WEBVTT 00:00:00.000 --> 00:00:01.760 Hey everyone, welcome back. We all want to cut 00:00:01.760 --> 00:00:03.919 through the noise and get right to what matters, 00:00:04.099 --> 00:00:06.200 right? So today we're going to really zero in 00:00:06.200 --> 00:00:09.000 on gold investing, specifically how to avoid 00:00:09.000 --> 00:00:11.300 some of the biggest and most common mistakes 00:00:11.300 --> 00:00:14.779 people make. Right. It's such a fascinating area, 00:00:14.800 --> 00:00:18.199 but also one where, honestly, it's easy to trip 00:00:18.199 --> 00:00:21.070 up if you're not careful. And to help us navigate 00:00:21.070 --> 00:00:23.210 these potential pitfalls, we're turning to Doug 00:00:23.210 --> 00:00:25.769 Young and his bulletin, Gold Investing Mistakes 00:00:25.769 --> 00:00:28.989 to Avoid. I mean, this guy's got over 20 years 00:00:28.989 --> 00:00:31.929 of experience across the board, from commodity 00:00:31.929 --> 00:00:34.369 trading to, of course, precious metals. Yeah, 00:00:34.390 --> 00:00:36.770 Doug's been there, done that. And what I appreciate 00:00:36.770 --> 00:00:40.250 is his focus on really empowering people to make 00:00:40.250 --> 00:00:43.109 smart decisions. So with this deep dive, our 00:00:43.109 --> 00:00:45.729 goal is to extract that real actionable advice 00:00:45.729 --> 00:00:48.130 from his bulletin, the stuff that will really 00:00:48.130 --> 00:00:50.149 help you navigate this. whole gold investment 00:00:50.149 --> 00:00:52.390 landscape effectively. Absolutely. And avoid 00:00:52.390 --> 00:00:54.390 some of those costly mistakes that, let's be 00:00:54.390 --> 00:00:56.670 honest, a lot of people fall into. So let's jump 00:00:56.670 --> 00:00:59.590 right into it. Mistake number one, and this is 00:00:59.590 --> 00:01:02.310 a biggie, investing in gold with a short -term 00:01:02.310 --> 00:01:05.349 horizon. Doug really emphasizes the importance 00:01:05.349 --> 00:01:07.469 of taking that long view. And there's a good 00:01:07.469 --> 00:01:10.189 reason for that. I mean, historically, the value 00:01:10.189 --> 00:01:13.209 of gold has generally trended upwards over time. 00:01:13.569 --> 00:01:16.310 But in the short term, yeah, its price can jump 00:01:16.310 --> 00:01:19.549 around quite a bit. So there's that natural volatility. 00:01:20.450 --> 00:01:23.390 But beyond just the price swings, what's the 00:01:23.390 --> 00:01:25.650 real danger of going in with that short -term 00:01:25.650 --> 00:01:29.079 mindset? Well, think about the mechanics of actually 00:01:29.079 --> 00:01:31.540 buying and selling gold. There's this thing called 00:01:31.540 --> 00:01:34.060 the spread, which is basically the difference 00:01:34.060 --> 00:01:37.400 between the price the dealer is paying for gold 00:01:37.400 --> 00:01:39.640 and what they're selling it for. So you're already 00:01:39.640 --> 00:01:41.319 starting a little bit in whole right off the 00:01:41.319 --> 00:01:43.319 bat. Precisely. So if you're trying to, let's 00:01:43.319 --> 00:01:46.319 say, make a quick profit and the gold price isn't 00:01:46.319 --> 00:01:48.219 moving much, that's what we call a period of 00:01:48.219 --> 00:01:50.659 consolidation, you could easily end up having 00:01:50.659 --> 00:01:53.620 to sell for less than you initially paid. even 00:01:53.620 --> 00:01:55.900 before factoring in any fees or commissions. 