hey everyone welcome to bald guy money in this video we're talking about the revaluation of gold and silver the likelihood of it happening how it will affect you as well as things to look for in a what I like to call Doo hits the fan situation and this is a very important topic to cover because as it stands today there are about 180 currencies in the world for the 195 countries that are officially recognized by the United Nations and according to the IMF hyperinflation has occurred in 56 of those 195 countries since 1950


meaning of the 180 currencies currently being used 31% of them have experienced periods of hyperinflation and that number is likely higher as there are modern examples that are candidates for this club which I was unable to find in the imf's data and those are Lebanon turkey tury and Nigeria now we usually like to associate hyperinflation with backward or undeveloped countries but if history has proven anything it's that with the wrong leaders this can happen to you and as we look at this list of


supposedly developed developing countries where it has happened I want to encourage each and every one of you to watch this video to the very end because I am going to show you the exact signs to look for that will warn you ahead of time that you could be entering a period of hyperinflation or economic collapse now just before I start I want to kindly ask you to leave a like for this video and that will help YouTube recommend this video to people as opposed to videos like this it's really a battle for the minds of our youth and


your like will help this video reach them as opposed to again whatever this stuff here is okay so let's start with the revaluation topic and why so many people are talking about it right now in 1934 President Franklin Roosevelt of the United States seen here signed the gold Reserved Act into law now a lot of people like to associate this with gold only but the truth is that this law had huge implications for silver as well as gold and those implications were number one and that is that it prohibited the


ownership of gold and why I mention this although it's not exactly related to the topic of this video is that I know there are a lot of viewers out there who are concerned about this potentially happening again and what I want to say is that if we learned anything from the gold Reserve Act of 1934 it's that the government cannot successfully enforce a Prohibition on the ownership of gold any better than they were able to successfully enforce a Prohibition on the consumption of alcohol now moving on


to to a more important topic and that's number two is that this act revalued gold from $20.67 per ounce up to $35 per ounce and as a consequence of that it resulted in the price of silver increasing from around 29 cents per ounce up to the 50 C Level until later that year in 1934 the Silver Purchase Act was passed which revalued silver up to 64 and half cents per ounce now I could go on for a whole video about the history of this alone and if that's something you want to see let me know in the comments right now


but to make a long story short it wasn't the value of gold and silver that went up as a result of this revaluation it was actually the value of the US dollar that went down and as you can see here between 1933 and 1950 the purchasing power of the US dollar note declined by about 85% despite the fact that the $35 to 1 o gold Peg was preserved during this period and in a world where we talk a lot about the manipulation and supression of the price of metals here is proof of the ultimate manipulation


that happened under the so-called gold standard because it wasn't until Nixon removed the USA from the gold standard and in 1971 that the price of gold on the open market could enter an exploratory phase and catch up with all of the inflation that had occurred since 1934 and nothing tells the story better than this gold price chart so before I get to the doooo hits the fan topic I just want to highlight these points that are extremely important for those of you who think the revaluation of gold and


silver is a good thing and the first first point is that top- down valuation of metals resulted in long-term price suppression but created an opportunity in the early days for gold and silver owners as they could have converted their medals for dollars at the start and exchanged it for hard assets that were free to appreciate in value namely real estate number two supply and demand on a free market is the best determinant of the price of gold and silver of course minus any manipulation that goes


on by Banks but the data clearly shows it is better now than it was under the gold standard because the US government debased the dollar note at a forced Peg to Metals in addition to that I also added some things that I kind of consider future learnings that we can take and the first one is that gold and silver cannot be revalued in US dollars because they are no longer backed by the US dollar and as I stated before even if the US dollar decided to adopt once again a gold and silver standard the


fact of the matter is whatever Peg it is they decide to Peg it to it is actually a negative thing for gold and silver stackers and the second point is any bricks valuation or Peg to their currency will impact the dollar value of gold and silver positively as a result of increased demand for Metals driven by Contin and increased stacking by central banks who may try to follow suit and maintain the strength of their currency using Metals but this price increase will not be due to any arbitrary decision taken by the bricks and what I


want to warn everybody out there watching this video of is that they too will likely debase their currency versus their metal reserves just like the USA did now for anyone who wants to debate these points with me in the comment section my heart and mind are both open so please let me know what you think in the comment section I only ask you to please keep the comments clean and respectful and now on to the second topic which is what happens when things collapse so what actually does a doodo hits the fan situation look like and as


