Interview with James Rickards

Featuring James Rickards

Jim Rickards, renowned author and economist, explains his theory on the currency war and why he believes it is important to buy gold now.

Published on
12 August, 2016
Topic
Gold, Brexit, Monetary policy
Duration
44 minutes
Asset class
Currencies, Commodities
Rating
33

Comments

  • dw

    darcy w.

    10 5 2017 22:29

    2       0

    Had to come back here after 8 months of having first watched James Rickards. I'm currently rounding out his book 'The Death of Money', and have learned a lot. Even though I've probably still only scratched the surface of, what is turning out to be some very depressing knowledge on, our financial system, it's history, and the dubious underpinnings of it all. Just searching James Rickards on youtube and listening to his videos has been very stimulating and left me hungering for more. He is so much more than Gold. Highly educated (Economics, Law, Mathematics of financial modeling, Complexity theory). Has 'behind the scenes' experience and insight into the workings of Wall Street, Government, Central Banks, etc. Love his ice 9 analogy (Cat's Cradle reference) and realistic play out scenario of what to expect during the next financial crisis in his youtube interviews. Am very grateful to RVTV for helping me discover:
    https://en.wikipedia.org/wiki/James_Rickards

  • RG

    Ramon G.

    13 1 2017 03:49

    2       0

    Guys, JR recommend a 10 pct allocation on"physical gold" only as insurance, the rest you can invest it in speculative stocks for some leverage in gold, for example one of his newsletter is called "Gold Speculator" where he recommends gold stocks, thats where is supposed to go the rest of your money after you already have your 10 pct physical allocation, lets say, 10 pct into physical and whatever you decide into gold stocks to play the ups and downs. Like Jim Rogers say, buy physical gold thinking that you will never sell it, dont think how much my gold is valuable in USD but how many onces do I own.

  • SB

    Stephen B.

    22 9 2016 17:20

    0       0

    Wonderful

  • dn

    duy n.

    25 8 2016 22:18

    3       1

    I am beginning to think JR is just a salesman. He only suggest 10% of investable assets into gold while is going around talking about the coming collapse? What? Michael Burry's $600 million dollar Scion fund had $1billion dollars in CDS because he was sure of the Macro trend.

  • AB

    Andrew B.

    22 8 2016 09:59

    3       0

    at 26:00 "digital money in Sweden" ... can someone enlighten me please. From a novice in Stockholm; I see cash being used less and less and being actively discouraged to use cash. One high street bank does not have any cash available in the branch offices. Any more insights would be appreciated.

  • SH

    Scott H.

    18 8 2016 13:05

    1       0

    We are in trouble if we have to rely on the IMF to bail out the global monetary system. SDR can be used to add liquidity, the IMF can bail out countries, but the organisation itself and SDR would not be able to stop a collapse. The SDR being a basket of ccy's & USD largest weighting the value of the SDR will also collapse against gold under a monetary collapse scenario.

  • LP

    Lon P.

    18 8 2016 01:36

    0       0

    where is the most reputable place to buy physical gold?

  • PT

    Philip T.

    17 8 2016 13:41

    21       0

    This was one of the best interviews I have seen with Jim. He is usually suffering at the hands of some idiot from CNBC and the like looking for a headline. Having Grant at the helm of this one really brought out the best in Jim. Great interview.

  • AE

    Alex E.

    17 8 2016 11:18

    1       3

    To those looking for clarity on Jim's call for holding 10% gold, I believe his is the right call! Try to get up to 10% of your assets in gold coin (easy to carry and hide in small amounts). Hide then in your home, such as in closets, pantries, bedrooms, attics and basements. One should also get themselves 100 ounces of silver, 10% of assets in platinum and 10% in rhodium. These can be purchased at your local coin and stamp shop. Go to your local pawn shop and try to get some jewellery that can be sold for quick cash if you need it fast. The more exchangeable goods you can purchase, the better your chances of getting through the rough years of a depression. If you can swing extra food stuffs that keep for a long time, buy them. Land and other assets thought to be worth money will not be worth much in a depression. The World may not go into depression, but it is wise to be prepared. So if one hits, your have resources available close at hand. In a depression, precious metal coins will buy you groceries when your stash runs out. Ask the store-keep to start a running tab, pay by coin to whatever level gold or silver is worth in that dark time. Scary yes, but not being prepared is worse.

  • RT

    Rune T.

    16 8 2016 23:23

    4       0

    Not surprised to see disappointed Agora/JR subscribers. He makes a compelling case but his very expensive news/investment advice letters show a completely different (read: poor) track record. I for one am glad I got 90% of my money refunded and found better places to put it to work.

