Why Smart Money Is Buying Gold

In an era of rising government debt, persistent inflation and growing geopolitical uncertainty, many Canadians are asking how they can better protect their wealth. 

In this episode of Leviathan Must Be Stopped, Trevor Parry sits down with Warren Keane of New World Precious Metals to explore the historical role of gold and silver as stores of value and why precious metals are attracting renewed attention from investors around the world. 

Their discussion covers the long history of gold as money, the impact of fiat currencies and currency debasement, why central banks have been increasing their gold holdings, the differences between owning physical bullion and mining stocks, and how Canadians can incorporate physical precious metals into registered investment accounts. 

Whether you're a seasoned investor or simply looking to better understand the role of gold and silver in today's economic environment, this conversation offers a thoughtful look at one of the world's oldest—and most enduring—asset classes. 

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Trevor Parry has an encyclopedic knowledge of tax and an unmatched determination that you will pay less of it. 

A lawyer with exceptional academic credentials and a profound believer in personal responsibility, he is on a crusade against the overreaching mega-state. 

For Trevor, creating Canada’s most innovative tax-saving strategies is not a job. It is a calling. 

There remain but a few strategies for starving #Leviathan of tax, and but a few experts who can execute them. 

#leviathanmustbestopped #taxlawyer #taxrelief #taxlaw 

Website: https://trevorparry.com/ 

Follow on LinkedIn: https://www.linkedin.com/in/trevor-parry/ 

Follow on X: https://x.com/realTrevorParry 

Warren Keane: https://www.newworldpm.com/ 

Peter Merrick: It Starts With Gold: https://www.amazon.ca/Starts-Gold-Peter-J-Merrick-ebook/dp/B0F1XDNCF8

Transcript

SPEAKER_01 0:00

I would tell Canadians that we've had over 700 uh fiat currencies in history and they've all went to zero. The last, uh the longest lasting ones are the US dollar and the British pound. But both of those are worth a fraction of what they were created. The US dollar is the world's reserve currency. Its purchasing power is approximately 2% of when it was created in 1913, the latest incarnation of it. So gold and silver is the ultimate safe haven asset when the world is getting upside down.

SPEAKER_00 0:38

My friends, welcome once again to Leviathan Must Be Stopped, where we deal and discuss with the daily assault on common sense and freedom in our wonderful country of Canada and throughout the Western world. And I'm very pleased today to be joined by my friend Warren Keane, who joins us from a gold vault, or apparently so, and I'm waiting for Odd Job to poke out behind him, uh, which will of course cause me to roll into my Connery impression, but I didn't kilt up for today, so maybe not. We'll do that one day. I was recently in Edinburgh, stomping around the city, uh, as my wife said, casually kilting, and had a picture in front of Adam Smith. So in the spirit of capitalism, we shall begin our conversation. Warren, there's always a conversation going on amongst astute investors about the necessity, uh, the case to hold gold and other precious metals uh historically, as we know our economy was was based on it. Richard Nixon took uh the United States off the gold standard in the early 70s. Uh and I think probably everybody has read uh Thomas Wood's wonderful book, Meltdown. I I listened to it while driving around, but it certainly made the case for uh for gold uh writ large for me. Why don't you, if you could, tell our our our friends what you guys at at uh New World Precious Metals are doing, and then we'll get into a discussion of history and common sense.

SPEAKER_01 2:10

Okay. Well, thank you for the opportunity to come and talk to your guest, Trevor. Uh much appreciated. New World Precious Metals. So, what we do, we specialize in physical gold and silver in different ways. So we can deliver to your home. We can hold, um, help you hold physical gold and silver in registered accounts like RSPs, TFSAs, uh the RIF accounts, you know, the registered retirement income funds, physical precious metals, that's all we deal with. Uh, we also have a um uh another option uh which is uh a way to you to diversify outside of the Canadian jurisdiction. So you're holding physical precious metals again, uh, but it's outside uh the Canadian jurisdiction. And that's getting more popular given you know people want to de-risk their assets outside of um one jurisdiction. So we're uh I guess we're we're we're unique um is that we have those other options, not just delivered to your home or which people can get in Canada uh pretty easily still. Uh, you know, for example, you can buy precious metals online, but that uh the registered account option, many Canadians have their money in those tax-sheltered accounts, so we believe it is um prudent to hold physical precious metals in an RSP, for example, as opposed to mutual funds, stocks, bonds, and the traditional assets. But that other option um is outside the Canadian jurisdiction, and that's becoming more attractive. But it's all physical metal, and I guess I would say LBMA approved, London Bullion Market Association approved uh 99.9% bullion. That's all you should really invest in, in my opinion, you know, not uh uh collectibles or unrefined gold and silver.

