We take a lot of heat whenever we bring up gold and silver. It’s often dismissed as a shiny rock that serves no purpose. And perhaps we’d agree with that if we hadn’t seen the value and importance it can have with our own eyes. On this edition of The Your Life! Your Terms! Show we share our thinking around precious metals and break down where and how to buy it. There’s a lot more to cover on this topic so we’ll do round two of this at some point. Enjoy this golden episode!
Tom Karadza: 00:00 Hey everyone, it’s Tom Karadza, welcome to the gold and silver edition of your life, your term show, and you know, we get asked a lot about gold and silver and it’s probably because we talk maybe even a little bit too much about gold and silver, but, um, we’ll describe why we buy some of this stuff. What our thinking is, and I don’t know if you’ve heard us say this before, but we’re basically paranoid optimists. We are always short-term paranoid and long-term optimistic about our lives. So I guess I look at things this way in business and real estate and the economy and everything. We’re always kind of looking over our shoulder to see if there’s anything we should be aware of. And at the same time though, we’re not constantly acting out of a state of fear. We are very longterm optimistic about our lives, about our rental properties and real estate, um, and about our business and everything were a long-term optimistic, but we’re always kind of looking over our shoulder just to make sure that we have everything covered properly.
Tom Karadza: 00:48 We never want a single point of failure in anything we do and golden silver play a role in that whole short term paranoia aspect of our thinking. So again, we are not doomsdayers. We’re don’t think the world is coming to an end. Sometimes when you talk about gold and silver, people just kind of label you as conspiracy theorists. No, we just believe that for years it’s been a form of money and we’ll explain in this podcast why we buy it, our thinking around it. Hopefully you get some value of it or if if anything you’ll just think we’re crazy and dismiss it, but at least you know where we’re coming from and it gives you some context. So that’s the idea behind this podcast and if you’re listening to this and you’re wondering what the heck this Rock Star thing is, and Rock Star real estate and Rock Star inner circle.
Tom Karadza: 01:29 Basically the foundation of everything are our members, the people and real estate investors that we get the opportunity to work with. And if you want to know how the Rock Star inner circle membership works, you can go to this url, Rock Star inner circle.com, forward slash member that’s Rock Star, inner circle.com, forward slash member. And if you go there, you’ll have an outline of all the different benefits you get as a Rock Star inner circle member. We have at all a label a outlined there and you can check it all of that. That’s it for the intro. Let’s get on with the show.
Announcer: 02:01 Are you ready to live life on your terms? Is it time to take charge business? Building the economy, health and nutrition and more. It’s the your life, your term show with Tom and Nick. Are you ready? Let’s go.
Tom Karadza: 02:27 Nick, are you there?
Tom Karadza: 02:29 I’m sitting right in front.
Tom Karadza: 02:30 No, I know the last time when we weren’t recording. Now I can see the little waves moving on my screen. So you’re there. You’re physically there Anyway, we get asked about gold and silver all the time and the part of the reason is because uh, maybe me more than Nick, but both of us like talking about golden silver. Oh, every once in a while and people seem to have questions about it. So we’re going to break it down. Like why do we even talk about gold and silver and why do we talk about this, what some people call a rock and I have to correct people every time I hear that because it’s not a rock, it’s a metal. I just grabbed my gold chain.
Tom Karadza: 03:06 The reason I like the gold chain is because it feels like you’re travelling with money if you go across borders and you need. Yeah, it feels like you’re a smuggler. Well, yeah, but, but, but I mean really when things hit the fan and you need cash, you can trade gold for cash flow, which nobody believes by the way. Like everybody. I especially North America. So I was going to say it depends on the country because I spoke to someone who was a friend that I haven’t seen for a few years. She was wanna to say Indian, I believe her, her, her background. So from India, and she was talking about gold because in their culture they gold’s a whole different world than it is here. Basically every culture outside of North America, it’s a pretty big because they’ve had big currency problems, right? Yeah. So. And she was, she made it very clear to me.
Tom Karadza: 03:49 She’s like, Oh yeah, when my relatives come back and they were, you know, 20 gold bracelets, she goes, the reason they’re wearing the gold bracelets isn’t for the jewellery that value or the look. So that’s how they’re bringing some value into the from India into the country. That was her words, not mine. I’m not like that so much. So they’re stopping people at the border then if you, you know, because if you declare your carrying 10,000, I think it’s 10,000 more than things. Housing, they’ll stop it and make it, count it and ask why. But meanwhile you’ve got these people wearing gold bracelets, right? Grand. Yeah. Yeah. And they don’t think anything of it. So look, if I was trying to think about this, I’m like, how do we even. It’s such a big topic and you know, the, the point that we got to in investing or buying or owning or whatever you want to say about it.
Tom Karadza: 04:32 A golden silver was kind of long and convoluted. But I guess if I was to paint a big picture, I would say something first like this, that we’re blessed that a Nick, we talk about this all the time, but we are blessed to be living in a part of the world that is so good. First of all, we’re in a country of Canada, which is awesome. Great banking system, great healthcare system. I mean, we can all criticize different things about it, but let’s face it, overall, fantastic. It’s safe. Um, you know, great place to raise a family and people vote with their feet because we have so much immigration coming into here that’s basically people raising their arms saying, if I want to leave, you know where I am. I’m going to go to Canada. Right. When you think about it, when you travel around the world, how many other countries do you think people say they want to go to?
Tom Karadza: 05:16 Like in Europe you have a lot of people trying to get into Germany and some of the European countries, but then there’s Australia and Canada, like are a destination. We’re on a very short list, so people vote with their feet. They come here and as real estate investors, that’s a big deal because the population is growing. And then in the Toronto area, when you map population growth like that, largely due to immigration, what’s the population of Canada? Thirty something million already six. So we’re. We’re not quite. Well, we almost have one percent of the population of Canada. I’m coming here every year. 30 six. So you have 10 percent. A three point six? Yeah. Yeah. Something. I never thought about it like a car compared to the US. The US. When he tapped into the country, not to the Toronto. Yeah, but where’s the US would need 10 times that.
Tom Karadza: 05:59 Oh yeah. No. Per Capita, we get just an insane amount of immigration. Yeah, that’s, I mean, that’s big. It’s huge and it’s just driving the population. And then I was gonna say in the Greater Toronto area, when we get a big percentage of that, usually 40 percent of the immigration comes into this area. Um, it’s a small landmass and then people will always think, well, what are you talking about? And I just mean that we have the lake and the green belt kind of defining this area where most people want to live between the Greenbelt and Toronto. And of course people will live past the green belt. I just mean in general we kind of have this defined landmass with a growing population. So as a real estate investor, when you look at a map of the Greater Toronto Golden Horseshoe area, it’s like a treasure map. You know, people are coming here, you buy a property and it’s like owning a piece of treasure because people want it.