00:01:55.980 --> 00:01:57.980 Yeah, it's not as simple as just buying low and 00:01:57.980 --> 00:01:59.760 selling high, especially if you're in a rush. 00:02:00.480 --> 00:02:02.340 Exactly. And let's face it, trying to day trade 00:02:02.340 --> 00:02:05.219 gold, that's a quick way to potentially get burned. 00:02:05.480 --> 00:02:07.439 And you definitely wouldn't want to put money 00:02:07.439 --> 00:02:09.479 into gold that you might need next month for, 00:02:09.479 --> 00:02:11.780 say, a sudden car repair or something, because 00:02:11.780 --> 00:02:13.680 you might be forced to sell at a loss. Makes 00:02:13.680 --> 00:02:16.719 perfect sense. So gold might be a good hedge 00:02:16.719 --> 00:02:19.379 against inflation or economic uncertainty in 00:02:19.379 --> 00:02:21.340 the long run. Right. Those are typically longer 00:02:21.340 --> 00:02:23.800 term strategies, right? But it's definitely not 00:02:23.800 --> 00:02:26.539 a get rich quick scheme. No, not at all. It's 00:02:26.539 --> 00:02:28.740 more about preserving wealth and building a solid 00:02:28.740 --> 00:02:33.020 foundation. OK. Mistake number two. Relying too 00:02:33.020 --> 00:02:37.360 heavily on gold ETFs, specifically GLD, instead 00:02:37.360 --> 00:02:40.979 of holding actual physical gold. Doug makes a 00:02:40.979 --> 00:02:43.280 pretty strong case for having that tangible asset 00:02:43.280 --> 00:02:45.599 in hand. Yeah. And this is where things get interesting. 00:02:45.639 --> 00:02:47.800 It's about understanding the fundamental difference 00:02:47.800 --> 00:02:50.099 between holding something physical, you know, 00:02:50.099 --> 00:02:52.240 those actual gold bars or coins you can see and 00:02:52.240 --> 00:02:54.719 touch, and having shares in a financial product 00:02:54.719 --> 00:02:58.259 like an ETF. Right. So an ETF like GLD is meant 00:02:58.259 --> 00:03:01.580 to track the price of gold, but it's not quite 00:03:01.580 --> 00:03:04.210 the same as owning the metal itself. That's exactly 00:03:04.210 --> 00:03:06.449 it. You're essentially buying shares in a fund 00:03:06.449 --> 00:03:09.150 that holds gold, but you don't actually possess 00:03:09.150 --> 00:03:11.930 the gold directly. And this is where Jug brings 00:03:11.930 --> 00:03:15.750 up the concept of counterparty risk. And he specifically 00:03:15.750 --> 00:03:18.990 highlights this with GLD because of the way its 00:03:18.990 --> 00:03:21.449 prospectus is written. OK, counterparty risk. 00:03:21.490 --> 00:03:23.449 Can we break that down a bit? I'm sure some folks 00:03:23.449 --> 00:03:25.789 are thinking, what does that even mean? Sure, 00:03:25.789 --> 00:03:28.150 it's a fancy term, but in this context, it basically 00:03:28.150 --> 00:03:31.430 boils down to the risk that the other party involved. 00:03:31.639 --> 00:03:33.840 In this case, the trust that holds the gold on 00:03:33.840 --> 00:03:35.979 behalf of investors might not be able to meet 00:03:35.979 --> 00:03:38.919 their obligations. Like in a really extreme scenario, 00:03:38.939 --> 00:03:41.599 right? So let's say in some very unusual market 00:03:41.599 --> 00:03:44.699 conditions, something happens and the fund can't 00:03:44.699 --> 00:03:46.960 actually deliver the gold that backs your shares. 