Hello everyone, welcome to Bald Guy Money. And this past week, a chartered financial analyst with more than 130,000 followers on X attacked gold, saying it had failed as money, that it is just a collectible, and that he doesn't know of a single business that accepts it. Now, I had a bit of a heated exchange with this guy on the topic where not only was he a bit rude to me, but he also kept changing the argument because he could very clearly see that he was not winning. And in this video, which will
be my last before Christmas, I want to show you all why gold and silver have not only succeeded as money, but why they have proven themselves to be the best forms of money on Earth. And I promise you are going to like this as we look at the prices of different things in gold, silver, and US dollars throughout recent history. In addition to that, I will be saying a few words about what some of these examples tell us about the revaluation of gold and silver and why you need to hold it now more than ever. And we're going to
finish this video with some new calculations on gold stacking to readress the question of whether it's better just to buy what you can afford now or if it makes more sense to save up for the whole ounce of gold to benefit from lower premiums. So watch to the end of the video for that because what I say may surprise you. Now just before we dive in, please check out summitmetals.com for great prices, especially on gold American Eagles. And really, please consider getting some of these before we break above $4,400 an
ounce for gold because, as I've said, the next stop after that is $4,800 an ounce. And purchasing from Summit Metals not only gives you guaranteed real products at a great price with great customer service, but it also supports what I'm doing here on YouTube. And if you're a new customer, please remember to take advantage of the deal on the screen and get your 5 ounces of silver at spot. And I will leave the link to this in the video description below. But remember for gold and silver, please go
to summitmetals.com. So coming back to this original tweet, the person who made the post said, "The reason we use fiat currency like US dollars as money, and what I think he actually meant to say was as a medium of exchange, but he said money, so let's just go with it." is because gold and silver which he didn't mention directly but of course is tied in with gold have failed as money. Now what this person in my opinion fails to understand is that Gresham's law explains exactly why we use fiat
currency as a medium of exchange instead of gold and silver because it states that when there are multiple forms of money or mediums of exchange in a marketplace, the bad money chases out the good money. Meaning people prefer to use the bad money so they can get rid of it while they save in good money. And the fact that so many people, even central banks included in that group, are preferring to save in gold these days is direct proof not only that Gresham's law is real, but that gold and silver are better forms of money than
fiat currency because of how they're hoarded. And if we look at the key characteristics of money, so the main criteria something has to fulfill to qualify as money, and I've made a list of them all here. As you can see, gold and silver are the only two that in my opinion fulfill all the key criteria as they're durable, they're portable, they're divisible, they're uniform in their composition, they're limited in supply, they are widely accepted, and I'll say more about
that shortly. They're stable in value and hard to counterfeit where US dollars aren't limited in supply. They can be created out of thin air as we know very well. They are not stable because they are permanently losing value and they're not that hard to counterfeit and we hear about it being done from time to time. Now, since the person who made the post criticizing gold is also a promoter of Bitcoin. Surprise, surprise. I also decided to look at Bitcoin in this comparison which you all know I'm not
against but fails in my opinion when it comes to being widely accepted and stable because from my point of view even though it has gone up a lot in price and adoption has significantly increased since it was launched in 2009 it simply hasn't existed long enough for anyone to be able to credibly make that call. That said, the one criticism that could be made against gold and silver is that they're not widely accepted as a medium of exchange. Because the truth is, I can't buy anything with gold and
silver at Walmart. But they are extremely liquid and can be converted into spendable fiat currency at any time without having to wait for bank transfers, which isn't necessarily the case for Bitcoin. And as of today, approximately 100 countries around the world hold physical gold in reserve, showing just how widely adopted gold is versus only about 10 countries for Bitcoin. So when I make my use for adoption and how widely accepted it is, this is what I take into account. And it's not hate against Bitcoin or people
