What happens when the dollar is compromised? What is the option to the U.S. dollar?
Tom welcomes a new guest Simon Mikhailovich. Simon is a contrarian investor, entrepreneur, and the founder of The Bullion Reserve.
Simon discusses how today’s accounting practices may look okay on paper, but the truth is we are bust. It is now impossible to meet the future demands on cash-flow. Rates today are at 5000-year lows, while most assets are very overpriced. The dollar has declined in value during the past century by 95%. He argues that since interest rates are now zero, currency can only fall in value from here.
Banks have no choice but to follow the path they are currently on, and no politician will alter that course because it would be political suicide.
He discusses gold’s key characteristics in-depth and what makes it so fundamentally different from any other asset. Gold represents independence, scarcity, and permanence. Gold is independent because it is a physical item that does not rely on anything or any infrastructure. He says, “Empires may come and go, systems will change, and technology transforms, but gold remains.”
There have been many hyperinflations, and during these crises, people have chosen to use the dollar as an alternative. What happens when the dollar is compromised? What is the option to the U.S. dollar?
Bitcoin comes from the same desire to have independence from the financial system. However, there is a lot of marketing hype and misconception surrounding these digital assets. He makes a compelling case that digital assets are inherently different. Crypto requires infrastructure, and while gold will always exist, the same can not be said for bitcoin.
He discusses what propaganda means and how it represents marketing. You need critical thinking and some experience to evaluate these types of claims.
Lastly, Simon discusses his bullion business and the services he provides to high-net worth investors.
Time Stamp References:
0:00 – Intro
0:53 – Accounting & Obligations
4:00 – Discounted Cash-Flow
6:00 – Dollar Purchasing Power
7:18 – Central Banks & Politics
9:19 – Properties of Gold
18:45 – Futures & Pricing Today
25:29 – Gold 2.0 – Bitcoin?
39:06 – Pricing & Sentiment
41:38 – Defining Propaganda
50:20 – The Bullion Reserve