(upbeat music)
- [Voiceover] This is
"The Rich Dad Radio Show",
the good news and bad news about money.
Here's Robert Kiyosaki.
- Hello, hello, hello,
this is Robert Kiyosaki,
at "The Rich Dad Radio Show",
the good news and bad news about money.
And we have, I think, one
of the more important shows
we've ever done, very,
very important show.
And the reason is
because we have an
election going on right now
between Biden and Trump, and
that makes a lot of the news.
We also have COVID, which
makes a lot of the news.
But, in my opinion,
the biggest news of all
in the last few months,
was that Warren Buffet,
the Oracle of Omaha, dumped bank stocks,
and he dumped airline stocks,
and he got into Barrick Gold.
In other words, he
shifted into gold mining.
And he and his buddy,
Peter, I mean Mr. Munger,
have bad-mouthed gold forever.
They own some silver, but
they've bad-mouthed gold forever.
And so, that is the biggest news of all,
because it says something is
really fundamentally changed
in America, I mean, foundationally.
If he's dumping airline stocks
and he's dumping bank stocks,
the question is, what does that mean?
And CNBC, and the other,
CNBS as they call it,
they don't cover it, nobody covers it.
And this is bigger, I mean,
Trump or Biden, it's important.
But Buffett going into Barrick
Gold is a thousand times
bigger news to all of us,
because Trump or Biden
have no possible power.
They cannot stop what's about to happen.
So, let me say it again.
The biggest news of all is
not Trump or Biden or COVID,
it's Warren Buffett dumping bank stocks.
Can you imagine that?
Can you imagine that?
And dumping airline stocks,
and then buying Barrick Gold,
we don't know what else he's bought.
And the question is, what
does that really mean?
Any comments, Kim?
- Well, it definitely
means something is up.
Something is changing, changing big time,
because he always talked
bad about gold, right?
He always kinda dumped on gold.
So, we have a great guest today.
And our guest today is Peter Schiff.
He's the Chief Economist
and Global Strategist
of Euro Pacific Capital,
registered investment advisor,
and he speaks his mind.
And he's gonna tell
you what's on his mind,
and we're gonna have a great discussion.
Peter is also the author
of "The Real Crash: America's
Coming Bankruptcy - How
to Save Yourself and Your Country",
which is what we need to know today.
How do we save ourselves?
How do we save, not just the
US, how do we save the world,
'cause right now it seems
like it's falling to pieces.
- So let me introduce
Peter, because he and I,
he and I have been on the
Real Estate Guys Cruise
about five years now.
And it's always entertaining
to be there with Peter
because he'll take
everybody on. (chuckles)
And I agree a hundred percent with Peter.
The thing is, Peter is the smartest guy
as to why you should buy gold and silver.
I just buy gold and silver
'cause I started buying silver
in 1964 and I started buying gold in 1972.
And the only reason I did
that is 'cause, in 1971,
Nixon started printing
money and reserve currency.
The average guy has no,
what does that mean,
reserve currency?
What is the fractional reserve system?
The average American,
even the college professors
have no idea what that means.
So, for all of these years,
Kim and I have saved gold and silver,
taken a lot of heat from people, they say,
well, you should be in this, you should,
I said, no, gold and
silver are what we save.
We don't save cash.
So, with that reason,
I always loved Peter on the
Real Estate Guys Cruise,
is he actually knows
what he's talking about.
He knows the history of it,
he goes into depth of it.
And so that's why today,
I think this is the most
important Rich Dad radio program
simply because what Warren Buffett did
signals a change so big
in the global economy,
not just the US economy,
in the global economy.
So please pay attention.
So, welcome to the program,
my friend, Peter Schiff.
- Welcome Peter.
- Well, thanks guys for having me on.
And you know, Robert, you're
making some observations
that the mainstream financial
media is completely ignoring.
I mean, you're asking
questions that not only
don't they have the answers to,
but they're not even smart
enough to ask the questions.
When you see a guy like
Warren Buffett moving
into Barrick Gold.
As to what does this imply,
as far as what Warren Buffett's outlook is
for the US economy and for the dollar
and for inflation and for the bond market.
And when Buffett was
bad-mouthing gold in the past,
what he really was saying
was that gold is not
the best hedge against inflation.
It's a nonproductive asset.
It just sits there.
And Warren Buffett always says
that he likes to own
businesses, not even stocks.
He likes to buy businesses.
And obviously he does that
through the stock market.
But he's investing in
underlying businesses,
because he thinks that
businesses provide a good hedge
against inflation, they have real assets,
you can raise prices.
It's just that, now, I think
Warren Buffett realizes
that inflation is gonna be
much worse in the future
than it's been in the past.
And Warren Buffett knows
that during periods
of very high inflation,
which we've had in the past,
that's when gold really shines.
So I think what this move
shows you is that Buffett now
understands that the traditional
hedges that he's used
for inflation are not going to
be adequate for the severity
of what's coming.
Because Buffett knows what inflation is.
He defines it as an increase
in the money supply.
He correctly labels it as a tax.
And so he knows it.
He knows it's just not rising prices.
He could see the Federal
Reserve debasing the dollar.
He sees the deficits, he
sees all the spending.
