– [Announcer] Fake money,
fake teachers, fake assets. In 1971, President Richard
Nixon took the US dollar off the gold standard,
turning the US dollar into fiat money, government
money, fake money. In 2008, the world economy
crashed when fake assets, fake mortgages, and fake financial experts led us down a path to ruin. Think about this. Why do schools choose not
to teach us about money? Why are 78% of all Americans
living paycheck to paycheck? Why are students staggering
under a trillion dollars in student loan debt? Because a fake world
makes the rich, richer and the poor and middle class poorer, and that’s exactly how
the government wants it. The only way to protect
yourself is to learn how to separate the real from the fake. Go to richdad.com to
get your copy of “Fake,” by Robert Kiyosaki and learn
how to spot the manipulation of reality we live with every day. Don’t get fooled again. Get your copy of “Fake,”
by Robert Kiyosaki at richdad.com, that’s richdad.com. (upbeat bass music) – [Announcer] This is
the Rich Dad Radio Show, the good news and bad news about money. Here’s Robert Kiyosaki. – [Robert] Hello, hello, hello, this is Robert Kiyosaki
the Rich Dad Radio Show about the good news and
bad news about money. But anyway we have a
great show for you today. This is the real question. Are you working for fake money? Is your paycheck just full of fake money? And are you saving fake
assets, I mean fake money? Is your bank account full of fake dollars, or yen, or pesos, or euros? And are you taking advice
from fake teachers? You know people who are
not really rich people, but they got something to sell you. So I’m shamelessly plugging my latest book which is out right now, it’s called, “Fake: Fake Money, Fake
Teachers, Fake Assets.” And they’re all related,
money, teachers and assets, are all one really subject, because they’re all fake right now. And if you read “Rich Dad,
Poor Dad,” lesson number one is the rich don’t work for money. And most people miss that lesson. It’s because money is no
longer money, it’s fake. And today’s programs are
very important money, because most people go to
school to work for money, they’re taught to save
money and buy fake assets, paper assets, stocks, bonds,
mutual funds, and ATFs. So for those of you who
are really concerned about your financial future, today is a very, very important show. Because you’ll know what’s
really fake and what’s real. And in my latest book, “Fake,” which has already sold out on Amazon, you can’t get it there,
which is pretty good. And they’re demanding,
they want to know why we don’t have enough inventory, ’cause it’s selling out everywhere. And it’s a big book. But I think it’s a hot
subject today ’cause of, you know President Trump
calling the news fake, and all this stuff. So it’s a very good book,
fake money, fake teachers and fake assets, they’re
all the same thing. They’re related here. We just had this
announcement that came out in January of 2019 by Bloomberg. And it says, demand for
gold and silver is so high that central banks, according
to the World Gold Corporation, you got to take that with a grain of salt, has bought more gold since 1971. It took all these years, but
they started to buy more gold than ever before since 1971. Now 1971’s a very important year, because that’s the year President Nixon took the dollar off the gold standard. And for those who may not
know financial history, ’cause they never teach in
school, or business schools, is that in 1944, just before
the end of Word War II the world decided, and it’s called the
Bretton Woods Conference, that the US dollar would
be as good as gold. So what happened in 1944 was the dollar became, the US
dollar became the new gold. And central banks, like the Fed, the Euro and Japanese Central
Bank and all this stuff, instead of holding gold,
they held US dollars. And then in 1971, President Nixon, when he took the dollar
off the gold standard, allowed, you know it forced the world, what it did was United States
started printing money. I mean it’s as simple as that. The US Treasury gives money to the US Fed, and they print these magical dollars. That’s what happened in 1971. And the world economy boomed
because this fake money was going into the universe,
all over the world. So that’s why if you read
“Rich Dad, Poor Dad,” lesson number one is the
rich don’t work for money, ’cause money is fake,
fake, fake, fake, fake. Now the question is, what’s gonna happen now? So read my book, “Fake: Fake Money, Fake Teachers, and Fake Assets.” Any comments, Kim?
