Speaker 1While Robert is away, here's the best of Jim Rickards, his top insights on the economy, the Fed, gold, and preparing for what's ahead.
Speaker 2You said the new Great Depression. Are we in a new Great Depression? We are. And by the way, thank you for mentioning my last book, Aftermath. If you have a copy of Aftermath handy, go to pages 288 to 291. Now, this book came out in July 2019. In those pages, I say there'll be a pandemic in the next three years, and there'll be social disorder, riots in the streets. It's your fault.
Speaker 1It's your fault. We knew it was you.
Speaker 2Well, anyone who read that book can't say they weren't warned. So again, read the whole book by all means. Jim, can I say one more thing?
Speaker 1In the book, The Road to Ruin, you warned. Also, that there are military vehicles stationed all around America getting ready for the riots.
Speaker 2Sure. And we were even closer with the book Aftermath. So everything we're seeing now was in that book. But Kim, to your point, the title of the book is The New Great Depression, Winners and Losers in a Post-Pandemic World. A lot of people don't know what a depression is because they, first of all, no one's ever lived through it. If you have a living memory of a U.S. depression, you are a 90-year-old. And if you have a living memory of a U.S. And my mother's 90, so she remembers it. We still talk about it. But you're 90 or older if you remember the depression. So very, very few people in that category. Most people have never lived through a depression. They don't know what it is. They assume it must be a continuous declining GDP. It's not. Two quarters of declining GDP is the technical definition of a recession. But a depression means depressed growth. You can have growth in a depression. It's just the growth is below a depression. And it's not a depression. It's a low potential. So if your potential is three, three and a half percent, and your actual growth is one and three quarters percent, that gap between, say, three and a half and one and three quarters, that gap is depressed growth. Now, if your debt is going up five, six, seven, eight percent a year, which it is, and if your growth is one and a half, two percent a year, which it is, which it will be in my forecast, then your debt-to-GDP ratio, when your debt's going up faster than your income, you're going broke. It's as simple as that. But people aren't. We're looking at intergenerational changes. And again, it all comes out of the COVID pandemic. But the pandemic, the social unrest, and the depression that all converged in 2020, a lot of people don't know. The stock market reached a certain level in 1929. Do you know when it. Then it crashed 90%. Do you know when it regained the 1929 level, when it got back to the 1929 level? 1954. It took 25 years to get back to that level. It got back to where it was in 1929.
Speaker 1The Dow hit 381, and it took till 1954 to hit 381 again.
Speaker 2Correct. But it went down to about 30. I remind people that Joseph P. Kennedy became one of the richest men in the American by shorting stocks ahead of the Great Depression. So you can make money in depression. You just have to see it coming.
Speaker 1Yeah. Anyway, the last question is the debate between inflation and deflation. I don't know if you pay attention to Peter Schiff, but his definition of inflation. Inflation and deflation are different than your definition of inflation and deflation. And so the question is, are we heading for wheelbarrow money, where it takes a wheelbarrow of money to buy a loaf of bread? Or what else are we going into?
Speaker 2Yeah, we're probably. I had a debate with Peter on this recently. He kind of reminded me of the. I forget the character in Manhattan, maybe from Alice in Wonderland. Words mean exactly what I say, no more, no less. Peter has. He has a definition of inflation that may work for him, but it doesn't work for the Federal Reserve, the European Central Bank, the United States Treasury, or anybody who's trying to figure things out. So I use consumer price inflation. I mean, just to be a little technical, the Fed uses something called personal consumption expenditure deflator year over year. That's a technical name, but it's basically just their personal core, by the way, core PC deflator year over year. It's just their personal definition of inflation. That's the one I use. It doesn't. It doesn't matter if I agree with it or not. If I'm trying to figure out the Fed and the markets, I better use the same tools the Fed is using or else I'm going to miss it. Money supply has nothing to do with inflation. Inflation is caused by velocity, which is the turnover of money. So let's just say you took the money supply from $4 trillion to $7 trillion. Nominal GDP is money supply times velocity. This is just the quantity theory of money. This is Milton Friedman's famous equation, which actually goes back to Ernie Fisher in the 1920s. Well, they took the mine supply to $7 trillion. Okay, what's $7 trillion times zero? It's zero. In other words, if you don't have velocity, you don't have an economy. The thing that drives inflation is not the money supply. It's the turnover of money. That's the velocity. That's the zero in my case. Velocity has been dropping since 1998. It didn't start in 2008. It didn't start in 2020. It's been dropping like a stone since 1998. And it's getting closer to zero.