00:03:47.219 --> 00:03:49.599 Yeah, and that's where things get tricky. Doug 00:03:49.599 --> 00:03:52.479 points out that GLD's prospectus has clauses 00:03:52.479 --> 00:03:54.979 that if things were to really go south, could 00:03:54.979 --> 00:03:57.599 actually favor the trust, leaving investors in 00:03:57.599 --> 00:04:00.360 a potentially precarious position. So it's kind 00:04:00.360 --> 00:04:01.879 of like you're trusting that everything will 00:04:01.879 --> 00:04:04.159 run smoothly and that the fund will always be 00:04:04.159 --> 00:04:06.340 able to back up your investment with actual gold. 00:04:06.599 --> 00:04:09.939 And most of the time it probably will. But Doug's 00:04:09.939 --> 00:04:13.280 point is that if true security is your aim, if 00:04:13.280 --> 00:04:14.759 you really want to know that your investment 00:04:14.759 --> 00:04:18.420 is safe, Physically holding that gold might be 00:04:18.420 --> 00:04:22.019 a more direct route. Makes sense. Okay, let's 00:04:22.019 --> 00:04:25.620 move on to mistake number three. Investing in 00:04:25.620 --> 00:04:28.560 gold jewelry. I know a lot of people who think 00:04:28.560 --> 00:04:31.500 their gold chains and bracelets are a solid investment. 00:04:31.860 --> 00:04:35.360 Yeah, it's a common misconception, but Doug is 00:04:35.360 --> 00:04:37.980 pretty clear on this one. Gold jewelry is not 00:04:37.980 --> 00:04:40.420 the way to go if your goal is purely financial 00:04:40.420 --> 00:04:42.139 return. Right, it's more than just the price 00:04:42.139 --> 00:04:44.079 of gold that determines the value of a piece 00:04:44.079 --> 00:04:46.730 of jewelry. Exactly. You've got the design, the 00:04:46.730 --> 00:04:48.670 craftsmanship, the brand name, all these other 00:04:48.670 --> 00:04:50.769 factors that play a role. And then there's the 00:04:50.769 --> 00:04:53.050 sentimental value that people often attach to 00:04:53.050 --> 00:04:55.930 their jewelry, which has no bearing on its actual 00:04:55.930 --> 00:04:58.490 market value. So that beautiful gold ring you 00:04:58.490 --> 00:05:00.750 bought might be worth a lot less than its weight 00:05:00.750 --> 00:05:03.089 in pure gold if you tried to sell it just for 00:05:03.089 --> 00:05:05.050 the metal content. You're paying a premium for 00:05:05.050 --> 00:05:07.110 the artistry, the design, the whole experience. 00:05:07.170 --> 00:05:09.050 And that's fine if it's something you cherish. 00:05:09.420 --> 00:05:11.980 But as an investment, eh, not so much. Right. 00:05:11.980 --> 00:05:14.639 You're not getting the same kind of direct exposure 00:05:14.639 --> 00:05:17.420 to the price of gold as you would with, say, 00:05:17.439 --> 00:05:19.899 a billion coins. And that's why Doug recommends 00:05:19.899 --> 00:05:22.639 sticking with those standardized gold coins if 00:05:22.639 --> 00:05:25.860 your aim is investment return. Their value is 00:05:25.860 --> 00:05:28.500 much more transparently tied to the current spot 00:05:28.500 --> 00:05:31.800 price of gold. Good to know. All right. Let's 00:05:31.800 --> 00:05:34.019 tackle mistake number four, which ventures into 00:05:34.019 --> 00:05:37.420 the realm of numismatic coins. you know, those 00:05:37.420 --> 00:05:40.600 rare and collectible gold pieces. And Doug seems 00:05:40.600 --> 00:05:43.319 to advise a pretty cautious approach here. Yeah, 00:05:43.319 --> 00:05:46.540 and for good reason. Numismatic coins can appreciate 00:05:46.540 --> 00:05:49.279 significantly in value, but it's a very specialized 00:05:49.279 --> 00:05:51.379 area. You really got to know what you're doing. 00:05:51.600 --> 00:05:54.160 Exactly. And the biggest risk is encountering 00:05:54.160 --> 00:05:57.240 counterfeit or forged coins. Oh, wow. Yeah, I 00:05:57.240 --> 00:05:59.040 hadn't even considered that. It's a real problem. 