(Kim chuckles) – [Kim] Well when you talk about fake, you know there’s fake versus real. And what’s fake is everybody
has an opinion about gold and silver and where it’s going, and where it’s heading. And it really is about opinion
is fake, but real is fact. So today, we’ve got an expert here and we’re gonna go
through some of the facts, of what’s happening. We’re gonna have to go
through some of the facts of why it’s happening
how it’s gonna effect you and your money. – [Robert] And should you
be saving gold and silver? I mean real gold and silver, not fake gold and silver. Fake gold and silver are ETFs. ETFs, they’re as fake as they come, they’re as fake as a mutual fund. And when this next crash
comes, I hope I’m wrong, but these mutual funds and ETFs and bonds and all that will be toast. Because of what happened in 1971 when President Nixon starting
printing fake US dollars. So our guest today is Kevin DeMeritt. He’s the founder and
chairman of Lear Capital, and Wilshire Finance. And full disclosure,
I’m on Kevin’s program for Lear Capital. I endorse silver and gold, but I’ll also for full
disclosure I take no pay for it. I am not censored like
I am most of the time when I’m on CNBC and those guys. But Kevin lets me say what I want to say. So I do speak for Lear Capital, I do recommend buying silver and gold. So I want to thank Kevin for allowing me to be on the program,
because without Lear Capital, you know nobody would listen to me. (everyone laughs) – [Kim] Welcome Kevin. – [Kevin] Well I thank
you Kim, thank you Robert. I appreciate it and
thank you for having me on the program, it’s an honor. – [Robert] Let me say one more
thing about gold and silver. Is what happened in our
business schools after 1971, using their fake teachers, is all the business school
teachers started denouncing gold. They said gold’s a
barbaric relic of the past, and silver and all this stuff. So all the young guys,
and Kevin’s a young guy, they started coming out of
the business schools in 1970 singing the tune of vulgar on those guys that gold was a barbaric
relic of the past. Everybody was singing the same song. And Kevin is a young guy, very successful, business school graduate. And I was kind of shocked to
meet him for the first time in Beverly Hills, California. Said, Kevin how come a young guy like you is in gold and silver? So let’s talk about that Kevin. What is your background and how’d you get into forming Lear Capital
and Wilshire Finance. – Yeah, you know my father collected coins and precious metals for as far back as I could remember. So, I did go business school, had degrees in finance and economics. When I got out of college
I came to California and immediately was in
the banking industry on the international banking side. So we helped companies on
an international basis, you know, get into the market. And we actually established banks. And those banks were
capitalized with fake money. They were capitalized with,
back then which was quite some time ago, a lot of European currency. So lira, what have you. And we would have to hedge
all of these currencies that they had capitalized in the bank, so that it didn’t fluctuate too
much on their balance sheet. And one day I woke up and
said, “Why am I doing this “with all of this currency? “Why can’t I do it with
something more simple, “and it holds its value
much better with gold. “And then we can just hedge
everybody at the same time.” So we started doing that. The companies absolutely loved it, decreased their complications
on the hedging side. But, you know it started
to increase in value, also. – [Robert] For those who
don’t know what hedge means, it means insure, mitigate, lessen your risk. And what happened after 1971, a whole new industry was spawned. It was called FX, Foreign Exchange. And whole new guys started there, ’cause, you know currency
was going up and down, up and down in value. Because it had no stability behind of it. So what Kevin decided
to do was just hedge it, say let’s just go back to
the basics, which is gold. And in my book “Fake,” I call gold and silver God’s money. Because gold and silver were
here when the Earth was formed. And gold and silver will be
here long after we’re all gone. So, you started hedging instead
of playing Foreign Exchange, you started just went
gold, is that correct? – [Kevin] Yeah, we went into gold. I’m the one that starting
calling these gold companies to purchase tremendous
amounts of physical gold. At some point, one of the managers said, “You know I’m leaving, do
you want to come over here “and manage this company?” And I was fairly young at
the time, I was 23 years old. I said, “Gee, sure.” Sound like a great opportunity
and something I loved, I grew up with. I managed that company for a little while. And then after that went
out and started Lear Capital at the time my father passed away. And I named the company after him. So Lear Capital is named after my father. And I though it was
appropriate to do that, especially because he, like you, just absolutely loved precious metals. Not for all of his portfolio, but some portion of his
portfolio he always tried to keep 15%, 20% in real money. – [Robert] Right, gold and silver. – [Kevin] That’s right. – [Robert] So what’s happening today? If Bloomberg is saying that central banks are buying more bouillon since 1971, even the central banks who have been, this is the point ladies and gentlemen. What happened after 1944,
this is very important, the Bretton Woods Agreement, the US dollar became gold, technically. It was backed 20% by gold. And when Nixon took it
off the gold standard, that meant the US could
print as much as it wants, yet central banks hung on, because the dollar’s
such a strong currency. For in 2018, for banks
to be dumping dollars, and buying hard gold, and silver, what does that mean to you, Kevin? – [Kevin] Well I think what it means is, you know, a lot of what
you’re talking about is, you had this paper money
that was backed by gold. So you couldn’t print any more paper money than you had gold to back it. And when we came off that standard, now you can print as much
paper money as you want. And so as you print that paper money, the value of gold typically increases, because you’ve got more of
the fake money out there that can purchase different
types of assets, including gold. Which is real money. So, I wish I were a central bank. I can print fake money, as much as I want, and I can go out and purchase – Gold.
– real money like gold. In the past 50 years the central banks have not seen the activity
that we saw last year about selling off dollars
and printing money, and then replacing that with gold. They’re after the real stuff, just like you’re talking
about in your book. – [Kim] So what does that mean when Russia is buying all this gold,
and dumping US dollars, what does that mean? – [Kevin] Well I think it means to them that they think we’ve printed
up too much of the fake money. – [Kim] So they don’t trust it. – [Kevin] They don’t trust
it, they don’t trust it. They think it’s gonna come down. We’ve printed 10, or actually 12 trillion
dollars since 2008. It’s hard to comprehend
12 trillion dollars, it’s a lot of money to
be printed up as debt. And when you increase the money supply you increase your debt by twice. Then the value of gold
is going to move up. And that’s where I think
that their minds are, and the direction they’re headed. – [Robert] There’s a
couple of point of views I want our listeners to understand, ’cause this my, I love this subject. Is that because Kim and I
have started three companies, we take them public through
the Toronto Stock Exchange. One was gold, one was real
estate, and one was silver. No, one was gold, one was silver. And Kim and I founded this
gold company in China, and we found, I think, they
estimate a billion dollars worth of gold.
