hey everyone welcome to my channel and welcome back to my subscribers this is bald guy money i am bald guy and today i am covering the ins and outs of uganda's massive gold discovery because if you have not been following this story uganda has claimed to have discovered about 320 000 metric tons of gold which they say is ready to be mined and could in theory double the world's gold supply so in this video we will cover what it means for the price of gold their alleged deal to mine it with the


chinese and i will also be debunking a few myths about this story that i have seen circulating on the internet and just before we start let's just take a quick look in at the price of gold right now here you can see we are trading around 1742 dollars per ounce and we've taken a little bounce off of that support area at one thousand seven hundred forty dollars that you can see we've bounced off of a couple times in the last year actually and if we take a look at the technicals according to


trading view where i do a lot of my analysis and get a lot of my charts from they have gold as a cell right now but what a lot of people aren't talking about is that gold hasn't performed well over the last month to six weeks due to the strength of the dollar really and i'll touch on more on that in a second but before that i want to say that gold remains king the largest of all assets valued at about 11 and a half trillion us dollars and way ahead of its closest competitor apple and i will say since we're looking at


that silver has dropped a spot it's been overtaken by amazon which i also own but that has a lot to do with this the dollar index which measures the strength of the us dollar relative to a basket of foreign currencies and as you can see the dollar rules and since commodities like oil which actually dipped below a hundred dollars per barrel in the last week are all traded in dollars it can seem like the price of things so some commodities are actually going down but for most people around the world


that is far from their reality because as i have said in past videos although i believe the dollar is ultimately doomed it will not disappear as quickly as some of its fiat colleagues from europe north america south america or asia including the middle east because if you think the usa has mismanaged c19 believe me other places have done a much worse job and have used the pandemic as an excuse to inflate their currencies even more than the united states did for example i was recently in poland and


that's actually why i took a little bit of a break from making videos and they published their official inflation numbers while i was visiting the country and what they said in july that their year to year inflation was 15.6 so if the government says it's 15.6 we know that number is likely closer to 25 or even as high as 30 in reality and i can tell you as a person who knows the country well the price is there and in general in the entire european union are going up rapidly as a result and and this is happening


around the world people are trading in their local currencies for a few us dollars just in case because as crazy as it is it is the ultimate safe haven currency so that is why a lot of commodities have actually started to come down in price lately because they are valued in dollars and once the dollar starts to come down a bit relative to other foreign currencies i would expect some of these commodities especially gold silver even oil to bounce back up again and and see some growth in price in u.s dollar terms


and those are just the facts now when it comes to the main topic of this video the major gold discovery in uganda facts have actually been really hard to come by i've seen a lot of sensationalist stories from this one coming from analytics insight.net claiming that if what uganda says is true it in fact means gold is not as scarce as people believe and thus bitcoin is the only real scarce commodity to this story coming from uganda's monitor which is one of the crazier stories surrounding the alleged


discovery claiming that it's nothing but fool's gold otherwise known as pyrite so where i want to start is by saying that although gold is scarce there are sometimes new major discoveries of gold this is not the first time something like this has happened each new discovery naturally makes gold less scarce which means the bitcoin people do actually have a point and that is why i own both and i am not embarrassed to shout it from the highest mountain that i own bitcoin that said new discoveries of gold are


not a kiss of death for the king of commodities as the world's economy grows more value is created and more fiat currency is also printed we know that we've seen how much the federal reserve has printed over the last 3 10 15 20 years doubling tripling the m2 money supply thus gold's value which has been recognized for thousands of years in my opinion is not under major threat so don't panic when seeing this story or while watching this video even if this discovery in uganda doubled


the amount of gold in existence let's keep in mind that it will take tens of years to mine it and that the federal reserve if you take a look here has doubled the amount of u.s dollars in the m2 money supply in less than 10 years so these are all things to keep in mind when examining this story at face value but here's the question should we take this story at face value is the ugandan government an entity we can trust or do they have ulterior motives for making the statements that they've made


i'll start by saying that we have to take anything that any government says with a grain of salt and i think most of my viewers will agree with me when i say that and although we can't be sure many people who are knowledgeable on uganda and the government there suspect that there are two things at play here the first is that the government officials have mistaken pure refined gold with gold ore when they made their statement now this is actually really important because as i mentioned earlier


uganda has claimed to have discovered 320 000 metric tons of gold and as i said once mined that would in theory double the amount of gold we have in circulation and certainly put some pressure on the price of gold over the next 20 or so odd years but if in fact what experts say is true and the government officials have confused gold and gold ore well take a look at this if in fact there is only 320 158 metric tons of gold ore and from every metric ton of gold ore eight grams of refined gold can be yielded out


of that and just so you all know i've taken this number from the gold institute so if you're interested in seeing exactly how much gold comes out of a metric ton of gold ore you can double check this number there and if we multiply 8 grams by 320 158 because that's how my how many metric tons of gold ore and theory they could have discovered that means there are 2.56 million grams of gold equaling 2.6 metric tons of gold and if we convert that 2.6 metric tons into troy ounces that gives us about 83


592 troy ounces of gold which is worth about 146 million dollars at today's price meaning that when we compare that 146 million dollars of gold versus the entire market cap of gold it is in fact only 0.001 of all gold that is already actually in existence now i have also seen estimates from some sources that the number of gold that can actually be mined from the ore that's been discovered in uganda could be as high as 217 metric tons versus the calculation i've just shown you now if that's true that would break


down like this meaning 217 metric tons of gold equals 6976 767 troy ounces of gold which at today's price would be about 12 billion 140 million dollars of gold which is again if we compare it to the total gold market cap is only about 0.1 of the entire gold market cap or 0.1 of all of the gold that's in existence so if this ends up being what many of the experts actually say it is then this discovery is not a real significant event but why would the ugandan government play this story up so much


especially in the media do they have a good reason to do so well if you dig into the story a little bit deeper they actually have very good reasons to do it and it all leads us to the second point that's in play that i mentioned earlier which is their relationship with china it's no secret in the gold community that china has a major interest in stacking gold some people like dominic frisbie and i've actually mentioned him in past videos think they now have more gold than the usa has and uganda like


many african countries in the 21st century has built a very close relationship with china in fact more than 20 percent of uganda's debt is actually owned by china and the country is trying to attract investments into its ambitious mining projects which not only include gold but also include copper and other important metals so putting these two facts together has led some to speculate that ugandan officials could purposely be playing up how much gold is actually or actually can be mined from this


discovery in order for them to secure more chinese investment into their country what the truth is only time will tell remember that uganda is the country that expelled its entire indian population from the country in order to take the businesses that those people were running and reappropriate them so give them to other people so citizens naturally born citizens of the country so the reliability and trustworthiness of any ugandan government as far as i'm concerned is shaky at best so i take


this story with a major grain of salt and until this so-called discovery is verified by outside and independent geological surveys i would have to say that i'm not actually worried about the supply of gold doubling anytime soon that said i will use this as an opportunity to remind people that the best hedge against a stack of gold which i stack i stack gold is a stack of bitcoin which i also stack and i've illustrated this in past videos that they are actually inversely correlated and that in the future should


there be a massive run-up in the price of bitcoin you might expect a stagnation in the price of gold that's why i believe it is actually valuable to hold both things with that i wish you all the very best in the week ahead thanks for joining me in this video i do hope to see you in the next one but until then arivaderchi