As always very thought provoking. I started in life with nothing. Being European I received free education and became a family doctor. Also, being European, you don’t get paid a fortune as a family doctor. That’s the deal. I’ve managed to accumulate three children, all of whom I could privately educate in musical conservatories as they wished. I own my home and 2 pensions. I’ve also over 30 odd years saved 50 oz of gold and 1000 oz of silver. My children are my wealth. I hope the metals go to them and that I never need them. As you point out, we in the West are extraordinarily wealthy. I felt guilty after watching this video. I’ll have to decide what to do about that. Your channel always evokes different emotions . For me PMs ( or hard money) is ultimately about justice. Thanks again for leaving me with a lot more to think about that the spot price of elements of the periodic table!
Thank you very much for your comment Fender. Yes, we are truly fortunate. We can to a certain extent help those who are less fortunate. The extent to which each of us does so is a personal choice. What is perhaps most important is to always be grateful. It sounds like you are a grateful person. Being content and grateful is true wealth! :)
I missed out the kids (hey ho) but im working hard to still raise more money - I was blessed to spend my 50th with 87 children in an Ashram near Kathmandu. Now I'm 65 there are just over 200 mouths to feed - mostly girls abandoned at birth. Get me some more...... _/\_
@@CosmicSeeker69 May I ask, the name of the group of girls you help support, and how one may get a donation to them and/or a website (if avail.)where one can read about them? Thank you❣🥰
I too am quite grateful to have stumbled upon your channel sometime around 2016-2017. The keyword I was searching for at the time was "petrodollar system". After watching a few doom and gloom videos not based on facts and data but rather stigma and speculation, hearing the "professor lesson" style videos with hard data and deep analysis on "hidden in plain sight" facts in the public domain. The nutritional videos were also quite insightful. I've learned new concepts and re-considered previous ones. I really missed hearing the familiar voice during the time you were off - and was quite excited to see your comeback video, right in the middle of the pandemic. I'm truly grateful for all your work, Paul. I think you've made positive impact on others lifes by sharing your knowledge in the manner that you do. Best regards
@@belangp same here Paul. I work with the Universe and specifically asked for the right channels. Mario, Lynette and your good self showed up. Five times I've played your Understanding Gold vid - and now I'm stacked. Much gratitude to you
Nevermind lotto tickets, I spend 0ver $1,800 a year on home and car insurance. That buys me 1 year of protection in case something bad happens. That same 1800 buys be financial protection but that policy is good for multiple lifetimes. If you "renew" it every year, you will be at 14 before you ever open a claim on your insurance.
Gold. Thanks to you Paul I got me some. I followed your exact recommendations. I also added 1,000 ounces of silver for me and 1,000 ounces for my wife. I had $4,000 face value silver I purchased at 6x face but had to sell it to pay college bills for the kids. Finally repurchased in 2016, which was good timing. I also follow your recommendations for gold. If I never use it I am giving it to the kids. If I need a nursing home it is for health care emergency. Gold is under 30 barrels per ounce now. Interesting times.
Great video Paul. Ive watched and listened to this particular video dozens of time through many years. Its aged incredibly well. When you consider that retail bullion available is likely between 1 and 1.5 billion (not 6 billion) ounces, the numbers you quote are really much smaller. Watching as gold sales now are going mainstream via outlets like Costco, I do believe a finacial collapse and or reset is months away. Costco is routinely out of stock as it cant possibly fulfill demand. The soft hands you speak of may be up at bat now! Here in Canada, an ounce is roughy $3400 and moving up daily. March 19 was 3050. Today is April 15. Fingers crossed we all have the insurance we need to come out the other side. Cheers
Never commented, but your videos have changed my life for the better. i know you are taking time off, but you should feel good knowing these videos will help others for years to come. Bravo
I have known for 10 years that gold is the best currency, but by watching this video I finally understand why it's good to have (aside from USD's inflation).
The funny thing is I always used to be broke but I found that I could save in gold and silver. I went from feeling like a total financial failure in 2013 up to bracket three today. I took the number of ounces of both gold and silver and times it by spot price. I also calculated it by the physical prices. Even at spot I am in the third bracket by doing nothing but saving in these metals monthly.
Gold makes me feel like a better provider and a more competent man. Maybe sad and shallow but at least it’s something that I’ve found peace in life from.
When I have free time I review the old Belangp videos. Reviewing the videos convinced me to take action and I feel I am well protected. I really appreciate all your excellent videos and having them on line. You are logical, intelligent, and I really admire your intelligent approach to a very confusing subject. Great job. You are very appreciated by sincere intelligent subscribers. Remember gold is money. Currency is not money. Currency is debt, with counter party risk. Gold, real money, has no counter party risk.
The same people that act as gatekeepers and urge people to put their money in stocks and real estate, are the exact same people hoarding gold and silver.
@@ju2wheels Silver is difficult to value the same way because the very wealthy focus their attention on gold. I imagine that the distribution would be skewed more towards the bottom of the pyramid for silver.
@@belangp Not in my case. Albeit in the second tier, I envision SGR tightening up fairly significantly as industrial demand picks up and supply shortfall continues. This is why I accumulate silver, in the belief I’ll be able to convert it into far more gold than I can now at some point in the future.
As a stacker, I started off buying silver only for first 2 years then in 2017 I stated buying 1/10 oz gold too. Then a few British sovereigns with my silver. I’m probably at 1;300 gold to silver
puts things into perspective doesn't it? If you're over 2.5% of your wealth that means you are beyond the levels the average person has allocated to gold.
Man I love when you do these videos about gold's possible potential. I know that a scenario like this is very improbable, but it is fun to daydream about it coming true anyway isn't it? And aside from the obvious benefits to gold holders, it seems like it would restore at least some semblance of balance and sanity to the markets, which would be a huge relief after a decade in fantasy land.
It's tough considering the fate of silver. It was demonetized in 1873 for a few reasons: 1) the wealthy controlled most of the gold, 2) gold was more scarce than silver and more difficult to expand its quantity through mining such as from the Comstock lode, 3) it is much more wealth dense and therefore easier to store and transport. All of these factors are true today which is why the wealthy accumulate gold. I'm sure some hold silver, but most of the world's PM wealth is in gold.
