Holy Sh*t!! New GDP Numbers Blowout Expectations…But There's A Problem
Summary
GDP Revisions: The latest GDP revisions show a significant increase to 3.3%, surpassing expectations of 3.1%, indicating a strong economic performance.
Trade Deficit Impact: The reduction in the trade deficit played a crucial role in boosting GDP figures, adding approximately 4.5 percentage points to the overall number.
Consumer Spending and Investment: While consumer spending showed some acceleration, investment remained negative, highlighting underlying economic challenges.
GDP Deflator Concerns: Changes in the GDP deflator, which decreased significantly, raised questions about the accuracy of the real GDP growth rate, suggesting potential inflation adjustments.
Market Outlook: The podcast emphasizes the importance of waiting for Q3 data to get a clearer picture of economic trends, as current figures are influenced by anomalies such as tariffs.
Gold Investment Strategy: The host shares insights on gold investment, highlighting a strategy involving rebalancing portfolios and investing in gold miners like GDXJ for potential gains.
Monetary Metals Sponsorship: A discussion on Monetary Metals' unique business model, which offers interest payments in gold through leasing programs, providing an alternative to traditional gold storage.
Transcript
Hello fellow Rebel Capitals. Hope you're well. So, we had big GDP revisions today. We're going to dive into those blew out expectations, but it's like a Sir Mixelot video. There's a big big butt here and we're going to go into that and more. Let's go straight to the screen share. Unfortunately, Mr. Josh is not with us. He's off being a young, irresponsible Gen Z, probably swiping Tinder somewhere. So, I'm gonna have to handle this all by myself today on the video. There we go. We got screen share. Let's shoot over to the Bureau of Economic Analysis. This is the news release from this morning. And we can see that the revision, this round of revisions was fantastic. I mean, look at this. 3.3%. You can see right here. And just for reference, let's go over to not that page. Let's go over to this page. And we see expectations over 3.1. So, not bad. I mean, we had a bump of 0.2%. So, I mean, the economy is on fire. The tariffs are working. Everything mega economics. It's it's you can't deny it's an economic boom, right? Maybe, maybe, but maybe not. As always, the devil is in the details. So, let's go back to the Bureau of Economic Analysis report. And we can see that last quarter, actually, let me try to zoom in for you guys. There we go. Much much better. Last quarter was a negative.5. Never really good to have a negative, but one of the main reasons it was a negative is because our imports were so high. So when you look at the inputs for the GDP calculation, the trade deficit is one of those inputs. So if the trade de we do have a trade deficit, then that is a draw on or that's a negative for overall GDP because what GDP is trying to calculate is how much stuff you know we're producing here, goods and services in the United States. So what you're going to do is you're going to take overall spending but then you have to subtract the deficit because that stuff that uh might be produced here but it's being shipped abroad. So that those transactions in other words didn't happen in the United States. Okay. And so what we want to do is understand that the opposite is also true where if we have a trade surplus, which we probably won't have anytime soon, then this would add to GDP. If we had a trade surplus, this would add to GDP because we're spending or excuse me, we're sending more things out. I think I got it wrong there. Excuse me, guys. Got it in reverse. Deltics. A little early in the morning for me here, especially without Josh. He's swiping on Tinder instead of doing his job right here. So, I've got to do all this myself. So, if we have a a trade surplus, then we're sending out all of these goods that we produce here. So, we want to include that in the calculation because the GDP calculation is all about the stuff that we're producing here in the United States. So, surplus, we've got to add that to GDP. But if we have a trade deficit, then we're going to subtract that from GDP. So what happened in Q1 is we had a massive massive massive deficit. Why? Because everyone was front running tariffs. So this was a huge an anomaly let's say as far as the amount of subtraction that we had to GDP as a result of the deficit. So now we're seeing kind of a bullhip effect. It's it's kind of a or a whips saw effect. That might be a better way to look at it. So, when we look at the actual kind of underneath the hood here, devils in the details, we see on the far left, and actually I'm going to zoom in even further. There we go. So, on the left, we've got real GDP, the percentage change. So, we're right here. Uh I'm not sure what the difference is between but bottom line is 3.3 I don't know not sure what this Well regardless uh oh maybe that's the last oh I'm I see what it's okay got it I'm guessing this bar on the right is the revision and The bar on the left was the headline number. That's got to be it. Okay. So, we