Tom Karadza: 06:41 So at a big picture it’s very positive, but part of the reason that we own gold and silver is a little bit because of our family’s history, which I’m sure Nick, you can. I don’t know if we’re going to talk about our. Ain’t going to jail. I don’t know if you, I, I love talking about our hint to the eva. Yeah. Was a great lady when I was younger, like I, I remember her vividly. I remember her and I went. I went once when I was always a great lady. She was the last time I saw her. She was older. I went back when I traveled Europe, myself and I guess early twenties or whatever. Um, so I didn’t go with the family over there, but it was interesting. He was a hustler in the best possible way. She used to sell eggs in the market.
Tom Karadza: 07:18 She would just scream at people. It was peaceful, but I’m pretty sure her though when she was selling eggs in the market in the former Yugoslavia, now Croatia, it was just a front for money laundering operation. Her One lady, that’s ultimately why, why is she went to one, went to jail. Look, we’ll talk about that story in a second. So we’ll get back to a tent that Eva, but in. But I want to, uh, I want to explain some of the different things going on in Canada in the US. Really quick. Here’s. So we have great population growth, great area to live. Canada’s awesome, you know, the whole bit. But there are some things that we all need to be aware of. In Canada specifically, China’s economy has been decreasing slowly since about 2010. They were growing at like 12 percent a year. They’re like six percent a year.
Tom Karadza: 07:58 They’re there. They’re economy is slowing down. They consume 50 percent of the world’s commodities. Canada is a commodity exporting country, so that’s just a thing that’s not. Might not be here or there, but it’s definitely not a positive one. One of the biggest consumers of commodities is, has an economy that slowing down. Then in Canada, we also have a situation where interest rates are rising slowly, but what happens when mortgages and credit lines are all adjusted for these higher rates, so when mortgage rates get mortgages, get renewed, people are going to still be able to afford their homes by the data that we’re looking at, but they might have less discretionary spending to drive the economy as Nick you’ve talked about over and over. So we’re in a situation where some of these things, you know, and when you compare Canadian and unemployment to the US unemployment, like the US unemployment, like super low, now it’s like a three percent or however they record it.
Tom Karadza: 08:48 And I know everybody talks about it in different ways, but we’re like double that. We’re like at six percent, which is still low. I just mean our unemployment isn’t as great as the, uh, as the US. So we got these kinds of factors then to our biggest neighbour in the south. There’s a couple of things happening. There’s the Federal Reserve, which is kind of tightening. They’re not loosening monetary policy. So they’re kind of tightening the, the amount of money floating around because the Democrats just won the house, you know, there’s going to be battles over the infrastructure spending and tax cuts for the middle class that we’re being promised. So nothing’s gonna get done around there. Then you have the Fed, which has been raising interest rates in the US just like we’ve been doing in Canada and um, that’s been happening for the last couple years now and you have a whole whack of corporate debt about to be refinanced at higher rates.
Tom Karadza: 09:38 And then on top of that, you have China’s tariffs that trump put into place in September. Really just trying to take effect now. So this is not the end of the world stuff. I’m not trying to paint any doomsday pitcher at all. I just mean there’s no, I’m not, I’m not, I’m just trying to be realistic. I don’t know what the painting was good. And we always survive. Look, you know, if our family could survive the essentially destruction of a country over in Yugoslavia and everybody comes out and get, you know that it’s going to be totally fine. It just means there are some things to be aware of, right? Some things to just be like, hey, it’s not all roses. So because of all these factors, I believe that over the next few years, although we are going to have population growth and great, uh, a great opportunity to own good income properties here, there’s going to be economic choppiness, you know, as rates go up and the economy kind of slows down. And if I was to summarize it really simply because I don’t really like some complex, uh, economic theory. Here’s how simple as it gets there for the US, which is our biggest trading partner, they need $3 of debt for every $1 of growth. Think about that. They need $3 of new debt for every $1 of growth. Like just trying to picture that in your mind because the government cannot afford a decline in revenues or the economy because they only make money from taxes. So they already have a trillion dollar deficit. They can’t afford it, like decline.
Tom Karadza: 11:12 You’re talking if the printing money though, if they’re going to take on debt, right? Because if a new car manufacturing plant, if a new, if a Tesla competitor opens up and is able to sell $100, billion dollars worth of cars into the economy, that there is some growth there that happens. It’s minuscule where they have the grand scheme of things. But you mean, you mean the whole did the debt when the goes to. If the government is just going to buy, grow, inject money into the economy, they need $3 of debt to get the growth.
Tom Karadza: 11:40 Yeah. Yeah. That’s what they’re seeing. It’s not really inject is just the amount of money they’re spending now is about a trillion dollars a year over the revenues they collect. Interesting. Yeah, and if we’re talking government specifically the debt for the government to stimulate the country as a whole…
Tom Karadza: 11:55 Because there is growth that comes from other places and countries. Like what? Well look, natural resource. It’s like there’s, there’s the economic growth. So like apple for instance in the US. Got It. Yeah. So that’s what I know what. That’s what I’m measuring against all the economic growth. If you measure it against the amount of debt that the country is adding, got for every dollar that apple puts into the economy or the tesla example, for every dollar that they add to the economy, the government simultaneously adding. It’s adding $3 of data. So yeah, we’re on the same page. That’s exactly. That’s exactly what we’re talking about. So that’s what I’m talking about. For every dollar that is being grown into the economy, the government is adding faster. They’re adding $3. So to get a dollar in any way we want to talk about it, whether it’s government kind of stimulated or a private enterprise creates that dollar of growth.
Tom Karadza: 12:43 $3 of new debt debts being created and at those levels, at that pace, they can’t afford a decline. They can’t afford a decline because when you have a truly, when you’re in today’s world, when you are printing a trillion dollars more than you have through the issuance of bonds and stuff and raising it, you can’t afford the economy to go down. Not only can you not afford it and you’re barely getting growth like you said, like and you’re barely getting there early, getting grilled, like even in this long recovery, the amount of growth you’ve gotten, it pales in comparison to any other recovery of this length or close to this and think about it. The government can’t create. They’re not like you used to. Just a good example right now, like if Apple or Tesla goes and creates jobs, that’s actually beneficial economic activity. The government in and of itself cannot create new net economic activity to pay for any economic activity.
Tom Karadza: 13:29 They have to tax people, take the money and then like hire people without those tax revenues. They either have to borrow, so like borrow and print money or they have to go and tax for more money. They don’t. They don’t have the ability to create jobs in and of themselves. They’re not entrepreneurs. They’re not like in a bootstrap some new jobs out of the. I’ve worked in a government office. I know they’re not so like this so far from. It only weighs if the economy slows down over the next few, few years in the US as it likely probably should, because it’s been like a 10 year, um, increase the only solution they have to try to stimulate the economy is more debt. Like if you boil it all down and you say, Hey, look, like let’s summarize this. $3 of debt is being required to produce $1 of new economic activity in the country of the US right now because the government cannot afford a decline.