Very sombre , practical n pragmatic take on safeguarding material abundance n wellbeing. Abraham Maslow did that take on hierarchy of human needs n spiritual aspiration in his Pyramid of Needs. Very timely n very much needed info indeed in this troubled times of media spin n intentional misleading sponsored n vested interest mass media... GodBlessings Be With U Always n In All Ways.
Thank you, Paul! How about adding central bank holdings into the numbers? It might shed some extra light on the matter. Anything that helps us not paying attention to the fluctuations of the gold price is of great service.
Your videos have become one of my weekend joys. Would be interesting to show a pyramid chart with the actual holdings of gold in different net value classes and compare it to the proportional chart.
Hey BP, didn’t you do an update of this video more recently? Was looking for it but couldn’t find it. A relative has gotten into gold, trying to show him all the good stuff
i'm in the .5 ounce bracket, so i have 14 times what i should.that's a good feeling. so 1 oz. for every 70k would put me near 500k. i'll need to double that.i was too dumb to know until now that i've been a genius!
Absolutely correct. Also consider the concept of "Change". I keep a certain amount of fractional gold around. The majority are 1oz coins. I also consider my silver as "Change" with exception to a few collectibles.
Hi Paul, hope all is well mate. At 9mins in.... Those below $1million (87%) know of gold, we can't change nature. I agree with you there are those who have been mislead on gold and it's purpose...however there are those who unfortunately can't afford it. Half of the world lives on less than $2 dollars a day! (recently adjusted to $3-5 pd.. "inflation") We should consider ourselves blessed with knowledge and wealth....especially with what's happening now...
Nice video, i am only 22 and own 1 oz of gold currently, cool to see im doing better than 88% of the population. I do want to grab some more but i just cant afford it atm.
@@sadhigeki901 I bought/buy gold when I get a check that I don’t need, which isn’t all the time but does happen once or twice per year. Look back 10 years and that’s 20 gold purchases.
Fantastic content as always. A lottery ticket that lasts forever and can be passed through the generations. Thank you so much for your thought provoking videos.
Lottery tickets passed generational.... Rich been doing it for centuries, we're 200 years behind. Playing catch up and crippling the market over time now. Few years out, but significant progress through 2020
I'm giving 1 gram of gold and 1 oz of silver to a high school graduate to start his long term saving and explain to him how precious metals hold value with time. Hopefully it will help him in the long run.
Very well done. The lottery ticket analogy is a perfect summary. The average investor in the second highest bracket would make a bet on GME. Why not use $25k to buy a lottery ticket that will never go to zero. Imagine that.
Great Vid , as usual ... and glad to know my stack has the potential to catapult me to the 1% ... BUT ... Does stacking Gold / Silver make the Global Wealth Pyramid a lil inaccurate ??? As our Private storage of Metals will not be included in their calculations of individual's wealth ...
Brilliant analysis Paul. Thanks a million! Your proposition previously known as the 100 club will certainly ensure one will be able to achieve position at the apex of that pyramid shown!! The only caveat of the concept of Club 100 is a very hard journey to get there and if one starts young in life, it is feasible but not for those at near retirement!. That's life, hindsight is the beautiful thing, always??
Nice job, as usual, I just want to pick your attention to one point that most of the people who are < 10K USD wealth are living in poor countries and in a country like Egypt for example because of the culture each woman minimum own about 3 OZ of Gold, and if we consider that woman form up 50% of the population of 100 million, and the same goes for all the middle east and South Asia, there is a lot of Gold in each household, it is only in the western world your assumption is correct, I live in Canada and I can see that, the other point is most of the people in the west are in debt their net worth is actually negative, while the rest of the world population own what they have it might not as nice but they do own it no worries about mortgage or car payment or loan payment or student loan, etc.
I agree. There is likely a much larger concentration of gold in developing nations than this analysis would suggest. In some countries the love of gold and trust in gold is cultural. It may become that way once again in all countries if there is a currency crisis.
thats not correct. the germans have arround 9000-10000 metric tons of gold in privat hands, if my calculation is right, then every citizen from baby to old, has 3,6 oz. so not every western country is without gold.
@@stevenbodum3405 %100 correct. They learnt the hard way because of the Wiemar Republic day's in the early 1920's. Cops were dragged off their horses and the beasts were torn to shreds for food. The government there encourage gold ownership.
Hey belangp, I may be getting this wrong, but I don't understand how one ounce of gold could protect 70K (denominated at the current dollar value in your example) of wealth in a practical sense. The video seems to assume that all value in the world is and would be denominated in gold only, and it's not. Much of that 418 trillion dollars is held in other assets like art, real estate, stocks, even livestock are considered part of that total world wealth. Gold holds (and slightly increases) it's buying power over time. But if for example, an ounce of gold currently buys 1,750 dollars and 1,750 dollars buys a cheap horse. Then I would have to have 563 cheap horses, or 563 ounces of gold to protect a the current buying power of a million dollars. Right?
In a previous video you came to the conclusion that 18 ounces would make you a millionnaire, so the numbers roughly checks out. However I think in a crisis most of the gold would stay in the 1% hands so its price might not go up as much, but who knows ... What I like with gold is that it makes me feel safe. Can't say the same for stocks or cryptos, or even cash nowadays.
@belangp - last time you went over this data, if I'm not mistaken, it was "18 oz = top 0.3%", or something similar? Do you notice any change in the data from last time you did this analysis relative to 2021? ie - had someone held 18oz at the time you did this video last time (some years ago, using a previous but similar data set), where would this same amount place one, based on the new data? May be an interesting way to show a shift in purchasing power retention or progress in the skewed distribution. Thanks!
I guess what I'm asking is: how did the 18oz based on the previous video compare to 14oz on this new 2021 video? Does this in some way mean that over the span of time in between the data sets you've used, the individual that before needed 18oz, now only needs 14oz, and thus enjoys a net "dense savings growth" of the extra 4oz, which considering 85% only end up with .5oz at best, these extra 4oz, using today's data, appear to demonstrate the power of holding this metal. Or is this inaccurate? Thanks again!