And so he understands gold is gonna go up.
But I think the reason he chose
to buy a gold mining company
rather than just the metal,
is because he likes the
business aspect of Barrick Gold,
because they make money mining gold,
and he's not even just
buying their income streams,
but when you buy Barrick Gold,
you are in effect buying all the gold,
in the ground, in the
mines, that they own.
So it is a very, very bullish bet on gold.
And it's a way for Buffett
to be in the business
of mining a commodity that he knows
is gonna be far more
valuable in the future
than it is today.
- So, Peter, this is my question to you.
If you could get into Buffet's head,
there's two heads, two thoughts,
why would CNBC not cover it?
Do you know, why would they not cover it?
And the other question is,
what are they afraid of?
What do you think Buffett
sees that I know you see,
I think I see, 'cause I've
been in it since I was a kid,
but I see something not so good.
And this is global, again, not US.
What do you think he sees coming?
- Yeah, I mean, obviously,
the talking heads on CNBC
wanna put on a happy face.
They wanna pretend everything is great,
the economy is great, there's
nothing to worry about.
And so, they're really just
dismissing the significance
of what Buffett has done by saying, well,
it's a small investment, which is true,
but we have no idea how many more shares
he may have purchased since
the end of the second quarter.
And of course, how do we know
that this is just not the
beginning of a major shift?
I mean, every journey
starts with the first step.
And so, how do we know
that Buffett has completed his journey
into the gold sector with
this purchase of Barrick?
We don't.
But the mainstream
financial media is afraid
to look into the aspect
for what it might reveal.
And they normally love
talking to Warren Buffet.
Nobody has interviewed Warren Buffet.
I haven't seen a single interview
since this news came out,
where he was on any network,
discussing why that decision was made.
And personally, I think that
Buffett is a pretty shrewd guy,
the people that work for him.
And if I'm right, that
this is just the beginning
of a major shift, and if
Warren Buffett intends
to buy more gold stocks, the
last thing he would wanna do
is come out in the open and
tell everybody why he's buying,
because he doesn't wanna
have a lot of competition.
A lot of people are gonna
follow in his footsteps,
and if he wants to buy gold stocks,
he wants to do it quietly.
He doesn't wanna make a big deal about it.
He just wants to buy as much as he can
for as cheap as he can.
- So, Peter, given all that's happening,
what's your take, because
you're in the middle of it.
What's your take on what's
coming down the pipeline
in the near future and far future?
- Well, I have been warning
about a dollar crisis
for a long time.
In fact, if you go back to
my first book, "Crash Proof",
How to Profit From the
Coming Economic Collapse,
which I wrote during the housing bubble.
I finished it in the middle of 2006,
and it came out in early '07.
And that book predicted
the 2008 financial crisis,
'cause I wrote about
how the Federal Reserve
had inflated this housing bubble,
and that when the housing bubble popped,
we would have this financial crisis,
the worst recession since
The Great Depression,
10% unemployment,
trillion-dollar deficits.
And that I wrote at the time
that the government would
respond to this crisis
with the same policy that caused it.
They would print more money,
they would slash interest rates,
and they would attempt
to reflate the bubbles.
I believed, at the time, that that action,
that all the money that they would print
in order to try to reflate these bubbles
would cause a dollar crisis.
What I got wrong at the
time was underestimating
the ability of the Fed to not just attempt
to reflate bubbles, but
to actually succeed.
I was surprised that they
were able to blow up a bubble
that was bigger than the
one that popped in '08,
but they did.
And because they did that,
we were able to kick the can
down the road, until now.
But during those years of can kicking,
all of the problems that led
to the '08 financial crisis
have gotten so much bigger.
We have a lot more debt
now than we did then.
We made far more mistakes,
because interest rates were even lower,
for an even longer period of time.
So the Federal Reserve
has screwed up the economy
in a far worse way than it did before.
And now you throw what's
happened since COVID-19
into the mix, where money
printing is off the charts,
QE4 is already bigger than
one, two and three combined,
where you have the
Federal Reserve right now
printing more than 60
cents out of every dollar
the Federal government is spending.
I mean, this is unprecedented,
that we're printing more money
than we're collecting in taxes,
and this is just going to accelerate.
So, now, I think the dollar
crisis that I have been warning
about, and helping my clients prepare for,
is just around the corner.
I mean, the dollar is gonna implode.
And you mentioned, back in 1971,
we went off the gold standard, we did,
but the world did not go
off the dollar standard.
The dollar was marked down dramatically
during the seventies,
but the world continued to
hold it as a reserve currency.
I think the significance
of what's about to happen
is the world is now gonna
go off the dollar standard.
- And what does that mean?
- Because the dollar is not
backed by anything,
and we're gonna go back
to the gold standard.
- And what does that mean?
What's the impact of that,
if the dollar implodes?
- Yeah, well, people have to appreciate
how great a benefit the dollar
being the reserve currency
has been for the US economy.
It's kinda like if you had a checkbook,
and you could just write
checks and buy stuff,
you didn't actually have to
have any money in the bank.
You can just write checks
and buy what you wanted,
because nobody ever cashed your checks.
They just circulated.
People just took your checks
and passed them around.