Speaker 1Jim, what does velocity mean?
Speaker 2Velocity is the turnover of money. So let me give you a very simple example. So let's say I go out for dinner and I tip the waiter. And the waiter takes my tip and she takes the taxi cab home and tips the taxi driver. And the taxi driver takes the tip and fills up his car with gasoline. In that example, my dollar had velocity of three. There was the waiter tip, the taxi driver tip, and the gasoline. So my dollar supported three dollars of goods and services. So that's velocity of three. What if I stay home and watch TV and don't spend any money? The velocity is zero. That's the point. It's not how much money you print. It's whether people are lending and spending and they're not. And it's psychological and the Fed cannot control the psychology. And you've got to change the psychology, get out of that deflationary problem, which, by the way, the only guy who did it successfully was Franklin Delano Roosevelt in 1933. And how did he do it? He raised the price of gold.
Speaker 1So there's. They're sitting on it. They're not spending it.
Speaker 2You're right. You're absolutely right, Kim. It's in the data. The personal savings rate. So savings rates have tripled or quadrupled. And that that is what's actually happening. Those are Chinese levels of savings. So people are not spending the money. And they do. If they write a check, they're paying off debt. They're not using it for consumption.
Speaker 1So the final question to you is when I buy gold and silver, the velocity stops.
Speaker 2Yeah, because you speak for myself. You buy gold. You put it in. In a vault and you sit on it. Well, I'm not spending the money.
Speaker 1That's and that causes deflation.
Speaker 2First of all, it has to do with the definition of a depression. And most people don't have a good definition of depression. And economists don't even use what I call the D word. They don't like it because let's compare it to recession. The R word. OK, so recession is well defined. It's two or two or more or at least two consecutive quarters of declining GDP. There are a couple other bells and whistles about employment. And there's a referee in the National Bureau of Economic Research, a private, you know, econ think tank in Cambridge, Massachusetts. They call the balls and strikes. They tell you when a recession begins and when it ends, when the expansion ends, et cetera. So, yeah, but two or two, two or more consecutive quarters of the decline in GDP. That's the classic definition of a recession. So people go, huh? Depression sounds worse than recession. And if recession is two quarters of decline, GDP depression must be 10 quarters of decline. GDP. It must be. Way worse. And that's not the definition of a depression. First of all, 10 quarters of decline in GDP has never happened. If it did, we'd all be in trouble. But maybe during the Great Depression to some extent, but not otherwise. But that's not the definition of a depression. Depression means depressed growth, meaning you can have growth in a depression, but the growth is depressed relative to trend, relative to potential. So, in other words, if your economy at the long-term trend of recovery, well, in a recovery, a growth in a recovery is 3.5%, which it is, and you're growing at 2%, which we were for 10 years, that's depressed growth. You're creating a wedge. So here's the 3% trend line, and here's the 2% actual growth. Well, in between those two lines, that's depressed growth. That's lost output. You could have been here, but you're actually here. And because it's a wedge, guess what? Over time, it gets bigger. What's the, I would say we've been in a depression since 2007. That the entire so-called recovery from 2009 to 2019, that was a 10-year recovery, the longest recovery in U.S. history, but it was also the weakest recovery in 10-year history. The average annual growth for that 10-year period was 2.2%. But for all post-1980 recoveries, average growth was 3.2%. And if you go back to post-World War II recoveries, it's closer to 4%. So if you have an economy that can grow 3%, 4%, and you're growing it about 2%, that 1% is, yeah, 1%, what's the big deal? Sorry, 1% of $20 trillion compounded for 10 years is a big number. You're talking about trillions of dollars of lost output from the government's perspective, lost taxes. So that is the definition of a depression. John Maynard Keynes defined it that way. If it's good enough for Keynes, it's good enough for me. If I want a gold standard, I can't peg it at $1,800 because I'd have to cut the money supply by three-quarters or more. So what's the alternative? Raise the price of gold. So notice the same amount of gold can support any amount of commerce at a higher price. question it's just an eighth grade math problem it's like okay well what would the price have to be to match the the money supply and use m1 as an example and i assume 40 gold backing you know the austrians and the monitors they bang the table no it has to be 100 or you know your leverage okay that's a debate for another day so i'll be conservative and say 40 so if you take 40 of the money supply and that's how much gold you need by value and we know the weight divide one by the other and you come out to fifteen thousand dollars an ounce so the reason i'm explaining that robert is i want to be clear that um there's not a central bank in the world who wants a gold standard they're not going to go to it voluntarily but if they have to because of collapsing confidence in the dollar then it follows that you have to go to fifteen thousand dollars an ounce because any smaller any lower valuation is deflationary and that's the last thing you want