Hi Pablo. I had a couple of videos where I discussed the wealth pyramid. I don't remember where I said 18 oz = top 0.3%. I do see that the Credit Suisse wealth pyramid from 2016 shows that a $1MM net worth or above corresponded to the top 0.7%. If I go back and redo the calculations I did in this video based upon the 2016 wealth pyramid I obtain the following results..... There was an estimated $255.7 trillion dollars of total wealth according to Credit Suisse in 2016. In 2016 I estimate based upon mine production numbers there was 5.57 billion oz of gold. This means that there was $45.9K of net worth for every oz of gold. The $1MM net wealth level was the cutoff for the top 0.7%. This means if gold were distributed in proportion to net wealth it would take 21-22 oz to make it to the top 0.7%. In this present video of mine I calculate 14 oz for the top 1%. It's a difference of roughly 50% to go from the top 1% (in 2020) to the top 0.7% (in 2016). Now the question you raise, which is a good one, is has anything changed materially? I don't think so. If you take a look at the second slide of the current presentation you will see that to go from the top 1.071% (yes, when you add the numbers up it turns out to be 1.071% and not 1%) to the top 0.133% it requires a 5 fold increase in wealth. Thus the population that has one eighth the number of people has 5 times or more wealth. If we compare top 1.071% to 0.7% it's a difference of about 50% more people in the former group. So if the wealth distribution were the same in the upper echelons back then as it is now then we could fairly expect that it would take 30% more wealth to be in the top 0.7% than it takes to be in the top 1.071%. This would be 18-19 oz. Is 21-22 higher? Yes. Is it meaningful? Maybe. Good question!
@@belangp thank you very much for addressing the question and going back to look at the data. If in 2016 1oz covered 46.4K of wealth. Today that same oz covers 70k of wealth, would be another way to look at it? Gold seems to have served its purpose during these few years as well - a stable way to account for this rapid growth in global wealth. Thus the person holding 1 oz in 2016 should theoretically have "gained" by being able to accumulate at a cheaper paper price far easier than in 2021, where it's become harder to accumulate relative to before. Both availability and cost wise. 3oz per year stacked since 2016 for example would have the stacker already at the 14oz mark, whereas starting the same endeavor in 2021 seems more difficult to do, as the wealth gap has only grown over these 5 years - during which global wealth practically doubled :)
Thank you belngp. Your evaluation of how many oz one needs to own ends prematurely once a stacker makes his or her way into top 1%. It is very instructive to understand how many oz the bottom 88% needs to catapult into the top 1%. Can you Please elaborate on what it would take in number of oz per individual not only to maintain ones wealth in the 1% but to move up the ranks specifically in the top 1%??? My wife and I will plan accordingly. Thank you for your thoughts!
@@belangp took me 30 years to understand Gold is the ONLY money, and all the rest is paper crap. Once understood, hard to go back. Your videos are brilliant. Thanks again for opening our eyes and mind.
@@StephanePasquierThailand It is so true. "Once you understood it is hard to go back". Most of my friends do not understand why gold is necessary, they just see wealth in terms of currency and life on credit.
It's not clear what role silver will play. The total above ground stock of gold about 6 billion oz with a value of about $8.4 trillion. My best guess on silver is that there is an above ground stock of 15 or so billion oz, which at today's market price would be worth $370 billion. The fact that the above ground gold is worth close to 23 times that of silver tells me that the world's population uses gold more as a store of wealth than silver. Some still use silver for this purpose, but over time it's role has largely transitioned to industrial use. This is confirmed by the fact that all of the major central banks have gold on their balance sheets as monetary reserves, but not silver. Will the world re-discover silver's monetary uses? Hard to say. That's the wild card. If they do then it could be very good for the price of silver. If not then I expect the gold to silver price ratio to continue to increase, as it has for the past 150 years.
What I don't hear in your explanation is how possessing gold in the amounts you assign to each wealth bracket is going to protect the wealth of individuals within the bracket. For example, how would possessing 4 oz of gold protect the wealth of an adult in the middle of the $100,000 to $1,000,000 bracket?
Great educational vid! Thank you ! One question though. If we would take the paper derivatives into account as well, how would that change the calculation on this pyramid ?
It might. Derivatives are a tough call. They are a bet on price movement. For every long there is a short, so it may be that they would all net themselves out.
@@belangp thank you for your response and that makes sense. However what if every ounce has multiple owner paper claims in etfs or unallocated metal pools for example ?
Wow. Did I finally understand the an entire BelangP video? Nope. No way that just happened. I must have missed something. I better go back and watch again.
Ok now you need a followup video, a part 2 where you show what you would do in a venezuelan type currency collapse to use that gold to continue to live comfortably or get you income flowing again.
I think Paul done such video some time ago. At least it was similar to what you requested. Outcome was that gold allowed you to buy about 4x more than it did before crisis.
@@belangp if you give gold 70k $/oz price tag, silver could easily hit 5k. With current mining ratio (1:7), then 10k silver would be possible in those extremes
I don't think all things will go up that substantially if gold and silver ever get their spot in the sun of vast quadrillions of man created fiat dollars of wealth.
Since the nineties I have held Silver , every now and then I review its price. My Silver is insurance Lain and simple. Portable , insurance. Having listened to this video 14 oz of gold makes sense.
It's a funny question when you think about it. Back before 1971 the US dollar was defined as a fixed weight of gold and could be converted (by foreign entities only) into gold upon demand. It was therefore defacto gold. Nobody asked the question before 1971 "is it wise to keep half of my wealth in US currency and dollar denominated bonds?" It was assumed safe. Now there is no ability to convert the dollar into anything other than dollars, yet it is the dollar that is considered the safe asset and gold considered unsafe! Do I think it is unwise to keep half of a person's wealth in gold? Not so long as the owner truly understands gold and how it is valued. For most people I think a much smaller amount is prudent. Only own as much gold as your level of understanding allows you to be comfortable with. If you are asking the question it means you may be second guessing. In this case you may not deal well with a sudden and unexpected price drop. You might consider lightening up a little, maybe not as low as 2.5%-5%, but enough so that you are no longer nervous :)
30% of one’s wealth in gold would be a huge commitment to the yellow metal, I’m passing 10% in full stride but will probably slow down at 20%. Maybe hit 30% in my 60’s but I plan on stopping once I hit one ounce per month of life expectancy. Then it’s time to start spending it, kids were taught how to learn and earn, they’ll only get some if I die earlier than expected
If you believe gold/silver is going to decline, you can hedge your physical holdings with paper shorts. Everyone talks about JPM shorting the silver market. At the same time, aren't they the largest holder of physical silver in the world?
