gold news

 Now you've got all of Europe involved, all of Asia involved. So when all of those people start questioning what's going to happen to a dollar, right? You take into account the fact that the dollar, I think I agree with you, that the dollar is very much poised to probably drop in value soon. You're holding all these securities. You've got these tariffs that they're viewing as an aggressive affront against kind of their own economic position. What do you do? You buy gold. you move into another tier

one asset that allows you to protect at the end of the day the functioning and authenticity of your central bank. So, I'm not surprised at all that we're seeing gold run right now. Not at all. Hello everyone. Welcome to Bald Guy Money. I'm here with a special midweek video. I thought with everything that's happening, it would be great to sit down once again with the man who basically invented retail internet stock trading. His name is Eric Roach. He's also the founder of Summit Metals. Eric, thank

you for coming on with me here on the midweek and welcome to Bald Guy Money. How are you today? I'm doing great. Thank you. I'm excited. We've got a lot to talk about. Absolutely. Um, you know, I I just want to get right into it if you don't mind because the market has been absolutely crazy over the last week. Stocks crashing, then rebounding. Now we see they're crashing once again. That said, gold has held up extremely well and it's already made a new nominal all-time high today, having only

modestly pulled back over the last couple days. We saw only a modest pullback yesterday. Uh, so far, of course, you know, we don't want to get ahead of ourselves. It's only really the first week of this bigger correction, I think. Um, now you've appeared on the show before, and as I just said, my viewers know you as the man who brought internet stock trading to the masses. But Eric, to start this one off, could you please tell my viewers about your Wall Street background, including your

time at Morgan Stanley, and give us some insights as to what you learned about how gold behaves during a major market sell-off like the one we're seeing right now and why we usually see gold recover so much more quickly than other assets. You know, the first thing that really strikes me right now is, you know, I'm looking at some of my stats here. I mean, in the month, gold's up almost 9.6%. What are we like 15 days in? It's like insane. And for the 3 months, over 18%. What an incredible asset we're

holding and continuing to buy on kind of our dollar cost averaging plans, which I know you support as well as I. I think it's the right way to do it. But, so, let's back up uh wind back the clock. So back in early I think it was 1992 or so I was at a business school and I wrote a strategic plan on the convergence of technology and finance that was at Pepperdine. And while I was there I just kind of came away feeling that this was the future. So much so that I literally left the business

school to run out and start it. But I remember very distinctly sitting there with uh you know one of our lead engineers and we turned it live on the internet. The very first place people could buy or sell stocks online and I remember like a name just almost instantaneously like popping up on the screen. You know the old kind of like the green tickers, you know, where you see a a name and data come across and then another one and then another one and it's like oh my gosh, we're just sitting there just going, "Look at this.

All these people are coming in." Because if you think about it, we were the very first place anyone could get a real-time stock quote. They could see a real-time graph of stocks. It was really the first place anyone could buy like a meaningful asset on the internet. So anyway, we uh we built that business. It grew very very quickly, you know, went to hundreds of employees with billions of dollars in customer assets. At that point, I was approached by a number of different players. Bank of America, uh, Morgan

Stanley was the one I ultimately did the deal with. I really like the people, the chairman at the time, Phil Purcell, and the president named John Mack. Just incredible leaders. And so anyway, I sold. But about six months later, they came in and said, "Hey, you need to come to New York. Like, what you're doing is pretty great, but you need to come to the let's go to the big leagues." You know, kind of that kind of discussion. And I said, "Let's go." So up, moved the

whole family, went to New York, worked at Two World Trade. Um, I was there and then we had an office down at 1585 Broadway, the Morgan Stanley headquarters. So I was kind of positioned in the Dean Witter side because of the, you know, retail brokerage aspect of what I did. And you were a VP, if I remember correctly, at Morgan Stanley. Yeah, I was an executive vice president of Morgan Stanley. That's right. And uh anyway, that's what I did until I rolled back to Silicon Valley to start, you know, working on a different

project. Now uh your question, gold. So why does gold get hit? I think that's kind of what you're leading to, right? Why does gold get hit even when the market goes down and even the fun and then recover so much quicker than other asset asset classes? Right? So my my two cents on that is when you're working in retail brokerage or pretty much all financial services, many of the people are on margin. And those people that are on margin, when all of a sudden the market starts diving, they start getting calls. And

