out the AI. Whether you use it or not, it is something that is going to be funded. And when Grayscale, when this company hyperscale, rather than starts adding it to their monetary treasury, this is a huge signal for even us. We don't, we're. Many people just think silver is just here for industrial purposes. No, silver is actually your collateral, collateral being high quality liquid assets. And this is the reason why things are moving back. When the collateral fails, when the US treasury is just backed by paper and when oil is not being trusted, or when countries don't want to be known for just oil, they want to revert and change their whole identity. Like the UAE that's known for oil for centuries is now saying, you know, we're going to start accumulating gold.
- [17:24]
Jeremy Wiseman
That's it. So accumulating silver. Let's talk about that. Yeah, if, if Hyperscale is accumulating it, they're a public company, this is huge. And they're making it known that they're doing it. They're not the, they're not the first. But let's talk about what China's doing with silver because we've been talking a little bit about geopolitical, we've been talking a little bit about hedging, dollar devaluations, etc and also we have to get into is lower oil good for the price of gold. Let's talk, let's talk about silver. China. This is according to Pure Metals on X, China's silver stockpiles hit 40 million ounces. They've got 735 kilograms of on one exchange, 518 on another combined for 1.25 kilograms. They've banned exports, they restricted refining chemicals. They've imported a record amount for the last three months. There's been a lot of, a lot of people on X noting the chart because the amount of imports has been off the chart in the last couple months. So they're now sitting on 40 million ounces. They are happy to pay it at higher premiums. The Question is, and I love that he said this, this is not investing, this is preparation. What are they preparing for? Is it because they need to retain this? Are they, is it because they're losing access to South America? Maybe they're losing access to Mexico? They're saying, look, we need to secure this for all of the things that we produce and money. Perhaps, but why accumulate at such an aggressive pace?
- [19:02]
Jerry Coraya
Right?
- [19:02]
Jeremy Wiseman
And you're seeing the, the product come off the exchanges as well, right?
- [19:06]
Jerry Coraya
I mean, it could be a number of things. It could be a way to just a hedge against the currency devaluation, number one. And obviously with countries very close to, you know, combating the very, you know, the central bank system, you better be hedged. You know, many presidents in the past have gone against the central banks. You know, you can't go straight on. You have to hedge yourself and be, be prepared for potential retaliation. Like the United Arab Emirates, they acquired gold years in advance before moving away from opec. Right. So this is a big move, but they're also positioning for what's to come.
- [19:41]
Jeremy Wiseman
Okay, so, so let me ask you this then. So if, if OPEC starts to fall apart and you start to see more oil come on board, we talked about increasing Venezuela production and let's say UAE decides, hey, we're just going to turn it on and open it up. By the way, that's a great trend, that's a great counter to the straits being closed. What does that mean for the, for, for gold if oil prices come down? Is that bad for gold? Shouldn't that be bad for gold?
- [20:15]
Jerry Coraya
Well, what we've seen since the beginning of the year when gold and silver went through to their all time high, silver hitting 120, you know, gold six grand. What we, what we saw was, you know, the, the complete reversal when the Iran war began, oil prices went up and gold, silver went down. Because central banks have to look like they're gonna fight inflation now and say we're gonna keep rates higher for longer. While gold and silver are inversely correlated to US dollar strength. And the strength come from, comes from the raising of interest rates. See this manipulation, how they control these things where gold doesn't eat, you know, gold just doesn't move up any anymore because of war. So they have, they have kind of reprogram that based on the oil. But now as you have, if you have oil prices coming down, UAE is leaving the opec, you have other countries who are going to go, they don't want quota, they want to pump as much oil as possible. They've actually spent 3.3 billion to create a secret pipeline to flood the market with cheap oil.
- [21:16]
Jeremy Wiseman
Okay, so what happens when cheap oil floods? Does gold go up or down?
- [21:21]
Jerry Coraya
Oil moves everything. So when oil falls, transportation falls, the cost of manufacturing falls, shipping falls, consumer cost falls. So industry goes up, industry goes up. And what happens, Your sentiment starts to, you start feeling more confident. You don't want to hold and hoard your cash. People feel better at the pumps. They don't really care, you know, okay, you know, the prices of gas goes down, costs start going, you start feeling better. And ultimately, when inflation falls, the central bank is free. And this is where we go back to, you know, they're going to print, they're going to go back to the printing press.
- [21:54]
Jeremy Wiseman
Right. But they wouldn't have to go back to the printing press.
- [21:57]
Jerry Coraya
Well, they allows them to, you know, facilitate the. If you peg the currency, if you peg the currency, you peg it back to the gold. You fix, you lower prices through the lowering of oil. You control inflation that way. And then you also have to peg the currency to gold to safeguard it. The next round of money printing, okay, so you're going to have to spend $600 billion plus per year just for AI.
- [22:21]
Jeremy Wiseman
Okay, so what you're saying, what you're saying is when you, when you free the, the dollar and interest rates from oil, when oil is no longer a narrative in which you can control interest rates and such, now all of a sudden you go, hey, we're not burdened by the past. Oh my God, why be burdened from the past? No, you're no longer burdened by it. No, you, you now can say, hey, we don't. Oil is not a problem for us. We can lower interest rates.
- [22:53]
Jerry Coraya
Exactly.
- [22:53]
Jeremy Wiseman
And when you industry goes up, that means, hey, you need more silver for the industry. But also, well, how are we going to tie all this? Right? And that's where we come right back, full circle Deutsche Bank. We go, hey, we need to get back to the system that existed before. Da, da, da, da, the petrodollar. And that brings us back to gold. And you need more gold in your holdings. And I would say add a little bit of, you know, a trump card on there. It's a great way to revalue the assets on your book.
- [23:26]
Jerry Coraya
Exactly.
