Gold and “The Prettiest Mare at the Slaughterhouse”

Published on
October 23rd, 2019
Duration
36 minutes

Gold and “The Prettiest Mare at the Slaughterhouse”

The Expert View ·
Featuring Rick Rule

Published on: October 23rd, 2019 • Duration: 36 minutes

Rick Rule, president and CEO of Sprott U.S. Holdings Inc., shares how the worldwide explosion of negative yielding debt shapes his bullish outlook on gold. He examines the impact that a “war on savers” has on the global financial system and on precious metals, and he shares his ideas on where inflation fits into the equation. Rule explains his outlook for the future of the monetary system by analyzing the evolving relationship between cryptocurrencies, precious metals, and fiat currencies. Filmed on October 10, 2019 in Vancouver.

Comments

Transcript

  • GG
    Gary G.
    3 November 2019 @ 21:51
    The first 15 minutes of this video should be sent to Elizabeth Warren.....))
  • TJ
    Terry J.
    29 October 2019 @ 13:51
    What a priceless video from a gold industry legend! I hope every viewer who has been complaining about the quality and content of some of the other bitcoin v gold videos in this series (which doesn't include me btw) will have found Rick's timeless observations on gold, mining companies, government debt, real price inflation, etc. restoring their faith in the RV subscription product. This is a video I shall watch several times just to ensure I absorbed all of Rick's invaluable insights!
  • PF
    P F.
    26 October 2019 @ 20:46
    Best critique of the CPI I have ever heard!
  • JG
    J G.
    25 October 2019 @ 01:50
    This is why I SUBSCRIBE to RV
  • GB
    Gary B.
    25 October 2019 @ 01:27
    Rick Rules
  • FS
    Fagundes S.
    24 October 2019 @ 23:55
    So who is this RS character posting jokes in all bitcoin videos? Like "All you want is tokenized gold, and there are many legitimate cryptographically secured gold tokens. No need for bitcoin." Tokenized gold. LOL. It's like made up imaginary promises to give you gold. Or, you know, like fiat that Mario Draghi printed. You should pay attention to all RS posts and read them carefully. They're typical Bitcoin FUD. A lot to learn from them as they're fundamentally wrong at the core but sound good - same as central bank propaganda. RS is a true Roubini clone.
  • AT
    Andrea T.
    24 October 2019 @ 19:11
    Bitcoin cannot be cash unless it's private and fungible. Opt-in privacy doesn't work. Privacy should be by default, and only transparency should be an opt-in. Only in this way you can preserve cryptos' reason to exist.
    • JB
      James B.
      26 October 2019 @ 17:30
      Agree that privacy is important and there are privacy improvements on the way. However, this needs to be balanced against public opinion and the "only criminals use Bitcoin" narrative. If a crypto-currency with perfect privacy did exist it would attract a lot of bad actors and what are the chances it would survive the regulatory scrutiny?
  • CL
    Chris L.
    24 October 2019 @ 18:47
    problem with Rick's premise, and the likes of Peter Schiff etc, is quantitative easing is NOT money printing. The Fed creates reserves that are exchanged for assets, and these reserves sit on bank balance sheets.
    • PB
      Patrick B.
      24 October 2019 @ 23:03
      You are overlooking one key aspect: they are "exchanged for assets" because those assets cannot fetch a bid in the marketplace (because they are worthless). Hence, CDO's, CDS's and other "assets" were purchased at or near par by the Fed in the GFC. You can finesse it all you want. It's money printing with a twist.
  • MZ
    Martin Z.