go through here and we see consumer spending. Okay. We see investment no bueno zone super negative. And we see government spending basically flat. So right here if we would have had a let's say a balanced trade so we didn't have a surplus we didn't have a deficit you would see severely negative real GDP like super negative GDP like recessionary GDP but what we have is this huge uh decrease in the amount of imports So since we had a huge decrease in the amount of imports in other words a decrease in the deficit this actually added now it gets a little tricky here right because what this is is it's not an absolute number it's just saying this subtracted or decreased from the GDP by this much so the fact that uh we have the imports still a trade deficit So just looking at that of course that would have been a subtraction but what they're saying is the reduction in the actual trade deficit added I mean I'm trying to eyeball it here maybe 4.5%. Let's see if we can read this or read down below. And I'm assuming they're going to give us kind of uh all the details, but that's what's happening here. Because of the dramatic reduction in the trade deficit, we that this added let's just say 4.5 maybe five percentage points to GDP that was only 3.3 to begin with. So if we wouldn't have had uh said it another way, if we wouldn't have had any change to the deficit at all, we would have had mega mega mega uh negative GDP. Okay, so let's go down here. Compared to the first quarter upturn, real GDP and second quarter primarily reflected a downturn in imports and acceleration consumer spending. Uh okay. I mean, yeah, maybe an acceleration, but not that much. uh maybe an acceleration, but it's still not good. Real final sales to private domestic purchasers, the sum of consumer spending gross private fixed in investment increased 1.9 revised up.7. That's a big revision up price index for goods domestic increase. Okay, good. That's basically the deflator they're talking about. Okay. Is this the deflator? I think it is. That's also interesting because it looks like the deflator they're using decreased, which would mean this is uh making the real GDP number a lot better than it otherwise would have been if they used the deflator from Q1. Let me read into this. I think the price index for gross domestic purchases. It's got to be the deflator increased 1.8% in the second quarter. Revised down. Okay. The PCE. So I I didn't realize this. So this adds to the Sir Mixelot video. So the s the the butts in the sir Mixelot video at the beginning were let's just say like this big cuz Sir Mix a lot he he likes big butts but now what I'm and that was just because of the trade deficit but now what I'm seeing is the butts are are getting even bigger so it's not just the delta in the trade deficit. It's also this big uh downward move in the deflator. So why is this important? Assuming this is the deflator, I'm reading this correctly. Why is this important? Because let's just say nominal GDP is 4%. Then you're going to use a deflator to bring that down because this GDP number is adjusted for inflation or it's because we're trying to figure out how much stuff was created, not just the price of the stuff. So you guys understand how real GDP works. So the bigger the uh the deflator, the lower the real GDP is going to be. The smaller the deflator, the bigger the real GDP is going to be. And we went from a deflator of is that even possible? We went from a deflator of 3.5, call it, to 2%. Uh, okay. Okay. More on that in just a moment. How's that? I mean, the CPI's gone up and the deflator's gone down. Let me just make sure I'm reading this correctly. Personal consumption expenditures PCE price index increased 2% revised down. Okay. Excluding food and energy the PCE the same as previously estimated. Okay. Real GDP increase 4.8. Real GDI excuse me. 4.0. Okay. Got it. So let's do this. We'll just think this through real time here. Let make sure I'm still Yeah, we still got the screen share. Let's do this. Let's go over to Mr. Google and say what uh deflator is used for real uh GDP. Okay. The GDP deflator. Oh, thanks Google. What? That's hilarious. What deflator is used for real GDP? The GDP deflator. Oh, well, there you go. Ah, I'm just giving him a hard I'm giving Mr. Google a hard time because I think that's probably what it's actually called. But I don't know where they're so I I don't know why they're going over the uh the PCE. We'll go ahead and shelf that. We'll go ahead and shelf that. and maybe okay so now the butts have gone from this big to kind of back down to this big but um oh they might go back up let's keep reading all right real GDP related measures so the current dollar GDP okay got it real GDI got it PCE okay first quarter wages salaries okay I wish they would give okay technical notes maybe it's in GDP upward. Okay, got it. Within investment blah blah blah blah blah upward revisions, both exports and imports. The revised estimates primary reflected updated data from the BEA's international transaction accounts, new release tables. Well, let's Okay, gross. Okay, got it. So now they're breaking down the individual components of the or the the