Tom Karadza: 14:20 The only way to, to improve the economy of a decline in economic activity, economic activity does happen, is to use more debt. It’s so more debt is coming our way and I think we only to be aware of it. And because of that, I believe there’s just going to be a choppier economic future coming to all of us that we should just be aware of. Because when you think of it, if they have like whatever, they have $21,000,000,000,000 in debt right now. There’s only three ways to get rid of that. You grow the economy and you pay off your debt, so they grow and Save, which let’s face it, they’re never going to do like, they’re never going
Tom Karadza: 14:52 to do that. Um, I mean it would be great if they did that, but they’re not. Or they default. So they tell all the countries that bought their treasuries and all the corporations that invest in and everything and all their debt to say we’re not going to pay you back. You know, that’s not happening. It might, maybe it should happen, but it’s not happening. So the third way, so just inflate which is means to try to push more debt into the economy to kind of grow the economy and hopefully kind of make it increase. The whole thing is a little crazy right now. So in this. But explain that. I mean, I think I understand, but just for anyone listening, the too inflated away means like, look, you know, because however many years ago you could buy the uh, you know, our parents house that would sell for whatever, maybe around a million bucks today they bought it for was at 1:20, 80 1:20.
Tom Karadza: 15:38 Yeah, something like that. Let’s say 100 grand. Yeah. So at that time you could make, you know, if you were making $50,000 a year, your money was substantially stronger than it is today. A $50,000 a year to buy a million dollar house at the same house. We were talking about it that way. It’s a big difference. Right. So the, our father and like 1982 was making a thousand dollars a week. Yeah. Can you believe that? No, I try. Well I, I, it didn’t seem like at that time I didn’t get it. But now looking back and understanding what the prices were and stuff. Yeah, I remember when they paid off our family mortgage over there, how happy he was. They both were crazy. So, but now, so now today he went and said, told our mom to go and tell the neighbours we paid off our mortgage, paid off her mortgage.
Tom Karadza: 16:19 Did you pay off yours? But I believe that. So he, uh, um, but now, yeah. So, so the reason they want to inflate away because I can, that I kind of get it. It doesn’t make sense. So if the government can make the, the value of the dollar worth less than it’s easier for them to pay back the dollars because if they, oh, you know, if they own a million dollars to someone in today’s dollars and it looks like a million, but in dollars that if they can make the dollar worth less than all of a sudden it feels like they’re not paying a million dollars are paying $800,000, just like if we were to buy our father’s house today at those prices back then because the dollar is worth substantially less. He’s not getting the same value today. That’s why we would need to give him a million dollars a day versus 100,000 in the past.
Tom Karadza: 17:04 Totally. Yeah. I don’t know. Maybe a complicated thing to explain. Not Familiar. We are right. And there’s a, you could look at it on the flip side. So the way you said it’s, it’s totally right. And on the flip side you could say they want the economy to grow faster than the amount of debt they put in. So if they put in $3 of debt, they don’t want $1 of growth, they weren’t like $5 of growth. Whether that growth comes from artificial price increases because of the debt they put in, like it’s not actual true value that’s coming out, it’s just that money’s turning over faster. So prices are going up faster. Um, they don’t care how they get it, they just want the economy to grow faster than the debt so that eventually the economy as a pr, the debt as a percentage to the economy looks smaller and they can pay it off easier. So yeah, you can chop this up a million different ways. But yeah, that’s it. And so if that’s
Tom Karadza: 17:50 the environment that we’re in, where do I want my money over the next 10 years? That’s what I asked myself all the time. And Nick, that’s what we talk about all the time. Like if we’re in this environment where $3 of debt to increase economy, one, $1, so more debt is coming in our future, we can all argue it after a recession, a correction, whatever. More debts coming our way. Where do I want my money? And part of the part of the place we want our money is obviously good income properties. That’s why I also laughed somebody. I think we put up a youtube video last week. I don’t know if you saw that comment. Somebody commented because we were talking about, hey, you know what? The bank is tightening lending, so you know, if you’re looking to refinance your properties and extract some of your equity and you want to buy another or you want to buy another income property right now, um, now’s the time to do it.
Tom Karadza: 18:31 And somebody on Youtube, which is always the worst comments. Somebody on Youtube puts a, yeah, you know, that’s a really good leverage up. You know, that’s really smart. Why do you think the banks are tightening? So they see something’s happening and you know, a really good advice. Leverage up his matt, you know, take all the credit you can. And to me it’s just like somebody with a mindset who doesn’t get it. Like we’re not saying just take your car to go by motorcycles and you know, whatever. I go to Vegas and just party and frittered away quickly. Yeah. Vegas is always better than Niagara. No one ever talks about going into Niagara to gamble it away. It’s always vegas. No, no. So go to Niagara and party, but yeah, it’s. I can’t even think of a good time or even or even you don’t even have to take the money.
Tom Karadza: 19:14 I mean, I know we’ve talked about potential credit lines being shut down, but it’s just gaining access to it because then if things do change, then you do want access to funds that may be beneficial at that time too. Yeah, totally. If you have the credit available because you might be able to access the credit, you’ve already been approved for it to get approved for new credit card, so if you’re going to be smart with it, buy good assets with them. That’s what we’re talking about. But anyway, you know, you know the comments you just mentioned the agora. It made me think of something when I was in the software industry made me think of this guy, a guy from England. It was a the top guy that used to work with one of the vps over there. He was American, but he worked over there and he came to see Niagara Falls for the first time.
Tom Karadza: 19:51 He’s like, I thought it was going to be a beautiful forest with this waterfall coming down. He goes, I didn’t realize it was going to be like this submitted, basically can pull up in your car on a road and just look over at the thing. But this guy was ex US military. I can’t remember if he was like us ranger or a navy seal or something and he had the. He was like a, a sales vp, but he had the craziest stories and he talked about a dinner in Niagara. He’s. We start having a few drinks I guess, and he starts talking to me about. I can’t remember if I asked about the number of confirms he had and I’m like, what’s a confirmed? Like I don’t get it. What’s it? What’s it confirmed? And he’s like, well that’s how many people you’ve killed. That’s why if you know you’ve killed them, it’s a confirmed.
Tom Karadza: 20:35 Like if you don’t know you, you don’t know, you know, and I just thought that’s a totally different person than me. So I’m walking down the street Niagara going, wow, I call home, you know, check in on the family and the kids. Hey, guess what, I’m having dinner with this guy told me how many confirms he has. I’m like, oh, this is a different world, but it is a big different world. Um, which is why we’re talking about this stuff. So anyway, back on topic. So if that’s the state of the world, then Nick and I and I think we started realizing, hey, maybe we should buy some good assets, good, good, good rental properties, um, because they pay for themselves and if we can be smart about it and we can control our interest costs and we can get them in good areas where the rent is good and rent across Ontario has been super strong.
Tom Karadza: 21:18 I think everybody knows that. Um, then, uh, are you going to sneak, say, bless you and you didn’t sneeze. I didn’t want to sneeze right into the load, the sneeze. Next time he’s writing right into to scale, don’t lose my skull and bones got the skull in his office, has 10 ounces of silver, and every time I’m in here I try to secretly steal it, but I didn’t know. He’s kind of like some sort of magic and device and there’s cameras and no one’s in stone myself. So, um, so look, we bought some, we buy some golden silver in addition to good assets. And the reason that we want assets, I guess if I was to summarize it in this type of economic environment over the next 10 years, I just want to own good stuff. I want assets. So that’s why we like properties.