– It was big hit. – And all of a sudden
the Chinese Government said, thank you very much and
they confiscated our company. So this is the point here
ladies and gentlemen. It’s not just that they’re taking gold, but they’re putting
gold into deep storage. They’re also acquiring the
minds that produce the gold. And this is Russia and China. The US is completely clueless right now. We’re not buying gold and silver. But Russia and China are, and you know they’re friendly to us. Russia and China love us dearly. And they’re putting this
gold into deep storage. I mean it’s not coming out of again. Is that correct Kevin? – [Kevin] No, it’s not. You know I saw a great cartoon
in one of the Sunday papers. And it was China on one side of the fence, and the United States on
the other side of the fence. And we were throwing gold
over the fence to them, and they were throwing paper dollars back over the fence at us.
(Kim and Robert laugh) – [Kim] So what does
that mean for the future, if Russia and China have all this gold, and the US doesn’t have all
this gold, what does that mean? – [Kevin] Well, they’re gonna control the real money supply. Because at some point you’ve
printed up so much money that your money becomes devalued. Since 1913 the dollar, the fake money, because of this printing since 1971, has lost 96% of its purchasing power. Things are getting more expensive. At some point it’s just unattainable and the paper money becomes worthless. – [Robert] And Kevin, what
would you say to somebody who believes in save, save, save, save until it hurts the US dollar? What would you say to them? – [Kevin] Save until
it hurts the US dollar? – [Robert] Just save until, everybody says, I’m saving money. I go, you’re an idiot, but
I don’t say that out loud. – [Kim] Yeah you do. (everyone laughs)
Yeah you do. – [Kevin] I get the question, yes. If you’re saving paper money,
you have to read the book. I think you come up with
the best explanations that are so simple for
people to understand. I get complicated and you
have to kind of stop me and simplify it. And you’ve been unbelievable
at that throughout every book I’ve ever read. It’s real simple, if
you’re holding paper money and the government keeps printing it, then if there were $10.00
out there at one point, and I print up another $10.00, the first $10.00 isn’t
going to be worth very much. It’s going to continue
to go down in value. And that’s exactly what’s
happening in the United States. And it’s not slowing
down, it’s speeding up. Our deficits are growing at record levels. And so the money that’s out there is going to become less and less. So if that’s what you’re saving, then you’re just going broke slowly. – [Robert] I want to
thank you for saying that. Again, this is Robert Kil– – [Kim] Well said. – [Robert] This is Robert Kiyosaki, I’m speaking with Kevin DeMeritt, founder and chairman of Lear Capital, and Wilshire Finance. He’s the author of “The Bulls, The Bears,” and my favorite word, “The Bust.” His website is learcapital.com. When we come back we’ll go into, why isn’t the price,
well what is the price of gold gonna be? You know on one side of the equation we have my friend, Jim
Rickards, of “The Road to Ruin.” He’s calling for gold to go
$10,000 dollars an ounce. And we have my other friend, Harry Dent, who says gold’s gonna go to $400 an ounce. So we go from one range is $400, another range is $10,000
an ounce for gold. And somewhere inside there,
– Somewhere in between. (Kim laughs) – [Robert] is what’s gonna
happen in the future. The trouble is we don’t know
until that future arrives. So when you come back we’ll
be talking further again to Kevin DeMeritt, what he sees the price of
gold and silver going to, but more importantly why. And another question I’m gonna ask him, how is the price manipulated? You see you think the price of gold or anything is honest, it’s not. Everything is fake, all prices
are manipulated and fake. (upbeat music) – [Announcer] You’re listening
to The Rich Dad Radio Show with Robert Kiyosaki. – [Robert] What is your
number one expense in life? Your number one expense? It’s taxes, and I want
to ask the question is, how come there’s no financial
education in school, but why isn’t there
education on taxes, either? You know they tell you save
money, which is stupid. They tell you invest in the
stock market, which is stupid. But why don’t they teach you about taxes? So here we Rich Dad
Advisor Tom Wheelwright, we’re talking about his
revision for his book, “Tax Free Wealth,” welcome Tom. – [Tom] Thanks Robert. – [Robert] So what’s the
“Tax Free Wealth” about? What’s different this time,
it’s a revised edition? – [Tom] Well, so what we did was is, this is the first major tax reform we’ve had in 30 years, 2017. – [Robert] Was ’86 was the last one. – [Tom] ’86 was the last one back when I was in Washington DC. – [Robert] So many guys got wiped out because of that tax change. – [Tom] (chuckles) They did, they did. It wiped out an entire
industry savings and loans. This new tax law is just as big, but in a very different way. It effects different industries. You know the tax law’s always
a series of incentives. And the question is
always which incentives and which ones apply to me? And so the key to revising
“Tax Free Wealth” was, what changed so much in this new tax law, that we can absolutely take advantage of? I mean seriously amazing
