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Stephen Flood: Rate Hikes Will Kill Wall Street

Tom welcomes Stephen Flood CEO of GoldCore. They wanted to build a segregated allocated gold storage system and they now have eleven vaults around the world. They currently manage around 300 million in assets. Their settlement system is very rapid and everything is quickly tracked to their client’s accounts.

He explains the importance of having segregated and allocated ownership of your bullion. He says, “These are your assets managed by us. Investors should avoid paper derivatives and you want to see audits and full insurance.”

It’s important to avoid dealers with excess fees and offers that are too good to be true. Some of them have bait and switch-type models with are unethical. If you see advertisements on television for a dealer you are likely paying too much. GoldCore’s purpose is to get you the best deal possible and we want you to have a good outcome. He cautions against buying numismatics from questionable dealers.

They’re seeing a lot of demand for bullion likely due to inflation concerns. The broader consumer base is not interested in buying gold but he expects this will change. We’re seeing seven percent inflation and it’s likely much higher. It’s not going to take long for money to halve in buying power.

There are many concerns with the Fed’s mandates and he believes inflation is serious issue. Higher interest rates can reduce inflation but in doing so they will kill the economy. The leverage in the system is extraordinary. Should they increase rates it will kill Wall Street. The Fed remains in a difficult place but they will attempt to ‘sweet talk’ the markets not unlike a therapist.

When people begin to realize the future is uncertain and begin tightening their belts that’s when gold prices shift en masse.

After the invasion of Ukraine, there was a big sell-off in markets and gold shot up until the Comex intervened. It certainly seems like there is manipulation in the markets. They don’t want to send a signal to the populace that things might be getting out of hand. The current issues in Europe are likely going to exacerbate their energy problems.

Lastly, Stephen gives us his thoughts on cryptocurrencies and he has some serious misgivings about these markets.

Time Stamp References:
0:00 – Introduction
0:54 – Background & GoldCore
3:18 – Segregated Ownership
8:22 – Premiums & Demand
10:08 – Fed’s Mandates
14:28 – Gold & Deflation
15:54 – Volatility & Gold
17:34 – War & Silver
19:13 – Gold’s Function
21:20 – Gold Correlations
23:04 – Crypto Thoughts
27:16 – Wrap Up

Talking Points From This Episode

  • GoldCore’s bullion storage business and how they allocate storage of metals.
  • Getting the best deal in bullion and avoiding excessive premiums.
  • High inflation and the Fed’s inability to respond.
  • Manipulation in markets and his thoughts on cryptocurrencies.

Guest Links

Stephen Flood is the CEO of GoldCore. He is a former Wall Street equity trader and FinTech expert. He has been involved in the precious metals markets since 2004 and has appeared as an expert contributor on CNBC, CNN, BBC, RTE & Bloomberg TV and has had articles published in the Irish Times, Irish Independent, and The Sunday Business Post.

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