individual inputs I should say for GDP, but they're not giving us the deflator. Okay, got it. Consumption. Got it. You know, let's let's try to do this here. Let's do let's do this chart of GDP deflator. Okay, this is you would think that this would be right included in their report. Okay, so this is uh last update. Here we go. Now, gross domestic product implicit price deflator. And we're going back to 1950. All right. I don't think we're going to make any headway there. Uh, I will actually and now I'm curious. So, I don't want to do it live on this video, but at lunch I really want to dive into how important that PCE deflator is for the GDP deflator overall. And you guys can see why that's important. Because if the the GDP deflator went from, let's just say it did go from 3.3 down to 2%. That that's a 1.3% change. That's huge. And I don't know how you could justify that while the CPI is actually going up. And if that's the case, assuming that, you know, this is a more accurate number, that takes real GDP from 3.3 down to call it 2%. And that that's a that's a really big deal. But the main takeaway here is we've got to wait until next quarter until to have an actual reading that doesn't have these uh huge swings back and forth due to the anomaly which is the Trump tariffs. And I'm you can think they're good, bad, whatever. That's not what this video is about. The bottom line is they dramatically dramatically impacted the decision-making process for the entities, the individuals in the real economy. And so this number that we had right here, negative.5, it ain't great, but you kind of have to take it with a grain of salt. And this number is blowout, but you or the revisions, but you have to take this with a grain of salt as well because we're just seeing this whipsaw effect. So, I think the bottom line is we've really got to focus on Q3 because Q3 these crazy anomalies should have been for the most part worked out of the system. Okay, which brings me to today's sponsors. I know a lot of you said that you are currently investing in gold. By the way, the GDXJ, have you guys seen that? That that was good. I actually, you guys know that I every time I set up a portfolio like in Rebel Capitalist Pro, it's it whether it's a more aggressive portfolio, whether it's a more kind of wait and see 108010, I've got several uh kind of strategies. But regardless of what the strategy is or the portfolio, I always start with a position gold. And gold has gone up so much in price that I actually had to kind of uh oh, what do they call it where it's it's it's such a big it's it's it starts at 10%. Then it goes up and up in price to where it's a much bigger percentage of the overall portfolio. So you have to rebalance. I think that's what they call it. And I just I I probably should have rebalanced into something that wasn't gold centric, but I was pretty bullish on the the juniors and the miners because of this catch-up trade, right? And you guys know how it works. Usually the price of gold goes up and then the miners go up after gold, but they go up to a greater degree and then usually silver picks up the rear. And so I actually sold uh a good portion of gold uh maybe I don't know two or three months ago and bought the GDXJ. So that's actually worked out really well. Not investment advice, just kind of letting you guys know what I'm doing with my portfolio. But that brings me to today's sponsor because I know a lot of you have gold and I've got a lot of it. And the the problem is as the price goes up, the storage fees goes up because the people who store the gold, they don't charge you based on the number of ounces you have. They charge you based on the value. So gold already has a negative carry unless you keep it in your back pocket or you bury it in the backyard. um if you're storing it with uh Brinks or whoever you're storing it with, it's going to have a negative carry and that that kind of sucks. But that's one of the reasons why I look at it as insurance, but I've actually found a solution for this. Now, I don't have 100% of my gold with this company. But I do have about 45 or $50,000 worth because I don't usually take on sponsors, but when they approached me, I know the owner real well, Keith Weiner. His business is called Monetary Metals and they actually have a solution for this. So I said, "Okay, Keith, I I'm open to it, but I want to set up an account first. I'll go ahead and fund it with some gold because I just want to get my hands dirty before I actually talk about it on the Rebel Capitalist Show." So that's exactly what I did and I've had a really good experience with them. It's it's pretty straightforward. Now, the business model, what they do and how they give you an interest rate paid in gold, that's the punch line here, is instead of paying for the storage fees, they actually pay you an interest rate, you know, maybe 2 3%, but they pay you in gold. So, how on earth do they do this? Because a lot of people sit there and scratch their head and say, "Well, what? This sounds like a Ponzi scheme, George. What's going on?" What they do is they actually take the gold and they lease it to someone like a jeweler. So for