Tom Karadza: 21:59 That’s why we like building businesses. There are assets that we create ourselves and create equity, equity ourselves. And golden silver plays a role in that because we believe it’s one of the easiest ways to buy insurance on everything because gold and silver is one of the few things that we can buy that has absolutely no counterparty risk. So what I mean by that is like if you buy a bond or even if you buy a share of a good bank in Canada, there’s always some risk like that that bank goes, you know, under, they don’t pay back their debt. There’s always some counterparty risk, but gold and silver, just something I can actually hold in my hand and I don’t depend on anyone else for its value. It’s one of the very few things in the world that has that. Yeah. What about the people that say it’s a relic and it’s just the only reason has any values because people have to terminate, it has value and that’s going to change.
Tom Karadza: 22:46 So once it changes then has no value anymore, you know, and I’m willing to. I’m willing to be open to that idea. I just mean throughout history there’s always been someone who will willing to take, just like you used the example of the person coming from India with the bracelets up. They obviously still today associate value with it and yeah, maybe it does become a relic, but I’m willing to take that risk because I don’t see any other option, like the only other options that some of my friends will talk to me about are some of the cryptocurrency stuff, which I don’t mind. Like I love the idea of cryptocurrencies. Like I absolutely love it. It bypasses governments. It’s kind of like sound. There’s only a certain amount of froth has come off that. Yeah, a lot of the hype was. Yeah. So the idea and built on blockchain technology, which is brilliant. But uh, the only reason that I’m not going to go all in on cryptocurrencies is because the government, it’s still, I have to go through a financial institution to, you know, you have to go through like a trading. I mean you can’t trade it directly, so I shouldn’t say that, but ultimately I can’t pay my taxes in it. Like, well
Tom Karadza: 23:46 you can’t pay your taxes and gold. No, but I’m not buying, buying, buying gold, like crypto in its name. It’s a currency. I’m not buying gold to be a currency, I’m buying gold and silver to be a store of value, right? I’m cryptocurrency, right in its name. It’s saying, well you buy it because you’re going to use it to exchange stuff and if I do something and give Rock Star was going to um, charge cryptocurrencies for commissions and stuff while we still have to pay payroll taxes, HST and business taxes in Canadian dollars. So we have to take the bitcoin and change it to convert it. And just that process alone makes me think, okay, as a currency don’t like it. So then the other argument for a cryptocurrency would be as a store of value, and I can see it as a store of value yet might be, it’s just that there’s many competitors like gold and silver compete I guess against each other and like platinum, you’ve taken it one step further.
Tom Karadza: 24:36 So like your whole philosophy to it. I, I bring my philosophy for owning some is very simple. I go back to what’s happened in history because I think that like that’s a good indication of what’s gonna happen and things change. But there’s a lot of things that has been a constant for for so long, so golden silver f have held their value and their purchasing power over a very, very long period of time. And if I want to put some of my funds in a place, let’s say a savings scenario, like an almost like a, to me it’s like an insurance policy. Like hey, if things hit the fan I have something that’s going to hold some value that’s fairly easily liquidated like I can convert, you know there’s going to be people again if you go back to history that are going to pay me for some golden silver that can convert or do things with when the time comes that I need to use it and it holds the power and he’ll just purchasing power far more than if I take whatever the number is, five, $10,000 and put it under my mattress or leave it in the bank account or whatever the case might be.
Tom Karadza: 25:33 So I just look at it like that. I don’t, I don’t want to quit all that other stuff. So like, you know, people can look at cryptocurrencies and they can have the discussion and they can be strong believers in that and that’s cool. Like I think like, okay, do it, you do that, I’m just going with history and I go this way whether, you know, to me the cryptocurrency is not even a, it’s not for my purposes in my life isn’t a, it doesn’t even serve the same purpose. Like I’m using different discussion. Yeah, I’m using this for that purpose and then maybe I’ll do some stuff with cryptocurrency, but I’ll use it for different purposes, you know? So that’s, that’s the way I look at it. It’s just not the same. And like I said, in my opinion, if people choose are their big critical people and they’re like, it’s going to go up to a million dollars for one bitcoin.
Tom Karadza: 26:14 Great. Go, go for it. Whatever you want to do. Actually the idea behind it. Yeah. But just in my life I’m using this for this kind of, this whole shit is shit hits the fan. It’s my shit. Hits the fan funding, you know, the insurance policy and it’s, it’s it. I mean the downside and it’s real money. Yeah. You have got money stuck there. It’s not paying anyone to return and things like that, which doesn’t pay a return like that. This is what I think. I’m like, I don’t mean I don’t need my money to pay a return. I take me though the investor in me. You’re right. Yes, you’re actually right about that because the only reason, the only way I get a return is if I take takes a month. So you add risk, but your money in the bank, you take the risk of going a little bit of interest.
Tom Karadza: 26:53 So. So that’s why I do it though. That’s why I do it. And then I also do it like I have some precious metals in, like just mentally kind of assigned to my kids. Like you know, this many ounces of gold or silver or the case. My be nice five freelance person after all, when they’re, when they’re, when they’re 50, when I finally give it to them then they’re going to get when they can think for themselves, but I trust them enough with them or not 50 yet. But no, they’re $50 but you’re not even 50 yet, so it’s going to be a long time. I’m living to 120, I guess. I don’t know. You tell me. I’m gonna live forever based on response. I mean, pretty soon we can put stem cells everywhere and live forever. But um, I do want to go to Panama just sticks them stem cells over my body.
Tom Karadza: 27:33 I her up. We’re going to make that trip at some point, you know, should I have another kid just to keep to the umbilical cord? I guess now should probably. Yeah, that’s right. It should have done that before. Yeah, I know. We all got to go home, push it, talk to my wife. Hey, as I’m rubbing my neck and shoulder that are sore right now. But uh, yeah. So, so I just look at it like, you know, if I was going to save that amount of money for them to put that aside, um, so that they would have access to it at a later date, I just think that it’s going to hold their purchasing power is protected by doing it this way and letting it sit there rather than doing something else. And to your point, there’s no risk associated with it or very, very minimal because I don’t think the world is a whole is going to now change hundreds of years of history and go back and say, you know what, this gold silver thing, we have social capital value to any more as central banks around the world are trying to acquire more.
Tom Karadza: 28:27 You know, I just don’t think that’s going to happen. There’s no signs pointing to that. Basically central banks have Russia and China continue to load up and buy as much as humanly possible and these other countries are trying to get theirs back. Remember Venezuela just asked for. There was back in England said, no, no, no, we’re keeping it now. The only sad country that doesn’t have any easily Canada. I think Canada, I still need to find out it’s 69 or 79 ounces. I thought it was even in the teens. I thought it was lower. Now I remember when these pretty low as a country. That’s all we have one that’s a little sliver that’s a flake for each of us, but there’s modern day examples. Still have gold, like I’ll never forget. There was a refugee from Bosnia that worked with my brother in law who said the only way he was able to get his family out of Bosnia during the war his.