the sentence, for example. I mean the bonus depreciation for example, for real estate is unbelievable. You buy a million dollar apartment, you get a $300,000 reduction
or more the very first year. – [Robert] So if you
want to make more money and pay less taxes like
Donald Trump and myself, get Tom’s book “Tax Free Wealth.” – [Narrator] Don’t be like Charlie. Charlie is that do it
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or call 800-600-1760. Mention Rich Dad and receive
$100 off your formation fee. That’s corporatedirect.com,
corporatedirect.com. (upbeat funky guitar music) – [Announcer] It pays to listen. Now back to Robert Kiyosaki,
and the Rich Dad Radio Show. – [Robert] Welcome back, Robert Kiyosaki, the Rich Dad Radio Show. The good news and bad news about money. Our guest today is Kevin DeMeritt, and he is the founder and
chairman of Lear Capital and Wilshire Finance. And for full disclosure, I am a spokesperson on
their TV commercials, and he doesn’t compensate
me, but he allows me to say what I think is my
opinion on gold and silver. So I appreciate it. You can listen to the
Rich Dad Radio Program anytime, anywhere on iTunes or Android. And all of our programs are
archived at richdadradio.com. Once again we don’t sell gold or silver, I’m not gonna take any orders today. You know Kevin might.
(Kim laughs) But anyway– – [Kim] And Kevin’s also the author of, “The Bulls, The Bears, and The Bust.” – My favorite type. – But anyway, we archive our program, so you can listen to this program again, because repetition, we’re
an education company, not a marketing company. You can listen to this
program one more time and you’ll pick up twice as much. But more important have your friends, family and business associates
listen to this program, especially we have friends,
family and school teachers who are telling you to save money. Because this program hopefully we’ll say, “Well maybe I should put some of my money “into real gold and real
silver, not fake gold “and fake silver, which
are gold and silver ETFs.” – [Kim] Exchange traded funds. And actually Kevin
that’s a question I have, because in what we’re reading, everybody’s buying, the demand for gold is going up all over the world. Countries are buying all this gold, individuals are buying all this gold, yet the ETFs, which is
basically paper asset, that invests in gold and silver companies, that demand is down. – [Kevin] That’s right, so you have a lot of individual investors that,
this happens all the time. You get nervous about
the real estate market the stock market what have you. The prices have been
weak for a little while and they start selling out. And so a lot of those exchange
traded funds we’re seeing, outflows from the
unsophisticated investors just chasing now the stock market, and whatever’s hot out there. And then you have the smart
money like the central banks and some JP Morgan and so on and so forth that are actually getting
back into the market at today’s low prices. – [Robert] So let me ask you this. Harry Dent calls for
gold at $400 an ounce, and Rickards is calling
for $10,000 an ounce. What are your thoughts on this? – [Kevin] Well my thoughts
it’s you know I look at the inflation adjusted price, which I think is going
to be the most accurate. In 2008, the inflation
adjusted price had been around $2,000, $2,100, it hit $1,975 as a high, so it got very close to its
inflation adjusted price. The inflation adjusted price today is more in the $2,500, $2,600 range. That’s where I think gold goes. On the silver side, it’s a
little bit more volatile, but it’s got a little bit more upside. So I would say on the silver side, we could be looking back toward mid-’40s, hit at $47 an ounce in 2010. So, I think you get back in
the 40s in silver trades today at around $13.00. – [Robert] That’s a
pretty big range there. Anyway Harry Dent’s calling for $400, and Rickards is calling for $10,000. Somewhere in between you
got to make up your own mind where it’s going to go. And for full disclosure, Kim
and I do not save dollars we save gold and silver. And we’ve been saving that for years, and years, and years, and years and years. And I don’t mean ETFs, I don’t
trust anything that’s paper. Right, Kim?
– That’s right, we buy real gold, coins,
bars and silver, real silver. And you know here’s a question Kevin, ’cause you’re in this business every day. I can’t understand when
Robert and I talk to people and they’re holding, they’re saving cash, they’re saving money in the bank, and we say, “Why don’t you
go buy some gold coins? “And have a percentage held in gold.” They don’t don’t do
it, I don’t understand, they’re like afraid to do it. There’s like this fear, is
there any risk in buying gold? Or do you have any
psychological explanation of why they just wouldn’t go out there and just purchase some gold coins? – Or silver.
– Or silver. – Silver’s $20 an ounce.
– Yeah, yeah, yeah. – [Kevin] Yeah, I think the biggest reason that people don’t buy, is
because they don’t understand it. We are so tuned into, I
can get on my iPhone now, or go on a computer and
purchase stocks back and forth. I can call up a stock broker, and they can buy and sell my stock, if anybody’s still doing it that way. – [Robert] Paper, paper, that’s what they’re buying.