SPEAKER_00 4:01

Despite the fact that Canada is currently being governed by a celebrated central banker, uh I'm of the mind that, and central focus of this conversation in this podcast is that overarching government continues to ravenously grow and consume everything they can with little or no common sense. Um the Canadian balance sheet is terrible. Canada is the only uh G7 country currently in a tactical recession, and yet Canadians like trained SEALs seem to be clapping for everything that Mr. Kearney does. Given the precarious situation our economy and our country find ourselves in, can you make the case to Canadians as to why they need to have gold or precious metals in their portfolio?

SPEAKER_01 4:50

Yeah. Okay, so I guess it'll go start with a 5,000-year history of um gold as a as a store of value that every country in the world currently recognizes. So that's one. Um when you refer to the government's balance sheet, um, I think Canadians need to know that what's happening now, which is uh an accelerating debasement of our currency, and we all know this by going to the grocery store or um you know heating our homes and so on, we're losing uh purchasing power, not as the government statistics tell us, 2.8% or whatever the latest statistic is, but it's costing you 10% more, at least uh a year to live. And if you look throughout history, say that just the last 500 years, you can go back further, but just the last 500 years, this scenario of a fiat currency system where governments um debase the currency by essentially printing money, it's happened multiple times. I would tell Canadians that we've had over 700 uh fiat currencies in history and they've all went to zero. The last, uh the longest lasting ones are the US dollar and the British pound. But both of those are worth a fraction of what they were created. For example, let's use the US dollar. I know we're in Canada, but we the US dollar is the world's reserve currency. Its purchasing power is approximately 2% of when it was created in 1913, the latest incarnation of it. So gold and silver is the ultimate safe haven asset when the world is getting upside down. I'll just use that expression, you know, geopolitics. Um but also um it has always been there to protect your purchasing power. And so we are in this accelerating phase of um a loss of purchasing power. The governments are not um solving the problem. In fact, I don't think they can. And mathematically, the sovereign debts of Canada, I would say, the United States with their 39 trillion plus just on their balance sheet, there's no way to pay that back using traditional means of lowering interest rates, tightener, tightening our belt. So you should have gold and silver in your portfolio. I think the question, so and I guess, Trevor, I'd also say to Canadians the central banks in the world, the biggest, most well-informed banks on the planet, have been buying record amounts of precious metals. They've bought more since uh in twenty started really started ten years ago. They've been net buyers for over ten years, but in in 2022, the central banks around the world bought more precious metals than ever recorded, you know, which was 1967. So it's a case of watch what they do, not what they say. This is what the big, you know, the smart money, if you want to call it that, was what they're doing. So protect yourself with precious metals. But unfortunately, I'll make this my last point here, is that um in North America, unlike other places in the world, less than one percent of the population owns physical precious metals. So it's not a good situation.

SPEAKER_00 8:07

I know that uh our unfortunate and in my humble opinion, uh incompetent former Prime Minister, Justin Trudeau, one of the first things he did was to sell off the Canadian gold reserve. So uh to my knowledge, Canada currently has no gold reserve. Uh, you look south of the border, and there's several academic papers that would suggest that Trump's trade policy vis-a-vis tariffs are a further attempt to to reduce the value of uh of king dollar uh uh to to take uh some remedial action against the situation that you've set out. Has has the Canadian Central Bank started to buy gold again or any any of the uh Canadian banks, or were we still unfortunately out to lunch?

