GOLD RUSH HOUR: 30 Years in Gold, the Reset, and What Comes Next

Key Concepts

• ITM's 30th Anniversary: The central theme of the discussion, celebrating three decades of ITM as a gold and silver dealer.
• Gold and Silver as Investment: The core focus on the importance and historical significance of physical gold and silver as a store of value and protection against economic instability.
• Market Cycles (Bull/Bear Markets): Understanding the cyclical nature of markets, particularly gold, and how sentiment shifts.
• US Dollar Devaluation: The perspective that the rise in gold prices is often linked to the weakening of the US dollar.
• National Debt: The significant concern regarding the ever-increasing US national debt and its potential economic consequences.
• Information Accessibility: The contrast between the early days of ITM and the current era of social media and readily available information for educating the public.
• Long-Term Holding of Gold: The advice to hold gold as a long-term asset and "insurance policy" rather than selling it for short-term gains or purchases.
• Legacy and Family Business: The transition of ITM from its founder to his son, Eric, and the continuation of the business's mission.

ITM's 30-Year Anniversary: A Conversation with the Founder

This episode celebrates the 30th anniversary of ITM, a gold and silver dealer, by featuring a conversation with the company's founder, who started the business in October 1995. Now retired for eight years, he brings a unique, long-term perspective on the gold and silver market and the evolution of ITM.

The Genesis and Early Challenges of ITM

• Initial Vision: The founder's initial goal was simply to survive week-to-week, then month-to-month, with the business. The current aspiration is to reach 60 years.
• Marketing in the Pre-Digital Age: In 1995, without social media, YouTube, or Google, reaching and educating the public was significantly more challenging.
• Breakthrough Marketing Strategy: A fortunate meeting with a talk show host in 1995 proved pivotal. The host recommended eight radio stations, and advertising on KSFO in San Francisco launched the company.
• Difficulty in Mainstream Acceptance: It was challenging to get mainstream talk show hosts to discuss gold and related products at that time.
• Education Model: The primary method of education was through direct calls from interested individuals, allowing for in-depth discussions. Today, information can be disseminated freely and globally via platforms like YouTube.

Market Sentiment and Gold Prices in the Early Days

• End of a Bear Market: ITM began at the end of a long bear market for gold. A bear market signifies a downward trend, while a bull market is an upward trend.
• Investor Apathy: During extended bear markets, public interest in assets like gold is typically low.
• Historical Analogy: The founder draws a parallel to the stock market in 1982, which was poised for a historic bull run but only had 9% public participation. By 2000, after the NASDAQ crash, over 50% of the public was invested in stocks.
• Gold Price in 1995: The lowest price for gold during that period was approximately $252.20 per ounce.
• Current Gold Price (as of the recording): The price of gold was around $4,200 per ounce when the founder left for the office.
• Perspective on Price Increases: The founder anticipates that $4,200 will eventually be seen as a low price for gold, attributing significant price increases to the devaluation of the US dollar.

The Founder's "Light Bulb Moment" and Economic Outlook

• Transition from Real Estate: The founder transitioned from real estate in October 1989 due to rising interest rates (9.75%).
• Discovery of Gold's Economic Significance: He answered an ad and began working for a gold company where he was taught about gold's relationship to the economy, the dollar, and markets. This sparked his interest.
• Deep Dive into History: Studying the history of markets and gold, and understanding why gold appreciates at certain times, "lit the fire" for him.
• Interviewing Experts: He interviewed numerous economists and newsletter writers, solidifying his belief that the economy was heading down an unsustainable path.
• Unsustainable Debt: As of the recording, the US national debt was approaching $38 trillion. The founder previously wrote about the immense scale of a trillion dollars in stacked bills, emphasizing the overwhelming and unsustainable nature of the debt. He believes "the piper will have to be paid" at some point.

The Inspiration and Founding of ITM Trading

• Guided by Intuition: The founder felt "guided" to open ITM Trading, utilizing meditation, self-hypnosis, and prayer.
• The "Dave" Story: A significant anecdote involves a former colleague named Dave, who was skilled in editing and writing. The founder, unsure how to create brochures or advertise, wrote his thoughts on the economy.
• Encounter at Alpha Graphics: At Alpha Graphics, a gruff employee named Thomas was unhelpful with the newsletter production. The founder's handwritten notes were reduced to a typed half-page with numerous grammar corrections needed.
• The Sign: While meditating and wishing for Dave's help, the founder received a call from Thomas stating the piece was ready. On the way to pick it up, he again wished Dave was there. Upon arrival, Dave unexpectedly appeared at Alpha Graphics, offering his assistance. This was perceived as a clear sign.
• Dave's Contribution: Dave helped create brochures and significantly assisted the founder, solidifying the start of ITM.

Surprises and Advice for the Future

• Surprise at the Pace: The founder's primary surprise has been how long it has taken for the economic issues he foresaw to unfold, though he acknowledges they are much closer to "real trouble" now.
• Swelling Debt: The continuous and significant increase in debt has been particularly surprising and worrisome.
• Advice for Potential Investors:
  • Short-Term Needs: If cash is needed in the short term, do not buy gold or silver; keep the cash.
  • Long-Term Perspective: If able to hold assets long-term, gold and silver are recommended.
• Richard Russell's Wisdom: The founder references his mentor, Richard Russell (Dow Theory Letters), who stated that if he were to pass something to his grandkids 100 years from now, it would be gold, not stocks or bonds. Russell believed there would be a time when people would wish they had all their money in gold.
• Cash Reserves: It's crucial to maintain cash reserves for sustenance, even while acknowledging gold's long-term value.
• Jeffrey Gundlach's View: Jeffrey Gundlach, known as the "Bond King," suggested a 25% allocation to gold as a prudent position.
• Sense of Urgency: The current economic climate feels like "the dam is breaking," with events happening rapidly.

Hope and the Continuation of Legacy

• Hope in a Challenging Environment: While the economic outlook can be bleak, the founder finds hope in the ability to educate and protect people.
• "Reset" and Gold: He notes that during a potential "reset," people will wish they had their money in gold.
• Protecting Portfolios: Gold is seen as a vital asset to protect portfolios beyond traditional stocks and bonds, as the prolonged economic situation makes those markets more vulnerable.
• Eric's Role: The founder expresses pride in his son, Eric, continuing the legacy of ITM. He did not initially recruit Eric, but Eric joined the company after the real estate market downturn in 2006. Eric purchased the company in 2016.
• Gratitude for Reach: The founder is grateful for the ability to reach more people through platforms like YouTube, helping them understand the necessity of owning gold and silver for survival and prosperity.
• Long-Term Value of Gold: He highlights the success of those who bought gold at lower prices ($252/ounce) and have seen their portfolios grow.
• Richard Russell's "Don't Sell" Advice: The founder reiterates Richard Russell's advice to hold gold and not sell it, as it's difficult to re-enter the market.
• Gold as an "Insurance Policy": Selling gold for short-term purchases like remodels or cars is discouraged, as it means relinquishing an "insurance policy" against future economic uncertainties.
• Education as the Core: The founder emphasizes that education is central to ITM's mission, enabling people to make informed decisions.

Conclusion

The conversation underscores the 30-year journey of ITM, highlighting the founder's prescient understanding of economic trends and the enduring importance of gold and silver. Despite the challenges of early marketing and market skepticism, ITM has persevered, now reaching a wider audience through modern technology. The core message remains consistent: in an increasingly uncertain economic landscape, physical gold and silver are essential for long-term financial security and protection. The legacy of ITM continues with the founder's son, Eric, carrying forward the mission of education and empowerment.