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 bull markets in precious metals are more than insurance they are more than a hedge you've got you've simultaneously got insurance and a hedge and these huge potential gains hi this is Mike Maloney and I've got Adam Taggart with me once again Adam how are you I'm great mike always a pleasure to be back with you uh you recently did an interview with Rick Rule and I watched it and it was phenomenal and uh so can you tell us a little bit about it absolutely so as anyone who's seen Rick

before Rick is just a he's a wonderful explainer and I know that he appeared in your hidden secrets and money series uh Mike and did a great job there too but yeah I was interviewing him on a number of topics but of course the topic of precious metals came up and Rick had this quick segment here that I thought just really did a great job of explaining and just a really hard-hitting but understandable for everybody kind of way about how having gold in your overall portfolio is some of the best insurance that one can have

um why don't we just play the clip it doesn't take very much gold in your portfolio to hedge against the sins that happen elsewhere in your portfolio and to the extent that investors don't hold gold and buy gold I mean physical gold or physical proxies in their portfolio those people are in effect uninsured which I believe unless they are extremely rich and can self-assure self-insure is very stupid I don't think that in the first instance people should buy gold just because I think it's going to go up I think they

should buy it as a way to maintain their purchasing power over the rest of their useful lives buy it and in fact hope it goes wrong it goes down because gold is Insurance in its purest form a medium of exchange and a store of value so Rick would you say that just like the market fell in love with uh the fed put over the past 15 years yep uh are you saying that investors should fall in love with the gold put going forward here fall in love might be the wrong phrase do you love life insurance uh I mean do you love home insurance I

think it's the responsibility of a mature adult to organize his or her life in a way that will give them the best outcome and I think gold is an absolute component of that I have no idea what's going to happen in terms of my mass psychology I'm talking about your listeners taking action themselves to secure their well-being great and and the insurance analogy is a great one I just in the in In the Heat of the Moment listen to you speak I was like that's basically what gold is though it's a put on your purchasing the

purchasing power of your your Capital right exactly what it is wow that was phenomenal you know one of the things about Rick if anybody watching this gets a chance to see Rick live please do so he is he is the most eloquent speaker that there is on the subject he is just wonderful and he's uh very approachable I mean uh after the events and stuff he does make himself available and he is a very uh kind warm person to have a conversation with he is he really is the hardest working man in hard assets yes

right um so you know I want to show you though this you know you were saying In that clip that gold is basically like a put on the dollar and so it's hedging against the dollar going down right specifically in the purchasing power of the dollar but yes yes and he was talking about the uh that gold is insurance and yes during normal times that is true but if you take a look at this uh chart from my first book guide to investing in gold and silver now I apologize it's black and white I wish

that this was in colors that I could have three colors and these lines would really stand out and my chart maker just absolutely refused to uh make these lines more different so we have a thin Gray Line a thick gray line and a black line the black line is the Dow gold ratio and so this is ounces of gold uh the number of ounces of gold it takes to equal uh the points on the Dow uh the uh thin Gray Line is homes priced in gold and the thick gray line is Robert Schiller's p e ratio and this goes all

the way back to 1920. uh so all three data sets on one line and you can see that there's a cycle in here um this cycle that we are in right now really hasn't completed this one stops in 2007 but it didn't get back things didn't go to undervalued whether you measure it in uh real estate or p e ratios or stocks against gold it did not visit severely undervalued territory it came down toward fair value and then bounced back up into a bubble which is now deflating so it's similar to what had what

happened in the 70s there was a balance in the middle but when when the black line here the bold black line is going down that means gold is going up in purchasing power that is the value of stocks falling compared to gold now with real estate in the 70s if you had still had sold a home in 1970 and purchased silver you would have been able to buy I believe it's 17 similar homes just it's just eight and a half years later that uh gold and silver reached their Peak so August 15th of 71 is when gold became

free Trading so uh the potential gains in purchasing power bull markets in precious metals are more than insurance they are more than a hedge you've got you've simultaneously got insurance and a hedge and these huge potential gains and that's the reason I just can't figure out why anybody would recommend 10 of a portfolio in gold or you know when this black line peaked at 45 ounces of gold required to equal the points on the Dow ever since then it has been more profitable to be in Gold than it has

been in real estates or or stocks there are these brief periods of time where they weigh out perform gold but over from from 2000 until today the place to be really has been gold uh except you know we've had that the bear Market from uh uh 2011 to 2015 so there was four years of bear Market in the middle of this giant secular bull market and the reason I don't try to time these uh cyclical Corrections within a major cycle this secular bull market is because you never know when these things

are going to happen and when they're going to end and when you jump in and out you're probably going to be out when everything moves and then you're not just out you're left out so uh uh I pay attention to this and gold is is much more than just insurance it's much more than just a put on the dollar but that's great Mike and you know as you can see when I was talking to Rick this idea of the put just sort of popped in my mind as you're talking it's it's not to get too wonky but the

idea of a straddle is is popping into my mind which um for those that aren't very familiar with options it's a it's a pair combo with a call and a put basically it's giving you both downside uh exposure and upside exposure and in a lot of ways I think what you're saying Mike is Gold's actually almost more like a straddle here where um you know in in normal times it's gonna you know protect the purchasing power your wealth that you're not going to lose uh you know purchasing power

being in it but there are times like you said where it's purchasing power dramatically increases versus all of the things and I think it's really important to remember is a precious metals investor the goal is not to die with a bunch of you know ounces of gold right you know the gold is supposed to be a means to an end not the end itself right so you want to be looking at this chart that you have Mike or chart of gold versus whatever assets you're interested in and be able to know when you're in an

attractive period to exchange these precious metals for the real thing that you want to have in your life and enjoy right and I think you know we're kind of seeing that play out right now in the housing market right where um housing you know was was uh you know appreciating by Leaps and Bounds in price relative to Gold leading up to 2001 then we had 2022 where gold was one of the only assets that held its own and now the housing market is really beginning you know to very clearly roll over here how far down it goes we'll see

but you're very likely by the end of that cycle going to be able to buy a lot more house with with gold than you were before yes and now you're talking price versus value and that's the value and the value of the amount of real estate each ounce of gold will purchase is going to go up by a factor of many many times uh that is the thing you only get these opportunities a few times in a century if you look at this chart this chart covers almost a century of data here uh you know it's old I published this in my

book that came out in 2008 so this chart only goes up to 2007. uh but uh you only have this opportunity just a few times in a century and the opportunity is here right now to both protect yourself and expose yourself to these gigantic gains at the same time well and that's where I wanted to go real quick Mike which is you you've just written another book and I believe you're releasing it now because you think this is the next big upcycle yes yes I'm trying to time it with the uh this this next wave that I can't tell

you the title yet but uh within the next two weeks uh it should be on the market and I'll be able to say the title uh very shortly so um anyway let's get to the uh quote of the day which goes very well along with this video and everything that we have just said gold and silver our money everything else is credit JP Morgan I want to thank everybody for watching and thank you for joining me Adam always a pleasure Mike see you next time