SPEAKER_01 8:51

Um I'd say we're I think we're out to lunch. Um I I wonder about that myself. You know, we're the only major um economy, the only G7 for sure, and I think even G30 or something with of countries where we don't have any gold reserves. Yet we see, you know, even in the West, a lot of the gold, a lot of the gold is uh by central bank buying has been uh the BRICS countries, the countries in the Shanghai Cooperation Council led by China. You know, China is the number one producer of gold, and the biggest consumer of gold and the biggest importer of gold. They're number two in silver. Um some bright spots in the West has been uh the Polish central bank has bought more than the EU, but in general, it's been the um it's been the countries of the global south, the BRICS countries. So with Canada, we are like the fifth largest producer of gold. So sometimes I wonder um is this, you know, is this intentional where um we're gonna be bankrupt and the world's going to you see it um around the world, um, different initiatives which tell me, inform me that we are moving closer to uh gold playing a part again, like it always usually does when we have a collapse of a fiat system, it reasserts itself. But um, there's you know big macro pictures uh out there or developments that tell us that we are going to remonetize gold again. Even Trump, uh, you brought up Trump, Trevor. Just uh you know how when he came in at the beginning, there was this talk with him and uh Elon Musk that they must um audit the uh you know audit Fort Knox, which hasn't really seen a real audit since 1954. They did a cursory uh walkthrough in the 70s. Well, he's brought it up again. Um and very like like his as per his style, he's so frank that he said um, you know, maybe it's been stolen, maybe it's been hypothecated. But the the US supposedly uh officially has the most gold, which is 8,133 tons. But most people in my industry, we believe China has a lot more. So going back to Canada, um, is it is it uh is it really nefarious like this was planned to not have any gold uh with the central bank? So when the new system comes, we're sitting there, we can be, I don't know, taken over. Or or if uh in a more positive, potentially positive way to look at it, is it because we're the fifth largest producer, the government thinks that well, they're gonna maybe nationalize the mines, or are they just totally um or is it real incompetence? I I can't help but think they they can see the central banks around the world buying more, so they would want to do this. Uh funny enough, the British with George Brown, you know, they he he sold at the bottom, he sold a lot of their gold too, right? I think it was 2006 or something. He got rid of a lot of the the British their gold. So that's a conundrum, yeah, with for Canadians.

SPEAKER_00 11:58

Well, I mean, the if you look at the UK and you look at Canada, both are on a steady decline. And uh, you know, yesterday the feckless weakling Keir Starmer finally resigned, and likely will uh you'll see a worse government in in the UK. So Canada, unfortunately, is on the same precipitous downward slope despite all the elbows-up lemmings who think that Mr. Kearney is uh going to work a miracle. And I don't doubt the man's intellect and uh anything like that. I've re I've I've said several times on this podcast. I've read his book, and uh he's certainly a central planner. And as a celebrated central banker, he amongst, you know, foremost amongst Canadians should understand the need to start accumulating gold and precious metals. But it seem it one must look at his uh his lack of that and say, is there something nefarious going on here? Uh why not, if he's that smart and if he's trained his entire life, run ran two central banks, and he's not directing the accumulation of a reserve, one has to wonder why. Uh and and uh I mean I don't want to peddle conspiracy theories here, but sometimes these things that come out to be true. Um if we turn to the norm of the regular consumer, I mean, is there a percentage that you would suggest that should be held in in their investment accounts or registered registered plans, not just as a hedge against inflation, but for sort of the larger policy and macroacronomic uh uh trends and issues that you've pointed out?

