Investing in your future takes a very similar mindset to homesteading. We don’t want to create self-sufficiency but rather build resiliency on the homestead to be able to withstand whatever is coming. We want to do this with our financial future as well.
Carolyn and I have done some investing over the years. I’ve got a 401K and some stocks and bonds, and we’ve even collected some gold and silver over the years. However, most of our time and resources have been spent investing directly in our business, the land and physical onsite assets like reproducing animals, seeds, and bulk storage systems for things like water, fuel, feed, etc.
I’m definitely not an expert on investing, so I’m glad to have Jonathan from Genesis Gold Group joining me on this podcast episode. In this episode, we’re discussing why investing in our future with precious metals as a part of our resilience strategy may be the right approach to safeguard our financial future.
I want to state upfront that we’re not sponsored by Genesis Gold Group, and we are not financial advisors telling you what we think you should invest in, but we have been investing in precious metals ourselves and are always looking for ways to diversify our strategy, so we’ve gotten to know more about this company and felt this was great information to share with those of you that are interested.
About Jonathan Rose
With a 20-year career in the precious metals industry, he has established himself as a trusted advocate for early financial literacy education. Born and raised in London, England, Jonathan’s journey began with renowned companies like Merrill Lynch, Morgan Stanley, and Prudential-Bache Securities. However, during his time at the London Metal Exchange, he developed a profound passion for the precious metals market.
As a co-founder of Genesis Gold Group, Jonathan aims to empower novice and experienced investors with the knowledge and confidence needed to utilize alternative strategies for wealth preservation and growth. Jonathan’s main goal is to focus on cultivating strong relationships with clients.
What is Genesis Gold Group?
Genesis Gold Group exists to educate people on how they can invest in precious metals (gold, silver, platinum and palladium).
They believe if you invest in gold or other precious metals, you want to hold onto it and be a good steward. They also believe an informed investor is a better investor and want to provide the tools to help people take the next steps to protect their 401K and IRAs.
Why Should We Invest Our Money
We’re called to be good stewards of our money. In today’s day and age, it’s better to be proactive than reactive. We don’t buy flood insurance after the dams burst.
Preparing ourselves financially means we can weather the storms of life. According to Jonathan, gold (and other precious metals) are the ultimate safe haven or hedge around your finances.
Traditional IRA vs. Self-Directed IRA
IRA stands for Individual Retirement Account. A traditional IRA is generally held with companies like Charles Schwab or Fidelity.
In a nutshell, these traditional IRAs work when you hire a company to help you invest your money in stocks. That company then provides you with a portfolio of your assets every quarter. You open your quarterly statement to see if your investments have increased or decreased.
With a self-directed IRA, you have more control. As long as it’s legal, you can invest your money in whatever you’d like, whether real estate, land rights, mineral rights, oil rights, crypto-currencies, etc. This is an exciting feature of self-directed IRA’s that empower folks like us that want exactly that, more control over our own resources!
Both IRAs are a form of investment, and each comes with risks. However, with a self-directed IRA, you generally have more control.
Why Invest in a Gold IRA?
Many people don’t realize that you can house precious metals inside an IRA. You can house gold, silver, platinum or palladium, and Genesis Gold Group can help.
You decide which precious metal you want to invest in, then decide what form you want it in (coins, bars, etc.). Once these decisions have been made, Genesis Gold Group helps you purchase those metals, which are housed in a depository.
The difference between traditional IRAs or even Self-Directed IRAs is that with physical gold, you now have physical metals in a licensed depository backing up your dollars. If you need to take a distribution at any point in time, you can liquidate your IRA and take the cash value. Or, you can also take possession of the metal itself.
Note: If you’re not sure whether your IRA, 401K or other investment type qualifies to roll over to a Gold IRA, you can contact Genesis Gold Group, and they’ll help you out.
Is a Gold IRA the Right Choice for You?
If you’re concerned about the current economy or the direction our economy is headed, investing in precious metals might be for you, both with physical possession and an investment vehicle like a self-directed IRA.
Many top economists are predicting a shift in the economy and recommending getting some of your assets into physical form. However, Jonathan only recommends investing in something with a good track record.
The newest, greatest investments may seem shiny and promising (as Bitcoin was a few years ago), but they don’t have a long track record to show they’ll last.
Gold has stood the test of time. In fact, over the past four years (2019-2023), gold has appreciated by 40%. Wouldn’t you love to invest in gold today and have it appreciate 40 more percent in the next four years? I would!
Though we don’t have a crystal ball to tell us what the future holds, we have history. Because history repeats itself, we can look back thousands of years (or even just a few decades) and see economic patterns to predict what’s to come.
This is why many people invest in physical assets like gold and silver.
Now, this is not a suggestion to go out and liquidate all your stocks and bonds. Jonathan says there are still places for them. However, as part of a well-balanced portfolio, he also recommends having some precious metals. I certainly agree.
As homesteaders, we can think of it like growing a garden. If we plant a mono-crop, we may do very well for some years. But all it takes is one bad year to be left with nothing. It’s better to diversify our gardens for many reasons and grow multiple “assets” as somewhat of a safety net. Diversification of assets is an important part of financial resilience as well as homestead resilience.
