11/11/15 – Tim Frey – The Scott Horton Show

Welcome back to the show.
I'm Scott Horton.
It's my show, The Scott Horton Show.
Eh, whatever.
Libertarian foreign policy, mostly.
Our first guest up today is Tim Frey.
He runs Roberts and Roberts Brokerage, Inc., which helps to sponsor this show and helps to sponsor the Liberty Radio Network.
That's rrbi.co.
Get it?
That way, if you were raised on baseball, you can always remember because of the RBI thing in there.rrbi.co for Roberts and Roberts Brokerage, Inc.
Welcome back to the show, Tim.
How are you?
Hey, thank you for having me.
I'm doing good.
Good, good.
Been way too long since we've spoken.
It has been.
Good to have you on.
So, man, you guys got a great thing going on here for Armistice Day, a deal to help support antiwar.com, which also helps sponsor this show, in a manner of speaking.
Go ahead.
Tell them what's the deal.
Well, we're donating all profits from all sales through today to antiwar.com.
Good deal.
That's a real good deal.
We sure appreciate that, no doubt about it.
And so, well, what kind of metals are you brokering anyway?
Well, we do silver, which I like very much right now as a buy, gold, of course, platinum, and palladium.
So we sell all the silver eagles, silver maple leaves, bars, and coins, and that sort of thing.
And then in gold, it's the gold eagles, Krugerrands, maple leaves, all your favorites there, gold bars.
So we're an in-hand precious metals dealer.
You give us money, we give you gold.
Good deal.
Well, you know, I was on Ernie's show yesterday, and Ernie said, Hey, bitcoins are high and silver is low, and I'm on my way over to do business with Tim Frey right now.
There you go.
So are you guys holding bitcoins right now?
I saw it actually already started dropping back down a little bit, right?
Right, yeah, I think it's back down into the low 300s.
Oh, really?
Yeah, 312.
Oh, that's quite a drop again.
Yeah, that's a big drop.
It was 500 bucks just a week ago.
Well, y'all missed your big chance.
No, still, silver is how low compared to usual?
1439 right now.
I mean, there's no usual price for silver.
It's been as high as $50 back in 1980.
It got nearly that high again in 2011.
It goes through cycles, and I think this is a very low cycle.
One of the ways that I like to compare gold to silver as far as an investment strategy is I look at the price of gold divided by the price of silver.
If I get a number that's in excess of 30 or so, then it indicates that I should probably buy silver.
Back in 2008 when we had the financial crisis, we saw silver prices crash down into the high $8 range at one point.
And at that point, you could buy 80 ounces of silver, you could buy one ounce of gold.
A lot of folks bought 80 ounces of silver.
And then in 2011, when both metals kind of reached a near recent peak, that ratio dropped to less than 30 to 1.
So we had people bringing us 30 ounces of silver and getting an ounce of gold when they could have only bought an ounce of gold the day they bought the 80 ounces of silver.
So it's kind of like a swing trade, a back-and-forth trade where you play the ratio game.
It's been very good for some investors.
So we're looking at silver today.
It's over 70 to 1.
It's probably 73 to 1 or 74 to 1 right now.
So I'd buy 74 ounces of silver, sit back, and wait for that number to drop, divide the price of gold by the price of silver.
When that number starts to approach 30 or at 30, I maybe start thinking about trading.
Yeah.
Man, it sounds like I ought to figure out how to try to make some money and learn how to do this myself.
Right.
It must work, man.
Yeah.
We have some investors also that do this with Bitcoin as well.
They compare the price of Bitcoin and the price of silver and start to do the calculations.
Good deal.
So tell me this.
Why would a guy like you, whatever you're like, be interested in supporting a thing like Antiwar.com?
Well, I see a very close interconnection between war and banking, and I think the banking system, the money system worldwide really is just totally corrupt.
We don't get value for our money and for our effort and our work.
So I see the two so closely tied together, they're inseparable.
We say banks drive war really is what happens.
The bankers create the wars.
They profiteer off of that.
And really at this point, we're watching the U.S. military around the world.
That is support of the dollar.
That's how they keep the dollar going is by having the mightiest force.
And I think that may come to an end very soon.
I think people around the world, countries around the world, are getting tired of our interventionist policies, and the wars we're starting and the wars we're about to start.
And so one of the ways they can defend themselves against that would be to give up the dollar.
And when they give up the dollar, that's an awful lot of dollars that are going to come flying back into this country, which could very easily result in a hyperinflationary situation.
It could be a very bad economic time.
My whole life I've heard that the national debt is too high.
And yet apparently everybody in D.C. thinks, Nah, we can keep print money as long as we want.
Money is no object.
And recent history is proof of that.
And so maybe they're right, because that massive hyperinflationary dollar crash hasn't happened yet.
So what do you think?
Well, I mean, we've seen just over since the financial crisis, we've seen foreigners completely lose appetite for buying U.S. bonds, government bonds.
They're not buying those.
Those are being soaked up by the banks and the largest bank, the Federal Reserve Bank.
So I think we're already sort of seeing a beginning of the end.
It's the snake eating its own tail.
I think it's eventually going to be a very bad circumstance financially as a result.
Yeah, it seems like that's the real drawback to the whole system, the way they've got it set up is they've got enough bubble gum and string to keep the thing going so long that it sort of seems like the end will never come.
You know, the doomsayers, they say doom.
They must have been wrong, because look, here we are already in 2015, and dollars are still dollars.
They're not worth what they were 10 years ago, but on a day-to-day basis, they mostly are.
And so you're just supposed to factor inflation into your calculations as you do your business and move on.
That's the conventional wisdom out of Newsweek and Washington, D.C., anyway, right?
Yeah, absolutely.
I mean, they target a certain inflation, and I think they jockey the numbers so that they're somewhere close to that.
But certainly we're seeing much higher inflation in things like food prices and energy.
Oil and gas is a little bit cheaper right now.
But we do see it certainly in the commodities.
We see an increase in price that's much higher than what they're stating that it is.
All right, well, I'll tell you what, man.
If I can ever figure out how to actually do the radio business and not just a radio show, then you will be the first to know when I start doing my investing.
You got that for sure?
We'll be right there with you, still supporting you, at antiwar.com.
All right, well, thanks very much, Tim, for everything.
Appreciate it.
Hey, thank you for having me.
All right, y'all, that is Tim Fray.
He's at Roberts and Roberts Brokerage, Inc.
That's rrbi.co.
All profits today are missed to stay.
Go to antiwar.com.