Speaker 1there have been three feds the greatest prosperity was between the second and third fed and why do we have the third fed right well you can
Speaker 2say we had three feds we actually had three central banks but one of them was called the fed because they didn't want people to know no there was a reason for that robert you make a good point because they didn't want people to know it was a central bank um yes where the fed is our third try the first bank in the united states uh i think it was kind of 17 uh 97 to 1816. it had a 20-year charter so i went from the late uh 1790s to around the 1814 give or take um and then it uh they shut it down i said well we don't need this this concentrate and all that but it was actually based in philadelphia concentrated too much power in philadelphia the eastern merchants and all that so they let the charter expire well then we got um then it was kind of a hangover from the war of 1812 and um we needed finance and the trade was disrupted so they um i guess the first bank ended around 1812 but then after the war we need a new one so they chartered a new one in 1816 and that was called the second bank of the united states also a central bank on chestnut street in philadelphia the building's still there it's beautiful building um now that was a 20-year charter also so it ran until 1836. well guess who was president in 1836 andrew jackson and he hated the central banks and he he came from tennessee he campaigned to shut down the central banks well it was one of the biggest you know fights in history with the congress who authorized it or not he beat of it um and so the second bank of the united states ended in 1836 so two tries two failures we had no central bank from 1836 to 1913 there was no central bank uh and that was one of the as you point out robert one of the greatest periods of prosperity in american history i mean the the telegraph the telephone the the um electricity um the automobile uh you know the i guess we have playing kind of game game along at the tail end of that um you know harvesters machinery uh uh ocean shipping steam you know you need railroads you name it i mean we just grew and grew and grew from coast to coast massively productive um inflation was not a problem we actually deflation was a problem but it was kind of a good kind of deflation where you know when prices go down if you make the same amount of money you get a raise you know you can buy more for your money what's what's wrong with that when you think about it so um yeah i know we're um you get guys who just sort of lost their way like paul krugman said yeah but look at all the financial panics during the gold standard it's like yeah i could list them you know 1893 1898 there were a lot of financial facts by the way look at all the financial panics without the gold standard uh you know uh you know 1990 we had a serious recession 1987 the stock market fell 22 percent one day 1990 1998 we came within a an hour show shutting down every market in the world and the um and the ltcm crisis uh 2000 the nasdaq lost 80 uh after the dot-com bubble blew up 2008 after Lehman bankruptcy again the world was hanging by a thread uh 2020 uh the economy you know stock market collapsed um you know 30 in in about one month you know and there are many other crisis the tequila crisis 1994 etc etc the point is there are financial prices on the gold standard there are financial prices on the gold standard and there are financial prices on the gold standard prices when you're not on a gold standard guess what that tells me as a statistician you say there's no correlation between gold and financial crises financial crises happen but they don't happen because of gold and otherwise gold works fine something's happening in
Speaker 3the silver market right now most people have no idea rich dad does for decades silver was manipulated suppressed ignored if something has changed silver is crushing the stock market isn't just outperforming it's leaving everything else behind here's what most people missed 2026 marks the sixth consecutive year the world uses more silver than it mines every electric vehicle runs on silver every solar panel runs on silver every ai data center running right now runs on silver bank of america forecast silver could reach 309 an ounce that's when the largest banks in the world rich dad's robert kiyosaki recently posted on x he believes 100 in silver will be worth 500 within a year rich dad also said gold and silver are not investments they are real money real money doesn't need hype it doesn't need wall street's approval history always catches up to it that's why rich dad and priority gold created the free rich dad guide to silver everything rich dad knows about the metal most people are still sleeping on and how they can use it to make money and how they can use it to make money how to add real silver to your retirement tax and penalty free and when you request the free guide you'll also receive rich dad's playbook and the rich dad wealth defense guide free guides completely free visit rich dad loves gold.com for your free guides again that's rich dad loves gold.com rich dad figured out silver in 1965 when it costs pennies robert thinks 100 in silver today could be worth 500 within a year the only reason why rich dad loves gold is because it's free the only question is this when will you act visit rich dad loves gold.com for your free info kit now the stock market