Gold vs Silver
The first question most people ask is, “Should I buy gold or silver?” Jonathan says their track record is pretty similar. Where gold goes, silver typically follows.
However, Jonathan also says that when you quantify the data, out of the $40-55 million in IRAs that Genesis Gold Group rolls over in a month, about 70% of those portfolios invest in more silver.
Why? Because the premiums are lower than many gold products, and when you look at silver’s industrial and technological uses, it’s at an all-time high.
Jonathan shared that the quantifiable data he has right now shows that people are favoring silver. This isn’t to say gold is a bad investment, but it confirms the importance of having a balanced portfolio.
I like the everyday useability of silver in that we can get them in decent denominations that are acceptable in most places today.
Things to Consider When Setting Up An IRA (or Gold IRA)
Before jumping in and setting up an IRA, you want to know who you’re working with. Jonathan recommends making sure of the following:
- Check that the company has an “A” rating with the Better Business Bureau (BBB).
- Make sure there are no gimmicks or “get rich quick” schemes.
- Make sure they educate you and include you in the decision-making.
- Never go with a company that forces you into making quick decisions.
- Make sure you feel comfortable with the person (or team) you’re working with.
- Know what it is you’re investing in. If you don’t understand what you are investing in, you should not invest in it.
Something Genesis Gold Group prides itself on is its customer service. You’ll get regular updates that are calendared and scheduled. They will educate you to make your own informed decisions regarding your money.
How to Set Up a Gold IRA
Whether you want to roll over an existing IRA, 401K or other investment, or just want to start investing from scratch, you can reach out to Genesis Gold Group (visit their website or call them at 800-200-GOLD).
You’ll then speak to a gold specialist to discuss what you’re trying to achieve and whether your plan qualifies for an IRA rollover. Jonathan says 97% of plans do qualify.
They will help you with the rollover, keeping it penalty and tax-free and liquidating your funds to purchase gold, silver, or whatever you decide.
It is a process that can take two to four weeks to complete. But Genesis Gold Group walks through the entire process with you, answering any questions you may have as you go.
If you simply want to buy gold (or another precious metal), contact Genesis Gold Group, and they’ll ship it directly to you! This is actually my preferred option!
My Final Thoughts
There’s a lot of fear and concern right now, and rightfully so. We need to use this fear to wake us up to make wise, educated decisions that will set us up for a solid future.
Have a thoughtful approach. The world’s end is not tomorrow, and we can’t control it even if it is. We can, however, identify our concerns and use them to motivate us to take thoughtful action.
More Posts You May Enjoy
- Financial Resiliency on the Homestead
- How to Finance Your Homestead
- Eating Well on a Budget
- How to Beat Inflation at the Grocery Store
- Preparing for Inflation and Food Shortages
- Things to Consider BEFORE Going Off-Grid
- How to Buy a Homestead (What to Know Before You Buy)
Josh: Hey you guys. This is Josh with Homesteading Family and welcome to this week's episode of the Pantry Chat: Food for Thought. Hey, today is a different episode. I don't have Carolyn here with me. She's there on the homestead doing her thing, doing a lot of preserving, getting a lot of food put up and watching over the kids. And I have a very special guest, and this is going to be a bit of a different conversation today. Most of the time we're talking directly about the homestead, right? And raising food, growing food, preserving it, mindsets, and dealing with kids and all the stuff around this homesteading life and family. But something that I have talked about a little bit that's very important to me and that my guest is going to speak to today, is investment, is sound financial investment. And this is new territory for me.
I've done a little bit of investment. I've got a 401k, I've got some stocks and bonds, but I've spent most of my time investing in the land, investing in animals. Reproducing assets as you will as in male and female animals that reproduce, certainly some gold and silver. I think that's a very, very wise thing to have, and I'm talking physical gold and silver is what I have done where I have possession of that. And so those are the things that I'm familiar with, but there are some other alternatives that I'm getting familiar with and I think it has to do with owning gold and silver. And so our guest today, Jonathan Rose, is going to share a little bit with us and educate myself and help educate you guys with some things you can do to safeguard, I think your assets, and I hope I'm saying that right. Jonathan will straighten me out a little bit as we get going.
But Jonathan's a seasoned gold dealer and a prominent figure at the Genesis Gold Group who we're going to introduce you today. He's had a 20- year career in the precious metals industry. He's established himself as a trusted advocate for early financial literary education. And you guys know we're about educating. We're about educating you in the subjects that matter to us and that we think matter to you. Now, Jonathan was born and raised in London, England, and he began his journey dealing with gold way back when, actually with Merrill Lynch and Morgan Stanley and Prudential. So he is got a deep background in securities and financial investments, and it was during this time at the London Metal Exchange that he developed a profound passion for precious metals, and I think the precious metals are very, very important. I would rather see most of my assets invested there.
Now, Jonathan relocated the United States and he's provided a lot of consultancy over the years and just been involved in the gold market, the metals market. I think we're going to talk about IRAs and 401Ks and how those all mesh today. He is a wealth of knowledge and a true expert here, and as a co-founder of the Genesis Gold Group, he aims to empower both the novice, which I sure am, and the experienced investors with the knowledge and confidence needed to utilize alternative strategies. I think we're all about alternative strategies here in dealing with the state of the world and where we're going. So he's bringing you these alternatives for wealth preservation and growth, and his main goal is to focus on cultivating strong relationships with clients. So Jonathan, it's awesome to have you here. Welcome to the Pantry Chat.