  • IH

    Iain H.

    16 8 2016 08:59

    5       0

    I enjoyed the interview, but like many here I worry about the association with Agora. I don't disagree with Agora or Bill Bonner but I don't like the sell sell sell that comes with them, colours my view of Ricards, is he selling his book or he really believes in what hes says or both?

  • D

    Dermot .

    16 8 2016 03:30

    2       0

    Interesting fact - the Canadian government sold all of its gold! its has none left - zero!

  • GS

    Gordon S.

    15 8 2016 22:59

    0       0

    Excellent interview, as always! I was as many here very surprised by the “only 10%” allocation to gold, especially as it looks to me that Rickards has a very negative view of the future. And from his mentioned confiscation scenarios his thesis is that basically yes any gold will be confiscated?! He sees future contracts to become worthless, gold funds, bank vaults and safes to be raided, not many alternatives left for storing except your own back yard and private accounts, aren’t they? So how about any other precious metals? In that scenario platinum would be a great alternative to protect yourself from the confiscation risk? (I highly recommend Stephen B. Streater Think Piece where he explains just that). In case of a “total” collapse silver may be a significantly cheaper hedge than gold? Probably shooting up to par with it (see historical gold/silver ratios). So maybe 20 - 30% allocation to PM with a healthy mix of platinum and silver added to it would be wiser? Like 60%, 30% and 10% of PM allocation respectively? Everything else might be too pessimistic? As Kyle Bass mentioned in his last interview: “Don’t bet on the end of the world, because it will only happen once” (and I believe you won’t be able to collect).

  • GS

    Gordon S.

    15 8 2016 22:15

    0       0

    @Aleksey E.: I recommend Jim Rogers Masterclass. He talks about physical assets in a broader sense (bullish on those). On the hand, I was very surprised to read the following article on ZH the other day: http://www.zerohedge.com/news/2016-08-12/farmland-prices-continue-fall-central-us-farmer-credit-conditions-deteriorate. So maybe you would already be too late to the party concerning farm land, at least in the US for now?

  • RA

    Robert A.

    15 8 2016 21:35

    2       0

    I think Tocqueville Gold is the single best physical Gold option and I found Simon and Arie to be extremely helpful, patient and forthcoming.

  • BM

    Bill M.

    15 8 2016 21:08

    0       0

    If all the wealthy people of the whole world were to buy 10%, would there be enough physical gold to go around?

  • AH

    Andreas H.

    15 8 2016 19:52

    1       3

    Totally disagree! Nobody cares about the balance sheet of the fed, they will print money as much they need. A bear case always sells better then the bull case, he wants to sell books and they sell better with a bear case.

  • DH

    Domingo H.

    15 8 2016 17:20

    1       0

    In the scenario he describes, how will gold actually help you if there is a crackdown on owning it? You won't be able to transact in it, so other than having wealth 'on paper' what is the practical use?

  • eh

    erik h.

    15 8 2016 09:02

    5       0

    Rickards delivers the gloom eloquently and forth coming.

    One question I always wanted answered by Rickards but not yet discussed is his statement that the SDR bailout will be highly inflationary, though he does not explain the mechanics behind the statement.

  • NO

    Nicholas O.

    15 8 2016 02:31

    1       0

    I would also like to see more indepth discussion about the 'correct' percentage allocation of precious metals and miners to ones portfolio. Jims 10% recommendation seems to echo portfolio theory of the past despite all that has been discussed in this piece. Enjoyed the interview - thank you.

  • DP

    David P.

    15 8 2016 00:49

    30       0

    Grant...just wanted to compliment you on your interviewing style, which keeps getting better and better. You ask intelligent and insightful questions, and then have the good sense and humility to simply let these "smart people" (as you put it) respond at length, letting their thoughts develop as they will. So refreshing and relaxing after watching "gotcha"-style interviews from other sources.

  • SL

    Stuart L.

    14 8 2016 20:44

    1       0

    in a global financial crisis, is it likely that the gold price will rise relative to the US $ and at the same time the US $ will rise relative to other currencies?

  • BM

    Bill M.

    14 8 2016 20:34

    0       0

    I would surely like to see a piece describing how much gold would be left if we all bought 10%.
    Has anyone done that study?

  • sm

    sayit m.

    14 8 2016 20:07

    1       0

    Will the government make it illegal to exchange, transfer or carry gold during the "Crisis"? ie, will they make it illegal to make business transactions with gold?

  • CL

    Charles L.

    14 8 2016 19:03

    0       0

    OK. Gold. Don't wait...and what about silver?