    24 October 2019 @ 06:45
    Rick is very knowledgable, and as always, very articulate (hardly an "uh" or "um" in the entire 36 minutes!) and he has a great overview of crypto, especially as it relates to precious metals. But like many people, he greatly oversimplifies the subject by conflating BTC and cryptocurrency in general. He mentioned ETH (a financial transaction platform vs. BTC's current primary function as a store of value) offhandedly only once, failed to mention stable coins (which overcome the "volatility" problem in everyday use) or the many privacy coins (which overcome the anonymity issue) at all, and seemed unaware of recent innovations like Kinesis (which is specifically designed to overcome Gresham's Law by linking precious metals and blockchain). Time constraints, of course, prevent an in-depth discussion of such a complex subject, but using terms like Bitcoin and cryptocurrency interchangeably is like conflating the US dollar and Zimbabwe dollars, simply because they are both fiat currencies.
  • IK
    Ian K.
    24 October 2019 @ 05:10
    Great interview! One of the best this week. Gold on a blockchain is DGX https://digix.global
  • WM
    William M.
    24 October 2019 @ 05:06
    Rick makes such a convincing case for precious metals. He's also fun to listen to. Another great RV video worth watching again....
  • AM
    Andrew M.
    24 October 2019 @ 03:57
    Hi Rick, Loved your thoughts on precious metals. Where is your contact details as I would love to get the Barron's Index data that you referred to? Cheers, Andrew
  • MA
    Matthew A.
    24 October 2019 @ 03:24
    He's great.
  • AR
    Anthony R.
    24 October 2019 @ 02:54
    'Floating abstraction'. Good name for a band.
  • CC
    Carlos C.
    24 October 2019 @ 00:39
    The point about dollars getting spent before bitcoin is ages old in the form of Greshams law. I believe the outcome is to reduce the weaker currency’s value and use until nobody will touch that hot potato.
  • PG
    Philippe G.
    23 October 2019 @ 23:58
    Always love Rick's delivery style. RV - would appreciate a commodities update interview with Rick R., particularly around uranium, copper, etc...
  • TR
    Travis R.
    23 October 2019 @ 22:47
    How does quantum computing play into the crypto argument? Google is charging to the lead of the pack. https://news.yahoo.com/quantum-leap-computing-scientists-claim-supremacy-105247323.html
    • IO
      Igor O.
      24 October 2019 @ 15:32
      https://eprint.iacr.org/2019/1150
    • TR
      Travis R.
      24 October 2019 @ 17:42
      Thank you for the link.
  • BM
    Beth M.
    23 October 2019 @ 21:12
    One thing is for sure...rick is filled with wisdom! And it comes from experience...clearly. Loved the bit about god miners. Thank you
    • BM
      Beth M.
      24 October 2019 @ 18:10
      sorry that's "gold" miners...where is that dog gone edit button for the spelling challenged?
  • MC
    Margarine C.
    23 October 2019 @ 20:50
    Rick Rule gets it. The medium doesn't matter, it's all about people making connections with one another May the market cater to us all, and may we do our business freely <3
  • JE
    James E.
    23 October 2019 @ 20:21
    Rick pulls back the sheets to show what is really happening. Fantastic.
  • NI
    Nate I.
    23 October 2019 @ 18:45
    Prettiest mare at the slaughterhouse. Isn't that the naked truth? Against that backdrop, gold and BTC are very appealing. Thanks RV for having Rick back.
  • RS
    R S.
    23 October 2019 @ 18:02
    All I want from the bitcoin community is to just be honest about the state of the project. It was founded by one person. 40 percent of its lightning network is still owned by one person. Single developers still today write up to 10 percent of its code. It's not decentralized. It can be controlled by Xi and Putin with a few phone calls. It's only the fifth cryptocurrency in a long succession of cryptocurrencies. It has already lost 30 percent market dominance to competition, and probably will struggle to survive the transnational marketing budgets and fully legal and ubiquitous ease-of-use by companies launching cryptocurrencies like Alibaba or Facebook, or the central banks of Japan, Canada or the USA, all of which will soon arrive with billions of users and armies and trillions of dollars. Just please stop lying to one another. It's okay. Bitcoin doesn't have to be perfect. It's a very cool technology, and it was fun while it lasts. Onward and upward. Buy gold.
    • PG
      Petter G.