Speaker 2crashed in october 1929 but it bottomed in june 1932 that was a three-year moving crash or rolling crash whatever you want to call it with some rallies along the way and the total uh damage was over 80 percent not 30 percent not 40 percent down 80 percent and what people don't know is you said okay then it rallied in 1933 and 1934 the fed messed up again and blundered again as they usually do in 1937 and threw us into a double dip but if you ask people okay well everyone knows the stock market crashed in 1929 when did it regain those highs how long did that take the answer is 25 years it was 1954 it was 1954 before the market recovered from 1929 now it doesn't mean there weren't gains along the way or you couldn't make money you could but if you say oh i'll just sit tight and wait till it comes back well a lot of people didn't live long enough they didn't live 20 they never saw their money back because they didn't live 25 more years so that's a real bear market it's happened before and you know and so uh the the point is uh you need to be prepared for things like that and there no one alive but very few people alive have have seen anything like that so that's kind of i think that's the right framework to put it in and if you say well what if we had another market crash right now we'll talk about reasons why in a second um why couldn't the fed just come right back in and you know print some more money and do the same thing over again and bail out the new failures whoever they may be whether it's i call him sam bankman fraud uh not sam bankman free but uh some some people call him son of sam bankman freed you know just they're too young to know who's the son of sam is well you can look it up he's a serial killer and this this guy uh sam bankman fraud is a serial killer of net worth but yeah you can just kind of keep bailing things out why not do it again what's the what's the big deal well the answer is there each bailout is bigger than the one before and that's the point you can go all the way back 1994 mexico 1998 russia ltcm 2000.com 2008 lehman 2020 pandemic and they do bail out but each one's bigger than the one before i mean we threw out six or seven i think seven trillion dollars of new debt on top of a one trillion dollar a year baseline seven trillion dollars in new debt to kind of dig our way out of uh 2020 so there is a there's a limit that comes to thomas like hey this this bill is going to be 20 trillion you know sorry that's that check's too big we're going to have to let some things
Speaker 1fail we talked about how the fed is using we call the equilibria model right and you're and you prefer the bayesian model explain bayesian model and you prefer the equilibrium model and you prefer the equilibrium model and
Speaker 2model forecasting sure uh bayesian statistics is a branch of statistics and the main branch of statistics is called frequent it's just frequent uh and basically says give me more data data data data the more data i have the better prediction i can make that's the fed that's the fed well that's the fed and actually most academics but but it's exactly what the fed does uh but what do you do when you don't have any data what do you do when you have to solve a life or death problem and you only have maybe one data point instead of a million and this is a very important part of the data point and this is the problem we confronted the cia after 9 11 which is we had one exactly one attack of this kind Now, a frequentist would say, well, okay, let's wait until there are 30 more attacks and 100,000 dead, and then we'll have a nice database and we can work with it. But you don't have that luxury. These are life or death problems. These are existential problems. So what you do when you don't have enough data, you make an assumption anyway. You use intuition. You use the little data you have. If you actually say I have nothing to go on, I have no idea what's going to happen, you make it 50-50. 50% chance this will happen, 50% chance it won't. But then as you go forward, more data comes in, and you apply the data to the assumption on a conditional basis, meaning what is the likelihood that the second thing would happen if the first thing were true or not true? And then you update. And so if the subsequent data tends to confirm one part of the hypothesis, you increase that probability. Maybe you go from 50 to 55 to 60, et cetera, or you decrease it. And this is the hard part because you have to be willing to confront data that contradicts your hypothesis. If something comes in that says, no, you were wrong the first time, you have to be honest and lower those probabilities. And that's where a lot of times it falls down because people, this is called confirmation bias. You reject the thing that disagrees with you, and you accept the thing that agrees with you. Well, if you do that, you're pretty much going to be wrong. So you have to be humble, and you have to be able to take data that contradicts what you're saying. But if it tends to confirm what you're saying, then you increase the probability. And our friend, Felix Salmarie, we were. Talking about earlier, he left the University of Vienna, but instead of becoming an academic economist, he became a wealth manager and banker, moved to Switzerland. And he was, but he was very