Jonathan: Well, thank you Josh. What a lovely introduction and a pleasure to be here, and I'm excited to talk about precious metals and educate your listeners on the importance of having a balanced portfolio and how assets like gold and silver are pivotal in terms of understanding how to hedge ourselves against all this uncertainty that's definitely happening in the world today.
Josh: Yeah, absolutely. There is a lot of uncertainty. I think you and I, and a lot of our listeners, you could say believe, I'd say we're pretty confident that uncertainty is going to continue to remain and we're questioning what we're doing with our lives, with our assets and how to create, what I like to say, is better health freedom and security in our lives through some of these alternatives. And like I was saying a minute ago, I'm very familiar with holding gold and silver physically in my possession, but I know that holding physical gold in your possession sometimes is a challenge for people and there's other ways to do it. And so I'm excited to hear from you today on how you recommend we interact with precious metals and gold and silver and add them into a balanced portfolio as it were. Maybe you can just give us a little start of what you do, what Genesis Gold does, and how you're approaching investing in gold and precious metals.
Jonathan: Yeah, no, good question. So when people envision gold, they either think of gold coins or gold bars.
Jonathan: And like you said, you may have held or been purchasing gold and silver over the years, and people are just kind of now waking up to the fact that you can do more than just hold onto it at home. You can now use it as an investment vehicle, such as if you have an IRA or 401k. Essentially an IRA, some type of retirement plan, you can legally roll that over and put precious metals in there. This has been available for many years. It's obviously gained a lot more popularity over the past 10 years per se, because people are watching the market. Yes, we've had some tremendous runs in equities and stocks and people have done very well there. But today, what top economists are calling the environment that we're in is something called the everything bubble.
So you turn on the television or you read the news, you are seeing high interest rates, you're seeing inflation, you're hearing things like the debt ceiling, that can got kicked down the road for another two years. Debt does matter. We'll get into that a little bit more. We're seeing international threats, whether it be Russia, Ukraine, we see the rise of CBDC, Central Bank Digital Currencies. So all these issues are more that I'm talking about is really related to the everything bubble. So what's going to be the first domino that falls that's really going to cause a seismic shift in the stock market where people can lose their assets and more importantly, if those assets are tied to retirement dollars such as IRAs and 401Ks, they're the people that are going to get financially hurt the most.
People remember in '08 with the housing market crashed, or throughout the years there's been singular events, the.com crash. Today, we don't know what the singular event may be because we're in the everything bubble. So people are definitely aware what's on the horizon, and it's more of a question of being a good steward with your money and being proactive and not reactive. People don't buy flood insurance after the dams bust. You want to prepare yourself. Like homesteading, you're preparing you're self-sustaining. Gold is the ultimate safe haven. It's a hedge against instability, dollar declining.
So people are really waking up and realizing, Hey, maybe I don't trust the current administration. Hey, maybe I don't trust the US dollar. They're seeing all the international conflicts happening. They're seeing inflation. When consumer goods are becoming more and more expensive. How am I going to protect my IRA? I am retiring or retired, I don't want to keep my money in the market, but it still has to be parked legally in an IRE style vehicle. So how do we protect that? Well, we protect that by moving those funds sideways, still housing it in an IRA and putting physical gold and silver in that.
And you mentioned physical gold and silver because yes, there's ways of owning different types of gold. Gold stocks, gold ETFs, gold mining shares. And I used to work on the London Metal Exchange in England for Merrill Lynch, Morgan Stanley, and that's when you had all those people wearing those colorful jackets, crazy finger signs, shouting and yelling, that's a fun time in my life. So that's what we call futures contracts, where you're buying and selling contracts. That's not going to protect you. The only type of gold product that protects you is the physical tangible stuff. So like you mentioned, having land, tangible, you own it. Having animals that reproduce, tangible, you own it. It's exactly the same with precious metals. If you're going to invest in an asset that's tangible gold and silver, you want to hold onto it and you can do that through an IRA. When you have a gold ETF, an electronically traded fund, it's just a piece of paper saying you own gold.
If you own a gold mining stock, yes, you're investing in a gold company, but you're investing in, hey, do they mine any gold? Who's on the board of directors? Who's the CEO? Are they making good decisions? That's the price to share how it's dictated. So again, there's a big separator that if you're going to invest in gold, you want to hold onto it. That's the security. And that's really why we started Genesis Gold Group, was to be A; a good steward with your money, educating people because we're a strong believer that an informed investor's a better investor. So kind of giving people that early literacy and understanding of how to do this and the steps involved, and it's very straightforward as well. But having a point where people can go to a resource center, have questions answered, and basically help people take those next steps in protecting an IRA or 401k, and that's exactly what we do here at Genesis.
Josh: Well, I love that this all revolves still around physical gold and silver and precious metals. And I love the concept of stewardship and seeing things as stewarding as a responsibility. It puts a responsibility onto us to manage well and really think about what we're doing, and you're helping people do that in this financial area. So you covered a lot right there. Let's go backwards a little bit. I know a lot of our audience is probably familiar with this, but some of them aren't. Can you just tell us what is an IRA and I think specifically a self-directed IRA? Give us a little background there to start.
