Ray Dalio reveals shocking insights into why you must own gold
When Ray Dalio talks, the markets listen and so should you– especially when he’s talking about GOLD!
Ray Dalio was interviewed by CNBC recently where he made a strong case for owning gold in 2020 and beyond. Dalio also had the quote of the year so far saying “CASH IS TRASH!”
It’s great to hear someone like Ray Dalio who has such a high profile talk wisely about the need to own gold.
It’s not just the tin foil haters, it’s RAY DALIO AS WELL! If you’re concerned about inflation, deflation, the dollar collapse, or the next economic crash, THIS VIDEO IS FOR YOU!
Why is it a must that you own gold? I explain it in 3 simple steps:
1. The Fed Funds rate prior – 2009.
2. My opinion about EVERYTHING Ray says about gold. 🤩
3. You must own gold because of negative interest rates and money printing.
To understand the first step, you need to know how the Fed's balance sheet works:
The Fed prints money to buy treasury bills that go onto the asset side of the Fed's balance sheet, but all the money they print is a matching liability.
Why? Because it's an IOU.
Another thing I Explain to help you understand is the discount window, which is the Fed saying to all the banks inside and outside of the system that if they get into trouble and no other entities will lend them in the open market, they can come to the discount window, give us collateral and we will give them however much money they need.
The rate will be a little bit higher than the Fed Funds rate, BUT IN THAT WAY THE FED IS THE LENDER OF LAST RESORT! 😫
Ray Dalio is one of my favorites investing legends and it´s awesome to hear him talking about gold the exact same way YOU and I do, although Talking Heads in the media get gold COMPLETELY WRONG.
They look at it as though it's a speculative asset comparing it to stocks, Bitcoin, and something where you're buying it because you think the price is going to go up, and that is not why you buy gold!
Gold is an insurance policy period, it's the price going up is fantastic but the main reason you buy it IS TO MAINTAIN YOUR PURCHASING POWER.
Finally, I clarify why The Fed doesn't have a discount window, which means they don't have a ceiling for the interest rates other than additional money printing and, THAT IS WHY YOU NEED TO OWN GOLD IN 2020! 🤑
I don’t understand how gold can be “the” insurance. Assuming a disaster, why would people want to get gold? Why not commodity stock, currencies, or else? I would be concerned that quickly a bunch of crooks would be necessary to convert gold into some money, or that again, the government would make buying gold illegal (especially with China piling gold). What is the evidence the gold was insurance in extreme crisis as opposed to wait a little the end of the crisis?
During hyperinflation in 1930 Germany, or else, how gold did help?