[Music] Ted has a question for you next. He says, In light of rate cuts and by extension continued inflation, should I put money in Gold Beyond 25% saving and my six-month emergency fund? I fear inflation will only return again. So, what do you have to say to Ted, man? Honest Ted, I'll be honest with you. I don't love answering this question, and here's why. I just feel bad. I feel honestly more than I feel mean because I have so many people who ask us, and you can almost set your clock by it, that whenever we see volatility or whenever inflation is a concern, it always comes back to like, Hey, should I buy gold? Should I buy gold? Should I buy precious metal? Should I do this? And the problem is, in my opinion, I'm going to say in our opinion, when you go buy gold, you buy a hunk of precious metal, you're buying this thing that's value changes without creating any specific economic

value right like you. The thing that makes gold more valuable is someone comes along after you buy yours and they then say, I want to pay more for that chunk of gold than you paid for it. It's not like the gold did anything. It didn't create any income. It didn't produce any product. It did not provide any service. It's simply what your peers around you assign the value to. For me, that's a harder thing to get super, super excited about. When I think about I can go buy an S&P 500 Index where I'm going to buy 500 different large companies in America that are creating products, adding services, changing the way that we live, creating dividends, creating interest. I just get so, I don't know that I get super, super excited about gold because of the way that the economics of gold work. So, and but I'm gonna give Ted, I'm gonna give Ted a out because this is what he said. He said, After I do my 25% after I'm saving, yeah, is it okay if I allocate some towards precious metals?

and I the thing I say is once you get 25% you get to choose what you do above and beyond. Yeah, when I have people come to me and Ted's thinking about this the right way, get the underlying base assets, that saving, investing 25% of your gross income. But after that, if you sleep a little bit better and have a little more peace of mind because you bought some gold, um, I'm not going to pick on you about that. That's the same thing I tell all my crypto people out there is that if you know, if you want to jump on that because it does feel like, and I'm going to probably get hate for this, but gold is, um, it's considered this holder of value when you get into the world's coming to an end or craziness out there or you get into hyperinflation. Um, historically, that's been the case, but I will say it's kind of interesting now that crypto is on the scene. It seems like it's gold for

young people because that's the same promises, but it's got the exact same limitations that Bo was talking about with gold, is that it doesn't innovate or create anything upon itself. It's counting on the only way you make money is if somebody pays you more for it, and it has friction cost because typically with gold, you have to pay somebody to keep it safe. Same thing with when I think about crypto, is that you have to go through something that facilitates the transaction that has a little bit of drag or friction cost, and then you once again have to pay somebody, or I guess you don't have to pay somebody, but if you want to make it accessible to make the transactions easy. I just did my taxes. You know, I did this whole experiment with crypto for about a year and a half. It was way too volatile to me. I lost a chunk of money on it, and so I just, it's one of those things if you're Ted, if you if

you get sleep better at night. I'm not going to, you know, pick on you for it, but I don't think that it does what everybody says it's going to do in the brochure necessarily because it's. I always think about if you get to the end of times or you get into these inflationary periods, how is it actually going to work? And typically, when I visualize that, it seems like it's not as great because you can't break off pieces. Um, I guess inflation, it's be some, but even if I want to protect against inflation, don't you feel like there are much better ways to protect against inflation than everybody always the stock market? I mean, because companies will raise their prices, and you will be the recipient of that higher revenue, the higher profit down the road once the inflation gets back under control.

Is Gold a Good Buy When Rates Fall?

Bring confidence to your wealth building with simplified strategies from The Money Guy. Learn how to apply financial tactics that go beyond common sense and help you reach your money goals faster. Make your assets do the heavy lifting so you can quit worrying and start living a more fulfilled life.

Subscribe today to stay up to date with our latest episodes, livestreams, and highlight videos: https://www.youtube.com/c/MoneyGuyShow?sub_confirmation=1

Are you ready to go beyond common sense when it comes to your money? Check out all the free resources The Money Guy Show provides: https://moneyguy.com/resources/