Jonathan: Good question. Sometimes I talk about this all day and sometimes people need to understand, well, what is the IRA? An individual retirement account. And people probably have IRAs right now. They may be with Charles Schwab or Fidelity, and we call these traditional IRAs. So maybe you are invested in stocks, you have a portfolio of different assets in there. You open up your statements quarterly, we hope it's going up, but sometimes they also go down and that's the volatility of the market. With a self-directed IRA, really what it boils down to is have self-directed, in my opinion, just means self-control, where you own titlement of the actual asset and you get to control what you want to invest it in. With a traditional IRA, how these big banks make their money off of your money is through leverage. So if you park your money in an IRA, A bank will leverage that times 10.
So if you had $100,000 in an IRA, that IRA is really worth a million dollars to that bank, that's how they afford all those big skyscrapers with the bank's names on them and those big fancy offices, that's their business model. With a self-directed IRA, you are taking away that titlement from the banks and you're in control. And with a self-directed IRA, if it's legal, you can invest in it. So according to the IRS, you can invest in real estate in your IRA, land rights, mineral rights, oil rights, cryptocurrencies, precious metals. Like I said, if it's legal, it could be housed in a self-directed IRA. And with a self-directed IRA, you have to work with a qualified trust company that can house the legality and setup of it. So we work with a top custodian that's been doing this for 40 years and the basic process is very simple.
Clients will call us. They're with Charles Schwab, Edward Jones, whoever their brokerage is, they speak to our IRA department and we help them with what's called an IRA rollover. That IRA rollover is tax-free penalty-free. And you are allowed to take qualified funds from point A to point B. And point B is simply a new custodian. So you move away from your current plan administrator, the Fidelity's of the world to a new custodian that we work with. Once those funds are there, you now have control to do whatever you want to do with those funds within an IRA. So be it purchasing precious metals, we would then have a conversation or what we call a metals consultation call, where we sit down with our clients and we talk about what allocation strategy are we looking at here? Is it gold, silver, platinum, palladium? Those are the four qualified metals that are allowed to be housed with inside your IRA.
So once we have an allocation strategy, maybe a split of percentages of metals, we then go on to look at products. Is it coins? Is it bars? And then once we nail those down, we are then able to purchase those metals and then those metals have to be housed in a depository. So we use a depository that's in Delaware, they're called DDSE, Delaware Depository Services. They're licensed by and backed by the major exchanges. They're insured by Lloyds of London for a billion dollars. Chances are if you have an IRA, that's where your metals are being kept. You carry on getting your statements just like you do now. The only difference is is you now have physical metals in a licensed depository backing up your dollars.
Now, any point in time you say, "Hey, I need money. I need to take a distribution or I need to take an RMD, a required mandatory distribution," well then at that point you can liquidate your IRA, which is something I really like because clients now have the option of taking gold or silver, liquidating it, taking the cash value, let's say they need $10,000, they liquidate, take the cash, put back into their account as cash, or which most of our clients do at this point, take possession of the metal itself. So a lot of people want to retire with the IRA, but they want the metals, they want to hold onto it. So you can start taking distributions in the metals and that's very advantageous.
So I guess I've thrown a lot of information at you. From a self-directed IRA rolling it over to a gold IRA, it is quite a simple process, but it's knowing the steps and like I said, educating people on how it works. But all qualified IRAs, 401Ks, TSPs, they all qualify. As long as you are retired or of age, you can roll it over. So if you have a traditional IRA, qualify as for rollover, if you have a 401k, you must be 59 and a half to be able to roll that 401k over or it's the 401k you've inherited with you from a previous employer. So maybe people have questions about, does my IRA qualify? And again, that's something that we would help your listeners find out on does your account qualify and the steps it takes to roll that over.
Josh: Sure. Can you start a self-directed IRA with Genesis Gold Group, if you're not looking to roll over, but you're looking to start something fresh, start a brand new investment vehicle like that?
Jonathan: You can start fresh. From what I can tell you is most people that roll over IRAs have seasoned IRAs, they've held them for five plus years, they've had their nest egg in there. So people that are starting off the maximum contribution you can make yearly, you'd have to check with your CPA, I think it's about 6,500 or $7,000 a year. But most of the people that we deal with, they've been in the market for years, they have 50, a hundred thousand, a million plus in their accounts, and they're hitting the panic button and they're seeing what's happening with our current administration and our fiscal policies and the value of the US dollar, and they want out and they want to be able to protect those funds. And they're doing their research and realizing what gold and silver fits our needs during these times. And then they're contacting Genesis and they're really helping them with those next steps on how to make that happen for them.
Josh: Okay, well we'll talk a little bit more about that towards the end, but I'd love to go back to maybe some foundational thoughts on why looking at gold instead of traditional investments, and that leads into does gold replace traditional investments or is there a balance that people should be striving for? But why gold to start? Why is gold so important to look at instead of just traditional investment vehicles?
Jonathan: First of all, gold, I always tell people, it's the ultimate safe haven. So if you think that our economy is peachy and rosy and everything, and we're chugging down this road and everything-
Josh: I don't think most people here think that.