And so, you could live a great life
and buy whatever you want,
if no one cashed your checks.
And that's what's been going on.
No one's cashed their dollars in.
No one's taken their dollars
and tried to buy anything
that we make, they just hold them.
They buy bonds, they buy stocks,
but they don't buy real stuff.
So we haven't had to make good these IOUs.
So we're able to import all
these products and consume them,
and we don't have to export
products to pay for them.
We're able to borrow all this money,
but we don't have to save.
The world does it for us.
So we've had this whole bubble economy,
this consumer-based economy,
that is on the foundation
of the dollar's reserve currency status.
When the world rejects that
and goes back to the gold standard,
which is not this archaic thing,
people think, oh, that's the stone age.
We were on the gold standard until 1971.
Even though it was a dollar standard,
the dollar was backed by
gold and redeemable in gold.
So the dollar was as good as gold,
at least, that's what everybody thought,
who signed onto this.
So we're gonna go back
to the monetary system
that existed before the dollar
was a fiat reserve currency.
The world is going to back
their currencies by gold,
rather than US dollars.
That doesn't mean we're
gonna be transacting
in bars of gold.
It just means that foreign central banks
are gonna hold more gold.
And that's gonna be the primary asset
that backs up their currency.
And so, in that world,
where the world is using
real money and not dollars,
now America is just another country.
Now, if we wanna consume,
we have to produce.
We just can't run huge trade deficits.
If we wanna run these
big government deficits,
we gotta fund 'em.
Americans have to save.
Americans have to lend this
money to the government.
We're not gonna get it from
the Chinese or the Japanese
or the Saudis.
Now, if we try to get it
from the Federal Reserve,
if the Fed is just printing money,
but the dollar is not being
held as a reserve currency,
then we just have massive inflation,
or maybe even hyperinflation.
- So, so, Peter, Peter--
- So there is
a big day of reckoning coming for America,
and it's coming very soon.
- Okay, so, one of the things
about "The Rich Dad Radio Show",
we like to listen to all sides.
So, some people say we're
going into inflation,
and other guys are saying
we're going to deflation.
What I want you to do is, 'cause,
so, every time, on the Real
Estate Guys Cruise with you,
you always had, really, the background,
the solid information.
Kim and I just save gold and silver.
We don't go into the depth you go into it.
Thank God we did.
But, when you come back,
there's inflation or deflation,
and, for most, for me,
when I started all this,
it was the hyperinflation
of what went on in Germany,
in the Weimar Republic, which
brought Hitler to power.
And that's what's going
on in Venezuela right now,
and Zimbabwe.
And the question is, is
it gonna hit us here?
Because I think, really,
that's really what I wanted
to get your point of view on.
So, when we come back,
we'll be going more into,
are we going into a hyperinflation,
or are we going into
deflation or a depression?
We'll be right back.
Welcome back, Robert Kiyosaki,
"The Rich Dad Radio Show",
the good news and bad news about money.
You can listen to to the Rich
Dad radio program, anytime,
anywhere, on iTunes, Android, or YouTube.
And please leave us a comment
or review whenever you listen.
And all of our programs are
archived at richdadradio.com.
We are covered, because
I make this very clear.
We do not not recommend investments.
We don't recommend gold, silver,
or real estate, stocks, bonds.
We are purely educational,
and a key component of
education is review.
You listen to this program one more time,
you'll be twice as smart as you were
when you listened to it the first time.
But, more important,
the best way to review
is get together with friends, family,
and business associate, you know,
those idiots you hang out with,
and listen to this program,
and then discuss it.
And then you'll have family
arguments, divorces, riots,
and all this stuff.
Because there's so many people
that are so set in their ways.
So, my guest today is an old friend.
Not that he's old, but he's
a friend for a long time,
Peter Schiff.
And he and I used to speak on
the Real Estate Guys Cruise
which had to be canceled because of COVID,
that I was looking forward to.
Peter understands the background.
Kim and I been buying gold
and silver for years now.
Thank God we did.
But it was hard because
nobody agreed with us.
And now that Warren Buffet, like I say,
more important than Trump or Biden,
more important than COVID,
was Warren Buffett buying Barrick Gold
for the gold in the ground, as Peter says,
a gold mining company.
But more importantly,
he dumped bank stocks,
and he dumped airlines,
and nobody's talking about it.
So that's why we we're very, very excited
about having Peter on right now,
because he's been in
it for years and years
and years and years.
So, Peter, the big question is this:
hyperinflation, like the Weimar Republic,
or is it deflation, which is depression?
Which way?
- Well, you know, we might
actually have a little of both.
But first of all, you have
to understand the definition.
So, inflation is an
expansion in the money supply
and deflation is a contraction.
So, clearly money supply is going way up.
So we know that is inflation.
But most people are concerned
about prices, right?
When they're talking about,
are we gonna have inflation,
is the consumer price index.
Are prices gonna go up, or
are prices gonna come down?
Are we gonna have
deflation in that respect?
And it depends on how you measure it.
So, let's assume you wanna measure prices
in terms of gold.
How much are prices going to change?
If you have an ounce of gold,
and you wanna buy stuff
with an ounce of gold,
is stuff gonna get cheaper,
or is it gonna get more expensive?