I demonstrated earlier it can happen anywhere so don't think that you're immune to it just because you live in a developed or uh industrialized Society no fiat currency is special in this regard and there are signs that show us when this is happening and I covered these signs in a video that I did in April 2022 and as a reminder to you here they are and the first point which I added specifically for the purpose of this video is that within an economy within a country you start to see high


rates of inflation this is the first red flag and the truth is we're beginning to see this in economies and countries all across the world so there are really a lot of red flags to see right now and once that starts happening people begin to lose trust in the currency they are using as a result Alternatives start to pop up and by Alternatives I mean alternative options to the currency that you're using within your given country and the first Alternatives that usually start to pop up are another country's


currency as we saw in Yugoslavia in the 1990s when the economy became dominated by the German Mark but it doesn't have to be another country's currency it can even be things like gold and silver which have been used as of late in Venezuela on a smaller scale or Bitcoin in Nigeria which has also been used on a small scale and why I've highlighted this second point in Red is because once those Alternatives start to pop up that's a very bad sign in fact it's a sign you need to get out of the currency


you're in as much as your day-to-day reality allows ows you to because it's only a matter of time before things start to get officially priced in the alternative currency and then moving to step four the market no longer wants to accept the official currency and step five it becomes worthless and sadly this is something that we've seen countless times throughout history and although what I think the bricks countries is trying to do is very interesting I do want to warn you all about this that no


matter what currency has risen to be the preferred one based on its Global Reserve status that trust is always broken and it is eventually replaced and just like the dollar could now be challenged by an alternative remember that the reason for this alternative has nothing to do with what we want as gold and silver stackers which is sound money it has more to do with the power that controlling a reserve currency gives the currency issuer and the bricks want to exert that power over other countries


just like the United States has for the past 50 60 70 80 years and that's why if you really want to protect yourself against a situation like the one I've just described it's extremely important that you hold gold and silver for those moments when things start to get out of control because no matter what alternatives arise From the Ashes of the economy you will be able to start over with gold and silver because they are hard assets that protect the value of your money today and if things really


descend into chaos your gold and silver will give you the resources needed to weather the storm and scoop up other hard assets at discounted prices which will undoubtedly improve your LIF style or your families once the dust settles now to this video's viewer question and it comes from a viewer who calls himself or herself dxgi and dxgi asked in the comment section of my last video why would you use your whole Nest Egg of metal to buy a property you could use your example and put 20% down on five houses or buy a


multifam now for those of you who haven't seen that video I spoke about when the best time to convert Metals into real estate is based on a tool that I created and put available for people who are members on my patreon and I think that's a great question from dxgi and what I want to say is that if you are comfortable leveraging yourself like that it's not a problem at all I personally just prefer to use cash and avoid debt because I am not trying to take a risky path to being very very


rich I prefer the guaranteed long-term path to become well off so thanks again dxgi for the question I guess at the end of the day it simply boils down to how much leverage you are comfortable taking on clearly I have a lower tolerance for taking on leverage than you do but that does not mean that taking on Leverage is the wrong decision or the wrong thing for you just because I personally don't like to do it that's it for this video I hope you enjoyed it if so please subscribe to the channel for more


content and to help my channel grow and if you want more bald guy videos as well as all the tools I use and as well as my monthly newsletter don't forget to sign up for my patreon and I will leave a link for the patreon along with all the sources to the data I presented in this video in the description as well as an additional link to the patreon in the pinned comment below and until the next time we see each other thank you so much for watching see you later goodbye