00:05:59.220 --> 00:06:00.560 And there are definitely people out there who 00:06:00.560 --> 00:06:02.660 will prey on those who aren't familiar with the 00:06:02.660 --> 00:06:05.279 nuances of numismatics. You know, they'll try 00:06:05.279 --> 00:06:07.379 to pass off fakes as the real deal. And if you 00:06:07.379 --> 00:06:08.959 don't know what to look for, you could easily 00:06:08.959 --> 00:06:11.639 get scammed. So unless you're a seasoned coin 00:06:11.639 --> 00:06:14.379 collector with a deep understanding of grading, 00:06:14.759 --> 00:06:17.240 rarity and authentication, you're probably better 00:06:17.240 --> 00:06:20.120 off steering clear. That's Doug's advice. For 00:06:20.120 --> 00:06:22.819 the average investor, sticking to standard bullion 00:06:22.819 --> 00:06:25.240 coins like American Eagles or Canadian Maple 00:06:25.240 --> 00:06:27.939 Leafs is a much safer bet. Right. Those are widely 00:06:27.939 --> 00:06:31.220 recognized, easy to verify, and their value tracks 00:06:31.220 --> 00:06:33.319 the prevailing gold price much more closely. 00:06:33.740 --> 00:06:36.459 Makes sense, right? Now, this brings us to a 00:06:36.459 --> 00:06:39.519 crucial question for you, our listener. How much 00:06:39.519 --> 00:06:42.000 do you really know about the specific type of 00:06:42.000 --> 00:06:44.120 gold you're thinking about buying? I mean, have 00:06:44.120 --> 00:06:46.399 you done your homework? It's easy to get swept 00:06:46.399 --> 00:06:48.939 up in the excitement, but knowledge is power, 00:06:49.180 --> 00:06:52.060 especially when it comes to investing. Okay, 00:06:52.399 --> 00:06:55.259 mistake number five. Falling for those too -good 00:06:55.259 --> 00:06:57.399 -to -be -true offers. We've all seen them. Those 00:06:57.399 --> 00:07:00.220 are ads promising unbelievable deals on gold. 00:07:00.459 --> 00:07:02.800 What's Doug's take on these? He's pretty straightforward, 00:07:03.259 --> 00:07:05.920 be very wary of any unsolicited offers, especially 00:07:05.920 --> 00:07:09.040 those cold calls or emails. pushing gold investments. 00:07:09.259 --> 00:07:11.720 Yeah, those are always a red flag. While there 00:07:11.720 --> 00:07:14.360 are definitely legitimate opportunities out there, 00:07:14.540 --> 00:07:16.759 Doug emphasizes that many of these deals are 00:07:16.759 --> 00:07:19.920 simply not what they seem. And he particularly 00:07:19.920 --> 00:07:22.300 cautions against falling for these traps in the 00:07:22.300 --> 00:07:24.879 numismatic coin market, where the potential for 00:07:24.879 --> 00:07:27.519 inflated prices and counterfeits is even higher. 00:07:27.779 --> 00:07:30.120 It's like that old saying, if it sounds too good 00:07:30.120 --> 00:07:33.120 to be true, it probably is. Exactly. And when 00:07:33.120 --> 00:07:35.920 it comes to something as valuable as gold, it's 00:07:35.920 --> 00:07:38.279 always better to err on the side of caution. 00:07:39.019 --> 00:07:42.079 Buy from established and reputable dealers. That's 00:07:42.079 --> 00:07:44.699 the key. Protect yourself. Don't let the allure 00:07:44.699 --> 00:07:47.279 of a great deal cloud your judgment. And that 00:07:47.279 --> 00:07:50.060 leads us to Doug's sixth and final mistake to 00:07:50.060 --> 00:07:52.819 avoid, neglecting due diligence, which can lead 00:07:52.819 --> 00:07:55.100 to falling victim to scams. And with more and 00:07:55.100 --> 00:07:57.740 more people turning to gold, especially in times 00:07:57.740 --> 00:07:59.980 of uncertainty, it seems like those scams are 00:07:59.980 --> 00:08:02.750 only becoming more prevalent. Absolutely. And 00:08:02.750 --> 00:08:05.089 Doug points out that these scammers can be very 00:08:05.089 --> 00:08:07.709 convincing. They know what to say, how to appeal 00:08:07.709 --> 00:08:10.589 to people's fears and desires. That's why doing 00:08:10.589 --> 00:08:12.990 your research, that due diligence, is so important. 