I think prices are gonna
crash, in terms of gold.
I think everything is
going to get cheaper.
Asset prices will get
cheaper, stocks, real estate,
bonds, works of art, whatever.
Things are gonna go down in terms of gold,
and even the cost of living,
food, energy, clothing,
medical care, all the things that you buy.
If you actually have gold,
you're gonna see prices falling.
If you want to call that deflation,
then that's what we're gonna get.
- So, Peter, sorry, what
you just said is crucial,
because if you don't have gold,
the cost of food will go up.
- Yes, because--
- If you have cash.
- So, you're saying--
- If you have cash,
the price of food and necessities go up.
If you have gold, the prices come down.
- Right.
- Is it because
you see the price of gold going up?
- Well, no, it's money losing value.
- That things become cheaper?
- Look, we've had a massive
bubble that is going to deflate.
This bubble that the Federal
Reserve blew is gonna deflate.
So we're gonna see that.
But only if you look
through the prism of gold.
'Cause the problem is
the Fed is gonna print
so much money that it's
gonna disguise the collapse
of that bubble.
You're not gonna see
real estate prices crash,
or stock prices crash,
because the value of the
dollar may crash more.
So it's like, if I'm in a
car and I'm going backwards
at 20 miles an hour,
and the car next to me
is going backwards at 30 miles an hour,
it may look like I'm going
forwards, but I'm not.
It's just, I'm not going back as quickly.
So, you could be losing wealth in an asset
that you think is
appreciating, but it's not,
because you're measuring
the value of that asset
in a currency that's losing value faster
than the asset itself.
Because the Federal Reserve can print
an unlimited amount of money,
there's nothing that stops them.
And that's what they're doing.
So they're gonna destroy
the value of the dollar.
And so, from the point
of view of paper money,
the price of everything is gonna go up.
But I think you're gonna see
a big realignment of prices.
I actually think that all prices will rise
in terms of paper money,
but I think the cost of living,
food, energy, health,
clothing, and stuff like that,
that's gonna go up more
than stocks and real estate.
So people are gonna lose wealth
as the cost of living
rises more than the assets.
It's all falling.
- Yeah, and that's what
happened in the Weimar Republic,
which brought Hitler to power.
The story was, somebody
went to the supermarket,
well, the butcher shop, with
a wheelbarrow full of money,
and he went into buy a pound of pork.
And when they came out,
they stole his wheelbarrow
and left the money.
You know, that's the classic story
that goes around in our world.
But this is the big question.
The other side of this coin is,
we always look at both sides
and guys are all friends of ours.
Harry Dent is calling for
gold to go to a thousand.
What do you have to say about that?
- Yeah well, first of all,
that's a bullish call for
Harry, 'cause he was at 400.
(everyone laughs)
He's moving the bar.
But what Harry doesn't seem to get,
see, he thinks this is gonna
play out like the 1930s.
But what Harry doesn't
differentiate is we were actually
on a gold standard back then.
The Federal Reserve
couldn't do, in the 1930s,
what it is doing right now.
So, I think it's not like
America in the 1930s.
It's more like Argentina,
or it's more like Zimbabwe,
or Weimar Republic, Germany.
You have to look at these big collapses
where you had a fiat monetary system.
You don't have deflation
the way we did in the 1930s,
we don't have the monetary
system we had in the 1930s.
Now, as I said, since the
dollar was gold in the 1930s,
prices in the 1930s went
down in terms of gold,
for assets and consumer goods.
The same thing is going to happen again.
We're gonna see prices coming
down in terms of real money.
So, if you have the money
that existed in the 1930s,
if you have a $20 gold piece, that money,
you're gonna see prices coming down.
You'll be able to buy
more stuff with money
that was made in the 1920s,
with those gold coins that were minted.
Those twenty-dollar gold pieces,
they are gonna gain value.
But this funny money
that the Federal Reserve
is creating now that it
wasn't creating back then,
irredeemable fiat, is gonna be destroyed,
because the government is
gonna try to prevent prices
from coming down.
That's what they want.
They don't want the stock market crashing.
They don't want the bond market crashing.
They don't want the real
estate market crashing.
So they're going to sacrifice the dollar
to prevent all that from happening.
They weren't willing to do that,
nor could they do that, in the 1930s,
but this is the 2020s,
and they're gonna do that.
And so, it's inflation that
you have to worry about,
because you can't hold out.
Harry Dent says, hey,
just put your money in US treasuries.
That's gonna be the
epicenter of the collapse.
It's gonna be a sovereign
debt crisis, right?
A dollar crisis means that
those treasuries are collapsing,
'cause all they are is IOU paper dollars.
- The definition of intelligence
is I agree with you, you're intelligent.
And I agree more with Peter than Harry,
but you guys are both friends,
'cause Harry and I work
together, but we don't agree.
Yeah, we talk about the same problem,
we have different, should
I say, actions to take.
- Well, at some point, Harry
is gonna have to join our camp.
I mean, he can't watch the price
of gold continuously go up.
I mean, what is he gonna
say when gold hits 3,000?
It's gonna crash the 2,000?