      23 October 2019 @ 19:32
      I get that you don't like Bitcoin or it's proponents R S. And that's okay and totally understandable. Many of the evangelists claim to know the future and make ridiculous statements that can't be verified. All of this is counter-productive if the goal is to "convert" more people into believing in Bitcoin (in my opinoin). However, that doesn't make it okay for you to spew lies about the same subject here in the RV comment sections, does it? Your comments under this video is just as bad as the evangelists. Trying to get people to believe that Putin and Xi is in control over Bitcoin, for example, is just terrible. It's a false statement and I bet you know it. I don't mind reading pushbacks or negative comments about Bitcoin. But please stick to facts if you do so. Don't turn the RV comment section into a bad Twitter feed.
    • RS
      R S.
      24 October 2019 @ 02:10
      Appreciate the counter. I do sincerely believe that Chinese and Russian dominance is currently bitcoin's biggest problem. The community must solve this problem. It's the top objection I hear.
    • PG
      Petter G.
      24 October 2019 @ 17:33
      That objection (ie miners are in control over the Bitcoin network) was debunked in late summer 2017 when a group of corporate CEOs and (mostly chinese) miners teamed together and tried to force changes into the Bitcoin protocol (SegWit activation and a 2MB blocksize increase) against the community's will. The attempt failed despite having over 80% of the network hashrate signalling in favor of the proposal. This proved that miners are nothing but service providers while node operators dictate what the network conensus rules are. More info: https://en.bitcoin.it/wiki/SegWit2x https://hackernoon.com/bip-148-uasf-first-year-anniversary-a-new-system-of-governance-223907ec298b https://medium.com/@DCGco/bitcoin-scaling-agreement-at-consensus-2017-133521fe9a77
    • FS
      Fagundes S.
      24 October 2019 @ 23:46
      RS posts remain hilarious. Still pushing you gold with all sorts of vapor vague FUD, yet, totally ignoring facts. And facts are: There's 10 years of date for Bitcoin... and in those 10 years, no other asset (including gold) had a better return, risk adjusted. BTC is king, it TOTALLY crushed everything else since 2010. RS is trying to distract you all because he has huge gold bags. Look at the facts. Is gold a flawless store of value? December 2011: $1914 Gold in December 2015: $1045 How much value this store of value kept for you in this period?: -45% Bitcoin had returns surpassing every single investment opportunity you can think of. Find me something better in this past decade. Will the next one be different? Good luck shorting bitcoin. You'll be shorting Apple in 2007.
    • FS
      Fagundes S.
      24 October 2019 @ 23:59
      "Bitcoin doesn't have to be perfect. It's a very cool technology, and it was fun while it lasts. Onward and upward. Buy gold." Total joke given the 10 years of charts. Sounds like Peter Schiff. Peter, is that you? Are you aware no other investment beat the Sharpe ratio of BTC in a whole decade? NONE? Do your own research people. Don't end up like the rest of the sheep. The numbers are all there. Reasarch BTC, ten years - the numbers will blow your mind. Gold. Pff.
  • JD
    Jeremy D.
    23 October 2019 @ 17:58
    Loved it. I could listen to this guy all day. Great respect. I would love to hear his thoughts on the intersection on two things he mentioned: 1) The upside for Gold / Gold Mining Index. 2) The volatility / speculative nature of BTC. My crude summary: (1) was positive sentiment: ~Gold is going to go up! look at the graph! 4x!, 12x!~ (2) was negative sentiment: ~volatility and speculation is diminishing BTC 'value'~. Similarly he was excited about his ability to back a coffee purchase directly to a Gold Receipt, but was suspicious about people paying with BTC because by definition they would think that they are overpaying. I wonder if he would feel the same about his gold backed coffee purchase?
    • AC
      Andrew C.
      27 October 2019 @ 03:06
      His comment about 'Coffee purchases with bitcoin' is more because he thinks bitcoin is currently a speculative trade, I believe. Double / triple your money or more. Gold is money, I guess.
  • BS
    Bill S.