Jonathan: Yeah, because if that was you, then gold doesn't... I mean, it plays a role, but that's not people's motivation. People are concerned with everything that's going on in the world. When you have people like there's a famous trader, his name's Michael Burry, he recently made a huge bet against the market. But if I just kind of talk a little bit about who he is, there was a great movie about him called The Big Short. I'm not sure if you ever watched that about the housing crisis. He was played by Christian Bale, it's a great movie if you've never seen it, but he was a fame trader that made a couple billion dollars bet on the housing market collapse.
And he's got a very notable name and people listen to him when he speaks up. So he just made a huge bet against the market that the stock market and the S&P will go down. I think it was like a $2 billion bet. Then you have famed economists, people like Nouriel Roubini, another economist they call Dr. Doom, for successfully predicting market crashes and blips. Again, a lot of these people are saying, diversify out of paper because large corrections are coming. So when you listen to these top economists and people are reading about the rise of the digital dollar where they're trying to replace fiat currency with digital currency, so they're trying to remove our paper cash from society and make everything a digital currency. Well, let's face it, that's software. It's not a digital currency. And without going too far down a rabbit hole with you, it's a form of control, right?
They want to know what we're spending, how we're spending. People are scratching their heads and saying, we've got this problem. We've got that problem. We've got inflation. Paychecks aren't going up, cost of goods are going up. We've got supply chain issues. We're hearing recession words, some people even saying depression. We're hearing real estate teeter tottering on a collapse. We're seeing the American dream being wiped out by interest rates being unattainable. So really what's happening in society today is the middle class is being evaporated and we're ending up where there's extremely wealthy people and there's poor people and kind of nothing in between. And all these financial assets that are getting caught up on the retail side, they're being chewed up by bad fiscal policies and bad debt that we're currently in trillions of dollars of debt, and debt does matter. You can't keep printing money year after year and not expect ramifications for that.
So really what that leads to is the dollar losing its value. And when you combine and compound or combine all of these problems that we're noticing today, gold just makes so much sense to people because it's a simple asset. And when people look at a track record, and a track record is very important by the way folks. Whenever I invest in anything, does it have a positive track record? There was a time when the Bitcoin came out through cryptocurrencies and Bitcoin was the new gold and everyone was touting cryptocurrencies and gold lost its luster there for a minute, but I was always a believer I'd rather have all the gold in the world than all the cryptocurrencies in the world. And all of those people that invested in cryptocurrencies, some of those that wasn't named Bitcoin or Ethereum, they lost 98% of their portfolios worth. So gold has never lost its shine.
And if you just look at a four-year window for assets like gold and silver, they've appreciated 40%, which is pretty phenomenal. So the real question is is will it rally another 40% in the next four to five years? Well, obviously we don't have a crystal ball per se, but if we did, what we would start to look at is what we call a roadmap. And the roadmap in front of us is all of these issues that I'm sitting here talking to you and outlining with the rise of debt, inflation, interest rates, the digital dollar. So we know what's coming towards us and we know throughout history that anytime that we have instability or really things that are out of our control, but we see that are going in the wrong direction, people want to move away from that and they want to move to a higher ground.
And that's why gold and silver is such an integral part of a balanced portfolio. Yes, there's rooms for stocks and bonds, and I'm not saying sell everything and put it into gold and silver. If anyone ever said that to you, that would be bad advice. But having a balance portfolio, protecting a percentage of your nest egg really does make sense. Gold's been around for centuries. It's been around since the dawn of time. It's not going anywhere. And I just think in today's economy, it's more important to have gold and silver in your portfolio than it has ever done before.
Josh: Yeah, I love what you're talking about there and kind of the alternative, because so many of us are doing that already. I mean that is the homesteading movement, what I'm primarily talking about with people and teaching and sharing and is people are hedging what they see. And this is something that has happened throughout history. I did some research and you can trace whatever you want to call it back to the land movements, back to the fall of the Roman Empire. When people see their culture and their civilization deteriorating, when it's going good, they move to the city, they go where all the conveniences are, they get to the hustle and bustle, and that's normal and a lot of people move that way, but as they see deterioration, as they see the everything bubble as you put it, and all these things going wrong that we know are not sustainable, it has to break somewhere.
You can't take on the debt we're taking on. We can't have the moral decay, we can't have the environmental decay. We can talk about food quality, so many things that aren't going well. This has happened over and over in history in different times, and people traditionally go back to the land, to the rural environment, to these physical assets. And both emotionally, spiritually and physically, they go back to these traditional places. And I think, and I can't speak to this very well, but when you look at the history of gold, you see people doing the same thing just like you're explaining.
And so it's a very natural part of, I think, thought for those of us that are going, "Wow, the world here. We just don't see it going well for a while and we're taking action in our lives." And it's not to go backwards 200 years, it's not to go live horse and buggy, but it is to establish some hedges, some freedom, some security. And gold is a big part of that decision, I think. And the track record of gold I think shows that people that do that, that value's been there for what, 5,000 years and it's always there backing up your asset so to speak.