who like Bitcoin. These are cold hard facts. And for Bitcoiners who may argue that it's a legacy holding and just a tradition that these countries continue, please consider the fact that I recently showed you all 29 different countries have purchased gold in 2025 alone. And this is happening as the narrative of central bank Bitcoin adoption simply isn't materializing. And it's why once again I think gold and silver prove themselves to be the best forms of money with a history that is simply
unbeatable. So excluding Bitcoin from further discussion for the reason that it lacks enough history and is really more of a speculative asset today as opposed to being real money, it's time to discuss why people are so determined to keep their gold and silver instead of using it for day-to-day transactions. And it all starts with scarcity and its ability to hold value. Because as I've shown you all before, when we look at something as trivial as an iPhone, you can see that the price of an iPhone has
fallen by 77% when measured in gold since the first one was launched in 2007 and 70% when measured in silver. even though the US dollar price for a base model of the phone has gone up over that same period of time by 60%. And of course, I've also done this same thing for housing, showing you all how home prices are in serious long-term decline when measured in gold, down 53% in the years between 2007 and 2025 on average versus the period between 1990 and 2006, with the exact same thing applying to
silver, which at current prices today make a medianpriced US home even cheaper than it was in 2011 based on average pricing. And to take this out a little further to show you just how good gold and silver have been as stores of value, we're going to take a look at a few other things. And please understand that I wasn't trying to select goods or timelines that were favorable to metals. I really tried to do this in an honest way to add a couple examples here to get my point across. Starting with the BMW 3 series, which
was first introduced in 1976, just after the United States went off the gold standard and metals prices started to rise significantly, with the base model costing back then $11,675. But when measured in gold, it cost 94 ounces of gold and cost 2,684 o of silver. So, jumping ahead to today, a new BMW 3 Series costs $45,500, an increase of nearly $300% since 1976. And admittedly, it is a much better car today than it was back then. But instead of costing you more in gold and silver or even the same as some
people incorrectly claim that gold and silver only maintain your purchasing power, the price has gone down 89% when measured in gold at only 10 12 O today and 75% when measured in silver at 678 O today. Now, for those of you who think this needs to be measured from a time when the United States was still on the gold standard, I've done the same thing for the Toyota Corolla, which was introduced, I think, as the cheapest car on the market back in 1968. Please correct me in the comments section below
if I'm wrong on that. Anyhow, the price when it was introduced at the time was $1,700. So, quite a cheap car even for the time. And when measured in gold and silver, the price was 48.6 ounces of gold and 776 ounces of silver. Now, today, the new Corolla, which I proudly drive in hatchback version, costs $22,325 for the base model, which is a more than 1,200% increase in US dollar price since 1968, but 90% lower when measured in gold at only 5 ounces of gold, and more than 50% cheaper when measured in silver at 332
o of silver, giving us the perfect example of why gold, which was pegged at $35 an ounce by the US government at the time in 1968, should be allowed to float in value with the market determining its price as opposed to thinking the government can or ever should determine the price of gold and silver. Because the issue is, and it's been proven multiple times in history, that even when given a fresh start, a new peg, let's say in modern times, $20,000 an ounce, somehow linked to the US dollar, all governments ever
do is devalue the currency trading in the market. And that inevitably means that at some point in time the new revalued price of the precious metal whether it's gold or silver in a revaluation becomes obsolete and unfair as it doesn't reflect the real value of precious metals relative to goods and services in the market. And if we count from 1934 when gold was revalued to $35 an ounce in the United States to 1971 when Nixon ended the gold standard. It tells us that it only takes 37 years for
things to get out of control which is less than half of a human's lifespan. And coming back to Gresham's law, this is the precise reason why people prefer to hoard or to save their physical gold and silver instead of spending it even in situations where the physical metal is somehow connected to the paper currency that is circulating within the marketplace. with many gold and silver savers throughout history tapping into the physical metals either to supplement retirement expenses or to cover
