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 [music] I resonate a lot with the line from Walden by Henry David Throw. I went into the woods because I wanted to live deliberately. I really resonate with that line and I myself want to live deliberately. The problem is when we feel like we're drowning financially. A few years [music] after I quit my finance job, I hired a Spanish tutor and I was telling her about some of [music] my interests. such as money and value. And she interrupted me with a question that I really [music] enjoyed. She said,

"Estaso, are you rich?" And I laughed. [snorts] So, I might not be a millionaire, but I feel like I'm the richest man in the world. I can do whatever I want all day long. I can spend my time however I wish. And that's something I think everyone should experience. >> [music] >> Money was a huge sore spot growing up and uh it seemed like a lack of money was a huge reason why I and my family couldn't do things that other families could do. And the more I studied money

and value, the more I realized that value was being stolen from us by the government. the government who prints fiat currency and they basically extract the value that we're working so hard to create and using it for themselves. And as I learned that and realized how unfair it was, I realized not only did I have to protect myself, but I had to share this information with as many other people as possible so they could protect themselves. Every person on the planet is getting robbed by their own

government [music] every minute of every day. I think that's unfair. If you want to be robbed willingly, okay, that's fine. If you just like if you want to pay more in taxes every year, you're allowed to do that. And there's a few hundred people in the United States who [music] actually pay more than they owe in taxes every year. You can do that if you want. But a lot of people are being taxed through inflation unfairly, against their will, and without their knowledge. I think that's unfair. It

causes tremendous harm to individuals and families and [music] to society at large. Most investors are reluctant investors. [music] They don't really want to invest. They just do it out of a default mode. They want to avoid the harms of inflation [music] and they do what most people do, which is buy stocks and bonds. That's the [music] mainstream advice. Most people do it. But it's my belief that most people don't want to do it. They just don't want to fall behind. So, if you're anything like me and you

want to preserve all the hard work you've already created, then you're interested in finding ways of saving. So, you're looking for money to have in your portfolio like gold, [music] silver, and bitcoin >> 50. So, while I [music] hold three kinds of money, I'm looking for investments that will turn 1 ounce of gold into 2 ounces [music] of gold or one Bitcoin into two bitcoins. And so, there's no magic percentage of how much savings should you have in your portfolio or how

much investing. Ultimately, that's based on your objectives and [music] your risk tolerance. However, I can tell you that from my own personal experience, I used to own stocks and bonds [music] and I decided to sell them because I wasn't interested in taking on all that risk for such a small reward. I found that [music] I could get the same preservation of my portfolio, the same purchasing power by reducing my risk dramatically by holding money. And so, as of right now, my portfolio is three different kinds of money. It's

gold, silver, and Bitcoin. That's it. I'm all in. [music] [music] Now, that may seem extreme to some people, and I understand that, but having studied all these different investments, [music] that's where I feel most comfortable. and I sold both my IAS because I just wasn't comfortable with the risks. Another factor in my decision was looking at wealth cycles. This is something I learned from Mike Maloney. The [music] most iconic example of a wealth cycle is that of the Dow gold

ratio. And this is a ratio of the Dow Jones index [music] divided by the price of gold. And if you look at the Dow Gold ratio for the last 100 years or so, you see oscillations up and down. >> [music] >> And when the ratio goes up, that's when the Dow Jones is outperforming the price of gold. And when the ratio comes down, gold is outperforming the Dow [music] Jones. And you can see that over several decades, the ratio will increase and then go back down to where it came from. And [music] this pattern repeats

throughout history. And we can look at this type of pattern between basically any two financial assets. When I was a kid, I really enjoyed riding my bicycle to my grandmother's house. She was only about a mile away and I loved going to eat lunch with her, especially [music] in the summertime. One day, I asked her what she did for work before she retired and she told me she was a banker. And like a typical kid, I asked why. She told me she really enjoyed the numbers because [music] the numbers tell

a story and the numbers never lie. As one example, she said that she learned she could borrow at a low interest rate and lend to another bank at a high interest rate, earning a profit in between. So, she might borrow at 6% and lend at 7%. I learned later that this was called interest rate arbitrage. [music] And as an adult, I tried to use the same strategy myself, but the banks had changed the interest rates pretty dramatically. So, if I wanted to borrow, I had to borrow at a very high rate. And

if I wanted to lend, I had to lend at a low rate, close to zero. So that wasn't going to work for me. I had to find something else. [music] Thankfully, when I learned from Mike Maloney about wealth cycles, I realized that this was another form of arbitrage. [music] I could buy low and sell high with one asset class relative to another. A perfect example of this is the Dow gold ratio where you can measure the price of one asset in terms [music] of the other. And when you do that, you can see perfect opportunities to buy low

and sell high. And when I look at the Dow gold ratio right now, I see that gold is very cheap and [music] stocks are very expensive. And so what do I do? I buy gold and I sell stocks. [music] It's very simple. And if I wait long enough, I can make a tremendous profit in terms of one asset measured in the other. You can increase your value measured in real units, not just fake dollars. And when I discovered this, I realized that currently the stock market is overvalued compared to the price of

gold. So this was yet another reason why I thought that gold is more attractive to own than stocks. Most people buy major indices like [music] the S&P 500 or the NASDAQ. But because so many people are doing that, it's my belief that those indices are overbought. In other words, I think people are paying too high a price for the value that they're getting. I think for most people, the value that they're [music] getting is a belief that they're doing the right thing. They're not actually

buying a prudent financial [music] investment. At least that's my view at this point in time. So let's recap. In this series, we talked about the difference between price and value. [music] We talked about intrinsic value versus exttrinsic value. We talked about what is a store of value and how that's money, which is distinct from currency. And we talked about how entropy is the lens that we can use to determine what value is and why it disappears over time. I believe that storing the fruits of

your labor is a basic human [music] right. And I believe that everyone all over the planet should have access to money and they should know what it is and they should know what it isn't. Understanding value will allow you to make better decisions in life. You'll be able to get more of what you want sooner. You'll be able to keep what you have and you'll be able to prevent all kinds of losses or any kind of risky situations that you don't want to be in. So understanding value is just going to

help you in every aspect of your life. So if you're anything like me and you want to preserve all the hard work you've already created, then you're interested in finding ways of saving. So you're looking for money to have in your portfolio like gold, silver, and Bitcoin. [music] And hopefully if anything new is invented in the future, you can use the frameworks we've talked about throughout this series to determine if that new thing [music] is money or currency or something else.

I'm Alan Hiver. Thanks for watching. I want to thank you for watching and remind you that the best investment you can make is your own financial education. And goldsilver.com is filled with free research and ways to help you protect your future. We'll see you there.