SPEAKER_01 13:30

Yeah, so as a percentage of uh gold or silver in one's portfolio, um, you know, I go back to the smart money again. They've always had a portion of their uh wealth in precious metals, like the central banks, the billionaire banks, the the the the sorry, the institutional banks or the uh you know industrial banks, like like like Goldman Sachs, like JP Morgan, you know, uh Wells Fargo, they've always had um a portion of their uh holdings in precious metals, but we see that increasing now. Um I I I say up to 50% of your wealth should be in precious metals as a protection at this time. Um one one thing to note about precious metals, um they are very liquid. So there's a lot of buyers and a lot of sellers. Now, not liquid that we can Canadians can take their um one ounce silver coin to safeways and buy some food. But on a global level, um liquid, and as the world gets um, you know, the the current let's let's say the the rules base order, whatever we want to call it, as in its unraveling or changing, um gold is that um apolitical store of wealth that every country recognizes. You know, I think the United States did themselves a uh disfavor when they weaponized the dollar last time against Russia, because now you've just woken up all these other countries to you know be concerned about what if they did that to them, they could do that to us. I think doing that hastened de-dollarization. But I'm going off the question here, I'm going off topic. I I I think uh 50% of your wealth should put in precious metals. Um, we're not financial advisors, so we don't give you financial advice, but we can um we know precious metals very well. We have a newsletter. I could talk about it for days and days. You'd have to kick me off your show, Trevor. Um, you know, I really believe I really believe this is about protecting what you have. Yeah. Having said that, Canadians, um, if we just look at some of the statistics of how how is gold performed, uh, and right now, incidentally, it is a buying opportunity because we've had a significant pullback in the bull market. Um but if you look for the last 24 years of this century, for example, first 25 years, gold's averaged 9% a year. I mean, that's that's a very good return. That is exactly. Um misleading too when we everything we we live in a dollar system, so we we uh value things in dollars. But I I challenge people to start looking at how many ounces of gold does it take to buy that property, and you'll see that it's going down less ounces because our currency is devaluing so fast, you know, going back to that theme. Yeah. That was a long answer.

SPEAKER_00 16:36

I mean, there's the there's the the argument, the tried and true argument that it's a hedge against inflation. Uh and though it's not, you know, the pet the currencies aren't pegged to it any longer, it's certainly a hedge against uncertainty. And if you are of the mind that under the Trump administration, the United States is attempting to, if not, create a bulwark to China to reassert itself, and certainly the Venezuela and Iran uh recent uh activities would indicate that, and likely Cuba and who knows what's next. I think that though I agree with what President Trump is doing in the world, uh I think uncertainty is only going to go on the upswing. So I think the case for precious metals as a substantial component uh of one's portfolio uh is just common sense. I know my own case, I don't, I'm not at 50% or anything like that, but I'm I think we're knocking on 20 uh and are adding to it you know regularly because it's just prudent. Now, you guys, you specialize in in the holding of physical gold. Do you want to speak to that as opposed to owning you know miners or uh you know explorers or or uh you know proxies on on gold?

SPEAKER_01 17:50

Yeah, okay. So to speak to um yeah, proxies on gold, miners versus physical gold itself. Um so I attend conferences, you know, I I um follow a lot of people in the space and and um live and breathe this profession. And so uh, you know, I go to these conferences, and one of the conferences I really like to go to is called uh Vancouver Resource Investment Conference. I really recommend it. Now there's an equivalent in Toronto that is called PDAC. I'm not as familiar with it.

SPEAKER_00 18:19

I've been to it many times, yeah.

SPEAKER_01 18:21

Okay, you've been okay, so you know Trevor. So then, you know, it's one of the biggest gold mining conferences, uh, mining conferences, not just gold, um uh in this part of the world. Well, so you learn about mining too, of course, goes hand in hand. Um I think there's a uh a move, there is a move to out of the stock market equities back into commodities just in general, including mining. Um, I listened to someone called Douglas MacArthur. I don't know, do you ever listen to him?

SPEAKER_00 18:52

Uh, I only know the one who went ashore in the Philippines and did return. So Douglas McGregor, I call him MacArthur.

SPEAKER_01 18:59

Douglas McGregor. Right. He is the military strategist, right? Well, anyway, he he said something the uh the other night on um his show, which was invest in um metals, uh, oil, energy, you know, real real commodities, and that's what where the stock market, I believe, is heading. And many uh financial um analysts will tell you we're heading to a commodity super cycle. So mining, um, there's definitely um uh this is a great time to invest in miners because the miners have not, unlike um, for example, how we're sitting here, you know, silver is double, even though we've taken a big downturn, silver is double where it was a year ago, and uh pretty well the same with gold. Well, the miners have not you know had those gains yet. Um, they don't, they're not reflective of the um of the precious metal spot prices themselves. So there's lots of bargains to be had. And then you look at the bigger macro picture, like the United States declaring silver a critical mineral at the end of 2025, or China um instituting as of January um restrictions on silver exports. And you know, what do we have coming down the pipe? Um we have data centers, we have AI, we have um it all needs silver. So so there's there's great bargains and and copper, you know. We we know the thing with if I'll just say to end this about mining, and I'm not a again financial advisor or a mining expert, but if you just look underneath the hood a little bit, you'll see that the West have we outsourced everything. Mining in particular takes 15 to 20 years from discovery to develop a producing copper and silver mine, and we need both lots of those, right? And so silver in particular, there's lots of bargains with miners right now, and uh this is a great time to invest. It is.