those are calls of immediacy where they're saying, "You have a call, you have x amount of time, and we're talking often sometimes even in minutes to resolve your issue or we're going to liquidate your position." And so what often will happen is and they start looking to an asset that's maybe not gone down, gold or something like that in their portfolio, they liquidate it immediately so that they can meet a call, right? And then that kind of cycles very quickly as the market got

hit. Just as fast as it got hit, those margin calls are being responded to. Then once that's done, then kind of the natural effects of the underlying asset, in this case gold and maybe even silver, they start resuming kind of their normal course of where they were. So that's why So Eric, if I can just jump in there and ask and ask you a question here. So the popular movie with Jeremy Irons, Margin Call, I'm sure you've seen it. So when they sat down at the table and they said, "Sell it all today." That's not

really an exaggeration of the truth of what's happens sometimes in these banks during a crash, right? Is 100% accurate and it's it's often we we need to we need to take action on your account on this call. So getting back to gold then why do we see it recover so fastly after so quickly I should say after those margin calls happen? I think because the pressure on the asset is now gone, right? Because whatever the whatever the calls were to raise funds are effectively over or certainly

diminishing. And then at the end of the day, when you've been whacked by something, you start looking for security. You know, it's I mean, it's a common thing, right? You're looking for a safe asset, a safe haven. Gold happens to be that asset. And that's why I think you see it start responding quickly. you know kind of the the you know assets moving from one you know asset class to another they typically in bad markets they move to precious metals. So moving on to the next topic. I've argued that

these tariffs and their unpredictability only increase gold's status as a needed safe haven, as you've just said, safe haven and reserve asset for central banks around the world. And it's the logical alternative for China to replace dollars in the case that they sell off more of their dollars, which we may be potentially seeing right now. It it seems like they may be unloading some of their treasury position. Eric, the question that I want to ask you is, do you think that maybe I'm jumping the gun

on this assessment or do you think the last week has strengthened gold's position? Because that's how I see it as the logical play in this market right now and has it taught us anything important about having gold in a portfolio. Yeah. So, I would kind of look at that in a two-prong, right? So one for me, if you remember when Biden froze Russia's assets, right? That sent a very strong signal to many central banks around the world that my dollars are no longer safe. At that point, you

started to see the bricks thing come to fruition. You started to see central banks really truly loading up on gold. Now tariffs have entered. You can't tell me that didn't create an equal if not greater fear now not only among the countries the Russia and China and countries like that who are sometimes kind of viewed on the periphery of kind of the European you know American model now you've got all of Europe involved all of Asia involved so when all of those people start questioning what's

going to happen to a dollar right you take into account the fact that the dollar I think I agree with you that the dollar is very much poised to probably drop in value soon. You're holding all these securities. You've got these tariffs that they're viewing as an aggressive affront against kind of their own economic position. What do you do? You buy gold. You move into another tier one asset that allows you to protect at the end of the day the functioning and authenticity of your central bank. So,

I'm not surprised at all that we're seeing gold run right now. Not at all. So, if you're a regular retail investor in China, your options are really limited. You know, maybe you've had stocks, the the Chinese stock market, some real estate, and gold. Those are those are your three realistic options if you're a Chinese retail investor. Now, we know what's happened with real estate. Uh it's it's crashed in China over the past few years. We've heard about ghost towns, etc. Now, on the

stock market side, you're seeing a major risk opening up in that if you buy a Chinese stock, Donald Trump at any moment can crash the value of your stock just by making an announcement. Do you think this is also going to move a lot of money from the retail investor in China into gold, which we've already seen some momentum, but do you think that this will increase that momentum? I think for that reason and one for even bigger and that's for China to get out of their hole, they need to drop the

value of the wand. Right? So if you're if you're a every everyday, you know, worker in China and you know that your currency is getting ready to debase and debase hard, you have to buy gold. They literally don't have a choice and it's liquid anywhere in the world right now. you're not subject to just liquidating it through China. So I think all those factors you mentioned and the devaluation the future what I think China to circumvent or to try to enhance their position in their you know global

