Keep Calm & Buy Gold & Silver Mike Maloney & Kerry Stevenson

Key Concepts

• Precious Metals as Money: Gold and silver are presented as true money, contrasting with fiat currency.
• Fiat Currency: Paper money declared by a government to be legal tender, but not backed by a physical commodity.
• Store of Value: The ability of an asset to retain its purchasing power over time.
• Inflation: A general increase in prices and fall in the purchasing value of money.
• Quantitative Easing (QE): A monetary policy whereby a central bank purchases predetermined amounts of government bonds or other financial assets in order to inject money into the economy.
• Government Debt: The total amount of money that a government owes.
• Psychology of Investing: How emotional responses influence buying and selling decisions, often leading to poor timing.
• "View Tax": A hypothetical or real tax based on the perceived value of a view from a property.

Main Topics and Key Points

1. Investor Behavior and Precious Metals Purchases

• Observation: Carrie Stevenson observed people lining up to buy gold at approximately $4,300 AUD per ounce (which was over $1,800-$1,900 USD at the time) in Australia.
• Critique: Stevenson found it "fascinating" and "crazy" that these individuals were not interested when the price was lower ($1,800-$1,900 USD) but became "hysterical" and queued when the price was higher.
• Motivation: When questioned, many buyers cited the mainstream media as their reason for purchasing gold.
• Argument: Stevenson argues that being influenced by mainstream media is not a sound reason to buy precious metals. She emphasizes that precious metals are "money and everything else is credit."
• Caution: She advises against impulsive, all-in purchases of gold or silver, suggesting instead that they should be used as a "store of value over time" and "insurance."
• Timing: Stevenson notes that these buyers tend to "always buy at the wrong time," chasing prices upwards and missing opportunities to buy at lower prices. This behavior is compared to people becoming "hysterical" for shoes on sale but ignoring precious metals when they are "on sale."

2. Carrie Stevenson's Work and Philosophy

• Australian Gold Conference: Stevenson has been running the Australian Gold Conference for 15 years, starting around 2011 when the Australian dollar was at parity with the US dollar and gold was priced around $1940-$1950 USD.
• Purpose: Her passion lies in "educating people" about the importance of understanding true money (gold and silver) and moving away from "fiat currency which always fails."
• YouTube Channel: She hosts a YouTube channel called "Making Money Matter," which focuses on the concept of "money, not national fiat currency."
• T-shirt Slogan: Stevenson's t-shirt slogan, "Keep Calm and Buy Gold," highlights her message of measured action. She also plans to update it to include silver: "Keep Calm and Buy Gold or Silver."

3. The Case for Silver

• Outperformance: Stevenson believes silver is poised to "outperform gold."
• Strategy: She suggests buying silver to acquire more ounces and then swapping it for gold later.

4. The Erosion of Fiat Currency and Government Actions

• Trust in Fiat: Stevenson observes that most people trust fiat currency, banks, and digital representations of wealth without understanding the future value.
• Inflation: She states that "inflation, the genie inflation is out of the bottle. It ain't going back anytime soon."
• Government Debt: National debts worldwide are "exploding."
• Monetary Policy (QE): Governments resort to printing money, referred to as Quantitative Easing (QE), to stay in power and "keep the people quiet" by distributing "candy" (fiat currency) and promising "free stuff." Stevenson calls QE a "fancy way of saying we're going to print more money."
• "View Tax": As an example of government overreach and revenue generation, Stevenson mentions a "view tax" on the Gold Coast, where residents pay more tax based on the floor of their high-rise building, implying a tax on the view. She expresses disbelief at the creative and often nonsensical taxes governments devise.
• Government Motivation: The primary motivation for governments is to "stay in power," which they achieve through increased taxes and money printing.

5. Protection Against Government Insanity

• Solution: Stevenson posits that the only way to protect oneself from "government insanity" is through "precious metals."

Step-by-Step Processes/Methodologies

• Understanding True Money: The core methodology advocated is to shift understanding from fiat currency to gold and silver as true money and a store of value.
• Actionable Strategy: Stevenson suggests taking action by acquiring precious metals, specifically recommending silver as a potentially higher-performing asset for increasing ounce accumulation.

