Weekly Webinar #67: Investing in Diamonds and Precious Metals

Would it be smart to buy diamonds when they are cheap when things go tits up?

I am assuming you’re talking about brand names. I went and looked at watches the other day. I asked what ‘sterling silver’ meant. She said: “it’s a special type of silver”. I looked it up and it means it is 92% silver. 🙄 so yeah, a $400 watch with $50 silver value has a real world price of $50. is a great business model, start thinking like that: “okay, this is the situation, so how do I be on the side of the winners!”

Dave Smith

Inflation is printing of money. The only thing that’s stops inflation is if they stop printing money.

Dave Smith

The only other thing about diamonds that I didn't hear you mention (if you did I apologize), diamonds are a retail item with enormous retail markups. You buy a diamond from a jeweler you'd be lucky to sell it for 50% of what you paid. Even if you buy online where the markups are smaller, you'd be lucky to sell one for 70-75% of what you paid. Unless you have some sort of connection that allows buying and selling diamonds on a wholesale market, it's a non-starter IMO. Gold/silver bullion has markups and dealer spreads too, but much much smaller.

Walt Dockery

But Russians didn't want to take Donetsk. It was just causing destabilization in enemy territory. And officialy there are no Russians there.

I was unable to attend this webinar but I do want to know Coach's thoughts on longer term forces which tend to be deflationary, such as an aging population and technological advances that automate jobs away. Won't those help to cool inflation longer term?

Have to comment on Ukraine as well and Coach’s idea that Kharkiv will be taken over by the Russians. I think a chance of that happening is slim to none, considering that it took the Russians almost a year just to take the Donetsk airport which they had to level to the ground in order to beat the Ukrainian troops out. Other than that, Russia is very weak, especially economically and getting weaker, and even if it did one day somehow take over half of Ukraine it would be a sign to leave that region not to invest in it. Personally I think that the odds of China taking over Novosibirsk in 20 years is multitudes higher than Russia taking over Kharkiv.

Question coach. I remember you said the dollar was gonna hyper-inflate back in the beginning of the 2010's. It didn't happen. What variables make your analysis any more correct than back then?

Good webinar Coach. I use this firm called Goldmoney to store my gold. The assets you hold are reserved 1:1 so they can never have less gold than what is owned by customers, and their fees are very reasonable at 0.018% a month on a high end, which would cost about $1500 a year to store $700,000 worth of gold from Coach’s example. It’s all secured in Brinks or Loomis vaults and is fully insured. They also let you pick from several vaults around the world including Switzerland, Dubai, and Singapore, and you can either ask them to ship the gold to you if you want or you can pick up in person if needed. Coach spoke recently about a possibility of needing to leave US, so having money already waiting for you in another country is definitely better than nothing. But I agree that precious metals should only be viewed as dry powder to keep inflation at bay while you’re saving up for a real income generating asset such as real estate.

New Video topic "Violence Solves Everything...and it always will"

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Hey Coach do you think you can do a video or webinar on what's happening in South Africa right now and what lessons we can learn from it? Not south african but seems very serious and relevant rn