market for distributing their goods is going to try to drop the wand. I think they're absolutely going to do that. And if again if you're holding a wand, the only thing you can do there I believe is buy gold cuz like you said real estate's a little off the table right now. That's a great segue to the next topic that I want to touch on. And you know it's a bit of a crazy topic but around the world we are seeing precious metals dealers and retailers running out of stock especially on their most popular

products. And that applies to both gold and silver. And I've told you, we've had discussions about this and my viewers also know that I've mentioned this both here on YouTube as well as on X about what I've seen in Europe with the availability of some of the most popular gold and silver products. I'm also hearing that stocks are very tight on the retail side in Asia. In fact, a Patreon member, I don't know if you were aware of this, one of my Patreon members recently converted to Summit Metals

because his dealer in Singapore wouldn't sell to him unless he was going to buy $15,000 or more worth of precious metals. So, he's decided to take delivery of what he wanted to buy at his home in the US. So, the question is, and this has nothing to do with trying to spread fear uh to people that we're going to run out of silver and gold imminently. That is not what this message is about. But what I want to ask you, Eric, is are you seeing stocks come down? Because I've said that the that

American consumers on the retail side have been a bit spoiled lately as as there was a glut of people turning in their silver especially into the retail selling it around $32, $33 an ounce. My question to you, Eric, is are we seeing those stocks coming down? And if so, can you see a situation in the future where premiums begin to rise significantly again due to the low stocks in retail because there's just going to be more competition for a limited amount of stock. Yeah, let me take the latter

first. So, regarding premiums, I mean, every market is supply and demand. If supply does become limited, I do think you're going to see premiums start to go up for sure. Now, as regard to the American consumer, which would be the one diminishing our current supply, I don't think the American consumer is on board yet. I think that although the Asian communities and others around the world recognize why they need to be in gold now, I think the American consumer is just starting to figure that out. And

as a result, I think that our inventories are still quite good. I can tell you there are some areas where we're tightening. I know we were uh buying a lot of uh American gold eagle quarter ounces today just to replenish our inventory and we were told there was a slight delay on it which is very unusual for an American Eagle but I also notic ounce too right a quarter ounce. Yes. I I saw Does that signify that people are moving into that fractional gold because maybe they're being priced out of the bigger pieces? I I think they

absolutely are. Um, and I also though if you you can probably find this somewhere, but I saw a print where the American the US Mint was showing how many coins they produced this year and it's down dramatically. And I think that's a result of them recognizing that the American consumer is not yet completely on board. So I would expect that to ramp as as demand increases, which I think it clearly is going to do now. But if I'm being honest, I don't think the real supply issues are have

hit the US market much as it has the rest of the world. Okay. So, I recently said in a video that trying to pick the bottom in any market, whether it's stocks or the precious metals market can be impossible and especially in this precious metals market. And I've said that this pullback we're seeing or that we've seen, you know, maybe gold has erased that pullback for now. Uh this pullback is more of an opportunity using the time we have now to stack rather than it is an opportunity of picking the

exact bottom price to buy at. Kind of like what we saw when rates started going up in 2022 when gold and silver prices corrected for about 7 months before reversing. And that was kind of an opportunity of time. It I I looking back at it today, you would take any price within that seven-month period to buy at. And I think a lot of people who were looking to buy the bottom, who were getting greedy, who were always looking for a price just a little bit below where we were, missed out on that opportunity. Now, you mean you're not

waiting for you're not waiting for 250 on the price? I'm not waiting for 800, but I will get on the phone with Harry Dent shortly and ask what price I should be looking out for. Uh, what I want to ask, Eric, is judging by the reaction of precious metal stackers around the world to this latest pullback, I get the impression that enthusiasm around precious metals remains high and people are more aggressively buying the dip than maybe they have in the past. Maybe that that sense of urgency is starting

to sink in a little bit. So my question to you is, is this greed kicking in and people trying to make a quick capital gain or do you think this is loss in confidence as it relates to the global financial system or is this something else? Yeah. So I I mean to me it kind of comes back to the base fundamentals, right? So I I like to look at it I'm I'm not sure I'm answering your question exactly right, but let me give it a shot, I guess. So what I'm what I'm seeing is that when the market dropped down over