– Right. And so when you’re going
to get physical gold delivered to your home,
or put into your IRA, or 401K account or something like that. I just don’t understand
it, if I can’t get my mind wrapped around it enough, then
I’m just not going to do it. Like your program here, we’re more of an educational company. Here, here’s the education
on this real money. And then you can decide
with real information if you’d like to come in or not. And I think that’s the best
way to kind of go about this, is just educate so that they understand it and they can make an intelligent
and informed decision. – [Robert] Right, so Lear Capital, L-e-a-r C-a-p-i-t-a-l dot com, how
do you sell gold and silver? – [Kevin] Well we sell
physical gold and silver so we actually deliver the
physical metal to your home, or a depository, depending
on where you’d like it go. Or, in your IRA, 401K, or
other retirement account. We’re actually authorized
by the government to be able to place physical gold into those types of accounts. – [Robert] That’s good. How many years you been in business? – [Kevin] 27 years. – [Robert] No trouble so far? – No trouble.
(Kim laughs) – [Robert] No made-offs in there. – [Kevin] Nope, it’s kind of hard. If you own the piece of gold in your hand and it’s in your home, it’s yours. (Robert chuckles) – [Kim] You know other
than price adjustment I mean is there any risks to buying, to holding gold and silver? – [Kevin] Well, it’s always– – [Robert] If somebody steal it from you, you can’t get it back.
– Yeah. – [Kevin] Yeah, somebody
bonks you over the head then you have a problem, but no. If it’s in your safety deposit box, or if it’s in the depository, it is yours, it’s physically there. It’s not a piece of
paper that somebody else, a CEO like Madoff, or
somebody can manipulate, or rip you off like Enron. It is yours, it’s a bare asset. So as long as you have
that physically there, it’s no one else’s liability. – [Robert] So Kevin one more time, this is the big question. The price is manipulated, gold and silver prices are manipulated. They should be higher, but
they’re actually forced down. How is that done? – [Kevin] Well it’s usually
done through the paper market, so options and futures contracts where you put a small amount
of money down and control a lot of, not physical
gold, but paper gold. And so that’s what the price
is going to be predicated on is what are those futures
and option markets doing? But when it gets too far out
of whack like we see it now, the physical metal and that spot market usually starts to turn itself around. So we saw the same
thing right before 2008, we saw a lot paper gold and silver being sold into the market. It drove the price all
the way down in 2000, it drove it down to $250 an ounce, and then it immediately
jumped back up about 70%. So that manipulation can
only last for so long, ’cause it’s fake paper. And the real asset starts to come back and adjust to its real price again. – [Robert] So why would they
want to keep the price low? That’s the question. – [Kevin] Well, you know
Morgan Stanley has, what is it? Over 300 million ounces of silver? Well, the strategy is buy low, sell high. If I can keep driving
that silver price down, like it looks like they have been, they’ve been selling off contracts, but they have 300 million
of physical silver. I would like to buy it
at those lower prices, and then when the market starts
its correction again here, which I think would be fairly soon, that’s price is going to be much higher, they make a big profit. – [Robert] So, is what
you’re saying it’s like they manipulate it. The rumor is that’s what’s China is doing, they’re keeping the price
of both gold and silver low, so they can accumulate and
it’s put into deep storage. They’re not trading it,
it’s not coming back into the marketplace. They’re gonna store it forever. And that’s why the amount of
gold and silver is actually, what do you call it? I don’t know what Rickards calls it, but the amount of gold,
and real gold and silver being traded is going down, because people are hiding it. Is that your opinion? – [Kevin] I don’t know
if they’re hiding it. I just think that the paper
market is being manipulated from a central bank standpoint. Central banks purchased
651 tons of gold last year, the highest in 50 years. And a 74% increase over the year before. You should have seen the price go up. But like I said, they can
manipulate the paper price down, buy the physical gold,
and then wait for people to come back in, or markets to correct, and the physical stuff goes up. And that’s what they’re
all sitting on now. – [Kim] And is this a scarcity of gold? Is more and more gold being produced? More and more silver
being produced, or not? – [Kevin] No, you have a decrease in the amount of gold being
mined or found, discovered. And on the silver side
it’s even a worse problem. You know we’re very short on the supply, industrial demand has
gone through the roof, starting in mid-2003, 2004, with all these electronic devices. – [Kim] And when you say
industrial, or there you go, industrial being all
the technology devices that silver’s used for. – [Kevin] Right. And that started in about 2004, 2005 with all the screens, and
phones, and big screen TVs, all those kinds of things. They gobbled up a lot of silver. The big one now, solar. Those panels are much
bigger than your iPhone, and they are going
through a lot of silver. There is no solar without silver. – [Kim] Oh interesting. – [Kevin] I don’t think renewable energy’s going away anytime soon, so I think the demand on the silver side is going to continue to rise. – [Robert] Yeah, that’s
why Vera watched me on Fox television. I say I like silver, and
the main reason I like silver versus gold, I mean
I have a lot of gold also. But silver is an industrial metal. I mean it is used to make
the industries run well, in healthcare and water, and
so many other areas use it. But gold is just kind of gold. Gold is money. So the other question I have is this. Why, I don’t know how to say this, but why do people become afraid of real
gold and real silver? I mean, I go to my, I got gold and silver in
my hands, and I get happy. And other people would
rather have a piece of paper. I don’t get it? – [Kim] And also after talking with Kevin and other experts in gold and silver, we always end up buying more after a radio show like this.