Nobody talks about how JPMorgan shows gains on nearly every trading day in the metals market. It's no surprise they do. It's because they act like a bank (they ARE a bullion bank after all). They play the term spread and are immune to price fluctuations as a result.
I agree with the main idea, but you can see from the US debt clock website and historical gold prices that even when gold and silver were used as money, gold and silver were valued slightly less than just a straight conversion from total dollar amount to total gold amount. I would guess this happens because people also store their wealth in land, stocks, paintings, etc. Gold has to compete with bitcoin now too. But if the maximum theoretical price of gold in today's dollars is $25k, it seems totally reasonable it could easily go to $5k or $10k even with the influence of those other things, so the main idea that it is good to own gold is still true.
Do a few calculations based upon the currency crisis of the late 1970's and you'll see how gold preserved the wealth of the creditors during a currency crisis. We don't have to have an explicit gold standard for gold to serve its purpose.
9:25 … it sounds like you are talking about investment gold, and yes, people in the 10/100 band do not appreciate investment gold. BUT I suspect people own gold in the form of jewelry, and yes, they do appreciate it in that form
![Seungmin "그렇게, 천천히, 우리(As we are)" | [Stray Kids : SKZ-PLAYER]](http://i.ytimg.com/vi/kAzmhLHePqU/mqdefault.jpg)
As always very thought provoking. I started in life with nothing. Being European I received free education and became a family doctor. Also, being European, you don’t get paid a fortune as a family doctor. That’s the deal. I’ve managed to accumulate three children, all of whom I could privately educate in musical conservatories as they wished. I own my home and 2 pensions. I’ve also over 30 odd years saved 50 oz of gold and 1000 oz of silver. My children are my wealth. I hope the metals go to them and that I never need them. As you point out, we in the West are extraordinarily wealthy. I felt guilty after watching this video. I’ll have to decide what to do about that. Your channel always evokes different emotions . For me PMs ( or hard money) is ultimately about justice. Thanks again for leaving me with a lot more to think about that the spot price of elements of the periodic table!
Thank you very much for your comment Fender. Yes, we are truly fortunate. We can to a certain extent help those who are less fortunate. The extent to which each of us does so is a personal choice. What is perhaps most important is to always be grateful. It sounds like you are a grateful person. Being content and grateful is true wealth! :)
I missed out the kids (hey ho) but im working hard to still raise more money - I was blessed to spend my 50th with 87 children in an Ashram near Kathmandu. Now I'm 65 there are just over 200 mouths to feed - mostly girls abandoned at birth. Get me some more...... _/\_
@@CosmicSeeker69 May I ask, the name of the group of girls you help support, and how one may get a donation to them and/or a website (if avail.)where one can read about them? Thank you❣🥰
@@overtherainbow6074 with pleasure www.auronepal.org/ Ramachandra Busai is the founder and probably the best initial contact. Be blessed 🙏
@@CosmicSeeker69 pathetic.
Praise God for the RUclips algorithm that offered me your channel way back in 2017.
I'm glad you found me and that you like the content.
I too am quite grateful to have stumbled upon your channel sometime around 2016-2017. The keyword I was searching for at the time was "petrodollar system". After watching a few doom and gloom videos not based on facts and data but rather stigma and speculation, hearing the "professor lesson" style videos with hard data and deep analysis on "hidden in plain sight" facts in the public domain.
The nutritional videos were also quite insightful.
I've learned new concepts and re-considered previous ones.
I really missed hearing the familiar voice during the time you were off - and was quite excited to see your comeback video, right in the middle of the pandemic.
I'm truly grateful for all your work, Paul. I think you've made positive impact on others lifes by sharing your knowledge in the manner that you do.
Best regards
@@belangp same here Paul. I work with the Universe and specifically asked for the right channels. Mario, Lynette and your good self showed up. Five times I've played your Understanding Gold vid - and now I'm stacked. Much gratitude to you
@@belangp what about silver can you do a video on that as its more undervalued than gold
Owning 14 ounces of gold has now become irresistable, thanks to the Captain. :))
You bet
It's become my new goal as of today 10 down....4 to go
Then an even kilo at 32.2, that’s a nice milestone
This is the BEST explanation and wealth protection content I have seen, including Maloney, Schiff etc.
Thanks!
I like your lottery ticket concept. The fact that you can't lose it all, no matter how much you own, is definitely a reason to stack.
bingo
Nevermind lotto tickets, I spend 0ver $1,800 a year on home and car insurance. That buys me 1 year of protection in case something bad happens. That same 1800 buys be financial protection but that policy is good for multiple lifetimes. If you "renew" it every year, you will be at 14 before you ever open a claim on your insurance.
@@pjlouie13 I hate how much money people spend on loddery tickets.
No idea who you are or why RUclips recommended your video to me, but this is amazing - no sensationalism, just compelling arguments. 🤯
I absolutely love your old vids on this channel. Glad to see you're working on updating them!
Glad you like them!
I've said it once. I'll say it again. Your videos changed my financial life forever. I salute you sir.
Everytime belangp uploads a video I start sweating and buy an ounce of gold extra to my monthly plan.
lol. That's funny.
So that tells me 2 things.... Paul needs to make more videos and you can't miss any of them!
And he has a tonne of gold lol
Lol nice!
Only an extra oz a month 🤣🤣🤣 I struggle to buy 1/10 oz a month
Gold. Thanks to you Paul I got me some. I followed your exact recommendations. I also added 1,000 ounces of silver for me and 1,000 ounces for my wife. I had $4,000 face value silver I purchased at 6x face but had to sell it to pay college bills for the kids. Finally repurchased in 2016, which was good timing. I also follow your recommendations for gold. If I never use it I am giving it to the kids. If I need a nursing home it is for health care emergency. Gold is under 30 barrels per ounce now. Interesting times.
Great video Paul. Ive watched and listened to this particular video dozens of time through many years. Its aged incredibly well.