emergency expenses because as I've demonstrated they are the best forms of money and they should be saved and they should be hoarded not spent and that's why when I saw laws being passed in Florida and other US states making gold and silver legal tender I didn't get excited and I didn't even talk about it here on the YouTube channel because although there are some fringe implications for gold and silver with respect to taxation in those states, these laws from my humble point of view
haven't fundamentally changed a thing for gold and silver. And because I think they're such good forms of money, I don't encourage anyone to use gold and silver in transactions or to pay their taxes with because what you should be doing is paying your taxes with fiat currency like the US dollar because that is a bad form of money that you should be getting rid of when you can while keeping your good money, your gold and silver to protect the value of your savings and as I have demonstrated in
this video to grow your purchase. purchasing power to grow the purchasing power of your savings over time. Now, coming to this week's viewer question, which ties in very well with the main topic of the video, it comes from Magic Valley. Hello, Magic Valley if you are watching. And Magic Valley asks, "What the best way for someone on a modest budget to cost average into gold is? Is it via goldbacks or regular fractional gold?" And I love these questions because the modest budget stackers trying to get ahead are
amongst my most important viewers. But sadly, they are often the ones who are taken advantage of the most. So, jumping into this topic, some people in the precious metals community say that it doesn't make sense to buy anything less than a full ounce of gold because you're getting ripped off on the premiums. And the truth is, people who say that are dead wrong. And sometimes sometimes these people are just snobs trying to make small budget stackers feel inadequate. And unfortunately I see
that sometimes. Now does that mean you shouldn't buy a full ounce to benefit from lower premiums if you can afford it? Well, no. Do it if you can, of course. But you should never feel bad about buying gold you can afford because the value of the dollar or whatever fiat currency it is you are using to purchase the gold is going down. And the value of gold as I've shown you in this video is going up over the long term in a big way. And you don't have to be a sophisticated investor to understand the
benefits of this trade. That said, some products are designed to take advantage of people on a limited budget and take advantage of people with limited knowledge about the gold and silver space. Even selling them the dream that they can use gold as a medium of exchange if they buy them, which again isn't something I recommend to do. As I've already said, gold should be saved. It should be hoarded. It should not be spent. And the product I'm specifically referring to here is of course
goldbacks. Now if you want gold backs, they are available at Summit Metals at the going market price. But please note that the 100 goldback note, which contains 1/10enth of an ounce of gold, sells for 72% more than a traditional one/10enth of an ounce American gold eagle coin. In fact, goldbacks, specifically these smaller notes, these smaller denominations, typically sell for nearly 100% above the spot price of gold, making them a waste of money for anyone who has a small budget. And I say avoid these at all cost as even 1 g bars
which I think are a sensible prep if purchased in small amounts have significantly lower premiums than gold backs and are in my opinion a lot better to stack. So with it firmly established that I prefer fractional gold pieces over gold backs which I would never buy. I think if you can stretch yourself and get a quarter ounce coin, that's really the best way to stack fractional. And with gold price above $4,000 an ounce, it's a strategy that's growing in popularity right now because, as you can
see in the numbers here on the screen, buying a quarter ounce of gold regularly every 3 months for the last 2 years has not only been a great way to stack because it gives you fantastic flexibility should you need to sell some gold to cover an emergency expense, but don't want to sell a whole ounce. But even at a higher premium, it's ended up being cheaper than saving up for a whole ounce with two full ounces of gold, costing about $6,400 on the quarter ounce schedule strategy over the past 2 years versus more than
$7,000 for 2 ounces by saving up for the full ounce coin, proving that sometimes it just doesn't pay to save on those premiums. So, Magic Valley, I hope that answers your question. So, with that said, that's it for this video. I want to wish all of my viewers a very merry Christmas. Thank you so much for tuning into my videos in 2025. There will still be one more before the end of the year, so please look out for that. But until then, please remember to take care of yourselves and take care of each other.
Remember the reason for the season. See you in the next video. Goodbye.
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