(everyone laughs) So I’m sure we’ll be buying
more gold and silver, Kevin. – [Kevin] Yeah, you know again, I think people just don’t
understand it like you do. They haven’t looked at it
the way you’ve looked at it. You know I heard a story
once from a wise man, he was in the navy, his ship
pulled into a foreign port. He bought a Krugerrand for $50.00. – That was me.
– One ounce of gold. – [Kevin] That’s right it was you! – That’s right.
– (Kim laughs) – [Kevin] Here it is worth $1,300, and it was preserving wealth,
you’re preserving your wealth. And maybe that’s just
boring for some people, until 2008 comes along,
or a 2000 comes along, and it wipes out 50%, 60% of your wealth. Where inflation strips your fake money of its purchasing power. Then wealth preservation means a lot. Maybe it’s a boring subject, or they just don’t understand it. – [Kim] Well, they definitely
don’t understand it. ’cause I just read a story of this woman who had a $20.00 gold coin. And she took it to go pay for something and they said, “You can’t
pay your bill with this, “you must change it for cash.” So she takes this $20.00
gold coin to the bank, and they give her $20.00! (Kevin laughs) The give her $20.00 for a coin
that’s probably worth $1,000? – [Kevin] Oh $1,300, more. – [Kim] Well $1,300 yeah. And so she had like 10 of these. And now they’re trying to find her, because the bank gave her $100. – [Robert] I want to
find her, too. (laughs) – [Kim] Yeah, just crazy. You’re absolutely right. – I’m a buyer.
– They do not understand it. They don’t know, they
think $20.00 gold coin is worth $20.00. – [Kevin] Well, I’ll tell you
something even more amazing. JP Morgan just put out a
chart, it was in Bloomberg. And they gave the 20 year
annualized returns by asset class. So from 1999 to 2018, so
obviously we’re in 2019. The average investor in that
20 year period made 1.9%. Here’s the crazy part to me. The S&P 500 in that 20 year period, annualized returns was 5.6%. Gold was 7.7, it was the
second most successful investment class in that 20 year period. You have a 37% better
increase, or better return, in each one of those years if
you would have purchased gold. The only other thing that
beat out the gold market was real estate, REITS, which Robert knows a ton about. You know, but it’s another tangible asset, it’s a real asset. I wouldn’t buy the REIT, but
I’d buy a piece of real estate. – Yeah exactly.
– Amen. – [Kevin] But it’s another real asset. So it’s funny that the paper assets are down below the top three. The first was REITs, the second was gold, the third was oil. All real assets. – Which we invested.
– And then the S&P 500. – Yup.
– Yup. The last thing I want to ask you is this. It’s kind of hard for people
to understand this thing called counter party risk. Can you explain that? ’cause that’s a very important
point of gold and silver. There’s no counter party risk to it. Can you explain that? – [Kevin] Yeah, it’s back
to, if you are holding that physical gold, you
have no counter party risk, because it is yours. You can do whatever you’d like with it. But if I’m holding a
stock and I have a CEO, who’s doing crazy things with the company, embezzling money, or what have you, that’s a counter party risk. I can’t do anything about that CEO, he’s just doing what he’s doing. – [Robert] Or how about if
you’re saving US dollars, or euro, or yen, and the
government’s printing more money? – [Keving] Right, can’t do anything about the government printing the money. So when the inflation rate goes up, or my purchasing power
goes down on those dollars, it’s all because of the amount of money that they’ve printed. So all of those counter party risks in each one of the investments, is not there when you
have your physical gold. It’d be like owning a
piece of real estate 100%. It’s yours, if you
didn’t have a loan on it, you shouldn’t have too
many counter party risks, ’cause the gold’s even better. It’s a little bit more liquid, and I can put a lot of it
in a safety deposit box, and preserve a lot of wealth that way. – [Robert] Kevin, thank
you very, very much for supporting my message
and educating people too. – Yeah.
– Yeah really, really appreciate it Kevin. And the website is learcapital,
l-e-a-r, learcapital.com. I’m sure you have a wealth of information. Things such as, and we didn’t get to it, but there’s different kind
of gold coins you can buy. American eagles, you can buy Krugerrands. You can buy all these
different types of coins. And do you have on your website
the difference between them? – [Kevin] Yes. On the website and we–
– And silver as well. – [Kevin] Yes, and we have
a lot of free information that we send out, so
people can understand it. You know Kim, Robert I want to thank you. I got the advanced copy of the book. And it’s absolutely fantastic! Everyone should get a
copy, so you understand the difference between
real money and fake money. Fantastic job again on another, probably best selling book, for the I don’t know how many time now. (Kim and Robert chuckle) – [Kim] Thanks, Kevin. – [Robert] Thank you Kevin. You know thanks for
supporting my message, too, about why real money versus fake money. – [Kevin] You bet. – [Robert] Keep you up the good work. Thank you.