When you consider that retail bullion available is likely between 1 and 1.5 billion (not 6 billion) ounces, the numbers you quote are really much smaller.
Watching as gold sales now are going mainstream via outlets like Costco, I do believe a finacial collapse and or reset is months away. Costco is routinely out of stock as it cant possibly fulfill demand. The soft hands you speak of may be up at bat now!
Here in Canada, an ounce is roughy $3400 and moving up daily. March 19 was 3050. Today is April 15.
Fingers crossed we all have the insurance we need to come out the other side.
Cheers
Never commented, but your videos have changed my life for the better. i know you are taking time off, but you should feel good knowing these videos will help others for years to come. Bravo
I appreciate that. Thank you for your kind words.
This might be your best video yet! Thank you for keeping us informed and motivated when it comes to building our stack!
Glad it was helpful!
I am in agreement.
A very good thought provoking video.👍👍👍👍
I have known for 10 years that gold is the best currency, but by watching this video I finally understand why it's good to have (aside from USD's inflation).
The funny thing is I always used to be broke but I found that I could save in gold and silver. I went from feeling like a total financial failure in 2013 up to bracket three today. I took the number of ounces of both gold and silver and times it by spot price. I also calculated it by the physical prices. Even at spot I am in the third bracket by doing nothing but saving in these metals monthly.
Nice! Well done :)
Good on you! Now you have an insurance policy that can be passed down.
Me too. I have never really sold any of my hard assets either. Money/currency or the lack of it, is never a worry to me now I have plenty PM's.
Gold makes me feel like a better provider and a more competent man. Maybe sad and shallow but at least it’s something that I’ve found peace in life from.
When I have free time I review the old Belangp videos. Reviewing the videos convinced me to take action and I feel I am well protected. I really appreciate all your excellent videos and having them on line. You are logical, intelligent, and I really admire your intelligent approach to a very confusing subject. Great job. You are very appreciated by sincere intelligent subscribers. Remember gold is money. Currency is not money. Currency is debt, with counter party risk. Gold, real money, has no counter party risk.
Thanks Jack. I appreciate the compliment
The same people that act as gatekeepers and urge people to put their money in stocks and real estate, are the exact same people hoarding gold and silver.
correct
Same with Crypto. ...
@@CosmicSeeker69
Crypto is false
@@belangp if i were starting off. Would it be better to stack silver also? If you are in a tight budget?
Well said.
That lottery ticket analogy is the best way I've heard it explained. Nice work
Close to a 40x upside for a maximum of 50% downside. Sounds like a chess move rather than a gamble to me. Thanks for sharing
Thanks for watching!
@@belangp are there similar charts for silver?
@@ju2wheels Silver is difficult to value the same way because the very wealthy focus their attention on gold. I imagine that the distribution would be skewed more towards the bottom of the pyramid for silver.
@@ju2wheels Silver and Gold have its advantages and desadvantages. Best you got both.
@@belangp Not in my case. Albeit in the second tier, I envision SGR tightening up fairly significantly as industrial demand picks up and supply shortfall continues. This is why I accumulate silver, in the belief I’ll be able to convert it into far more gold than I can now at some point in the future.
The importance of knowing the real game to play. Thank you Paul for increasing the collective gray matter 🧠.
you're very welcome :)
As a stacker, I started off buying silver only for first 2 years then in 2017 I stated buying 1/10 oz gold too. Then a few British sovereigns with my silver. I’m probably at 1;300 gold to silver
It’s stunning that many people so mal-educated regarding finances.
It's nice to know that my 6.1 oz of gold would put me in the top 11.1% lol. I hope to hit 10 oz this year.
I know right! I'm trying to hit 20ozs total this year and I feel anxious...
puts things into perspective doesn't it? If you're over 2.5% of your wealth that means you are beyond the levels the average person has allocated to gold.
That's Incredible
Keep Stacking
Even Buying 1 / 10 th Ounces , 1 / 2 Ounces , Etc Count .
Assets Are What Matters .
Assets Make Income , Assets Keep Their Value .
Paul, what happened? Why did you stop creating amazing content? We really miss you. Please consider producing great content again.
I'll think about it.
Really appreciate the info and perspective you present.
Man I love when you do these videos about gold's possible potential. I know that a scenario like this is very improbable, but it is fun to daydream about it coming true anyway isn't it? And aside from the obvious benefits to gold holders, it seems like it would restore at least some semblance of balance and sanity to the markets, which would be a huge relief after a decade in fantasy land.
It's a possibility that may come to fruition someday. Only those who are holding the metal will benefit.
One of the best educational videos I have ever seen on the vast subject.
Bookmarked and subscribed.
Would love to see this chart taking Silver into perspective!
It's tough considering the fate of silver. It was demonetized in 1873 for a few reasons: 1) the wealthy controlled most of the gold, 2) gold was more scarce than silver and more difficult to expand its quantity through mining such as from the Comstock lode, 3) it is much more wealth dense and therefore easier to store and transport. All of these factors are true today which is why the wealthy accumulate gold. I'm sure some hold silver, but most of the world's PM wealth is in gold.
@@belangp Silver is simply good for day to day transactions.
@@belangp Gold and Silver have their + and -. Best you hold both.
Very sombre , practical n pragmatic take on safeguarding material abundance n wellbeing. Abraham Maslow did that take on hierarchy of human needs n spiritual aspiration in his Pyramid of Needs.
Very timely n very much needed info indeed in this troubled times of media spin n intentional misleading sponsored n vested interest mass media...
GodBlessings Be With U Always n In All Ways.
Thank you. And to you too
U should do this will a silver ratio to ima try to Hit the 14 OZ of Gold but what’s a good silver number too?
Gold, I got sum. The lottery ticket analgy was on point. I think we should see the drawing this year.
we might.
Really interesting way of putting it at the end! I'm an oz off the 14, best sort that out next week 👍
Awesome! Good job!
Had to come back Paul and watch again, intriguing is an understatement
i really like your voice and the entire way you gave this talk! 👍👍👍 great message about gold and how it’s like a lottery ticket you can always sell
2023 and I’m still referring to this excellent video! 👍
Thank you, Paul! How about adding central bank holdings into the numbers? It might shed some extra light on the matter. Anything that helps us not paying attention to the fluctuations of the gold price is of great service.