plugged in. He was, he ran the Central Bank of Belgium. He was, he was considered the leading expert on foreign exchange at the time. And maybe if he were alive today, he still would be. But so this is a picture of July 1914. It's weeks before World War I. But until then, this is people. People looked around and said, this is the most prosperous time in history. You know, the weather in Europe was great that summer. You know, the British Empire was at its height. Prosperity seemed everywhere. The fact that Serbia and Austria were having a little dust-up didn't seem too significant. But Salmarie had his antenna out, and he talked to a cousin of the king of England, who had just come back from meeting Kaiser Wilhelm, who was the emperor of Germany and the German Empire. And the other guy said to Salmarie, he said, well, I've just come back from meeting with my cousin, Willie. And he says the odds of war between England and Germany are zero. It's just not going to happen. But Salmarie had more than an instinct. He knew that often the elites are the last to know. Everyone says, oh, you're rich, you're a billionaire, you're in the White House, you're, you know, whatever it may be, Silicon Valley. You know more than anybody. It's usually not true. They are rich, given that. But, and they're smart. I'm not, I'm not detracting. I'm not from that. But their predictive ability is very low. And the reason is they're in a bubble. I mean, if you're a billionaire and all you do is talk to other billionaires in a couple of clubs in Silicon Valley or Washington or New York, you're actually not going to learn anything because it's just an echo chamber. You've got to get out and kind of deal with real, you know, real people in real situations. In the summer. Is that the Fed and is that the government? Kim, a very good question. They're all in a bubble. The Fed's in a bubble. The IMS is in a bubble. Silicon Valley billionaires are in a bubble. I'm not saying they're dumb. Yeah. They're rich, but they, they just hang out with other people like themselves. You're never going to learn anything if that's what you do.
Speaker 3People love to call real estate passive income, which is interesting because most of the investors I know are very busy. Busy finding deals, busy managing teams, busy worrying they picked the wrong market. Rent to retirement flips the model. They hope investors buy turnkey new construction homes, often 10% below market value in top rental markets. Across the country, there are local teams handle the build, the property management and the details. So you don't have to, in some cases, investors receive 50 to 75% of their down payment back at closing with interest as low as 3.75%.
Speaker 2I know everyone's talking about inflation. That's fine. But deflation is right around the corner and no one's looking for it. Interest rates come down a lot. That means there could be huge capital gains on those notes. And of course they're very high quality from a credit perspective. So, you know, 10, five or two year notes, treasury notes, not, not junk bonds, the treasury notes in your portfolio. I have a big slice of cash, maybe as much as 30%. People say, I hate cash because it has no yield. Well, first of all, in, if we had deflation, cash could be your best performing asset because the real value of money goes up, not down, goes down in inflation, but it goes up in deflation. But cash also. Has embedded optionality. Meaning if things are crashing and burning all around you, the person with cash, who's not stuck in the wrong asset class can go shopping. You can pick up the bargains. And, um, by the way, the biggest cash hoard in the world right now is probably, uh, Warren Buffett, Berkshire Hathaway has $130 billion in cash. Why? Because he sees what I see. He sees what we're talking about. The wreck is coming. And again, you get to go shopping. Uh, I like real estate, um, not so much commercial real estate. I think it's early. But residential real estate, multifamily housing, um, uh, farm, uh, other kinds of income producing real estate, uh, that's a winner. Um, I like gold, but you know, 10%, I, you know, people say, yeah, Jim Rickards says sell everything by gold. I've never said that. I don't think it's a good idea, but 10% slice gold and silver, by the way, silver, um, will, um, you know, in a real severe crisis or social disorder, uh, a monster box, which is 501 ounce American silver Eagles costs. Uh, you know, I'm. Maybe $15,000 or so at the, at the market. Um, that's like, to me, it's like having a, you know, batteries and flashlight and water and plywood and a hurricane, you know, you, you want a monster box around. So, so that, and that's, by the way, that's real. Diversification. Um, you know, I run into people, they've got 50 stocks and they say I'm highly diversified. I've got 50 stocks in 10 sectors, you know, semiconductors, minerals and mining, uh, consumer non-durables. Like if you're not diversified, you may have 50 stocks, but you're in one. Asset class stocks are going to go down together or they're all going to go up together. But when you have a slice of stocks, gold, silver, real estate, cash, treasury notes, and, you know, maybe some private equity, et cetera, that's real diversification. And that portfolio will get you through the storm. Well, the global money supply is about, I'm using M1 and the major economies, which is about 80% of global GDP, uh, is about 33 trillion. Uh, and there happened to be about 