– Thank you Kevin. – [Kevin] Thank you. – [Robert] When we come
back we’re going for the most popular part of our program, which is Ask Robert. – [Announcer] You’re listening
to the Rich Dad Radio Show with Robert Kiyosaki. (upbeat music) – [Narrator] Don’t be like Charlie. Charlie is that do it
yourselfer who does himself in. Do it yourself is good for tile and grout. It is not good for asset protection. Charlie thought he’d save a few dollars forming his LLC online. With no guidance, he did it wrong. When he sold the property,
he lost thousands and thousands of dollars. He did himself in, by
trying to do it himself. Don’t burn yourself. Use Corporate Direct to set up an maintain your LLCs and corporations. Corporate Direct is owned and operated by attorney and Rich Dad
Advisor Garrett Sutton. Garrett wrote the best sellers
“Loopholes of Real Estate,” and “Start Your Own Corporation.” He is Robert Kiyosaki’s
attorney for asset protection. He and his team will do it right. Visit them at corporatedirect.com,
or call 800-600-1760. Mention Rich Dad and receive
$100 off your formation fee. That’s corporatedirect.com,
corporatedirect.com. (upbeat funky music) – [Announcer] Financial freedom begins with financial education. Now back to Robert Kiyosaki
and the Rich Dad Radio Show. – [Robert] Welcome back, Robert Kiyosaki, the Rich Dad Radio Show. The good news and bad news about money. Again, I want to thank our
guest today, Kevin DeMeritt. And he’s a chairman of,
and chairman and founder of Lear Capital and Wilshire Finance. He is the author of “The Bulls,
The Bears, and The Bust.” And his website is learcapital.com. Please visit it because he is very much in the Rich Dad vein. He’s into education
first and then selling. And most people don’t give
a crap about education, they just want to sell you something. So go to learcapital.com. And once again you can listen
to the Rich Dad Radio Show anytime, anywhere on iTunes or Android. And all of our programs are archived at richdadradio.com. We archive it because we’re
an educational company. We don’t recommend you
buy gold and silver. We explain why Kim and
I buy gold and silver, but don’t say you should either. But, you can listen to this program again, you’ll learn twice as much. But most importantly have
your friends, family, and business associates,
those savers who are losers. Man, I caught so much hell for that one, I said savers are losers,
your houses are not an asset. And the rich don’t work for money. That was 22 years ago I said all that. And these losers out there
are still working for money. They’re still saving money. They still think their house is an asset, and they’re still
investing for the long term in the stock market. Stocks, bonds, mutual funds and ETFs. And those guys will be
toast in a few years, if, and I hope I’m wrong, if as Kevin says, bulls, bears and the bust. If there’s a bust all those guys who are in the stock market, with stocks, bonds, mutual funds and ETFs, it’s as Jim Rickards says of
a book, “The Road to Ruin.” Nice, nice, so very nice. So many people trap the same device. They’re all sitting there
in this bubble market called the stock market and a job. – [Kim] And I thought it
was really interesting that Kevin said the best returns have been related to real
estate, gold and silver and oil. All real assets. – [Robert] Yup, and of
course your stock broker will never tell you that, because they don’t make
money selling you that stuff. You know they can only sell you paper, or REITs, and Exxon, standard oil, and gold and silver ETFs. Be careful, I’m going to
plug my book one more time, it’s called “Fake: Fake Money,
Fake Teachers, Fake Assets.” – [Kim] And a lot of people
are getting fake advice. – [Robert] Fake advice,
and most financial advisors are fake, they don’t know
what they’re selling you, but they got to sell you
something ’cause otherwise they don’t eat. So anyway, you can submit your questions
to [email protected] We appreciate the questions. So Tony, what’s the
first question we have? – [Tony] First question comes from Jacob. His favorite book is “Rich
Dad Guide to Investing.” Robert, you say you never
sell gold and silver. When would you ever sell these? Would you sell once these assets peak and rotate out into another asset class, such as real estate? – [Robert] And I like that question, because it shows how desperate
people are for money. And in my book, “Fake,”
you’ll read in there about a thing called an infinite return, which Kim and I practice. Once you have an infinite return you’ll realize you never need money. ‘Cause Kim and I use debt. Oh I’ll get out of debt. No, we do everything that
the financial planners and bankers tell us to do, we don’t do. But people are so needy for money. So that’s why they don’t
buy gold and silver because they want to spend it. And, the good thing about gold and silver, you’re a couple of steps
aways from spending it. ‘Cause you walk into a
store with a gold Krugerrand or an eagle, and the clerk is clueless. They go what is that? Is that a $50, is that a gold
coin, I mean what is that? I mean Americans, people
all over the world are so ignorant to gold and silver, you could have a $1,500 gold
coin and they wouldn’t take it. – [Kim] Well they didn’t. I mean that was the story I told. The woman walked in with a $20 gold coin. And first of all the place she was trying to pay her bill said, “We can’t take gold. “Go to the bank exchange it.” And they exchange it for $20! A gold coin, a one ounce gold coin, was exchanged for $20. And she had like 10 of them. – [Robert] That’s how financial
