James O'Byrne0:00 Last week, gold hit the $4,000 mark per ounce on the New York Shock Stock Exchange.0:08 And this has major implications for the economy, geopolitics, and the world as a whole.0:15 First off, gold is it is a very tangible asset.0:19 And this the shift in the concentration of funds in tre U.S.0:25 treasuries because US treasuries and gold are seen as safe safe assets that safeguard value.0:32 But the real shift from these uh fixed income assets to tangible assets like gold is really shining a light on the unpredictability of the um of the government and the current administration as a whole.0:46 And uh typical consumers and everyday consumers and everyday investors are very uncertain in um the value that is being stored in the government.0:54 So they're shifting their allocation towards gold and uh because gold is more secure asset that holds more value uh than treasuries and uh um even equities right now.1:07 But it's very interesting because equities and uh we did have a pullback on Friday, but in uh recently equities and gold have been increasing at the same level, which is very, very um it was just not common, very uncommon uh because normally it's it's they're inversely related.1:26 When gold prices go up and gold prices surge, equity prices tend to draw back and uh not do too well.1:32 But before every major recession, uh 2008, 2000, 1987, um this there's been a start, there was a correlation between the stark increase in prices of gold and the stark decrease in price of equity.1:46 So this would be a very interesting story to follow as um we get we close out uh quarter three and uh we we head into quarter four and uh the end of the year.
Casey Comerford0:00 Yeah, James, definitely is um very interesting and should be interesting to watch, um, especially at the end of this year as well going into 2026.0:09 Um and like you said, just a lot of it does come down to the you know, questioning around what the administration's doing right now, kind of the uncertainty around what these tariffs are gonna do.0:19 You just see more change with us and uh the US and China.0:23 So, you know, I think the stock market is just kind of unpredictable right now, uh, in terms of the long-term effects.0:30 I don't want to say long term, it's not gonna be too far in the future, but you know what I mean.0:33 Like, um, how in the long run will all of this really impact um trade, production in America, um, and that backs right off in the equities.0:42 Um and you know, you mentioned how gold prices always um historically have gone up before um recessions.0:51 And I think it is interesting just to take a look at the stock market in general.0:56 Um, you know, not even looking at how the tariffs are impacting it, but just the equities that have dominated um, you know, NVIDIA, you see all these big tech companies, and I think there is a technology bubble that um, you know, at some point you feel like it must it it has to pop.1:11 If you really look, a lot of these investments into these companies haven't actually returned anything from the company's development.1:16 It's kind of just a race to see who can actually develop the next stage of AI, which is what everyone's investing in.1:21 And I don't know, it'll be interesting to see if there is a bubble that does burst because um, you know, there's so much money coming into these companies and they're investing so much money into development and um I guess we'll have to see where it leads, I don't know.