Jonathan: The biggest change for me, I can't speak for everyone, but for me personally, is that when you open a statement or you go online and you see a stock portfolio and you see those numbers on a screen, that's one thing. But when you have, and a lot of people may have not experienced this, but when you hold a gold coin in your hand or a gold bar, first thing is like, wow, this is heavy, and it has this luster, it has this shine to it, and it does for me personally, evoke emotion of this is real wealth. Those numbers on my screen, they can disappear overnight, but having something in my hand. So I think for me, some psychological thing where I see this has worth, but I'm holding it, I can touch it, I can feel it, for me, that triggered something for me. And that's kind of what made me a gold bug.
And I can imagine its kind of similar aspects of homesteading where you see your life feed, you see your crop, you can touch it, you can smell it and run it through your hands. And for me, being able to hold onto something where it just can't slip through my fingers, it just gives me peace of mind. And when I hear the rise of the FedNow coin, which by the way, I had a client, I'll share a very funny, well, not funny story, but funny antidote. That I had a client that rolled over his IRA and he worked for Brinks Operation. You know Brinks the armored trucks that bring money?
Jonathan: He was very fed up with Brinks, and he told me he was working with the Federal Reserve and he said, "Jonathan," he's like, "I hate to tell you this, but I'm one of the architects behind the FedNow coin." And he's like, "And I'm here working on the Death Star," and he's like, "And I know what happens next." So this is why he was rolling over his IRA. And the things that he was telling me was making the hairs on the back of my neck standup. And ultimately things like the FedNow coin where we're going digital, which is like the precursor to Central Bank digital currencies, it's going to affect retail, it's going to affect the workspace with people not being needed anymore, but it's going to affect us personally in our pockets, in our bank accounts here in the next couple of years. It's going to be a slow transition, but a quick transition in the sense they're just going to put it on us and it's already here.
And do you remember when in Canada, the truck drivers, they had the strike and-
Josh: Oh yeah, yeah.
Jonathan: ... and they tried to picket and keep them off the lines. You remember how they disperse those people? They took away their money electronically, and that's how they disperses those people. So that's my fears. When we go to a rise of a digital currency, which again, I hate even calling it a digital currency, it's a software. You lean a certain way politically, you have certain beliefs, there's someone behind that curtain that can hit the delete button and your money can be gone. So for me personally, holding onto my wealth, nothing is going to ever stop me from wanting to hold onto my wealth versus logging in to a portal and seeing some numbers on there. Not saying you shouldn't have those portals to log on, but for me personally, I want to hold onto my worth, and that's my conviction and that's my belief about the market.
Josh: Well, and diversification, right? You're not proposing that you put everything into gold or precious metals. We live in the world we live in, and diversification has always been wise. Even farmers of the past that are making a living today, we have these big monocultures and they throw everything into one basket, but if you have a crop failure, everything fails.
Josh: And so more and more people are realizing that even as we look at smaller scale agriculture, and I'm talking our language here from homesteading, but you don't just do one crop, you do multiple things that create resilience in your life. And that's a word that I love to encourage people. And we're not trying to build self-sufficiency as much as we are as resilience towards the things that we're going to deal with in the future. And gold I sure think is a part of that. So tell us a little bit about setting up a gold or maybe a precious metals IRA with Genesis Gold Group. How do you go about doing that?
Jonathan: Well, they can either go to our website, Genesisgoldgroup.com, and they can even call us. We have a very easy number to remember, 800-200-gold. That's a pretty easy one for people. And you'll speak to one of our gold specialists and they'll first and foremost find out what are you trying to achieve, find out if your plan qualifies for an IRA rollover, which I would say 97% of plans do qualify. And then we have a highly field of expertise with our department that handles IRA rollovers. And they will come on the phone, speak to your current custodian, your current plan administrator, help you with the liquidation, help you with the IRA rollover, keeping it penalty and tax-free, setting you up with what we call as a landing pad for your new funds to arrive at. And the process can take two to three weeks.
So it's not a question of people call in and people do this, they call in and say, "I want to roll over my IRA today." And we'll help them with that, but it's not just, "Okay, you're buying gold today." It's a little bit of a process because there's a few parties involved. So it's a one, two, three, possibly four step that can take two to four weeks I've seen on the longer end. So it's definitely a question of understanding the steps, educating, us letting you know what happens step by step, people want their questions answered, that's what we're here for. We've been helping countless peoples do this. So again, 401Ks, TSPs IRAs, and outside of those you may be saying, "Well, what if I just want to buy gold or silver?" Right? So we do that too.
Josh: Oh, you guys can sell actually gold and silver and have it delivered.
Jonathan: 100%. We ship it. It's insured delivery up until people sign for it. And oftentimes we'll have people roll over the IRAs and then they'll say, "Well, but I want to have something at home as well." So we help people with silver, maybe tradable, barterable products. There's lots of different products out there that are going to ultimately give you the end goal of the hedge and protection, but then there's going to be products out there that maybe fit someone's needs more. Maybe they're more of a survivalist and they want small quantities, fractional gold, fractional silver, something they can use, trade, barter with, something that's portable. So there's quite a varied types of products out there that can perform to them one another that are going to fit the box that depending on what you're looking for. So again, IRAs, 401Ks, physical deliveries, anything that's precious metals that you can hold onto, that's our specialty.