    23 October 2019 @ 17:57
    Veritable Overkill on the Gold vs Bitcoin debate. Enough already. Sprott is an Advisor biz and ultimately when u look at their products are fee based and expensive. The presenter has the analysis chops however which will attract some to their retail products.
    • JB
      John B.
      23 October 2019 @ 22:00
      Almost everyone interviewed on Real Vision is in the investment advisory business in one way or another. Where else are you going to find expert opinions on complex subjects? The hallowed halls of universities that still promote the widely discredited efficient market hypothesis? Or government economists who told us about the "Great Moderation" in which volatility would be a thing of the past? Or central bankers who claim negative rates and QE are "stimulus" with no side effects? I'd much rather hear from people put forward their thesis behind a investment product than to listen to a bunch of clear lies told to placate the CNBC and Social Security ostriches. At some point there is going to be a repricing of global monetary instruments when societies stop ignoring the trillions of dollars in promises to citizens and the effect of massive amounts of monetary stimulus. Does that mean Rick is going to make money hand over fist? Maybe, maybe not. Even if he does it's not going to be tomorrow, just like he said. Which is a refreshing level of honesty. How many investment salesmen are willing to say "hey so this thesis probably isn't going anywhere soon but it will eventually". That's a fair thing to say on the subject. I'm certainly not buying into his fund today, but the themes he is talking about certainly are on my mind. People deserve the fruits of their labor, if Rick is right and makes a lot of money for his investors then why does it matter that he makes money too? Fees are only a crime when your thesis comes true and the returns still don't outweigh the costs. You are right however about the 2 weeks on the same subjects. I'd like to hear some different topics. Maybe 1 episode a day or 3 per week on non-thematic topics would be a welcome addition to the thematic topics.
    • JM
      John M.
      24 October 2019 @ 01:26
      I understand your feelings. For example the price of nickel has shot up almost 40% this year and this key commodity has never been discussed! However if Bitcoin hits the $55k target (Plan B) I guess it wasn't excessive after all - I think we need to reserve judgement.
  • CJ
    Charles J.
    23 October 2019 @ 16:02
    Love every single part of this interview but particularly the optimistic ending. I love when someone reframes something for me in a way that completely surprises me. Rick, I hope you'll come on again in the future.
  • JF
    Joseph F.
    23 October 2019 @ 15:23
    BTC/USD -484.78 -6.09% Oct 23/2019. HODL, LOL.
    • TM
      The-First-James M.
      23 October 2019 @ 23:11
      Are you going to post this on every Bitcoin video thread. You must be pretty bored...
  • JH
    Jesse H.
    23 October 2019 @ 14:44
    Fantastic stuff from Rick, as always. Found his views on crypto and the blockchain very interesting and astute. One thing I love, listening to Rick, is I get two for the price of one - an investment lesson and an English lesson! He has an outstanding vocabulary. Lol.
    • AC
      Andrew C.
      27 October 2019 @ 02:57
      Very considered and precise, an excellent public speaker. Top five in the world
  • AK
    Ado K.
    23 October 2019 @ 14:39
    I love Rick, he is funny charismatic and smart. One thing I would challenge though is that Bitcoin is not a store of value. There will only be 21 million ever made, to create one requires a huge amount of electricity, investment in hardware, investment in cooling systems etc. It is not a promise to pay, but an actual payment. Its transactions can not be censored by any third party, it can not be sized, It is divisible to a fraction of a 100 million units per coin, It can be sent over a communications channel, it has no smell that a border police dog can pick up, it has no physical form that the militias can feel when frisking you, it can not be counterfeited, it enables you to run final settlement through a full node. Gold is something truly extra, and ha so many use cases, its application as a store of value is imminent from merely looking at it, but to claim that Bitcoin is not a store of value seems a bit far fetched in my very humble opinion.
    • RS
      R S.