SPEAKER_00 21:00

And one thing to sort of the indicates uh an upswing in it is I mean, I I'm a tax guy and a focus on you know religiously helping people save money. Uh a past guest and good friend of mine, Ken Stern, who specializes in flow through, he would tell you that right now the flow through uh market is is vibrant and it's all mining. Uh so clearly the Canadian government, regardless of who's in office, understands uh that mining is a fundamental pillar of this economy. And I think I encourage them to continue to do that. But I also notice when I talk to, you know, just sort of grassroots investors, not institutional investors or option traders or anything like that. I think they instinctively get it. Uh they they know, sure, we're not on the gold standard anymore, but they understand, you know, a common sense approach. They it's something they can hold in their hand. They understand the historical importance of precious metals, certainly the silver cases is. undeniable. It's the industrial uses are are uh you know in uh increasing and will probably exponentially do so so i think you're right i think there's a uh there's a continued or an uh uh augmented bull market coming in gold and silver but i i think you're seeing a groundswell uh of common sense grassroots investors in that and i i think that you guys are extremely well placed to take advantage of that and to deliver real service and value for people and so if we want to wrap things up why don't you just if you want to briefly just tell us I know you you talked initially about what you do but what what's the process how how do people access you and and how do you deliver?

SPEAKER_01 22:42

Yeah well the the way the way you access us you can go to newworldpreciousmetals.com so that's newworldpm.com uh you can I also have my own website warrenkeen.com and you can book a meeting with me um what we really recommend is everyone just book a meeting no obligation no pressure uh again one of the things I like about what we do is we have multiple solutions with physical precious metals we're not buying gold and silver and saying come and buy it from us we are brokers meaning we can you know our job is to get a client's the best deal but of course we need to talk to you first um the registered accounts you know the there's a whole other discussion there should you keep your account uh in the registered registered with the federal government programs to get those tax sheltering that's a whole other discussion we don't provide tax advice unlike yourself Trevor but if people are going to keep your wealth in those registered accounts well then keep it in something physical tangible like gold and silver to it makes total sense to me do you put 100% in it no um the other thing is um with that international account um one of the features about you can borrow against it because the they have your physical medal is collateral uh so get in there and protect yourself with this this um with with owning physical metals we can help you we're based in Canada we have a um we have customers in every province uh and outside the country now with that international program and it's you know it's operated in Canada 25 years um we have a lot of happy customers like I you know we we know gold and silver very well come and talk to us um that's what I would say you know and and the first step book a meeting and and a big endorsement um my my longtime good friend Peter Merrick's book it starts with gold which is a bestseller he he sings your guys' praises all the time so certainly uh my my advice is folks should get in touch with Warren pick up Peter's book and read it it's a it's a great uh it's a great read and uh you know start you don't have to you know deploy all of your wealth but uh you know certainly do more than put a foot in the water uh because if you simply believe that volatility and uncertainty are the two things that uh we can guarantee that will happen in the next uh decade or so I think that gold and in particular silver precious metals uh make a ton of sense uh for Canadian investors of all scope and size.

SPEAKER_00 25:23

So with that, Warren, I want to thank you for uh joining us here and look forward to continuing our conversation and I wish you guys uh all the best. I think you're gonna have a huge run because you know the common sense and macroeconomics are lining up here to just to to tell people I mean there's a sign waving take take steps folks uh get a hold of get a hold of Warren and start adding gold and silver to your portfolios. It's uh it's common sense carved in stone. Thanks very much.

SPEAKER_01 25:56

Thank you for the time today much appreciated. My pleasure