Josh: Wow. Question you just made me think of. If you're going to hold gold or silver in a self-directed IRA, does that have to be in a repository or can you hold it in the IRA and still hold it yourself, or are those two different scenarios?
Jonathan: That's a great question. Now, there are some outfits that will tell you that you can hold gold in a self-directed IRA and then hold it at home. I would highly be cautious of that and do not recommend that because you'll get an IRS audit and that gold company is left with no repercussions and you are. So the only way to safely put precious metals into an IRA per the IRS, is to have it with a custodian and also to have it in a licensed depository. So the licensed depository we use, like I mentioned, is backed by the major exchanges and insured by Lloyds of London for a billion dollars. They're not a bank, they're a depository. That's all they do is they hold metals in there.
So if you wanted to take possession of those metals, absolutely, they're your metals. They're titled to you, they're in your name. You can take a distribution anytime. And like I mentioned, 90, 95% of our clients that are then taking RMDs, required mandatory distributions, they're actually taking possession of the metals themselves, and then at that point kind of cashing out the IRA, but taking hold of the metal, keeping it at home, and that's a very advantageous thing to do.
Josh: Sure, sure. Let's talk about gold versus silver. I know there's some other metals there as well, but generally we're thinking about gold and silver, it's what's familiar. And there's platinum and palladium, and that's maybe an extended conversation, but benefits over gold or silver, trying to establish a balance between both, one over the other, just generally. I know people got to sit down and talk to you guys to get details, but general philosophy.
Jonathan: That's a great question. You're putting me on the spot now with these questions. No, it's a good question. I would probably say that's the first question everybody asked me. What's better, gold or silver? And there's no real right or wrong answer here to be quite frank with you, because earlier I mentioned about I look at everything with a track record. Well, if you look at gold and silver, they're kind of neck and neck over the past four years, 40% give or take one's higher than the other that day percentage wise, but they've had a stellar track record where gold goes, silver follows. But if you look at the numbers and you quantify the data, we roll over about 40 to $55 million a month just in IRAs, which may sound like a big number to you, but it's not in the financial grand scheme of things.
But I would say 70% of those funds are highly skewed into investing into silver. Now why is that? Well, there'll be a couple of reasons. People feel, and I agree, that silver's very undervalued. When you look at the silver to gold ratio, there's a kind of a mark on that chart that when that crosses, that's the buy side. We're kind of on that right now. Premiums are lower on silver than a lot of gold products. And more importantly, when you look at all the industrial and technological uses for silver, it's at an all time high. So there's a report that comes out from the Silver Institute. I read it at nighttime, Josh, it puts me straight to sleep. It's like a melatonin. But it paraphrased pretty simply, and if you looked at the chart, the demand, industrial technological demand for silver is parabolic. It's just going up and up and up.
Supply, of course, is eventually going to dwindle. We're meant to be going fully car manufacturing electric by 2030. Good luck. We'll see how that turns out. I think we have-
Josh: Yeah right.
Jonathan: ... seen [inaudible 00:36:09], right? But that's the direction we're going. So when you look at quantifiable data now, people are very bullish on silver. Now, not to say gold is bad, we have a little saying in this industry, you don't wait to buy gold, you buy gold in weight because based on everything that's happening. And when you look at more, what's the best way to put it, more data that isn't with us, but more forward-thinking or forward out looking, we have things like bricks, the brick nations, Brazil, Russia, India, China, they're coming out with their own currency. Excuse me, that's my computer beeping if you hear that, it will disappear. But they're coming out with their own currency and is it going to be backed by gold? Well, this is in talks right now. So this is more speculative data. So again, speculative data for gold is also very bullish. But if we look at quantifiable data right now for silver, what we have in front of us, this is the real data that I believe people are really moving more into the silver than the gold products.
Again, not to say gold's bad or one's better than the other. Having a balanced portfolio on our asset allocation phone calls with our clients is very important to us. Sometimes people just feel that, well, my grandparents told me that I should be holding gold, and that's their reasoning. Other people do look at this data and see the industrial charts for silver going off the charts. So that's their reasoning. So where gold goes, silver follows, they're both great metals to have. There's no right or wrong answer, but I would definitely say silver is where we see the funds shifting into more.
Josh: Yeah, I sure like silver over the years, but it's more because I view it as that hedge and something that I can spend if I need to, if the dollar just hyper inflates, if the different scenarios happen. And so silver, you can get in nice denominations that seem good for everyday use. And so I appreciate that value of silver. It seems like over the years they both go up and down in relation to each other, and I like the long-term, and I like that you're encouraging people to think about their own reasons and what's right for them. People have different reasons. And that leads into one of my next questions is just things that people should be thinking of when considering getting into gold or silver in an IRA. What are some of the questions maybe they should ask themselves prior even to reaching out to you or to think about as they're getting ready to reach out to somebody like Genesis that they've considered and thought about?
Jonathan: That's a good point. I think more importantly than the questions that they should think about is whom they're working with, right? There's lots of people that do what we do, precious metals, gold IRAs, and the first thing, and the reason why we started Genesis is because of our beliefs and how transactions should work in this industry. There's a lot of companies, and I won't throw them under the bus or mention names, but they charge what we call high spreads, high premiums, high pressure sales tactics, marketing tactics, free $10,000 worth of silver. Who do you think is paying for all of this? You are.