Tom Karadza: 29:08 He gave the priest of the church a bar of gold that he had because the currency had gone to shit right through the war that a bar of gold. The priest took that and pass them on to the smugglers to get him out of the country. So think of that. That little piece of metal was responsible. There was enough value associated with that, smuggle them out of the country and then in Greece, remember like wasn’t it like four years ago that they had their currency crisis going on in Greece where they limited how much money you could. People before I forget, I feel like it was about the demand for gold spike. They couldn’t get any, but what were people buying? Washing machines. Do you remember? They were just wandering out of the currency and they want it to
Tom Karadza: 29:42 get anything that they could and they were buying like furniture and washing machines and I’m trying to protect the va because look in your life, you don’t. If you’re not exposed to that and you only ever here in North America you have no. Will it happen in Korea and Yugoslavia with a dnr? Yup. Right, so it’s happened. It’s happened in Greece that that didn’t get as bad because a lot of people stepped in and dumped a lot of money into the country. Happened in Italy with the lira before I went to the euro, people were pissed off. Yeah, it happened in lots and lots of this is like, this isn’t like this crazy. Once in a lifetime thing. This is happening. It happens, right? Happens all the time. It liquid some. I have a $1,000,000,000,000 in Zimbabwe building my office. Yeah. You know, so there’s those things in Venezuela right now.
Tom Karadza: 30:21 Now you know, I know it’s a different political climate, but it’s happened in Venezuela. Their currencies are worth nothing. Yeah, nothing. It’s one of the. I guess it’s just one of the few things to own where you just kind of have this insurance. It’s real money. It’s an insurance policy just back to the car or the cryptocurrency thing and something’s been on my mind that I want to do a little math around and kind of think about it a little bit here and you get so much. I don’t know what’s coming out, but I’m just going to be listened. Blockchain definitely the whole idea of it’s brilliant. You can bypass databases, you can have decentralized ledgers. It’s a brilliant. They’d love to be able to send money to Europe. When we were building that place in Croatia. Oh my God, how nice would it be to do it are going through the swift system and you could just send it using some kind of block?
Tom Karadza: 30:59 Yeah, that would be 100 times, but absolutely. That’s what it’s made for. It designed for. It’s brilliant. My only thinking is if it was to ever replace a currency globally, I think there’s a cap on bitcoin that’s like 21 million coins or something like that. I’m pretty sure that’s a deflationary situation because as the. I’m just trying to, and I haven’t put a lot of thought into this, so kind of bear with me for a second, but if the economy continues to grow around a set number of coin, the value of those coins goes up and up and up. Meaning you need less of a bitcoin to buy things each year, so that actually if you sell a car today for like one bitcoin, but the value of the bitcoin goes up next year, you might sell your car for half a bitcoin. I don’t think that’s good.
Tom Karadza: 31:44 No, I think it’s just inherently deflationary. Let me leave that one with me before anyone sends me some hate email on that idea. Please just leave that with a few engineers type. No, but I’m just thinking. I’m like, if it’s a set amount, you would have to have layers around it because it. It just makes. If it becomes worth more and more as the economy around it grows and grows, it’s just naturally a deflationary currency, which you won’t get a call. Guys on here. We can have a bitcoin discussion. Yeah, that one that the deflationary when it would be interesting, but the technology kind of soul absolutely sold on and maybe long term it is a store of value. It just doesn’t have the history of the gold and silver it has. So we go with the kind of governance over. So what’s the next thing we’re often asked is like, okay guys, how do you buy some of this stuff?
Tom Karadza: 32:28 Which I’m surprised as such a mystery still, but the reason that we don’t buy it just through like kind of your online trading account is most of the etfs, from what we can tell, they’re just trading the price. They they are like they, they do put some gold in there, volts it seems and there’s a lot of debate and you can get all kinds of conspiracy theory on that kind of stuff, but they just seem like they might not have, you know, as much of the ETF that they sell. It might not be matched one to one to the goal that they’re billing. You can also change. I mean I can’t actually get it. Yeah. What, what most people invest in it. You have to invest a huge, huge amount to be able to ever kind of say, give me the gold value of my holdings here so you can never actually change the cash into gold.
Tom Karadza: 33:11 You’re essentially, you’re, you’re basic. You’re trading the price of getting access to the price, but that’s not why we want it. We don’t want the price. No, we want the quote, the no counterparty risk in our hands. We’re like the Indian grandmothers coming into the country with all the bracelets. We wanted the Italian guy with three chains arrest someone when we were in Germany with Aiden for Oktoberfest. I of course going to the gold stores, look at all the different gold chains for, for guys and you know, they don’t have that many. And uh, some guy in Germany tells me, he’s like, you really want to go to chain? I’m like, yeah, like I want a nicely designed gold chain. He goes, well, you’re gonna have to understand it’s only like the Russians and the rappers who are buying gold chains. These. I’m like, really?
Tom Karadza: 33:49 Well, it’s Tom, the Russian and the rappers who are those ones are golden Miami. We went to look at the big rapper chance that I don’t know if are stainless steel gold plated. I was totally, I thought they were solid goal. I didn’t, I, I thought they were going to, if it’s a gold chain in a jewellery store, but they’re all, uh, at least there. They were like, oh no, that’s normal. I wouldn’t change the colour of our skin. Yeah, it’s cold play. This, it’s spray painted. It could have been, I don’t know the prices, but yeah. But uh, anyway, so we don’t buy the ETF stuff, but there is um, you ran in, I don’t know if you want to cheer your billionaire story in Toronto. He ran into or we’re not going to share that story. You know, I almost forget the story because I ran into Eric Sprott when I ran into Eric Sprott.
Tom Karadza: 34:29 That was because I was going to talk about his funds of, which is one of the more interesting one. So Eric Sprott, some kind of big guy and he’s a financial guy named bill. Hardly anyone knows about. Yeah. And I ran into him outside of conference and I was talking to him and we had a discussion about just kind of different things going on in the world and some of the stuff that you were discussing right now just earlier about just economies and that type of stuff. And I remember him looking at me and he’s like, oh, he goes to you. You must be reading the same stuff I’m reading. Right, and he was trying to figure out all the tombs there. Yeah, he was trying to figure it all the same stuff that we’ve been trying to figure out and it made me. I looked at him, I’m like, really?