I mean, at some point he's gotta realize
that he's holding the wrong asset.
(Robert laughs)
- Where do you see gold going, Peter?
- Look, people ask me that question,
and there is no limit.
Because there's no floor
on the dollar, right?
If the dollar became worthless,
then the price of gold would be infinite.
So, obviously, there's
a lot of room between
being worthless and being
worth less than it is now.
But, look, I think gold
can easily, at this point,
go to 10,000, 15, 20,000.
It's gonna go much, much higher.
I mean, look at where the Dow Jones is.
The Dow Jones is what, 26,
27,000, whatever that is.
I could easily see the price of gold
and the Dow Jones being the same.
I mean, they were the same in 1932.
They were the same in 1980.
So, I think that they
will be the same again.
I just don't know exactly
at what price they'll meet,
but I'm pretty sure they're gonna meet,
or come close to meeting.
And so, it's probably not going
to happen with the NASDAQ,
they dialed down at 5,000.
Maybe it could happen at 10,000,
but maybe it'll happen at a higher number.
I mean, they could both meet at 50,000.
You can have the Dow Jones at 50,000,
and gold at $50,000 an ounce.
But if gold is $50,000 an ounce,
you have to understand
that 50,000 on the Dow
may mean that you're poor.
Even if you own stocks, and
the Dow Jones is at 50,000,
if a ounce of gold was at
50,000, you have to ask yourself,
how much is a loaf of
bread gonna cost me, right?
So, everything is relative.
Forget about the numbers.
It's the purchasing power that matters,
not how big the number is,
but what you can actually buy.
- So, Peter, I wrote my book,
"FAKE: Fake Money, Fake
Teachers, Fake Assets",
and I call gold and silver God's money.
And I call them that because
gold and silver were here
when the earth was formed.
So, the question, when people
ask, how do I get started,
sometimes I'll tell 'em,
just buy some silver.
You used to buy it for like 10 bucks.
Now you can buy it for 30
bucks for a Silver Eagle.
How does silver track with
gold right now in your mind?
- Well, I still think
that silver is inexpensive
in terms of gold.
Silver, actually, in March,
when they were throwing everything away,
silver actually became the
cheapest it's ever been
in world history, at
least recorded history,
because you could buy 120 ounces of silver
with a single ounce of gold.
When the United States was first founded
and we were on a bimetallic standard,
the relationship was, I forget,
it was like 12 to one or
15 to one, gold and silver,
and the historic average,
I forget as well,
but maybe it's 30 to one.
But you're talking about 120 to one.
So silver was very cheap.
And even now it's around 70 to 80 to one,
it's hanging out in that area.
But historically, silver
is still inexpensive
in terms of gold, so I still
think that silver is a buy.
Huh?
- It's more volatile than gold.
I love the silver, personally.
- It's a little bit more
volatile, that's for sure.
It is more volatile, but
if this gold bull market
is anything like all the
other gold bull markets,
silver will outperform.
It outperforms in the bull markets,
but it also goes down
more in the bear markets.
But here's what I think,
Robert, is the thing to do.
Do what Warren Buffett is doing.
I think the most money is gonna be made
in the mining companies.
Not the metal.
- Peter, I was just about
to give you the biggest plug
of all.
(everyone laughs)
I mean, the definition of
intelligence is I agree with you,
and you and I had a long
conversation a few weeks ago,
because I'm so anti mining companies.
And the reason is,
Kim and I started a
silver mine in Argentina,
and we started a massive
gold mine in China.
And, as we know, the
Chinas have the saying,
all help yourself.
So they took it.
And so I've been kinda--
- After we found the gold.
- After we found the gold.
- After we raised all the money,
after we found all the gold,
then they took it.
- And we raised the capital,
and it was proven reserves,
not speculative reserves.
We did everything right.
So, you and I had this conversation.
You said, you should buy gold mines.
I said, (laughs) and then--
- Well, the problem, Robert,
you weren't diversified.
You had all your eggs in that one basket.
- Now, now, Peter, Peter.
Well anyway, well, we at Rich Dad says
a million ways you can get rich,
but a billion ways you can get poor.
But, for the first time, I bought a fund,
and it's your fund.
So I have my doctor, myself,
and Kim and I are now invested
in your gold-mining fund.
So that's the full disclosure.
So what is this--
- Look, I think we're gonna
outperform Warren Buffet.
He's a real big thing.
(Kim and Robert laugh)
- I like it.
I love it.
- Warren Buffett had to buy Barrick Gold
because he's so big, most
of the stocks are too small.
We like Barrick Gold.
I mean, Barrick Gold, I think,
was the fourth or fifth largest
holding in my gold fund.
And so we benefited,
but there are a lot of smaller stocks,
I think, junior mining stocks,
and we have a great portfolio
that Warren Buffett can't touch
'cause he's got so much money,
if he tried to buy these
stocks, the price would run up,
and he would destroy what he,
but my gold fund could take
advantage of opportunities
that Warren Buffett has to overlook.
He's stuck in the
really, really big names.
And those are some good names,
but the better values are
in some of these smaller companies.
And we've built a great
portfolio managed by Adrian Day,
the Euro Pacific Gold Fund.