So I think the importance is when you speak to any precious metals firm that you feel comfortable with it. Anyone that's on the other line saying, you have to do this today or high pressure sales, run a mile because they're not the people you want to work with. You want to work with someone that's going to educate you, inform you, guide you. You want to feel comfortable with the metal specialist that you're working with, make sure they have A rating with a business bureau. Look them up online, do they have good press? Just kind of scratch away a little bit and understand who you're doing business with. For us, I think the game changer is, and we're one of the few companies, maybe I'm a bit biased because I'm one of the co-founders of the company, but something we pride ourselves on is customer service.
A lot of times, especially high net investors that we work with, they're with Fidelity, Charles Schwab, and they're moving a million dollar accounts over, and one of their complaints is that, "Well, I haven't spoken to my broker in years. He never calls me." And I tell them, "Well, he's going to call you today because you're moving a million dollars, trust me." So then they say, "He called me. He called me." I'm like, "Yeah, of course he called you because that million dollars, 10 x, that's worth $10 million account to a brokerage account."
But we pride ourselves on client relations, customer service, following up. All of our clients get portfolio updates, they get calendar, they get scheduled. We want them to understand that the products that they're in, they're not just thrown into something. That's the business model with these brokerage accounts over the years, they're thrown into these products. And often when I ask people, "Well, what's inside your IRA?" They say, "Well, some stocks." I'm like, "Yeah, but what stocks?" And they don't know, and I don't say that to them to make them feel bad. I say that to start. Now's the time to shed that spotlight on what you have so you can understand what you're in and is that a good position for you to be in based on what's happening in the economy right now? So that when they do take that step and then roll into gold, if I can render myself useless and they're making all the choices, I've done my job because we've educated them and informed them on why they're doing this, what products they want in there.
And I think that's really the main difference per se, not so much what questions they should be asking. It is just more that relationship that they're going to have with those people. Are they going to be there with you once you roll your IRA over? Because that's important too, because IRAs need servicing. People need to take distributions. People need to liquidate. People want to purchase. So we are a buyer as we are a seller. And as much as people are rolling over IRAs every day, people also purchasing and selling, purchasing and selling. So it's a two-way street. And you just want to make sure that the company you're working with has the infrastructure and the support and the right people and the right team to give you that warm and fuzzy feeling to make sure, "Hey, I feel good about this. I'm working with the right company."
Josh: That philosophy really resounds with us here at Homesteading Family and the way we try to encourage people to act thoughtfully. There's a lot of fear, there's a lot of concern right now and rightfully so, but we don't want to be a people that live in fear and act in fear. Fear wakes us up, concern wakes us up, it gets us looking at the issues around us. But we need to not just then respond to that late night TV ad or the email that says, you have to act now. And I'm not just talking gold and silver. I'm talking people making the decision to move out of the city and move to the country and start a homesteading life and they cash in their 401k and invest it all in property and land. And there's so many decisions that like-minded people like us sitting here today and our listeners are thinking about, that we need to have a thoughtful approach.
The end of the world isn't tomorrow. We can't control it if it is. We can see the things that motivate us, the concerns that we have, and we can take action, but we need to do that in a measured way. And I love it that you guys are offering to help people do this in this arena. And you guys, we are not a affiliate for Genesis Gold. We're here because this is something I'm thinking about and I've gotten to know Jonathan and Genesis Gold a little bit. So it's an option that I'm looking into that I value, that I'm taking my time thinking about. And really just want to encourage you guys to think about this as well. And is this something that's right for you? And I know the guys over at Genesis Gold are going to take their time with you to help you work through it and make a good decision, not a decision in fear or quick, but help you figure out is it gold or silver?
I don't know how much counsel you guys give about what part of your portfolio and how much and those different things, but I'd assume that Genesis is going to help you guys think through that and make an informed decision. I feel very confident in that. And so with that, you guys, we will leave you that information to get ahold of Genesis Gold and whoever Jonathan wants you to reach out, we'll leave this for you in the description, in the show notes below, so that you can reach out to them if this is interesting to you and you think it can be a help to the steps you're taking in your life right now.
And Jonathan, I just want to thank you for coming on and sharing your knowledge and expertise. Very, very valuable and just really appreciate what you guys at Genesis are bringing to the marketplace to help us with these concerns and a place of trust, because this is a world that's full of scam, full of pressure and act now. And you guys bring some good balance and encouragement of us to be good stewards and wise and thoughtful interactions and really appreciate that.
Jonathan: Yeah, thank you, Josh. I really appreciated talking to you and hopefully educated some people listening right now, and I really appreciate your time with me today.
Josh: Absolutely. I'm sure you will hear from a few of our listeners soon. You guys, it's been great hanging with you. We'll be back soon, and until then, take care and God bless.
Thanks for listening to this episode of The Pantry Chat: Food for Thought. If you've enjoyed this episode, please subscribe, rate and review.
Speaker 3: To view the show notes and any other resources mentioned on this episode, you can learn more at homesteadingfamily.com slash podcast.
Josh: We'll see you soon.
Speaker 3: Goodbye.
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