Tom Karadza: 35:05 I was like, hmm. I was hoping that you were going to give me some. So he was trying to figure the same stuff, but that’s why for a lot of the same reasons that you’ve been talking about is why this kind of Canadian billionaire was looking at this market as well and has put a lot of his money in, in there over the over the long haul. Some of his funds are actually stuff that we own over the years because his brought. It wasn’t sprott asset and asset management. His funds, like he has a gold and silver fund. I mean I haven’t checked on it a long time but I’m hoping it’s still there. We physical, it’s
Tom Karadza: 35:38 physical. It’s kind of its claim to fame is that it’s the physical gold is held for the investing dollars, that it’s kind of controlling, which is the difference between the and some of the other etfs, but it’s Kinda like a one to one ratio, like $100 of investment goes into $100 of gold is acquired. So it’s actually backed 100 percent and I mean I think it’s pretty complicated and if you asked Eric that when you ran into them, if you want it to get your gold, I think there is actually a process if you own that fund, but I think there’s limits, there’s minimums and stuff. Like it’s not as easy as like I put in 500 bucks and give me my. I forget. I do forget. I’m not sure I even asked them that. I do forget. I, I wouldn’t be able to of, for anyone who’s never bought any physical gold, an ounce of gold is about the size of a loony I’d say. And uh, what’s that trading for? Canadian dollars right now? 1,600 bucks or so right now. Canadian. Uh, yeah,
Nick Karadza: 36:30 sure.
Tom Karadza: 36:35 Yeah. Let me check this out. What do I have here? Gold. Damn, as we’re talking about, it looks like it’s down to me. Sorry. I’ll just talk out loud as I a gold. Here we go.
Tom Karadza: 36:50 Canadian. That’s the other thing. When you buy gold is priced in US dollars. You should know that. That’s been one of the nice things too because a friend of mine when I bought gold. Oh yeah. It’s not down in Canadian dollars. Yeah, that’s. That’s what I was going to say was it wasn’t I think is when something like Golden I bought years ago, I was talking to a friend of mine that works in the finance industry is like, oh well was how you feeling about that? You know, Gold’s down since you bought it. And I was like, well no. Like the price of gold has gone down and Canadian and US dollars, but in Canadian dollars so shitty that it’s actually. But it’s been nice. It’s been a hedge that way. Right there in and of itself is an example of why you went on to own gold.
Tom Karadza: 37:26 Yeah. If you’re going to be in an environment where the currency is going to get weaker, your gold holds up. Probably the best example I’ve ever heard of that is back in 1920 an ounce of gold would buy a good men’s suit. Right. And then today got an ounce of gold would still buy. You are really nicely, finely tailored men’s suit. Like it’s always held its value throw time. Right? And it is. It looks like it’s about 1600 bucks. I’m kind of rounding here. Fifteen 91 depending on where exactly it look. 1,600 bucks Canadian for an ounce of gold. So that was the size of a loony. So you can see that if you bought a whack of this stuff, it’s not really. Didn’t really take much. Bought it before. It’s kind of crazy. The first time I bought it and I handed over whatever, 12, $1,300.
Tom Karadza: 38:03 I didn’t know what to hand it over. 900. Oh yeah, it was below a thousand I think at the time. But anyways, you hand over that much money in this 80,000 bucks. It was. I think they were just like over eight, eight, nine, 10. I want to say something. Yeah. Wow. And you handled right? Didn’t we buy more a handover thousand bucks and then someone gives you this little kind of coin and you’re like, what? I’m giving you this thousand bucks and all they get is a silly little thing like was in my pocket and you’re not used to associating value to it. Right? Because you know, we’re, we’re, we’re, we’re, we’re our society’s values on these paper currency notes that were given. It’s not on this coin and you’re like, gold
Tom Karadza: 38:36 coin and what am I gonna do with that? You know, most people on the street, if you hold out 500 bucks or you hold this little gold bars, like we’re going to take longer, which is yet another reason why I like this stuff. I like to be in the minority at all times, which I know sounds ridiculous, but if the majority of people do not like something, I just want to do the opposite at all times. So if the majority doesn’t like gold, then I like gold. That’s just Kinda the way my brain works for right or wrong. When you were talking about buying it, where are you going to buy it? Yeah, so then you can buy it. So we don’t buy the Etfs, but you can buy through online banking or online investment accounts. You can by Eric Sprott stuff, which is one of the few in the world.
Tom Karadza: 39:08 I think it’s back to one to one. So if you want to buy it that way and then that way I think you can buy it within an RRSP or something. I don’t have RRSPs anymore. You do? I still have mine. I think you can buy it within your RRSP and get exposure to that way. But if you’re buying it to have it physically, you have to go to a dealer. The first dealer that we ever went to was in the shopping mall at square one, at the bottom of the escalators there. And it was like a stamp store member and he, he basically told us the world was coming to an end every year. Most of stamps also stands somewhere else now. But, uh, we bought it from there and he took us into the back of the store member. I’ll smell it was like, you can barely fit there and we got to know over the cash.
Tom Karadza: 39:43 Um, but yeah, you have to go to a dealer. I wouldn’t recommend men, you know, I would recommend going to like an approved dealer. I think on the, he was an approved dealer to be actually here on Canada site, on the Canadian mint site. He was listed there. You’re right. Um, I think it was his father who had that status or something, but you’re right, it was listed there, but that’s where you can check on the Canadian mint site. You can check approved dealers in Canada. One of the biggest ones, um, I feel like we should be affiliated with them that we shared this name so often as Canadian coin and currency in Richmond Hill. Um, you can go into their store or they have an online, I think it’s Canadian pmx, which is short for precious metals exchange, Canadian pmx.com or something like Google, Canadian pmx.
Tom Karadza: 40:24 They have an online store where you can go buy into and I’ve recently ordered from silver, gold bull, I don’t know if that’s the [inaudible] dot com and that was nice because they just, what was crazy is they deliver it and then leave it at your steps yet just leave it at the steps which showed, showed it, showed up in my office. I was like, I hope someone signed for this. Listen, I had a friend who bought some and they just left it at his front door. At his house. Yeah. Because it was just in some envelope. It didn’t seem like anything. I’m like, what is this? I don’t remember ordering anything. And then there was some silver and gold in there. I was like, oh, that’s a nice surprise. So, um, but I have bought it there as well. It’s pretty seamless. And their prices were generally just as good.
Tom Karadza: 40:59 I mean there’s roughly on the same range. Right? So they’re all pretty good. Um, but that was an easy process if you want to make the trip. I, I personally do like making the trip to, uh, I like it too because I just like to look at all the stops, like a bit of a hobby for me, you know, um, I bought that skull there for 10 ounces. That is interesting. Sometimes it can be interesting if you get a good knowledgeable person wherever you’re going to buy it, you can get some interesting insights into kind of just the trends and stuff that they’re selling. What are people. Because at one point, a number of years ago, remember when we were asking them, we’re like, hey, you know, what about these Canadian maples, which is the ones that the gold coins that the Canadian Mint and uh, they were having supply problems like the, so, so the, the paper gold prices moving, but I remember was a real shortage and the physical gold market, they’re like, we can’t get it.