I think we're just gonna
kill it in this environment.
I think this is where the
real money is gonna be made.
Gold is to preserve your
wealth and not to go broke.
- Peter, what's the name of your fund?
- But these gold-mining stocks
can help you achieve wealth.
- Peter, what's the name of your fund?
- It's the Euro Pacific--
- I'm giving you a shot here,
man, take it.
Take the shot.
- It's the Euro Pacific Gold Fund.
You can buy it through my company.
You can call us up at
Euro Pacific Capital.
We can set you up.
We also have separately managed accounts.
But my funds are also available
at any discount broker,
Schwab, Fidelity,
E*TRADE, wherever you go,
TD Ameritrade, you could go.
We have five funds in my family.
There's a value fund, a bond
fund, an emerging market fund,
a dividend-payer fund and the gold fund.
So make sure you buy the right fund,
the Euro Pacific Gold Fund.
And if you go to europacificfunds.com,
that's the website of all my funds,
so that you could read about
'em, and get their symbols,
and make sure you're buying my
fund and not something else.
- And let me just say, yes,
Robert and I invested
in the gold-mining fund.
And at Rich Dad, we don't recommend.
We're not recommending any investment.
We're recommending you, you,
the listener, do your research,
do your homework, and decide
if it's the right investment for you.
- Yeah, and then, Peter--
- But I'm recommending it though.
- You can recommend it
all day long, Peter.
- Peter, the more you recommend
it, the more I run from it.
(Kim and Robert laugh)
- I'm the largest
shareholder in the fund, so.
- No, no, Adrian Day, man,
his reputation is impeccable.
But the greatest thing,
I called my friends who
are in the stock market,
and they researched your funds.
They said they're stellar.
That was his word for it.
- Thank you.
- John McGregor.
He says, they're stellar.
So with that, I wanted to let you know,
I verify, I don't just recommend.
- Yeah, and you know what I like too,
and whether you invest or don't invest,
is that here you're talking
about Warren Buffet,
who's invested millions, if
not billions, into Barrick,
and who knows what else.
But here's an opportunity to
get into the mining world,
the gold mining companies,
without being the Warren
Buffets of the world.
- Peter said it best.
- There's always ways to do it.
- Is, Buffett can only invest
in a big company like Barrick.
He cannot do the junior miners.
And Kim and I were in junior miners,
and we struck the biggest play ever,
and then the Chinese took it from us.
So what Peter is saying--
- Yeah, you gotta be careful
about the political risk.
- I know.
- That's, you know.
- So, the country risk.
So, what Peter is saying here,
the reason which sold me,
is your fund can invest in the companies
with the most potential
gain, not guaranteed gain.
And this guy, Adrian Day, is fantastic.
- See, there's a lot
of companies out there
that are never gonna amount to anything.
There's a lot of landmines out there.
So you need a guy that
actually knows the difference
between the ones that
really have potential
and the ones that don't.
And there's a lot of companies out there
that market themselves, and
they get promoters out there.
You gotta know to avoid them.
- Oh, we know those guys.
- Adrian's been doing this
for 30, 40 years.
He knows the minds,
he knows the management
teams, the projects.
So he really knows which
of these small companies
have a good chance of making it big,
and more importantly, which
ones not to invest in.
- Right, Peter,
Kim and I are listed on the
Vancouver stock exchange,
which, that's the land
of the Frito Bandito.
It was a lot of fun, I enjoyed it.
- [Kim] It was a lot of
fun, we learned a lot.
- I thought I was amongst friends,
but those guys were all picking my pocket,
because they're all bullshit artists.
But anyway, one last question
which I don't understand,
when you say, invest in emerging markets,
why do you say that?
- Well, first of all, I think
that when we get this reset
of the global monetary system,
where the dollar is no
longer the reserve currency,
the country that has
benefited the most from this
is the United States.
Well, it's the emerging markets
that have suffered the most.
They're the ones that have been
supplying the United States
with a lot of the goods
that we don't produce,
but that we consume, and
they've been loaning us a lot
of their savings.
And so, what happens is,
their standard of living
has been suppressed,
they can't consume as
much as they produce,
and a lot of their savings
have been loaned to us,
as opposed to invested productively
in their own economies.
So once the dollar crashes,
you have all this emerging market debt,
that's dollar-denominated,
that basically gets forgiven.
And now, I think, these
currencies appreciate,
that takes a lot of pressure
off their economies,
their domestic inflation
rates, their interest rates.
And so, I think that they're gonna just,
it's like a giant weight
that's been lifted
from their shoulders.
They're gonna finally
get to eat the fruits
of their own labor.
They're going to consume their production,
and they're gonna invest
their savings productively
in their own economies.
They're not gonna squander
it on US treasuries.
So, I think there's a lot of opportunity.
Americans are gonna see their
standard of living go down,
but across a lot of the emerging markets,
you're gonna see a big increase
in the standard of living,
and relative wealth.
I think asset prices are gonna move up
as people in those
countries become wealthier
on a relative basis,
Americans are going to be poorer,
and therefore our assets
are gonna get marked down.
So there's just a lot of opportunity.