Key Arguments and Perspectives

• Argument: Mainstream media narratives and emotional responses lead to poor investment decisions in precious metals, with people buying at highs and selling at lows.
  • Supporting Evidence: The observation of queues forming to buy gold at elevated prices, driven by media influence.
• Argument: Fiat currencies are inherently flawed and destined to fail due to inflation and government mismanagement.
  • Supporting Evidence: The concept of inflation being "out of the bottle," exploding national debts, and the continuous use of QE.
• Argument: Governments prioritize staying in power through fiscal irresponsibility, leading to increased taxation and currency devaluation.
  • Supporting Evidence: The "view tax" example and the general practice of printing money to fund promises.
• Argument: Precious metals (gold and silver) are the most reliable means of preserving wealth and protecting against economic instability.
  • Supporting Evidence: Their historical role as money and their function as a store of value.

Notable Quotes

• "Precious metals is money and everything else is credit." - Carrie Stevenson
• "You shouldn't be just, I don't know, going all in and selling their house and their children to buy gold or silver at this point in time. But what they should be doing is using it as a store of value over time insurance as you like." - Carrie Stevenson
• "They always buy at the wrong time. They're going to buy as they chase price and then when the opportunity comes to buy at a lower price, they don't." - Carrie Stevenson
• "Keep Calm and Buy Gold or Silver." - Carrie Stevenson (her planned t-shirt slogan)
• "Don't forget silver. It's going to outperform gold. If you want more ounces of gold, buy silver today and swap your silver for gold tomorrow." - Carrie Stevenson
• "Most people are trusting the fair currency. They're trusting the banks. They're trusting what they see on their phone in digits. And they have no understanding of why that value is going to be there in the future." - Carrie Stevenson
• "Inflation, the genie inflation is out of the bottle. It ain't going back anytime soon." - Carrie Stevenson
• "QE was just a fancy way of saying we're going to print more money." - Carrie Stevenson
• "The only way that I can think of to protect yourself from all of this government insanity is precious metals." - Carrie Stevenson

Technical Terms and Concepts

• Fiat Currency: Currency that a government has declared to be legal tender, but it is not backed by a physical commodity. Its value is derived from the issuing government's stability and trust.
• Store of Value: An asset that can be saved, retrieved, and exchanged at a later time, and be predictably useful when retrieved. Gold and silver are historically considered strong stores of value.
• Inflation: A general increase in prices and fall in the purchasing value of money. It erodes the purchasing power of fiat currencies.
• Quantitative Easing (QE): A non-traditional monetary policy tool used by central banks to inject liquidity into the economy by purchasing assets, effectively increasing the money supply.
• QE 1 2 3 4 5 6... Into Infinity and Beyond: A hyperbolic description of the repeated and seemingly endless application of QE by governments.
• Parity: The state of being equal, especially in value or standing. In the context of currency, it means one unit of currency is worth the same as one unit of another currency (e.g., AUD = USD).

Logical Connections Between Sections

The discussion flows logically from an observation of investor behavior (buying gold at the wrong time) to an explanation of the underlying reasons for this behavior and the broader economic context. Stevenson critiques the reliance on mainstream media and fiat currency, then presents her own philosophy and work in educating the public about precious metals. The conversation then delves into the systemic issues of government fiscal policy, inflation, and debt, ultimately concluding that precious metals are the solution for individual protection. The mention of silver as an outperformer provides a specific actionable strategy within the broader theme of precious metals investment.

Data, Research Findings, or Statistics

• Gold Price: Mentioned as approximately $4,300 AUD per ounce, which was over $1,800-$1,900 USD at the time of the interview.
• Gold Price Peak: Mentioned as around $1940-$1950 USD in 2011.
• Australian Dollar to US Dollar: Mentioned as being at parity in 2011.
• Data Backing: Stevenson refers to showing "data going back 20 years" to illustrate that "what it always does" (referring to the behavior of true money vs. fiat).

Clear Section Headings

• Investor Behavior and Precious Metals Purchases
• Carrie Stevenson's Work and Philosophy
• The Case for Silver
• The Erosion of Fiat Currency and Government Actions
• Protection Against Government Insanity

Synthesis/Conclusion

The core takeaway from this discussion is a strong critique of fiat currency and government economic policies, coupled with an advocacy for precious metals, particularly gold and silver, as a reliable store of value and a hedge against inflation and economic instability. Carrie Stevenson emphasizes the importance of informed decision-making, contrasting it with the herd mentality often driven by mainstream media. She highlights the psychological pitfalls of investing and advocates for a long-term perspective, viewing precious metals as insurance rather than speculative assets. The conversation underscores the belief that governments will continue to devalue currencies through printing and taxation, making proactive acquisition of gold and silver essential for wealth preservation.