ignorant most people are. – [Kim] And the banker didn’t know either. I mean come on, the banks didn’t even
know this, that’s crazy. – [Robert] A little bit of tidbit, this little superfluous information is that the only way the US dollar, or the yen, or the euro
exists, it’s debt and taxes. Without debt and taxes,
see the only reason it’s called government money is you have to pay taxes with it. Debt and taxes. If you understand, when we
talked about counter party risk and all that, the reason the
government doesn’t like gold and they don’t accept it, they won’t accept it for taxes. That’s why people, they want to spend it. So Kim and I hold, we do infinite return, it’s in “Fake,” how we use no money to
make millions of dollars, pay no taxes and we save gold and silver. We don’t spend it. We spent it once, right? We spent some small–
– We spent it once back in the late ’80s, 1980s, because we were buying our house. We were living in La Jolla,
we were buying our house in Portland, Oregon. And they said, “We need
a $23,000 down payment.” After we’d been jumping through hoops, ’cause our credit was terrible. To even get a loan, based on
who we were, was ridiculous. Then she said, “Yeah we
need $23,000 in 48 hours.” And I’m like, “We don’t have $23,000.” But, I opened our closet door
and there were bars of silver, stacked up in our master bedroom closet. And I literally put them
into brown grocery bags and walked them to the
precious metals dealer just down the street, cashed them in. And that’s how (chuckles)
we bought our house. That’s the only time, so
far that we have sold. – [Robert] And I think
we were buying the silver for like a $1.90 an ounce. And today’s it’s like $17 an ounce. It just shows you how much,
I’m not saying to brag, but that’s how worthless
the US dollar has become, or the yen or the euro. Next question there, Tony. So we don’t sell, we just buy and hold. – [Tony] Next question comes
from Dan in New Jersey, favorite book, “Rich Dad, Poor Dad.” Robert, you mentioned holding
gold, silver and currency outside the US legally. What kind of attorney should we consult to find out how to do this? Where can we buy real gold,
as there are so many companies claiming to be real? – [Robert] Yeah, you
got to be very careful when you’re buying especially, but the same thing as hiring an attorney. We’d looked long and
hard for this attorney. – [Kim] Yeah we did, yes we did. Came highly recommended. – [Robert] Because if you
move money offshore illegally they can take the whole thing. – [Kim] Yeah, you got to do it legally. You got to do it by the numbers, really, really important,
really important. – You know President Obama
was after all those guys hiding money overseas. And there’s guys who do it legally and people who do it illegally. So I’m not at liberty to
give you our attorney’s name. But please start doing
your own market research, the same way as you
start researching those who sell you gold and sliver. Most people I’ve met, ’cause I
buy a lot of gold and silver. Most of the people I’ve met in the gold and silver business are fake. They’re only standing behind that counter, because they need the job. They’re not gold and silver advocates. So when I met Kevin DeMeritt, and also there’s Jerry
Williams here in Phoenix, you know it’s American Precious Metals. These guys are hard core gold guys. They’ve been in it for
years, and years, and years. These guys are hard core gold guys. – [Kim] And they’re also educators. – They’re educators, yeah.
– They want you to understand what you’re buying, they don’t want to just sell you something. If you don’t understand it,
they’re probably not gonna sell you anything. – [Robert] So when I
go and I talk to a gold or silver sales person, I just ask them a couple of questions. How long have you been in the business? How much gold and silver do you own? Do you buy numismatic? Numismatic means collectibles,
so this is a rare coin. They try and sell you a numismatic, a rare gold or silver coin, run. Because you don’t know
the value of the coin unless Daniel Samuelson, good
guy out of Austin, Texas. He is the head of the Numismatic Society. This guy lives, eats, breathes,
numismatics, rare coins. So I’ve bought a lot
of rare coins from him, just because that guy is for real. Same as Jerry Williams here
at American Precious Metals, and Kevin DeMeritt, 27
years in the business. That’s what I’m looking for. If I meet some guy who’s trying to sell me a numismatic, a rare coin, (chuckles) I write about it in “Fake.” There’s a lot of people
selling the silver coins that was paid to Judas to betray Jesus. – [Kim] (laughs) Okay. – [Robert] I mean, how do you know that this was a coin that Judas accepted? I mean that’s a pretty far shot. I don’t think Jesus has endorsed it, I don’t think Judas endorsed it. But you know all these
things are questions you should ask before you do anything. I don’t care if it’s real estate, stocks, bonds, mutual funds, or ETFs. Most people are fake teachers. The reason they’re called stock brokers, real estate brokers,
they’re broker than you are. If you understand that, if
they don’t sell you something, they don’t eat and they’ll do anything to eat and feed the kids,
and pay for the college. Just remember that, okay. So once again I thank Kevin DeMeritt, chairman
and founder of Lear Capital. And I thank you all for listening. You can submit your questions
to [email protected]