You raise a good point. I don't believe central bank holdings are factored in. Maybe they should be.
Your videos have become one of my weekend joys. Would be interesting to show a pyramid chart with the actual holdings of gold in different net value classes and compare it to the proportional chart.
I'd love to be able to make such a chart. Unfortunately the data is not available
Great video. Many thanks for your continued commitment to educate us.
you're very welcome!
That was an earth moving explanatory presentation Sir thxu. Would be interesting to see your take on silver in this format
Hey BP, didn’t you do an update of this video more recently? Was looking for it but couldn’t find it. A relative has gotten into gold, trying to show him all the good stuff
i'm in the .5 ounce bracket, so i have 14 times what i should.that's a good feeling. so 1 oz. for every 70k would put me near 500k. i'll need to double that.i was too dumb to know until now that i've been a genius!
lol. Well done on the 7 ounces. It's more than most people will ever own.
This makes just paying a little extra for fractional coins seem insignificant.
good point.
I like British Sovereigns (.245 oz) because they have low premiums.
@@1000shekels Look at Austrian 100 Coronas.
I like the Swiss Francs for these smaller coins. There's some rare pieces from 1893 too which makes it a nice collectible.
Absolutely correct. Also consider the concept of "Change". I keep a certain amount of fractional gold around. The majority are 1oz coins. I also consider my silver as "Change" with exception to a few collectibles.
Hi Paul, hope all is well mate.
At 9mins in.... Those below $1million (87%) know of gold, we can't change nature. I agree with you there are those who have been mislead on gold and it's purpose...however there are those who unfortunately can't afford it.
Half of the world lives on less than $2 dollars a day! (recently adjusted to $3-5 pd.. "inflation")
We should consider ourselves blessed with knowledge and wealth....especially with what's happening now...
agreed.
Nice video, i am only 22 and own 1 oz of gold currently, cool to see im doing better than 88% of the population. I do want to grab some more but i just cant afford it atm.
Patience and persistence. You'll get there :)
Good going..keep stacking..this is a marathon not a sprint
Silver also doesn't hurt.
@@davidzoller9617 Ive got 15 oz of silver aswell just want to keep a good ratio, looking to buy another oz of gold next
@@sadhigeki901 I bought/buy gold when I get a check that I don’t need, which isn’t all the time but does happen once or twice per year. Look back 10 years and that’s 20 gold purchases.
Fantastic content as always. A lottery ticket that lasts forever and can be passed through the generations. Thank you so much for your thought provoking videos.
Glad you enjoyed it
Lottery tickets passed generational.... Rich been doing it for centuries, we're 200 years behind. Playing catch up and crippling the market over time now. Few years out, but significant progress through 2020
Excellent video. I always enjoy the data-driven, and fact-based analytical approach you provide. Very helpful and refreshing. Thank you.
Wonderful to hear your voice. Hope you and yours are doing great!! Thanks again.
Thanks! Yep. Doing well. Last day of work was today :)
@@belangp: Allways good to hear my friend!!
Well this makes me feel pretty good! Great video
Awesome! Thank you!
I'm giving 1 gram of gold and 1 oz of silver to a high school graduate to start his long term saving and explain to him how precious metals hold value with time. Hopefully it will help him in the long run.
Awesome! That's a great idea.
Nice! Greetings from Eastern Europe!
Hello there!
Interesting. Great info as always Paul.
Glad you enjoyed it
Very well done. The lottery ticket analogy is a perfect summary. The average investor in the second highest bracket would make a bet on GME. Why not use $25k to buy a lottery ticket that will never go to zero. Imagine that.
Gold Get you Sum///Heck Yeah !!!!!!!...very good job..sir
thank you
Great Vid , as usual ... and glad to know my stack has the potential to catapult me to the 1% ...
BUT ... Does stacking Gold / Silver make the Global Wealth Pyramid a lil inaccurate ??? As our Private storage of Metals will not be included in their calculations of individual's wealth ...
Brilliant analysis Paul. Thanks a million!
Your proposition previously known as the 100 club will certainly ensure one will be able to achieve position at the apex of that pyramid shown!!
The only caveat of the concept of Club 100 is a very hard journey to get there and if one starts young in life, it is feasible but not for those at near retirement!. That's life, hindsight is the beautiful thing, always??
Patience will always be rewarded :)
hehehehhehe ,,,, Great vid Belangp ,, love the lotto ending . Good hearing from you so soon
Glad you enjoyed it
great info. thank you for putting this together.
Glad it was helpful!
Great video, I was wondering about this. (A question: this is in regular ouces instead of troy ounces, right?)
troy ounces
@@belangp i guess that's even better :D
All pm's are in Troy ounces 31. (fractional). Welcome to the club
just maxxed out all 8 of my ccs to buy 40 ounces. hope I timed it right :)
😂go big or go home. Now save some currency
This video got better and better. Thanks.
Nice job, as usual, I just want to pick your attention to one point that most of the people who are < 10K USD wealth are living in poor countries and in a country like Egypt for example because of the culture each woman minimum own about 3 OZ of Gold, and if we consider that woman form up 50% of the population of 100 million, and the same goes for all the middle east and South Asia, there is a lot of Gold in each household, it is only in the western world your assumption is correct, I live in Canada and I can see that, the other point is most of the people in the west are in debt their net worth is actually negative, while the rest of the world population own what they have it might not as nice but they do own it no worries about mortgage or car payment or loan payment or student loan, etc.
I agree. There is likely a much larger concentration of gold in developing nations than this analysis would suggest. In some countries the love of gold and trust in gold is cultural. It may become that way once again in all countries if there is a currency crisis.
thats not correct. the germans have arround 9000-10000 metric tons of gold in privat hands, if my calculation is right, then every citizen from baby to old, has 3,6 oz. so not every western country is without gold.
@@stevenbodum3405 Good for the German people
@@stevenbodum3405 %100 correct. They learnt the hard way because of the Wiemar Republic day's in the early 1920's. Cops were dragged off their horses and the beasts were torn to shreds for food. The government there encourage gold ownership.