this last week or so, there were definitely people buying. Congratulations to them. I mean, they were a lot of times the buys happen for purposes of FOMO, right? Like, you know, they they see it going up and they start buying as it's going up and that's continuing. But there were definitely this time people buying when the you know, when it got hit pretty hard. They were not afraid per se of it going lower. they were actually going in and it turns out they have been richly rewarded for that. To me though, the

reason for buying gold hasn't changed just because we have tariffs or just because we have a market doing this or that. To me, it kind of comes down to these base fundamentals. I always tend to think like this and ask myself these questions. Do I think the dollar is going to continue to debase? Number one, right? Do I see inflation increasing? Do I see the world in an increasing level of chaos, tariffs, wars, petulence, you know, all the things going on? 100%. Do I see world banks starting to back off

on their purchases? I see the opposite, right? Do I see volatility that's out of control right now in the stock market? I mean, what have we seen this week? It's absolutely incredible, right? Do I see the trajectory of the dollar itself, its own value, going up or do I see it going down? In my view, it's going to go down. And I think you probably agree with that very scenario. Peter Shiff said the same thing on my show, by the way. Oh, yeah. And then you kind of go back to kind of the base

fundamentals of how do we produce this asset, right? Are mining costs going down? are are vast, you know, locations of gold being discovered that are going to offset the market. And by the way, you could say the very same for silver. Um, and then you kind of an area you're far more sophisticated than than I am, and that's in the technical side. I think the technical side of gold is also very very strong right now. I mean, I I saw a thing that really blew my mind. And as a as a long-term investor, you I

think you'll appreciate this, but I think if you go back roughly 30 years, take who would you say is probably the world's smartest investor over the last 30 years? A Warren Buffett, right? That would be the obvious choice, right? Okay. So, if you invested in Buffett 30 years ago, fast forwarded it to today, it and gold are almost identical. Is that incredible? I mean, think about that, right? So, you've got and such a smart guy, so smart, so capable, and takes advantage of many, many

opportunities. I mean, he gets deals that you and I will never ever in our life get. And even with all that being said, gold is right there, but at a far reduced risk level in terms of owning the asset over all that time. And I think right and I think right now positioned to be even better as we go forward into the next, you know, months, even years. I still think we're at the beginning of a bull market. And of all the things we just discussed, I don't see any of them changing quickly. None. So that's why to

me the retail investor is starting to recognize these things. I don't think they're fully in. I think they absolutely should be. And I think programs like yours, Ball Guy Money, are helping people understand the why. So, thank you very much for that. But to me, this is a market that's just starting to really go. And uh we're in a great position to understand it and be able to act on it now before the masses come to the plate. And you know, it's funny you say that because I've always said gold

is kind of a no-brainer. It's investing for dummies. And yesterday I said something, you know, some people thought it was a bit controversial. I said gold is the cockroach of the investing world in that when your whole portfolio gets nuked, gold is the one thing that survives, right? Because there's always that uh that stereotype that yeah, the only thing that will survive a nuclear war is the cockroach. And I say, yeah, well gold is like that. It's been around forever and it's likely to be around

forever. So that's really uh an interesting fact as it pertains to gold's performance versus Berkshire Hathway which of course they have a whole team invested in making sure that uh that that portfolio performs as well as it does whereas gold it like I said it's a no-brainer right yeah well think of it this way too if you do consider him to be maybe the world's smartest investor which I do where's his cash right now he's not a he's not a gold bug But I can tell you where it's not. It's not in the

market. He's pulled all of his assets out of the market. So, he's playing defense, but he's also looking to play offense, right? I mean, he's looking for these markets to adjust so that he can come back in. But at the end of the day, the fact that gold is right there is incredible. And I don't think you or I advocate that our investors or our customers have 100% of their assets in a precious metal. I think it should be a much much smaller percentage. But the fact that it's doing what it's supposed