And then, if you just look
at these emerging markets,
if you look at the stock prices,
and compare 'em to what
you're paying for stocks
in the United States, I mean,
this is the cheapest they've
been in maybe a hundred years.
So, in our lifetimes, we
haven't had an opportunity
to sell US stocks and take the money
and buy emerging market stocks
at such a favorable exchange rate
as what we can see right now.
- Okay, thank you.
So again, it's Euro Pacific Capital,
Peter Schiff's the founder,
and is a good friend.
Once again, we make no recommendations
at "The Rich Dad Radio Show",
but for full disclosure,
Peter did bring Kim and I back
from the edge of death, here.
- But again, and Peter,
you've also got a podcast
called "The Peter Schiff Show Podcast".
- Yeah, it's fantastic.
- And the website is schiffradio,
S, C, H, I, F, F, schiffradio.
- Yes, people should listen to it.
I do two, sometimes three a week.
You can listen either on schiffradio,
or on my YouTube channel,
The Schiff Report.
Yeah, I encourage everybody,
and follow me on Twitter
and Facebook and Instagram.
I put out a lot of stuff on social media.
- Yeah, the reason that's
important, to follow Peter,
'cause it's changing so fast today.
And, like I said, it's
not covered in mainstream.
I'll start again, where
I finish where I started.
The biggest news was not
Trump, Biden or COVID.
The biggest news of all was Warren Buffet,
dump of bank stocks, most
of 'em, and airline stocks,
and he got into a gold-mining company.
That's the big news,
and it's not being covered
in mainstream media.
So with that, Peter, thank you.
- [Kim] Thank you, Peter.
- Thanks for being our
friend for all these years.
- My pleasure, keep up
the good work, guys!
- Great information.
- Yeah, thank you, thank you.
- Thank you so much, you too.
Thank you.
- Thank you.
When we come back, we'll
be able to wrap up,
we'll just have a wrap-up with Kim and I.
Thank you.
Welcome back, Robert Kiyosaki,
"The Rich Dad Radio Show".
A special thanks to Peter
Schiff, long-time friend.
You can listen to the
Rich Dad radio program
anytime, anywhere on iTunes,
Android, and YouTube.
And please leave us a comment.
Again, all of our programs are archived
at richdadradio.com.
We archive them because we're
a purely educational company.
So, for full disclosure,
Kim and I did start investing with Peter
in his emerging market,
I mean, not his emerging,
his mining company funds,
and his guy, Adrian Day,
his reputation goes far ahead of him.
He's very smart.
And the small mining companies
are the highest risk,
but the highest return.
So that's why, after
Peter, I talked to Peter,
Kim and I just, we'd invest
with them, for full disclosure.
And, just wanna let you know,
this is the time the Rich
Dad company was founded for,
because I started buying silver
in 1964 and gold in 1972.
I still have it.
And I just don't trust the government.
I just don't trust the
banks, the government,
the Fed, and those liars.
They're just a bunch of academic liars,
all PhDs, like my poor dad.
But anyway, so that's why
Kim and I have been outsiders
on the family tree.
'Cause the family tree
was into stocks, bonds,
and mutual funds, and
we're hanging out there
with our gold and silver, right?
- That's right, that's right.
And I thought this was
a great show with Peter.
And one of the big
takeaways, for me, is when,
people are always talking
about the price of gold,
and I asked Peter what he
saw, with the price of gold.
And he said, it's really not
the number that's important,
it's the purchasing power.
So, if you're looking at the
future, the price of commodity,
the price of food, the price
of housing, all of that,
if you can look at it in terms of gold,
it's actually gonna be cheaper,
but if you look at it
in terms of US dollars,
everything's gonna get more expensive,
And that was--
- Or pesos, or yuan, or...
- Yeah, that was a really
great way to look at things,
and actually understand the power of gold
versus the US dollar.
- And I'll say this much.
I just went into Japan.
They didn't ask me if
I was smuggling drugs.
They wanna know if I was
smuggling gold into the country,
because they don't want gold.
If you understand that
governments do not like gold
and silver, if you can understand that,
you'll understand why Kim
and I, for years, have been,
just a little bit here, a
little bit there, and all that,
but now we have a lot of
it, and it's hidden well
all over the world,
'cause I don't trust
the governments, period.
- And would you explain why the government
doesn't like gold?
- Well, they can't
manipulate the money supply.
They can't keep you stupid.
And the academic system, these PhDs,
I have PhD, like my poor dad,
is poor, helpless, and desperate.
They are some of the most
stupid people I have ever met
in my life, 'cause I grew up with them.
They know nothing about money,
but they're giving me advice on my money.
And the Fed, I think,
the Federal Reserve bank has 900 PhDs,
and all they're doing
is printing more money.
I mean, my God, thank you, Jesus.
As long as I know they
got idiots in the Fed,
I'm gonna buy more gold and silver.
It's not that hard.
But there it is, and I like Peter Schiff,
in all the years I've worked with him.
He actually knows what
goes on behind the scenes.
I don't, I just don't trust the PhDs.
- Well, I also know that
as the price of gold
does continue to rise, and as
you look at the price of gold
and it continues to rise
over that time to come,
that does mean one thing.
That means the economy is getting worse.
- Yeah, it's not good news.