the jeweler business model, this serves multiple purposes. They can use it as a hedge or they can go ahead and they don't have to buy the gold to begin with. Uh they just lease it. So they don't have as much out-of- pocket cost. So for them, this makes a lot of sense. And then what monetary metals does is the jewelry they have in inventory becomes the actual collateral. So if the if the jeweler doesn't pay, then they just take the jewelry, melt it down, and then boom, you got your gold back. So, that's a very overs simplistic uh description of how their business model works. But if you want to find out more, um just give them a call. Just give them a call and they can answer any question you have and then you can see if it's something that might be right for you. So, this is their homepage. Oh, let me do the screen share again. Here's their homepage. It's just monetary-medals.com and they might give you a some sort of special deal. I'm not sure, but just uh do monetary-metals.com/jorge or I'm sorry forgamon. It's forgamin. I always forget what my link is. And that'll tell them that George sent you. And uh here's their homepage. And it this is look at this. They've got three simple fast steps. I think they've been watching my whiteboard videos. So, you can go see you create the account and then you choose if you want to participate in a leasing program. So, as an example, you go through here and you can see some of the leases they've done. Oh, they did a silver lease. That's cool. I I know that if you want to, let's say you have 100 ounces of gold with them and you want to take 20 of those ounces and turn it to silver, you actually can. All I have to do is email them and they just just uh do the trade for I don't know there's a cost. So they did a silver lease right here with AGA Bullion and then right here a gold lease with Calan Jewelers out of New Jersey. So you can go ahead and choose which ones you want to participate in or which ones you don't want to participate in. It's totally up to you and but make sure you are understanding the difference between a lease and a bond because they also do bonds with like minors and whatnot and you have to be an accredited investor for that that there's there's some counterparty risk there that's uh pretty significant. So but this is kind of how it works. It's pretty straightforward. You can do a calculator. I'd go to their website, check it out. But the bottom line here is if you have any questions, don't hesitate to call them. Call them on the phone. Say, "Hey, I just heard about this on the Rebel Capitalist channel. I'm intrigued. I'm a little skeptical of how this works. Help me understand the business model." And then you can determine if it's something that's right for you. So, I want to thank Monetary Metals for their sponsorship. Great guys and gals over there. Keith Weiner is awesome. You'll see him at the New Orleans Investment Conference, I'm sure. And their website again is monetary-medals.com/gamon or give them a call, tell them I sent you. On that bombshell, guys, enjoy the rest of your afternoon. As always, make sure you're standing up for freedom, liberty, free market capitalism, and we'll see you in the next video.
Holy Sh*t!! New GDP Numbers Blowout Expectations…But There's A Problem
Summary
Transcript
Hello fellow Rebel Capitals. Hope you're well. So, we had big GDP revisions today. We're going to dive into those blew out expectations, but it's like a Sir Mixelot video. There's a big big butt here and we're going to go into that and more. Let's go straight to the screen share. Unfortunately, Mr. Josh is not with us. He's off being a young, irresponsible Gen Z, probably swiping Tinder somewhere. So, I'm gonna have to handle this all by myself today on the video. There we go. We got screen share. Let's shoot over to the Bureau of Economic Analysis. This is the news release from this morning. And we can see that the revision, this round of revisions was fantastic. I mean, look at this. 3.3%. You can see right here. And just for reference, let's go over to not that page. Let's go over to this page. And we see expectations over 3.1. So, not bad. I mean, we had a bump of 0.2%. So, I mean, the economy is on fire. The tariffs are working. Everything mega economics. It's it's you can't deny it's an economic boom, right? Maybe, maybe, but maybe not. As always, the devil is in the details. So, let's go back to the Bureau of Economic Analysis report. And we can see that last quarter, actually, let me try to zoom in for you guys. There we go. Much much better. Last quarter was a negative.5. Never really good to have a negative, but one of the main reasons it was a negative is because our imports were so high. So when you look at the inputs for the GDP calculation, the trade deficit is one of those inputs. So if the trade de we do have a trade deficit, then that is a draw on or that's a negative for overall GDP because what GDP is trying to calculate is how much stuff you know we're producing here, goods and services in the United States. So what you're going to do is you're going to take overall spending but then you have to subtract the deficit because that stuff