Tom Karadza: 41:44 So there’s that type of stuff too. That happens. Right? And it’s just interesting to know that type of stuff. And then the next question we’ll get is about storage. And unfortunately, there’s no good private storage options in Canada that I’m aware of, like I know in the US if you buy from some dealers, like I think Michael Maloney’s dealer, I forget the name of his company that actually sells gold and silver, but he’s the guy who has the youtube channel, great series all about money. If you want to check out Mike Maloney, I think it’s called the secrets to money or whatever on youtube. It’s absolutely fantastic. But he sells gold and silver and I think you, he has private storage where you don’t have to take accept delivery but you can store it in his vault. Um, but in Canada, we don’t have private storage or reduced down to basically the Canadian banks in a safety deposit box.
Tom Karadza: 42:23 Um, you know, or you can be like me. I took some over to Europe and I buried it underground, which I joke with Nick about all the time. And the only reason I did some, it’s a small amount, but the only reason I did some is just to have the story where I can share, I can, I can tell people about it. Which just started, we should, we should, you should put a treasure map someplace too that you can go find it. I just tell everyone I know. I say, look, if I, if I like you and you’re ever in trouble in Europe and you need some cash, I have some GPS coordinates. It’s the middle of nowhere. So you’re really gonna have to dig deep to get out of your cash. If you need cash, you just tell me. I’ll just send you a text message with these coordinates.
Tom Karadza: 42:58 Go there and dig down. It’d be good to go. Um, but yeah, you have to go to the banks in Canada to basically store. I mean it’s so small. I mean you could hide it in your freaking backyard or in your stuff. Just don’t forget about it. I’m sure. I know multiple people who have forgotten about stuff like that. Um, so yeah, Canadian banks is basically your storage option and I just wanted to share. So that’s basically how you bought. You go to dealers and, and oh by the way, when you go to a dealer, if you’re not aware, they’re going to charge you some percentage. So when you buy it, whatever the spot price is in American dollars, you first Kinda, sorry, I can’t speak, you’re going to convert that to Canadian dollars and then they’re going to add three to four percent as their fee.
Tom Karadza: 43:36 That’s how they work. That’s how they make money. So you can kind of shop that around if you really want the best fee. Um, and then when you sell it back, they’re going to charge a fee as well. That’s how these dealers make money. So it’s whatever the US price is, convert that into Canadian dollars and add that fee on. Or if you’re selling, subtract that off. And that’s really what you’re going to be a buying or selling the gold for. That’s kind of how it works. So I just want to bring this point back on gold and silver to us, it’s an insurance policy. It’s just we have all this money, we have all these, you know, real estate properties, we have money in bank accounts and that kind of thing. Wouldn’t it be smart to have something that is completely outside of the banking system that acts as an insurance policy against everything else and that’s the way we view it.
Tom Karadza: 44:19 Rightly or wrongly. I know a ton of people listening to this. Are they going to think it’s an old rock and associate, no value with it and really want us to go harder into the cryptocurrencies and just for the record, I love the idea of the cryptocurrencies in the blockchain stuff. It’s just, it doesn’t serve our purposes just yet. Maybe we’re going to miss the boat on that one and we can buy in at a later price. I want to share one other thing. Nick is from 2005 to 2015. The growth of real meeting income in Ontario. I looked it up. It’s three point eight percent. That’s the growth in income levels over a 10 year window and total? Yes. Oh, I thought you were going to say annually. We point eight percent, I guess that wouldn’t make sense. Ten year window. I’ll double check this again in case I’m speaking incorrectly, but I don’t believe I am.
Tom Karadza: 45:04 No, I’ve seen it. I’ve looked at the grass recently so that makes more sense because if that was annually, that would be almost 40 percent and I know they haven’t jumped up 40 percent, so it’s three point eight percent debt has gone up in Ontario, so around 2007, 2008. We had about $138 billion dollars of debt. Ontario we carry per citizen here in Ontario, a resident of Ontario, we carry a lot of debt, like three, four, five, six times out of California per per person in this province, but 138 billion and today it’s over $300. Million in the same. In that 10 year window, it’s actually over. I stopped it at 300 billion to match the real medium income growth. So incomes and a 10 year window from 2005, 2015 up, three point eight percent debt up 100 percent. Think about that. Income is three point eight, debt, 100.
Tom Karadza: 45:51 Now when debt goes up that much, it influences the prices of the things closest to the new formation of debt, like property prices, because money is created at the time we create mortgages, so the prices of things that are closest to new money creation, a creation go up the fastest like property prices and that’s why you can’t, you know, property is a really good investment, but you can’t just be silly about it because we have all these threats globally around us. We have to buy good at. You can just close your eyes and buy anything. You have to buy good income properties. You have to cover your expenses and you have to hold on for dear life and you have to prepare for a decline in residential property prices and survive that window of time to but over a 10 year window in this economic environment where debt is going up at this pace and incomes are going up at a much less lesser pace.
Tom Karadza: 46:40 I want to own assets. I want to own property, I want to own businesses. I want to own things like gold and silver, this is where I want my money. So that’s kind of why, you know, golden silver is something we talk about and it’s kind of like where it fits into our mind and I want to share it, finish off that story about Tetra Evero and listen to. And it was selling eggs in the far in the market. I’m in a city called split on the coast of Croatia. And uh, she went to jail because what happened is when the dinner was losing its value in the 1980s there, um, what she was doing, she was taking dinars from residents and giving them German marks because German marks were holding their value. So as the currency was collapsing around people, she would exchange dinars for German marks.
Tom Karadza: 47:24 Well, of course the communist government at that time discovers what she’s doing and puts her in jail. You know, they can’t have people doing that. They can’t have people getting out of their currency. No country wants you to get out of their currency. What was solid? I was young at that time, so I know. So how is she making money that, I guess she was marked, she’s just like a dealer fee because the cat, she was a smart lady. She was getting the short term income so she went to jail and uh, I forget it’s, it’s either two weeks or two months, I want to feel like it was two months that she was in jail and somebody was able to call in some favourite family to get some lawyer, person type to get her out. But she was always a hustler. Like I remember our father was telling us that in the fall on construction sites, she would go and get the leftover rebar, like whatever the steel that they were using to reinforce new buildings.
Tom Karadza: 48:08 She would go and collect it all. And then in the spring when construction would start again and they needed some of it, she would sell back to the, she would sell it. She was like, just a hustler man. This lady, if you. Sorry, I feel like she was four foot tall. She was, yeah, she was smiling, but she was, she was a pitbull ban. She was a pitbull. Great. Stomper, I remember, uh, yeah, she came over for my wedding, if you remember. She’s allowed lady. She’s a great lady. So yeah. So our aunt went to jail over some of this stuff and then ultimately through that process we saw the middle class. Anyone who just had a little bit of money in the bank or money at home, when that dean are collapsed, they had nothing when the new currency came out. So when the new currency came out there, they just absolutely had nothing so because the value of the old Dina was worthless.
Tom Karadza: 48:54 So we’ve kind of lived through that. But the people who own property, they listen. It got some point. We’re just talking about this summer when we were over in Croatia, we were just talking to the guy we bought our condo off of and he was telling us when he got paid, what would happen is when the dinner was collapsing, so this is, I’m assuming kind of late 19 eighties when the dinner was collapsing like that at the worst, which might’ve been the early 19 nineties. They would run to the store, literally run to the store, spend it to spend all of their money because the next day property, sorry, uh, a product prices were increasing, you know, so they would run to the store to get rid of all their money because they wanted some goods for it. Before the prices went up, increased people were buying appliances as a store of value.