Really good video!!! Do you have one for silver ?
Hey belangp,
I may be getting this wrong, but I don't understand how one ounce of gold could protect 70K (denominated at the current dollar value in your example) of wealth in a practical sense.
The video seems to assume that all value in the world is and would be denominated in gold only, and it's not. Much of that 418 trillion dollars is held in other assets like art, real estate, stocks, even livestock are considered part of that total world wealth.
Gold holds (and slightly increases) it's buying power over time.
But if for example, an ounce of gold currently buys 1,750 dollars and 1,750 dollars buys a cheap horse. Then I would have to have 563 cheap horses, or 563 ounces of gold to protect a the current buying power of a million dollars. Right?
@James Lovelace Thanks James, I missed that part.....
In a previous video you came to the conclusion that 18 ounces would make you a millionnaire, so the numbers roughly checks out. However I think in a crisis most of the gold would stay in the 1% hands so its price might not go up as much, but who knows ...
What I like with gold is that it makes me feel safe. Can't say the same for stocks or cryptos, or even cash nowadays.
The price would go up relative to the worth of all of the other investable assets.
@belangp - last time you went over this data, if I'm not mistaken, it was "18 oz = top 0.3%", or something similar? Do you notice any change in the data from last time you did this analysis relative to 2021? ie - had someone held 18oz at the time you did this video last time (some years ago, using a previous but similar data set), where would this same amount place one, based on the new data?
May be an interesting way to show a shift in purchasing power retention or progress in the skewed distribution.
Thanks!
I guess what I'm asking is: how did the 18oz based on the previous video compare to 14oz on this new 2021 video? Does this in some way mean that over the span of time in between the data sets you've used, the individual that before needed 18oz, now only needs 14oz, and thus enjoys a net "dense savings growth" of the extra 4oz, which considering 85% only end up with .5oz at best, these extra 4oz, using today's data, appear to demonstrate the power of holding this metal. Or is this inaccurate? Thanks again!
Hi Pablo. I had a couple of videos where I discussed the wealth pyramid. I don't remember where I said 18 oz = top 0.3%. I do see that the Credit Suisse wealth pyramid from 2016 shows that a $1MM net worth or above corresponded to the top 0.7%. If I go back and redo the calculations I did in this video based upon the 2016 wealth pyramid I obtain the following results.....
There was an estimated $255.7 trillion dollars of total wealth according to Credit Suisse in 2016. In 2016 I estimate based upon mine production numbers there was 5.57 billion oz of gold. This means that there was $45.9K of net worth for every oz of gold. The $1MM net wealth level was the cutoff for the top 0.7%. This means if gold were distributed in proportion to net wealth it would take 21-22 oz to make it to the top 0.7%. In this present video of mine I calculate 14 oz for the top 1%. It's a difference of roughly 50% to go from the top 1% (in 2020) to the top 0.7% (in 2016).
Now the question you raise, which is a good one, is has anything changed materially? I don't think so. If you take a look at the second slide of the current presentation you will see that to go from the top 1.071% (yes, when you add the numbers up it turns out to be 1.071% and not 1%) to the top 0.133% it requires a 5 fold increase in wealth. Thus the population that has one eighth the number of people has 5 times or more wealth. If we compare top 1.071% to 0.7% it's a difference of about 50% more people in the former group. So if the wealth distribution were the same in the upper echelons back then as it is now then we could fairly expect that it would take 30% more wealth to be in the top 0.7% than it takes to be in the top 1.071%. This would be 18-19 oz. Is 21-22 higher? Yes. Is it meaningful? Maybe.
Good question!
@@belangp thank you very much for addressing the question and going back to look at the data. If in 2016 1oz covered 46.4K of wealth. Today that same oz covers 70k of wealth, would be another way to look at it?
Gold seems to have served its purpose during these few years as well - a stable way to account for this rapid growth in global wealth.
Thus the person holding 1 oz in 2016 should theoretically have "gained" by being able to accumulate at a cheaper paper price far easier than in 2021, where it's become harder to accumulate relative to before. Both availability and cost wise.
3oz per year stacked since 2016 for example would have the stacker already at the 14oz mark, whereas starting the same endeavor in 2021 seems more difficult to do, as the wealth gap has only grown over these 5 years - during which global wealth practically doubled :)
Thank you belngp. Your evaluation of how many oz one needs to own ends prematurely once a stacker makes his or her way into top 1%. It is very instructive to understand how many oz the bottom 88% needs to catapult into the top 1%. Can you Please elaborate on what it would take in number of oz per individual not only to maintain ones wealth in the 1% but to move up the ranks specifically in the top 1%??? My wife and I will plan accordingly. Thank you for your thoughts!
This was a good one to make you think. Thanks
Glad you enjoyed it
Very interesting take I never thought of. Thank You, eye opening.
Do you have report total wealth before and after 1970 crisis?
I don't.
great video, thanks ! me ? 100% in Gold bullions, nothing less.
Thanks for the compliment. I think there's nothing wrong with a very heavy gold position so long as you understand gold and don't mind its volatility.
@@belangp took me 30 years to understand Gold is the ONLY money, and all the rest is paper crap. Once understood, hard to go back. Your videos are brilliant. Thanks again for opening our eyes and mind.
@@StephanePasquierThailand It is so true. "Once you understood it is hard to go back". Most of my friends do not understand why gold is necessary, they just see wealth in terms of currency and life on credit.
Fascinating vid! What role if any would silver play in this?
It's not clear what role silver will play. The total above ground stock of gold about 6 billion oz with a value of about $8.4 trillion. My best guess on silver is that there is an above ground stock of 15 or so billion oz, which at today's market price would be worth $370 billion. The fact that the above ground gold is worth close to 23 times that of silver tells me that the world's population uses gold more as a store of wealth than silver. Some still use silver for this purpose, but over time it's role has largely transitioned to industrial use. This is confirmed by the fact that all of the major central banks have gold on their balance sheets as monetary reserves, but not silver. Will the world re-discover silver's monetary uses? Hard to say. That's the wild card. If they do then it could be very good for the price of silver. If not then I expect the gold to silver price ratio to continue to increase, as it has for the past 150 years.