- No, it's not good news for the world.
- The price of gold and
silver going up is bad news.
- For the global economy.
- But that's why Warren Buffett's
really silence stealth
moved into Barrick Gold.
And Peter says it exactly.
They cannot go into the junior miners.
That's where Kim and I were operating.
But the education we got in
that process is priceless.
- Priceless.
- Priceless.
So please pay attention.
It's not the price of gold to me.
It's the number of ounces you have.
Or in silver, today,
silver is still about 50%.
- 70 To 80, it's 70, 80
ounces of silver today
equals about one ounce of gold.
- But the point is this.
Gold is now at its all-time high,
which was about 1,950 bucks.
Silver is still 40% lowest all-time high,
which was 50 bucks.
So silver today, let's say, is
30 and silver used to be 50.
So, the biggest move, and
I think almost anybody
on this planet can afford
a $30 Silver Eagle,
or a silver whatever you buy.
But people still hang on to cash.
Cash is trash.
So, once again, I wanna
thank you all for listening
to the Rich Dad radio program.
I wanna thank Peter Schiff.
And, remember, all coins have three sides,
heads, tails, and the edge.
And Harry Dent is a good friend of mine.
We teach all over the world.
What Harry and I talk about
is this event, and Peter.
There is an event coming that is so big.
It is the failure of the US dollar
as the reserve currency of the world.
The question is, what's gonna happen?
Hyperinflation or hyperdeflation?
That's the only question.
So I listened to Harry,
he's a great friend of ours.
And I also listened to Peter Schiff.
The question is, I think both
sides are gonna be right,
exactly as Peter says.
Any comments?
Sarah, any comments?
What are you picking up from this?
- [Sarah] So, we've had a series, now,
with different experts
or friends of Rich Dad,
and, like you said, they're
all saying the same thing.
Something's happening, but it just depends
on what side of the coin you're on.
I think that Peter, his perspective,
I think, makes the most sense to me.
Where Harry's talking about deflation,
with all the money we're printing,
we're definitely headed for
inflation or hyperinflation,
is my belief.
But this, I said it during break,
I feel like I just got
my Masters in Economics.
- After listening to this.
- [Sarah] After listening
to Peter, because, man,
that guy is so smart, so smart.
- Yeah, and he's a firehose.
He's like Rickards,
Rickards is a fire hose.
Yeah, Jim Rickards.
- You know what else Peter said, which,
'cause everybody's talking
about this reset, this reset,
but nobody's talking
about, what is a reset?
And he said it very, very clearly.
He said, there's going to be a reset
in the global monetary system.
But the reset isn't all
this, necessarily, explosion.
The reset is the US dollar
is no longer the reserve currency, period.
- I'll say this.
- Crystal clear.
- One last thing that I'mma pass on,
Rickards, Jim Rickards
is a friend of ours.
He wrote "Currency Wars" and all this.
He's worked with the CIA
and Defense Department.
He also worked at Long-Term
Capital Management.
But he says this, he says,
there will be a reset
when we have an alternative.
He says, you cannot just say, well,
we're gonna take the dollar
off the gold standard.
- Oh, when there's an
alternative to the dollar.
- To the dollar, and
what Rickards is saying,
it's possibly the STR, the
special drawing rights,
which would make China very happy,
because China is now part of the IMF
and the World Trade Organization.
- [Kim] Explain what
special drawing rights are.
- Special drawing rights is a basket.
It's like a diversified
portfolio of trash. (laughs)
- [Kim] Of currencies, right?
- Currencies, yeah.
- Of different currencies.
It's a fund of currencies.
- Dollars, yuans, pesos.
And what Jim says, which I agree with, is,
I think the public is a
little, not all of them,
but 2% is a little bit smarter to it.
They're gonna say, you're
just sending us more garbage.
It's like a trash truck with
trash from all over the world
called currency.
- [Sarah] (laughs) That's
actually a good thought,
because, so, a lot of
municipalities across the US
have stopped the recycling programs,
because foreign countries
stopped buying it.
They stopped buying our trash.
And that kind of makes me think
of this basket of currency,
of trash, that no one buying.
- No one wants.
- Ho one wants it anymore.
- Hey, I've got some yen,
and I got some pesos,
I got some euro, who wants it?
- [Sarah] Yeah.
And we have Jim Rickards
coming up in a few weeks.
- Okay.
- So that'll be a great bow
on this basket of economists
that we've been talking to.
- Okay guys, when we say
"The Rich Dad Radio Show",
the good news and bad news,
gold going to, let's say,
15,000, which Jim is
recommending, it's not good news.
It is not good news.
But it is good news if
you're prepared for it,
because that means, that's no different
than Buffett dumping
bank shares and airlines
and quietly sliding into gold.
This is not good news, sports fans.
But if you're prepared,
you can be prepared.
So, I thank you all for listening
to the Rich Dad radio program,
looking forward to Jim
Rickards and all the cast
of characters we interview
here on Rich Dad radio,
because, I'll say it again,
all coins have three sides,
and one guy says you're right,
the other guy says you're wrong,
but they're all still talking
about the same thing ultimately.
This is far more important
than Trump or Biden.
Thank you for listening to this.
