In this interview, David Morgan and Stefan Gleason discuss the importance of incorporating precious metals into investment portfolios to hedge against market volatility and the reluctance of traditional financial advisors to recommend such strategies due to regulatory and incentive misalignments. They emphasize individual responsibility in financial education, the role of public policy in raising awareness through the Sound Money Defense League’s efforts, and the potential consequences for wealth managers who fail to include precious metals in their clients' investments.
0:00 - 0:06 Introduction
- David Morgan introduces the guest, Stefan Gleason, and mentions their collaboration over the years.
0:06 - 0:26 About Sound Money Defense League
- David reads an introduction about the Sound Money Defense League, its mission to restore gold and silver as constitutional money, and its efforts against the Federal Reserve and monetary policies.
0:26 - 1:20 Discussion on Constitution and Gold/Silver
- David asks why states need legislation to use gold and silver as money if the U.S. Constitution already allows it.
1:20 - 3:10 Gold and Silver as State Currency
- Stefan explains the historical context and current challenges of using gold and silver as state currency, including the role of Gresham's law.
3:10 - 5:20 Taxes and Legislation
- Discussion on the impact of taxes on gold and silver usage and the efforts to remove these taxes, both at the state and federal levels.
5:20 - 6:46 Success in Removing Sales Tax
- Stefan shares the success in removing sales tax on gold and silver purchases in various states and ongoing efforts in others.
6:46 - 10:07 State Reserves and Income Tax
- The focus on encouraging states to hold gold and silver as reserve assets and the progress in removing state income tax on gold and silver sales.
10:07 - 13:37 State Policies and Adoption
- Continued discussion on state policies, adoption of gold and silver as reserve assets, and the influence of central banks' gold acquisition on states' decisions.
13:37 - 17:04 Practicality of Using Gold/Silver
- The practicality issues of using gold and silver in everyday transactions and the potential role of blockchain and debit cards backed by precious metals.
17:04 - 17:16
- Introduction to the use of plastic cards for transactions and how the banking system handles the price of silver.
17:16 - 17:22
- Discussion on Gresham's Law and its impact on the demand for gold and silver-based payment systems.
17:22 - 17:40
- Explanation of why these platforms have not gained traction and are mostly used for storage.
17:40 - 18:04
- Challenges faced by platforms based on transaction fees and the funding issues they encounter.
18:04 - 18:09
- The concept of spending gold and the reluctance of average gold investors to do so.
18:09 - 18:29
- Business case for spending gold and the reasons people prefer not to use gold for transactions.
18:29 - 18:56
- Potential for state governments to implement gold and silver payment platforms, with Utah as an example.
18:56 - 19:45
- Discussion on the long-term investment required for these platforms and the political challenges involved.
19:45 - 21:05
- Borrowing against gold as a viable use case and its demand in the current market.
21:05 - 22:01
- Introduction of a blockchain-based gold and silver coin and the concept of incentivizing merchants with discounts.
22:01 - 23:00
- Challenges in getting people to use gold and silver as money and the idea of offering incentives for transactions.
23:00 - 23:58
- Skepticism about the success of these platforms and the focus on removing taxes to facilitate the use of gold and silver.
23:58 - 24:44
- Efforts to remove taxes at the state level and the impact on gold and silver ownership and spending.
24:44 - 25:01
- Transition to discussing federal level efforts and the work of Congressman Alex Mooney.
25:01 - 26:04
- Background on Congressman Mooney and his initiatives for sound money legislation.
26:04 - 26:59
- Overview of Mooney's Monetary Metals Tax Neutrality Act and the Gold Reserves Transparency Act.
26:59 - 28:04
- Issues with auditing the U.S. gold reserves and the importance of verifying ownership and transactions.
28:04 - 29:06
- Questions raised by Mooney about countries repatriating their gold from the Federal Reserve.
29:06 - 30:15
- Potential concerns about the U.S. government's use of pledged or leased gold and the need for transparency.
30:15 - 31:28
- Efforts to prevent the Federal Reserve from implementing a central bank digital currency pilot program.
31:28 - 32:18
- Discussion on the implications of bail-ins and the need for diversification in assets.
32:18 - 33:58
- Importance of hedging with gold and silver and the challenge of communicating this to the public.
33:58 - 36:26
- Recent banking crises as wake-up calls for people to consider gold and silver.
36:26 - 38:05
- Issues with dealers selling overpriced gold and silver products, harming investor confidence.
38:05 - 39:07
- Encouraging people to buy gold and silver based on their melt value, not on supposed collectible value.
39:07 - 41:14
- Criticism of dealers selling high-markup proof coins and special issue coins, emphasizing transparent value.
43:52 - 44:09
- Discussion on the primary investment strategy focusing on bullion and buying as close to spot price as possible.
44:09 - 44:27
- Query about what it will take for the investment community and wealth managers to understand the importance of having a portion of investments in precious metals.
44:27 - 44:51
- Mention of studies that recommend at least 15% exposure to precious metals to balance portfolios and the potential repercussions for wealth managers if they fail to include precious metals in clients' portfolios.
44:51 - 45:35
- Frustration over efforts to educate wealth managers about the need for precious metals and the potential backlash they may face from clients who lose money due to lack of proper hedging.
45:35 - 46:02
- Observation that people are becoming more skeptical of experts, partly due to COVID-19, and the shift from commission-driven stockbrokers to wealth management models.
46:02 - 46:20
- Discussion on the financial incentives and conflicts of interest that might prevent brokers from recommending physical gold due to regulatory constraints.
46:20 - 47:07
- Explanation of how ETFs were created to allow brokers to sell gold as securities, circumventing restrictions on selling physical commodities.
47:07 - 47:32
- Challenges in educating the public about the benefits of owning gold and silver, despite efforts through various media and publications.
47:32 - 47:58
- Anecdotes about individuals seeking advice on buying gold during financial crises and the tendency for people to revert to normal behavior once the immediate threat passes.
47:58 - 48:38
- Acknowledgment that public policy changes at the state level and individual responsibility are crucial for increasing awareness and adoption of precious metals investments.
48:38 - 49:14
- Encouragement for individuals to take control of their own financial security and to see gold and silver as a form of cash or savings, complementing other investments.
49:14 - 50:03
- Prediction that future crises will drive more people to consider gold and silver as viable options for financial stability.
50:03 - 50:35
- Gratitude expressed towards those working in the precious metals industry and efforts to promote sound money policies.
50:35 - 51:14
- Acknowledgment of the likelihood of more negative events prompting people to take action to protect their finances with precious metals.
51:14 - 52:01
- Appreciation for the contributions of industry professionals and the importance of continued advocacy and education.
52:01 - End
- Final words of thanks and sharing contact information for further engagement and support through websites such as soundmoneydefense.org and moneymetals.com.