What I don't hear in your explanation is how possessing gold in the amounts you assign to each wealth bracket is going to protect the wealth of individuals within the bracket. For example, how would possessing 4 oz of gold protect the wealth of an adult in the middle of the $100,000 to $1,000,000 bracket?
Holy #*&%!! Didn't realise yet I'm already well in the top 12%, while about 15 years ago I was in the bottom 55%.
Nice job!
Great educational vid! Thank you ! One question though. If we would take the paper derivatives into account as well, how would that change the calculation on this pyramid ?
It might. Derivatives are a tough call. They are a bet on price movement. For every long there is a short, so it may be that they would all net themselves out.
@@belangp thank you for your response and that makes sense. However what if every ounce has multiple owner paper claims in etfs or unallocated metal pools for example ?
Wow. Did I finally understand the an entire BelangP video? Nope. No way that just happened. I must have missed something. I better go back and watch again.
LOL. I better work harder next time! ;)
Ok now you need a followup video, a part 2 where you show what you would do in a venezuelan type currency collapse to use that gold to continue to live comfortably or get you income flowing again.
That's a worthwhile video. Thanks for the suggestion.
I think Paul done such video some time ago. At least it was similar to what you requested. Outcome was that gold allowed you to buy about 4x more than it did before crisis.
Well Done Buddy Definitely an eye Opener! Especially the Gold Chart! 👍😊
Thanks 👍
Wow this video made me feel really good about myself, thank you
You’re welcome 😊
Just waiting on that calamity. Lol
@ 9:35…. These are the weak hands.
Spot on.
thanks.
Awesome. Thank you for this video. 💯💯💯
Interesting thought process.I've been asking myself that same question. By your calculation I'm in pretty good shape. :D
I feel better, I have more gold than the average person (for my wealth that is)
Excellent! Well done :)
Good money appreciates..noting the last calculation in 2019 was 61 oz per adult for the top 1%..get you some
get you some.
14 oz... funny that's just what I have in gold. It tough it was to much.
Good video, very well explained.
And it's also a lottery ticket that could pay off any time over the course of decades, and that you can pass along easily to anyone else.
exactly
Great works, thanks for the video!
Thanks for watching!
Does 500 oz.s os silver eventually equal half a million or 1 million dollars?
Don't know. I have trouble imagining silver with a $1000 per ounce price tag unless a hamburger costs $200
@@belangp if you give gold 70k $/oz price tag, silver could easily hit 5k. With current mining ratio (1:7), then 10k silver would be possible in those extremes
Absolutely Narkus.. just finished listening to the video.
I don't think all things will go up that substantially if gold and silver ever get their spot in the sun of vast quadrillions of man created fiat dollars of wealth.
@@frankbehnke6062 I agree. Most things will go up, but not nearly to the extent that the PM's do. I'm looking at the 70's as an example.
Since the nineties I have held Silver , every now and then I review its price. My Silver is insurance
Lain and simple. Portable , insurance. Having listened to this video 14 oz of gold makes sense.
Great information, I just subscribed.
Very interesting. Are you familiar with Exeter's Pyramid? Your video brought the concept to mind.
Hi, Paul! Do you think it's wise to keep half of my wealth in gold? I think 2.5 or 5% gold holdings is not very much.
It's a funny question when you think about it. Back before 1971 the US dollar was defined as a fixed weight of gold and could be converted (by foreign entities only) into gold upon demand. It was therefore defacto gold. Nobody asked the question before 1971 "is it wise to keep half of my wealth in US currency and dollar denominated bonds?" It was assumed safe. Now there is no ability to convert the dollar into anything other than dollars, yet it is the dollar that is considered the safe asset and gold considered unsafe! Do I think it is unwise to keep half of a person's wealth in gold? Not so long as the owner truly understands gold and how it is valued. For most people I think a much smaller amount is prudent. Only own as much gold as your level of understanding allows you to be comfortable with. If you are asking the question it means you may be second guessing. In this case you may not deal well with a sudden and unexpected price drop. You might consider lightening up a little, maybe not as low as 2.5%-5%, but enough so that you are no longer nervous :)
@@belangp Thank you for your comprehensive reply, Paul!
30% of one’s wealth in gold would be a huge commitment to the yellow metal, I’m passing 10% in full stride but will probably slow down at 20%. Maybe hit 30% in my 60’s but I plan on stopping once I hit one ounce per month of life expectancy. Then it’s time to start spending it, kids were taught how to learn and earn, they’ll only get some if I die earlier than expected
If someone has 5M how much gold ounces should have for wealth preservation?
72 at $70K per oz
Gold, get you some!
indeed!
Excellent information thank you
You're very welcome!
The Gold Club and belangp is the President / CEO. 💰💰💰💰 Get you some. 👍👍👍👍
get you some!
If you believe gold/silver is going to decline, you can hedge your physical holdings with paper shorts. Everyone talks about JPM shorting the silver market. At the same time, aren't they the largest holder of physical silver in the world?
Nobody talks about how JPMorgan shows gains on nearly every trading day in the metals market. It's no surprise they do. It's because they act like a bank (they ARE a bullion bank after all). They play the term spread and are immune to price fluctuations as a result.
I agree with the main idea, but you can see from the US debt clock website and historical gold prices that even when gold and silver were used as money, gold and silver were valued slightly less than just a straight conversion from total dollar amount to total gold amount. I would guess this happens because people also store their wealth in land, stocks, paintings, etc. Gold has to compete with bitcoin now too. But if the maximum theoretical price of gold in today's dollars is $25k, it seems totally reasonable it could easily go to $5k or $10k even with the influence of those other things, so the main idea that it is good to own gold is still true.
Do a few calculations based upon the currency crisis of the late 1970's and you'll see how gold preserved the wealth of the creditors during a currency crisis. We don't have to have an explicit gold standard for gold to serve its purpose.
All my Fiat is in Gold and Silver 100% real Money.
5:24 Not half of one percent, but less than 1/25 of one percent.
I misspoke. Good catch!
9:25 … it sounds like you are talking about investment gold, and yes, people in the 10/100 band do not appreciate investment gold. BUT I suspect people own gold in the form of jewelry, and yes, they do appreciate it in that form
Awesome Video! Thanks Paul ..
My pleasure!