Tom Karadza: 49:38 And that environment is happening to us right here in Canada. But when it, when it happens at two and three percent and four percent, you don’t think it’s not happening. But remember we were doing the math at two percent. You’re the purchasing power of any savings you have is crushed every 35 years. It’s cut in half, right. So like, I mean, it doesn’t, it, it, uh, it, it, it just means to me that property prices are going to continue to go up when the, when more debt is going to get flushed in, even throughout a correction, we’re going to have property prices come down and you got to think that debt is going to be the answer. So these are the things that we kind of want to own. I don’t see any other way out of it unless the only way out of it is if these government institutions ultimately collapse, but then we’re talking like that’s freaking just crazy and they won’t let themselves collapsed. Right. They’ll just push money into the system. Seems that way. Again, going back to history, it seems that way, that’s
Tom Karadza: 50:28 what they’ve done in the past has kind of shifted around a little bit and something new has been created. But overall the same kind of things are in place. But yeah, I mean that’s why we’ve done it. I mean, and, and to be clear with everyone, I mean we do have like cashews as business owners. We have cash reserves in case we need to put. It’s not like we just buy gold and silver, we have cash. It’s just we, I guess we, we use different things for different purposes and even between the two of us, we use the same things for slightly different purposes for our own lives too. But um, but yeah, so that’s kind of why we do that. For sure. I, I just see it as a long longterm store value based on everything that’s happened. If we were just starting out, I don’t think, you know, when we were in our twenties, I don’t think we had like extra cash to be buying quote unquote insurance on stuff.
Tom Karadza: 51:12 But I guess today if I was talking to somebody in their twenties, I would say yeah, maybe if you want it to get into this, you can buy some silver, like a coin on one ounce of silver, which is going to be bigger than an ounce of gold. So it’s maybe two or three times. It’s kind of the size of an ounce of gold. It’s going to be like 20 bucks, 25 bucks in that range. So if you really want it to get in, you don’t have to start with gold, you gotta buy some silver and it could be 20, 25 bucks a coin, something like that. So there’s ways to get into it even when you’re younger. I think it was more as we had, as we had started accumulating more stuff, we wanted some insurance policy and that’s. And that’s why we kind of explored it and to be fair to, if you look back at not timing anything just because our plan was to kind of hold it.
Tom Karadza: 51:54 If you look back, like we were talking about, uh, when we bought it and were some values are now or how we’ve bonded over the years, whatever the case may be, it’s, it’s held its value. Like if, if we took the same amount of money, what, whatever the amount of money is, right? So let’s say we, let’s say it was $10,000 and we had the $10,000 that we had invested in gold at that time. So whether it’s maybe it’s five years ago and that $10,000 five years ago, what would it bias like if you equate it to other things? Well, what would it, how much of a property with a bias, how much food would have bias, how much it was? Well, you know, what we, you, we would’ve lost out like that even in the last five years. Putting it in that place, you know, it, it’s held us purchasing power better there than it would have if we just held onto the cash.
Tom Karadza: 52:40 Right. So we don’t have to go back 30 years to see that. We can see that it’s, it’s, it’s kind of serving its purpose for us. But again, it’s not this glorious, you know, you’re not going to get rich off like, you know. Exactly. It’s not your get rich quick play. No, no, it’s, it’s the, it’s the safety. It’s the longterm, you know, again, for me. So this shit hits the fan play. Yeah. It would be nice if there was some crypto backed gold thing where I guess there is, isn’t there? There are some, there are a few of them, but you’re still have to go through financial institutions to get them. Right now there’s just not enough for. For me personally, I don’t have. I don’t have the understanding I need to have the faith, I need to put my money in certain places because I just feel like, you know, if, if I get the bitcoin was the first one, but then the theory was developed and had slightly different purposes, but if there has been much more volatile because it wasn’t bitcoin, but bitcoin is really only the first one and then all these coins were developed and did a lot of these coins.
Tom Karadza: 53:39 I think it’s like what was 75 or 65 percent of these things read enough just being pure fraud so people have lost tens, hundreds of millions of dollars have been lost in these, like these tokens that people have created. So there’s a lot of stuff still in that field that is just not mature enough for me to be to it with. A lot of it happened. A lot of it happened like when the, when the huge rush was going on, there was these new coins is initial coin offerings, icls coming out it felt like every week and that’s kind of slowed and, and, and the government is going to match or match or a, some people have been charged with some fraud and stuff like that, but then the big players are still there, like the bitcoin’s still exists and stuff like that. So it’s going through, but it’s just for me a similar to you like I like to have what I feel is some sort of information, maybe not information advantage but enough information that I gives me that confidence when I make my decisions.
Tom Karadza: 54:29 Especially for buying that. Like the whole reason we’re buying it is to so that you know what you’re getting and you can’t play with it. Like you can’t play with it on your desk and hit it and listen to that. Like that’s solid silver, this, this little skull. That thing. You can’t hit a bitcoin on your next. She get gold teeth, man, some gold teeth. And these youth. I mean, I think it was glad you started having some gold teeth. Then we can do the Rock Star Minute. We’d smile and you’d have that gold tooth just staring at you. That were good. I think you should do it first and then I’ll see. You know, I just thought of that. Should do it permanently though. Not like a cap. You should do this. What I’m talking about our task, permanent gold teeth. She still has one.
Tom Karadza: 55:04 Um, I’m calling because our father’s calling because I have to take them to a denture appointment tomorrow. Maybe should ask them, hey, can we get dentures? Can you imagine? We got dentures for our father with some gold grill. Oh Man. But uh, anyway, so there we go. That’s our golden silver chat. Hopefully if you, if you’ve been thinking about why we’re doing it, that’s kind of some of our thinking. I’m sure there will be missed out some, uh, some big points and we’ll talk about this, uh, going forward so more. But I think that’s it. Anything else Nick? No. Just send the, send the hate mail about bitcoin or about crazy. Crazy. I love technology. I love it. It does have a place where, how crazy you are for investment. We are for investing in gold and stuff like that too. So what we’ll, we’ll, we’ll be able to look out for it. Thanks everyone.
Tom Karadza: 55:44 Hey everyone. It’s Tom Karadza against, hopefully, enjoyed that banter. A little bit of a Chit Chat between Nick and I on the economy in gold and silver. Um, if you’re listening to this and you want any sort of real estate information, Canadian specific stuff, whether it’s access to free digital copies of our books, youtube videos where we described different strategies and how we’re trying to track down cash flowing real estate all over the Greater Toronto area. Even in these crazy days of 2018, you can find all that stuff at rockstarinnercircle.com. So access to books, articles, blog posts, videos, different reports. We put together different case studies that we’re sharing all available too at rockstarinnercircle.com. That’s it for the show. Until next time. Your life on your terms.