34,000 tons of official gold. That's not all the gold in the world. That's the official gold held by central banks and so forth. Well, you just do, just do the division. Okay. Divide the 33, sorry, take the, take the 33 trillion and just say you need 40% backing. Some people would say a hundred percent, but you know, historically 40% has worked pretty well. So you need about a 12 or $13 trillion worth of gold, uh, to back up that money. Well, if you have 34,000 times. Yeah. And you need about 13 trillion dollars of gold to back up the money supply. What does that come to? We'll just divide by one by the other. And again, you get a number, uh, close to $14,000 an ounce. So there are two completely independent methods. One is the technical historical look. The other one is a monetary work based on money supply, but interestingly, they come out in the same place. Uh, and then there are other, there are other ways of getting to the same, uh, the same answer. So, so that's, uh, I feel very strong. I think that's a very, uh, solid kind of analysis to get to that number. But the other part of your question, Robert is, okay, what does it mean? Isn't it, isn't this great goals going up and making a lot of money? Well, maybe you are, and other people are who have gold and I certainly recommend it, but to me, the price of gold never changes. I think of gold by weight, you have an ounce, you have a kilo, you have a ton, you have a 400 ounce bar, whatever you may have. If the dollar price of gold is going up, what's really happening is that the value of the dollar is going down. Because gold is a constant store of value. So if all of a sudden, you know, if $2,000 gets me an ounce, but we get to a world where it takes $5,000 to get me an ounce, what happened? The value of the dollar went down. I need two and a half times more dollars to get the same ounce. So a high dollar price of gold is, is again, good for gold holders, but not close for celebration because it means the complete and utter collapse of the US dollar. That's what happened in the seventies. And that's what's happening now.
Speaker 1So then the next question is then, you know, Buffett, who has really trashed gold for a long time. He also trashes Bitcoin. I think he called it rat poison or rat droppings called Bitcoin that, and I kind of laugh because he also said the same thing about Apple stocks, but, but Warren Buffett, you know, he, he just started selling his banking shares and he bought into Barrick. So from Jim records point of view, what do you think is going on in Buffett's mind?
Speaker 2Well, a couple of things, the reason we're dumping the back. He shows is, you know, I was, I worked at, I was the council, the city bank for 10 years. So, you know, a little bit about the banking business, the way you, the way you make money is you borrow short, lend long, you borrow at a low rate and lend at a higher rate and you keep the difference. You got fees and credit losses and lots of complications, but that's pretty much what the banking business has always been. Well, if, uh, interest rates are zero all across the yield curve, you know, as if you're borrowing close to zero, maybe 25 basis points and you're lending. close to zero, maybe 1% or less, how do you make money the answer is you can't you can make a little bit of money you can leverage it a little bit but you don't make enough money to cover your credit losses and your expenses and your overhead and fees and and a lot of other uh costs associated with that so the flatter the yield curve here's the here's a 10-year rate here's a you know overnight rate if it's like this you can make all this money in between you're taking risk in terms of timing but you don't have to take a lot of credit risk but if it's flat you can't make any money so he's dumping the banking shares because they can't make money why would you buy barrack well he obviously likes gold that goes without saying but berkshire hathaway which is buffett's investment vehicle is so big so big we're talking you know upwards of a trillion dollars you can't buy junior miners you know that they junior miners can be very very attractive investments but they don't move the needle at berkshire hathaway you got to be spending a half a billion dollars just to kind of get on the list well there are only a couple of mining companies in the world that are that big newmont barrack uh i am gold there are a few but that's it so buffett's not going to be able to buy junior miners anywhere he doesn't have the time and the ability to attract them he needs a big name and barrack is one of the best interestingly the way barrack's going to make their mind they'll make money in gold for sure and their stock price will go up and it's a smart move by buffett but they're not going to make it by exploring they're going to make it by buying junior miners that's why for some for an investor a little bit smaller than berkshire hathaway the junior miners can be attractive
Speaker 1so so barrack will start buying junior
Speaker 2miners yeah they don't have the time to go out and explore and produce and take all that risk they'll just look at they'll just wait until other people do hit a good gold mine prove it out start mining start producing then they'll just buy that company and add it to their output
Speaker 1this podcast is a presentation of rich rich dad media network rich dad media network We'll see you next time.
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