to do in the times when you need it most makes all the sense in the world why you need to be in it. Now just something unrelated on Buffett, you know, he started aggressively moving into that cash position last year around, you know, the beginning of summer last year. And if you look at that where the S&P 500 was then it was around 5200 5,300 which means people who are aggressively buying this dip, this is where Buffett started actually scaling out. this is a this is a point where he already said

this market is too overvalued for me. I can't find the types of deals that I'm used to finding and and I'm moving into cash. And I think that should be a cold shower to a lot of people who were aggressively buying the dip on Monday, celebrating it yesterday and now watching the next leg down potentially. Right. Yeah. I I to me if you think of it like a bubble, right? I mean the tariffs kind of prick the balloon, right? and all of a sudden you had this massive drop. Well, that bubble still

exists. And I think that's exactly what you're mentioning and what Buffett's responding to. He still sees the bubble. He always looks at everything from a value perspective, right? What's the PE ratio of the S&P 500? You know, all those kind of things, and they're still exceedingly high. Now, you've seen the Nvidia and Apples even come down quite a bit, but they're still really, really high. So there's a lot of room to go down just as I think there's a lot of

room to go up on the precious metals side. Now, you mentioned silver a minute ago, and a lot of my viewers are absolutely laser focused on the gold to silver ratio right now, and you know my view well in that I think it's a good indicator of bottoms and tops in precious metals prices where uh when the GSR is high, I think that's an indicating indication of a potential bottom or at least a local bottom for precious metals prices. And when the gold to silver ratio crashes, I think that's a that's a good indicator of top

for precious metals, at least a local top. Eric, I want to finish this video off and I'm very grateful that you agreed to to jump on this call with me to put out some additional content to people who are really concerned about what's happening in the market right now. Um, my last question to you as a person who has serious investment experience, former executive VP at Morgan Stanley, what do you think about the gold to silver ratio? And are there any other indicators that you use when doing your own analysis to aid your

decision making as it pertains to precious metals? So, I'm, you know, I understand why people are focused on the gold to silver ratio. I don't think it's actually a price driver. I don't think that silver goes up because gold's high. Does that make sense? And I don't think gold goes down because silver's high. Like I don't think that's actually you're it's almost like you're looking at the accounting after the fact. I don't think it's the thing that's

necessarily driving it. Like a person that's buying solar panel or you know creating solar panels and needs x tons of silver. I don't think they're going, "Well, let me look at the gold to silver ratio to decide if I'm going to make that purchase." I don't think that happens. And I don't think a central bank is going, "Wow, look at the gold to silver ratio is really high. I don't think we should be buying gold right now." I don't think that happens. So, to

me, it's an after effect. When you talk about the actually things that do matter, you know, from a portfolio standpoint, and we can maybe hit this in a future video or something like that. I think using more traditional financial means like measuring assets against like a sharp ratio or you know some of those types of things to me are what actually influence my decisions of how much and how often I want to be investing in precious metals gold or silver and and just you know just kind of off the top

what's always surprised me you and I had this conversation off the record a little couple of days ago I believe um it's really surprising right now when you look at the sharper ratio of all these different assets, real estate, S&P, even the MAG 7, base commodities, you know, the whole shooting match. It's indicating right now you should be close to 20% in gold and silver. That's far more than I would advocate, but that's actually what the sharp model is showing. And again, we're not trying to

give financial advice here, but the reality is that's what it says. And I do think that as more of the bigger money players, people who are managing assets for people who have large reserves, when they start understanding these things are going to start moving that client base into these assets for the same reasons we've discussed on this video. Eric, that's an incredible answer and I thank you so much for coming on the program again for this kind of spontaneous video to help get some more

information out to the people. Eric, I know that the Summit Metals channel exists. Summit Metals has its own YouTube channel. Where can they where can my viewers find you if they want to hear more from you? Yeah, just Summit Metals on YouTube. We're there. We're Well, I'm going to link you up in the video description below for those of you who want to see more from Eric because the guy's got tons of experience. He's got a big brain is what I like to say and he's a good guy. He's on our side.

He's on the side of the stackers and he's not out there just trying to make a quick buck off of anybody. So, Eric, thank you so much for coming on the program once again and uh I hope we can do it again soon. Let's do it. All right. Thank you so much. Talk soon. Happy stacking.