00:08:13.329 --> 00:08:16.029 You need to really vet the companies you're considering 00:08:16.029 --> 00:08:18.129 doing business with, understand the products 00:08:18.129 --> 00:08:20.850 being offered, and be wary of high -pressure 00:08:20.850 --> 00:08:23.329 sales tactics. Don't be afraid to ask questions. 00:08:23.790 --> 00:08:26.519 Dig deeper. and seek independent verification. 00:08:27.079 --> 00:08:29.319 You're investing your hard -earned money. You 00:08:29.319 --> 00:08:31.540 deserve to be confident in your choices. That's 00:08:31.540 --> 00:08:34.039 a great point. It's not enough to just decide 00:08:34.039 --> 00:08:36.220 you want to invest in gold. You need to invest 00:08:36.220 --> 00:08:38.139 the time and effort to ensure you're dealing 00:08:38.139 --> 00:08:41.960 with legitimate players. So, just to recap, Doug 00:08:41.960 --> 00:08:44.679 Young's wisdom boils down to these six key takeaways. 00:08:45.419 --> 00:08:47.620 Prioritize a long -term perspective when it comes 00:08:47.620 --> 00:08:49.980 to gold investing. Understand the differences 00:08:49.980 --> 00:08:52.940 between physical gold and those ETFs like GLD. 00:08:53.370 --> 00:08:55.490 Don't fall into the trap of thinking gold jewelry 00:08:55.490 --> 00:08:58.169 is a primary investment. Approach rare coins 00:08:58.169 --> 00:09:00.250 with extreme caution unless you're an expert. 00:09:00.830 --> 00:09:02.970 Be suspicious of those two good -to -be -true 00:09:02.970 --> 00:09:05.850 deals. And always, always do your research to 00:09:05.850 --> 00:09:08.309 protect yourself from scams. Yeah, he lays it 00:09:08.309 --> 00:09:10.649 all out pretty clearly. And honestly, his advice 00:09:10.649 --> 00:09:14.049 is incredibly valuable for anyone considering 00:09:14.049 --> 00:09:16.629 gold, whether you're a seasoned investor or just 00:09:16.629 --> 00:09:20.120 starting out. Absolutely. And as you our listener, 00:09:20.659 --> 00:09:22.960 think about your own financial goals. Consider 00:09:22.960 --> 00:09:25.440 which of these pitfalls might be most relevant 00:09:25.440 --> 00:09:27.759 to your individual circumstances. What are your 00:09:27.759 --> 00:09:30.299 objectives? What's your risk tolerance? These 00:09:30.299 --> 00:09:32.350 are the questions to ask yourself. And here's 00:09:32.350 --> 00:09:35.009 one final thought for you to chew on. Given that 00:09:35.009 --> 00:09:37.769 long -term focus that Doug emphasizes, what may 00:09:37.769 --> 00:09:40.590 be one specific strategy for incorporating physical 00:09:40.590 --> 00:09:43.549 gold into a diversified portfolio while mitigating 00:09:43.549 --> 00:09:45.549 those risks we've discussed? Really interesting 00:09:45.549 --> 00:09:47.830 question. Food for thought, for sure. We hope 00:09:47.830 --> 00:09:50.070 this deep dive has given you a solid foundation 00:09:50.070 --> 00:09:52.090 for making more informed decisions about gold 00:09:52.090 --> 00:09:54.950 investing. Keep exploring, keep learning, and 00:09:54.950 --> 00:09:56.370 as always, thanks for joining us.