  • VS

    Vikram S.

    14 8 2016 17:43

    1       0

    Jim talks clearly about complexity theory and dealing with uncertainty (rather than risk) in financial markets. His comments regarding network theory, density function, scale and systemic collapse are explained in The Case for Gold.

  • CH

    Calvin H.

    14 8 2016 14:12

    6       0

    John C. I agree with your comments on Agora. I think he is much more professional then this group he associates himself with. I've got a lifetime membership and I am regretting it, as their customer service is non-existent. Overall the trade recommendations are sound, but overall I think the model portfolio is down - if they bothered to have a model portfolio.

  • AE

    Aleksey E.

    14 8 2016 08:07

    9       0

    Would like to see some more commentary around physical assets such as land, food & agriculture during the "collapse". Seem a lot more practical to own than gold

  • KS

    Kathleen S.

    13 8 2016 21:54

    23       0

    Grant I do not believe that confidence is keeping this whole thing together, I really believe it is fear and the willful ignorance of the masses that keeps it all together. When I talk to "ordinary" people about what money is, why did house prices go up, why is college so expensive etc. - they shrug and they sincerely do not know why? Now the scary part - they don't care why things are the way they are, and they don't want to think about why things are the why they are. They are completely content in their ignorance and I come off as this annoying person who they view as a Cassandra. I have come to believe that this is all based on fear, people are terrified of reality and are happy to believe that nothing can touch them and everything is always going to work out. WE will see how that works for them, but I own gold.

  • JD

    Jonathan D.

    13 8 2016 21:48

    0       0

    However of course agreed Don't wait

  • JD

    Jonathan D.

    13 8 2016 21:33

    2       0

    The FT and Economist hate Europe??? FFS! Total rubbish

  • JC

    John C.

    13 8 2016 20:58

    10       0

    I've listened to Jim's reasoning, read his books and have seen him in very good interviews like the one Grant just did. I'm convinced Jim's outlook is right. I'm a modest investor trying to get good advice. I'm concerned not with Jim but his affiliation with Agora which comes off like after midnight TV commercials, selling, selling, selling. This part concerns me... the small investor. Perhaps I'm just naive. But great interview Grant anyway.. I think Jim's perspective continues to be right...

  • WM

    Will M.

    13 8 2016 19:02

    8       0

    Great interview. Echo most of the comments below regarding sharpness of Jim's views and I enjoyed Currency Wars and Death of Money. Not go for the newsletters because the seem overly commercial and geared to "public" scaremongering. The 10% comment at the end took me completely by surprise as it did others. I can see how 10% gold theoretically works if your other assets drop by 50-75% and gold goes up 5 to 10 times. However there is the 28% gold collectible tax to think about and the real threat of government windfall taxes of 50% or more on gold profits. If you BELIEVE that gold will represent wealth sustaining value and that the paper system we have today is going to be "creamed" by 50 -90%?......then get real and accept the consequences of taking a hit back to $1040 or even $800 gold. Do you think thats even possible in todays world for more than a few days? I don't. Gold (and quality Gold stocks which will more likely not incur his taxes) at 25% of net wealth seems to be the minimum ownership now. 50% might eventually prove necessary but as Jim says, if you wait till everybody wants it you are too late, and you find find it difficult to buy any significant amount anyway.

  • RM

    Rainer M.

    13 8 2016 18:49

    3       0

    I agree with JR and his view on potential for more significant GBP weakness. British investors who had gold in their portfolio allocation are up over +40% beating stocks by a wide margin

  • MB

    Mike B.

    13 8 2016 16:43

    12       0

    I too have to hold my nose when I get Agora endless promo emails using JR as the draw. Say what you will but JR offers perspective and insight which is thought provoking and often unparalleled. I would have liked him to expand on the IMF and how they will use the SDR to delay the inevitable. I suspect JR has a larger weight to gold than 10% but we all know shit happens (Gov't intervention) and prudent investor rules should always apply, regardless of the conviction levels. I am starting to think that blockchain tech in combination with Gold ownership title has a bright future.

  • BV

    Bryan V.

    13 8 2016 15:45

    4       2

    I've watched a lot of Jim's interviews. They seem to be more reserved when they are with someone that can call BS on some of the premises. I think he will be eventually right about gold and $, though he hasn't convinced me he is right on how it plays out. Why should the $ lose against the euro and yen, before the whole thing goes down? SDRs? Please, there will be war before that happens.

  • DS

    Dan S.

    13 8 2016 08:55

    16       0

    Seconding some of the other comments here. I really like the guy and have read all his books and he is an influence, but his newsletter thing makes me a bit uneasy.