that uh might be produced here but it's being shipped abroad. So that those transactions in other words didn't happen in the United States. Okay. And so what we want to do is understand that the opposite is also true where if we have a trade surplus, which we probably won't have anytime soon, then this would add to GDP. If we had a trade surplus, this would add to GDP because we're spending or excuse me, we're sending more things out. I think I got it wrong there. Excuse me, guys. Got it in reverse. Deltics. A little early in the morning for me here, especially without Josh. He's swiping on Tinder instead of doing his job right here. So, I've got to do all this myself. So, if we have a a trade surplus, then we're sending out all of these goods that we produce here. So, we want to include that in the calculation because the GDP calculation is all about the stuff that we're producing here in the United States. So, surplus, we've got to add that to GDP. But if we have a trade deficit, then we're going to subtract that from GDP. So what happened in Q1 is we had a massive massive massive deficit. Why? Because everyone was front running tariffs. So this was a huge an anomaly let's say as far as the amount of subtraction that we had to GDP as a result of the deficit. So now we're seeing kind of a bullhip effect. It's it's kind of a or a whips saw effect. That might be a better way to look at it. So, when we look at the actual kind of underneath the hood here, devils in the details, we see on the far left, and actually I'm going to zoom in even further. There we go. So, on the left, we've got real GDP, the percentage change. So, we're right here. Uh I'm not sure what the difference is between but bottom line is 3.3 I don't know not sure what this Well regardless uh oh maybe that's the last oh I'm I see what it's okay got it I'm guessing this bar on the right is the revision and The bar on the left was the headline number. That's got to be it. Okay. So, we go through here and we see consumer spending. Okay. We see investment no bueno zone super negative. And we see government spending basically flat. So right here if we would have had a let's say a balanced trade so we didn't have a surplus we didn't have a deficit you would see severely negative real GDP like super negative GDP like recessionary GDP but what we have is this huge uh decrease in the amount of imports So since we had a huge decrease in the amount of imports in other words a decrease in the deficit this actually added now it gets a little tricky here right because what this is is it's not an absolute number it's just saying this subtracted or decreased from the GDP by this much so the fact that uh we have the imports still a trade deficit So just looking at that of course that would have been a subtraction but what they're saying is the reduction in the actual trade deficit added I mean I'm trying to eyeball it here maybe 4.5%. Let's see if we can read this or read down below. And I'm assuming they're going to give us kind of uh all the details, but that's what's happening here. Because of the dramatic reduction in the trade deficit, we that this added let's just say 4.5 maybe five percentage points to GDP that was only 3.3 to begin with. So if we wouldn't have had uh said it another way, if we wouldn't have had any change to the deficit at all, we would have had mega mega mega uh negative GDP. Okay, so let's go down here. Compared to the first quarter upturn, real GDP and second quarter primarily reflected a downturn in imports and acceleration consumer spending. Uh okay. I mean, yeah, maybe an acceleration, but not that much. uh maybe an acceleration, but it's still not good. Real final sales to private domestic purchasers, the sum of consumer spending gross private fixed in investment increased 1.9 revised up.7. That's a big revision up price index for goods domestic increase. Okay, good. That's basically the deflator they're talking about. Okay. Is this the deflator? I think it is. That's also interesting because it looks like the deflator they're using decreased, which would mean this is uh making the real GDP number a lot better than it otherwise would have been if they used the deflator from Q1. Let me read into this. I think the price index for gross domestic purchases. It's got to be the deflator increased 1.8% in the second quarter. Revised down. Okay. The PCE. So I I didn't realize this. So this adds to the Sir Mixelot video. So the s the the butts in the sir Mixelot video at the beginning were let's just say like this big cuz Sir Mix a lot he he likes big butts but now what I'm and that was just because of the trade deficit but now what I'm seeing is the butts are are getting even bigger so it's not just the delta in the trade deficit. It's also this big uh downward move in the deflator. So why is this important? Assuming this is the deflator, I'm reading this correctly. Why is this important? Because let's just say nominal GDP is 4%. Then you're going to use a deflator to bring that down because this GDP number is adjusted for inflation or it's because we're trying to figure out how much stuff was created, not just the price of the stuff. So you