      23 October 2019 @ 17:43
      Not decentralized. Easily replaceable and has already lost 30 percent market dominance in two years to competing cryptocurrencies and will continue. 58 percent of hashpower is under the control of one person Emperor X. Together with Putin centralized power rises to 80 percent. Either of those two men can at any time deny transactions rewrite history and forevermore determine what is known as Bitcoin. Bitcoin was founded by one person who named one successor Gavin Andresen. 10percent of all bitcoin code was written by one developer. Zero quantum resistance. Pure marketing and storytelling.
    • RS
      R S.
      23 October 2019 @ 17:45
      All you want is tokenized gold, and there are many legitimate cryptographically secured gold tokens. No need for bitcoin.
    • RS
      R S.
      23 October 2019 @ 17:50
      Running a full node provides no independence from centralized power. Five companies (all Chinese) control 58 percent. If you disagree with them, no one cares. They are majority. You have to follow their chain. If you disagree, you'll follow your own pointless and worthless 'fork' which will be worth zero. Xi can command singlehandedly whatever he personally wants the 'decentralized consensus' to be with one phone call. Not decentralized.
    • AK
      Ado K.
      23 October 2019 @ 22:21
      R S. you strike me as a Alex Jones kind of guy. All that was missing in your statement was how reptilians rule Bitcoin and Ether somehow makes the frogs gay.
    • SB
      Salvatore B.
      24 October 2019 @ 01:11
      Is it possible to get a "mute" function here? I don't feel like reading youtube level comments.
    • FS
      Fagundes S.
      24 October 2019 @ 23:52
      BTC is a store of value my friend. A much better one. Gold had its days. They're finally over. Bitcoin is secured by energy. It's the most secure network in the world. It's energy consumption is not a drawback, it's a feature. The days of Gold are not over, but for the fist time in hundreds of years, there is a true alternative that will take well over half its cap.
    • AC
      Andrew C.
      27 October 2019 @ 02:54
      Interesting comment. From where comes the energy? Solar panels have 25% time-efficiency, nuclear power stations have been shut down, oil discoveries lowest since World War II, shale oil companies are going broke, wind mill deployment is decreasing as gov'n tax concessions are reduced........
  • DN
    Douglas N.
    23 October 2019 @ 14:29
    Every single word out of his mouth is exactly what I want to say at family parties!
  • GG
    Geoff G.
    23 October 2019 @ 14:16
    How on earth could this possibly get a thumbs down???
  • GH
    Gary H.
    23 October 2019 @ 13:24
    Still laughing about the sardines. Good piece. Thanks Rick
  • CD
    Christopher D.
    23 October 2019 @ 12:50
    One of the best answers ever on bitcoin/crypto, and from someone who comes from a previous metals 'backyard'. Also, data rich, fact based, and level headed on previous metals too. Fab interview!
    • CD
      Christopher D.
      23 October 2019 @ 12:51
      precious*
  • CB
    Clifford B.
    23 October 2019 @ 11:19
    Great talk. One of the better ones I've seen on fiat, btc and gold.
  • GN
    Griffin N.
    23 October 2019 @ 09:50
    Let there be free currency competition, all we "bitcoiners" want.
  • SG
    Sven G.
    23 October 2019 @ 07:56
    straight to the meat of the matter... love it. Thanks Rick!
  • JF
    John F.
    23 October 2019 @ 06:29
    12 years ago I was so into 35% gold stocks. Now i own none, all in on Bitcoin and Crypto. The value in Bitcoin is the technology where its portability offers fart greater utility in the modern age. That money printing will pour into crypto at a far higher rate than precious metals.
    • PU
      Peter U.
      23 October 2019 @ 13:29
      John is long piss and vinegar, short age old wisdom
    • dd
      david d.
      23 October 2019 @ 13:46
      you must use bitcoin everyday
    • TJ
      Terry J.
      29 October 2019 @ 14:09
      You may be right John and you may be wrong. From an investment perspective, diversification usually trumps all other strategies bar knowing the future, so why not hedge your bullish crypto wager just a little by diverting say 5% - 10% into bullion and gold miners?