    As an analyst and thinker I really rate him. Quite a bit of his stuff has been right.

    But this in IMHO is somewhat diluted by his "Agora Financial" newsletters and "investing systems" that seem a bit scammy and more based on internet marketing. The never ending sales letters that might as well promise a free set of steak knives with the product are off putting.

    Nevertheless great interview both.

  • HB

    Heini B.

    13 8 2016 08:26

    2       0

    Great Interview and well done Grant for getting the best out of Jim. One thing I want to add is that there will be more wealth destruction than just a transfer of wealth, I suspect this is more of an Austrian view (Ronnie correct me if I am wrong) the mal-investment from an over-leveraged paper system will lead to wealth destruction with Gold and physical cash being one of the few places of refuge.

  • NS

    Nathan S.

    13 8 2016 07:21

    4       0

    Michael Z - I'd recommend researching Tocqueville Bullion, they offer allocated gold bars stored across multiple jurisdictions (your option as to how much where).

  • ON

    Oskar N.

    13 8 2016 06:48

    4       0

    Couldnt agree more with you Matthew. His newsletters and services is not worth it.

  • JM

    John M.

    13 8 2016 05:57

    12       0

    10% sounds to me like a traditional allocation to gold given a normal financial environment, but given today's circumstances?

  • CW

    Chad W.

    13 8 2016 05:22

    10       1

    I've never understood the 10% thing either. To me that's like saying you're hypothesis of there being some sort of collapse has about a 10% chance of happening. For me 10% isn't a hell of a lot of money, so it's almost seems pointless to worry about it. I could feed myself after the "collapse" for an extra month or two with my 10% gold holdings after I've lost the other 90% in a stock market crash and gov't confiscation.

  • MZ

    Michael Z.

    13 8 2016 01:53

    4       0

    Where do you find contact information for trustworthy private security vault storage globally?

  • DS

    Dan S.

    12 8 2016 23:35

    0       0

    The jig was up in 1971 when France went to the US gold window to redeem its US $'s and was told to go pound salt. I am surprised the BS Global Economy since then has survived so long. Constant War has something to do with it. WW3?

  • DS

    Dan S.

    12 8 2016 23:29

    3       1

    SDRs are simply monopoly money. Just like national fiat supposedly backed by its economy SDRs iare backed up by re-hypothecation of those economies taxing power. That worked out so well on Wall Street in 2008!

  • JF

    Jonathan F.

    12 8 2016 23:18

    2       0

    Would GBI (Gold Bullion International) be at risk of a gold confiscation (when he talks about 'warehouses')?

  • ML

    Matthew L.

    12 8 2016 21:22

    20       4

    Whatever you do, do not buy any James Rickards branded investment letters from Agora. They are complete trash. I like listening to his analysis but he loves to name drop / humble brag.

  • CH

    Calvin H.

    12 8 2016 20:44

    6       0

    Thanks RVTV for bring Mr. Rickards back. Great summation of his current views.

  • WE

    William E.

    12 8 2016 20:07

    8       1

    Rickards is great and I am a subscriber to his news letter - Please pass on to him that your interview was better than any he has put on for his web audience.

  • fc

    frank c.

    12 8 2016 20:05

    23       2

    I just dont get the fact Jim says at the end....well dont go over board, 10% will do.....come again? I believe in the move of Gold, especially with the commercials shorting more by the minute and Gold still been able to gain. But if you stand for this view why would you recommend 10%? it just doesn't make any sense.

  • MV

    Matt V.

    12 8 2016 18:40

    4       0

    Jim's view has always been a Euro-Bull for a number of years. He has to stick to that, which I think he will come to find he was wrong. When the $ bull started in 2014, he was caught flat footed. My guess is that the Euro over time will weaken, like Grant had said.

  • SS

    Sam S.

    12 8 2016 16:51

    32       1

    Grant: Please paint us a picture of how exchange will work after the systemic collapse. Let's say I have $50,000 in gold bars or coins, how do I use that for commerce or exchange of good & services? Will the dollars in paper and coin still be used or banned or limited or what? Say we empty our brokerage accounts into cash, coin, silver and gold----how do we use it? We can't live the future unless we see it clearly today.

  • EA

    Ellen A.

    12 8 2016 16:17

    53       1

    Grant....Another good interview about Gold, but I would like to see you do a detailed segment on the bail in regulations that have been put in place here in the US (Dodd Frank and FDIC) and the new money market regulations that start in October and how to prepare for that. And for us mom and pop people who are subscribing, where the hell do we keep are cash safe that we need to keep on hand.... and Jim, I'm a follower.