guys understand how real GDP works. So the bigger the uh the deflator, the lower the real GDP is going to be. The smaller the deflator, the bigger the real GDP is going to be. And we went from a deflator of is that even possible? We went from a deflator of 3.5, call it, to 2%. Uh, okay. Okay. More on that in just a moment. How's that? I mean, the CPI's gone up and the deflator's gone down. Let me just make sure I'm reading this correctly. Personal consumption expenditures PCE price index increased 2% revised down. Okay. Excluding food and energy the PCE the same as previously estimated. Okay. Real GDP increase 4.8. Real GDI excuse me. 4.0. Okay. Got it. So let's do this. We'll just think this through real time here. Let make sure I'm still Yeah, we still got the screen share. Let's do this. Let's go over to Mr. Google and say what uh deflator is used for real uh GDP. Okay. The GDP deflator. Oh, thanks Google. What? That's hilarious. What deflator is used for real GDP? The GDP deflator. Oh, well, there you go. Ah, I'm just giving him a hard I'm giving Mr. Google a hard time because I think that's probably what it's actually called. But I don't know where they're so I I don't know why they're going over the uh the PCE. We'll go ahead and shelf that. We'll go ahead and shelf that. and maybe okay so now the butts have gone from this big to kind of back down to this big but um oh they might go back up let's keep reading all right real GDP related measures so the current dollar GDP okay got it real GDI got it PCE okay first quarter wages salaries okay I wish they would give okay technical notes maybe it's in GDP upward. Okay, got it. Within investment blah blah blah blah blah upward revisions, both exports and imports. The revised estimates primary reflected updated data from the BEA's international transaction accounts, new release tables. Well, let's Okay, gross. Okay, got it. So now they're breaking down the individual components of the or the the individual inputs I should say for GDP, but they're not giving us the deflator. Okay, got it. Consumption. Got it. You know, let's let's try to do this here. Let's do let's do this chart of GDP deflator. Okay, this is you would think that this would be right included in their report. Okay, so this is uh last update. Here we go. Now, gross domestic product implicit price deflator. And we're going back to 1950. All right. I don't think we're going to make any headway there. Uh, I will actually and now I'm curious. So, I don't want to do it live on this video, but at lunch I really want to dive into how important that PCE deflator is for the GDP deflator overall. And you guys can see why that's important. Because if the the GDP deflator went from, let's just say it did go from 3.3 down to 2%. That that's a 1.3% change. That's huge. And I don't know how you could justify that while the CPI is actually going up. And if that's the case, assuming that, you know, this is a more accurate number, that takes real GDP from 3.3 down to call it 2%. And that that's a that's a really big deal. But the main takeaway here is we've got to wait until next quarter until to have an actual reading that doesn't have these uh huge swings back and forth due to the anomaly which is the Trump tariffs. And I'm you can think they're good, bad, whatever. That's not what this video is about. The bottom line is they dramatically dramatically impacted the decision-making process for the entities, the individuals in the real economy. And so this number that we had right here, negative.5, it ain't great, but you kind of have to take it with a grain of salt. And this number is blowout, but you or the revisions, but you have to take this with a grain of salt as well because we're just seeing this whipsaw effect. So, I think the bottom line is we've really got to focus on Q3 because Q3 these crazy anomalies should have been for the most part worked out of the system. Okay, which brings me to today's sponsors. I know a lot of you said that you are currently investing in gold. By the way, the GDXJ, have you guys seen that? That that was good. I actually, you guys know that I every time I set up a portfolio like in Rebel Capitalist Pro, it's it whether it's a more aggressive portfolio, whether it's a more kind of wait and see 108010, I've got several uh kind of strategies. But regardless of what the strategy is or the portfolio, I always start with a position gold. And gold has gone up so much in price that I actually had to kind of uh oh, what do they call it where it's it's it's such a big it's it's it starts at 10%. Then it goes up and up in price to where it's a much bigger percentage of the overall portfolio. So you have to rebalance. I think that's what they call it. And I just I I probably should have rebalanced into something that wasn't gold centric, but I was pretty bullish on the the juniors and the miners because of this catch-up trade, right? And you guys know how it works. Usually the price of gold goes up and then the miners go up after gold, but they go up to a greater degree and then usually silver picks up the rear. And so I actually sold uh a good portion of gold uh maybe I don't know two or