- [23:27]
Jeremy Wiseman
And to, to mitigate your debts. So all of a sudden, yes, we've got debts, we need to deal with them. But by the way, our balance sheet looks, looks great.
- [23:36]
Jerry Coraya
Yeah.
- [23:36]
Jeremy Wiseman
You know whose balance sheet doesn't look good, by the way, is Canada's balance sheet. We're, we're over a trillion in debt and somehow we've got money for a wealth, a sovereign wealth fund. Oh yeah, I just put it out there because of our audience here. We all know that that is complete and utter nonsense. It's complete bs. You can't have a sovereign wealth fund when you don't have any wealth. So we know the scam that's going on there. We'll track that as it becomes more apparent. But what that does mean is that more money is coming out of the debt coffers in Canada, which is bad for our dollar. And one of the things that you can do to protect your dollar and protect the purchasing power of your dollar is to own actual physical gold and silver. Now today we've talked about, central banks are buying gold. The petrodollar is looks like it's on its deathbed. This is actually going to be good for gold because it means more accumulation for gold. It means growth for industries, which is also, as we've talked about one industry AI with hyperscale, adding physical silver. And you can see silver being accumulated all over the world at a very fast pace. This is also very, very good. We're in a six year deficit in silver coming out of the ground. And as you mentioned with the reserves, Jerry, that they're only at, they're not even at 30% yet or they're just around 30%, 30%. They need to get to 40 or even 50% just to start to get back to historical mean. As Deutsche bank thinks that we are moving to a new monetary system, which is actually an old monetary system and that is the way of history. So if you want to be involved in this bull market in physical gold and silver, you can contact Guildhall wealth and we will show you how to do it. Now at Guildhall, what we do is we help clients to own actual physical gold and silver. This isn't investments, this isn't paper. You know, you didn't see Hyperscale buying the etf. You didn't see them buying, you know, a gold fund or, you know, they actually had to accumulate the actual physical silver. And that's what we help clients do at Guildhall where you can buy it direct, you can hold it in a Brinks facility, fully allocated, segregated. You have access to go and personally audit the holdings. And this is great because it secures your product, it allows you to sell and buy on a phone call. Instant liquidity. That means you could be anywhere in the world. You could, you could be on vacation, you could be at little league, you know, you could be doing anything. And it's, hey, great opportunity comes along, pick up the phone and you know, get the liquidity you need.
- [26:16]
Jerry Coraya
Yeah.
- [26:17]
Jeremy Wiseman
And then finally, we also help clients in registered accounts. This is where you can hold it physically allocated, segregated, you own it, you can go to the vault, personally audit your holdings. And it's such a great thing to have an asset that has just continued to grow over time, knowing that the biggest benefit of it is that it's hedging the devaluing of the dollar, which unfortunately, in Canada, that's something you really need to be concerned with because it doesn't look like the debt spending is about to end. So if you want to hold physical gold and silver in your retirement account, whether it's an rsp, a lira, a lift, and also at the end, you can take delivery.
- [26:57]
Jerry Coraya
Yeah.
- [26:57]
Jeremy Wiseman
You know, you can. Once you convert your RSP to a riff, you can say, hey, instead of taking the funds out, I'll take the physical product. That's, that's a, that's a way to go. Now there's all regulatory rules, but ultimately you can get that physical product back in your hand. So give us a call, we'll show you how to do it. And we've been doing it for over a decade in registered accounts, and we've been helping clients get into physical metal for over 20 years. Jerry, we got a couple minutes left. What are your thoughts on what's going on in the world?
- [27:25]
Jerry Coraya
Jeremy's so modest. He's so modest. Actually, you know, back in 2015, it was Jeremy that. Jeremy and his dad, Paul, president of Guild hall, like family to us, to my, to myself, they were the pioneers that put the ability for Canadians to find the solution to hold capital, hold wealth outside of this digital banking system by holding real precious metals. We're talking about unencumbered in your name, not on our name, not on our balance sheets. If you can't hold it, you don't own it. And we have the guide to do it. There is a 9 storage requirement. If you're going to hold metal outside of your own hands and out of yourself outside of your, your own possession. These are nine storage requirements that we follow. And if we offered just eight of the nine, we would say just take it home. But it's all about not compromising on your wealth insurance. We don't compromise on our life insurance, our car insurance. This is real world wealth insurance. Not just to hedge, but to set up what we see and we feel with, you know, with many other analysts that this is a once in a lifetime opportunity. When you have bank of America calling three to $400 silver within a few months. When you see the new future, the call options which is a, it's a great barometer and it's a, it's a, it's a, it's a precursor for future bull runs. Calling silver anywhere from a thousand to two thousand an ounce by next year and twenty thousand plus gold all within twelve months. You know, we're not talking about long term. Yes, it is about generational wealth building and passing on safely to our next generation. But you, you want to have the ability to get your rebate back. We paid so much in taxes, they're not changing it for us. They haven't even given us the rebate. You know, only because we, we begged for it. But you could take action now. Convert out of the banking system and again if you cannot hold it, you don't own it. And give us a call. We want to walk you through the steps. We're always here to help. Give us a call. That website is guildhall wealth.com and that famous number 18778, silver. And we look forward to speaking with you soon.
- [29:38]
Jeremy Wiseman
And that does it for another edition of the Real Money Show. It's been an absolute pleasure. We hope that next week will be even more jam packed with information and reasons to enjoy and get involved in the bull market in gold and silver. See you next time.
- [29:56]
Jerry Coraya
If you cannot hold it, you don't own it.
- [29:58]
Jeremy Wiseman
Central banks have been buying gold, gold like crazy.
- [30:00]
Jerry Coraya
Value your wealth in ounces versus depreciating currencies.