three months ago and bought the GDXJ. So that's actually worked out really well. Not investment advice, just kind of letting you guys know what I'm doing with my portfolio. But that brings me to today's sponsor because I know a lot of you have gold and I've got a lot of it. And the the problem is as the price goes up, the storage fees goes up because the people who store the gold, they don't charge you based on the number of ounces you have. They charge you based on the value. So gold already has a negative carry unless you keep it in your back pocket or you bury it in the backyard. um if you're storing it with uh Brinks or whoever you're storing it with, it's going to have a negative carry and that that kind of sucks. But that's one of the reasons why I look at it as insurance, but I've actually found a solution for this. Now, I don't have 100% of my gold with this company. But I do have about 45 or $50,000 worth because I don't usually take on sponsors, but when they approached me, I know the owner real well, Keith Weiner. His business is called Monetary Metals and they actually have a solution for this. So I said, "Okay, Keith, I I'm open to it, but I want to set up an account first. I'll go ahead and fund it with some gold because I just want to get my hands dirty before I actually talk about it on the Rebel Capitalist Show." So that's exactly what I did and I've had a really good experience with them. It's it's pretty straightforward. Now, the business model, what they do and how they give you an interest rate paid in gold, that's the punch line here, is instead of paying for the storage fees, they actually pay you an interest rate, you know, maybe 2 3%, but they pay you in gold. So, how on earth do they do this? Because a lot of people sit there and scratch their head and say, "Well, what? This sounds like a Ponzi scheme, George. What's going on?" What they do is they actually take the gold and they lease it to someone like a jeweler. So for the jeweler business model, this serves multiple purposes. They can use it as a hedge or they can go ahead and they don't have to buy the gold to begin with. Uh they just lease it. So they don't have as much out-of- pocket cost. So for them, this makes a lot of sense. And then what monetary metals does is the jewelry they have in inventory becomes the actual collateral. So if the if the jeweler doesn't pay, then they just take the jewelry, melt it down, and then boom, you got your gold back. So, that's a very overs simplistic uh description of how their business model works. But if you want to find out more, um just give them a call. Just give them a call and they can answer any question you have and then you can see if it's something that might be right for you. So, this is their homepage. Oh, let me do the screen share again. Here's their homepage. It's just monetary-medals.com and they might give you a some sort of special deal. I'm not sure, but just uh do monetary-metals.com/jorge or I'm sorry forgamon. It's forgamin. I always forget what my link is. And that'll tell them that George sent you. And uh here's their homepage. And it this is look at this. They've got three simple fast steps. I think they've been watching my whiteboard videos. So, you can go see you create the account and then you choose if you want to participate in a leasing program. So, as an example, you go through here and you can see some of the leases they've done. Oh, they did a silver lease. That's cool. I I know that if you want to, let's say you have 100 ounces of gold with them and you want to take 20 of those ounces and turn it to silver, you actually can. All I have to do is email them and they just just uh do the trade for I don't know there's a cost. So they did a silver lease right here with AGA Bullion and then right here a gold lease with Calan Jewelers out of New Jersey. So you can go ahead and choose which ones you want to participate in or which ones you don't want to participate in. It's totally up to you and but make sure you are understanding the difference between a lease and a bond because they also do bonds with like minors and whatnot and you have to be an accredited investor for that that there's there's some counterparty risk there that's uh pretty significant. So but this is kind of how it works. It's pretty straightforward. You can do a calculator. I'd go to their website, check it out. But the bottom line here is if you have any questions, don't hesitate to call them. Call them on the phone. Say, "Hey, I just heard about this on the Rebel Capitalist channel. I'm intrigued. I'm a little skeptical of how this works. Help me understand the business model." And then you can determine if it's something that's right for you. So, I want to thank Monetary Metals for their sponsorship. Great guys and gals over there. Keith Weiner is awesome. You'll see him at the New Orleans Investment Conference, I'm sure. And their website again is monetary-medals.com/gamon or give them a call, tell them I sent you. On that bombshell, guys, enjoy the rest of your afternoon. As always, make sure you're standing up for freedom, liberty, free market capitalism, and we'll see you in the next video.