Thursday Conversation - Alasdair Macleod of GoldMoney

Please be sure to listen to this FREE, PUBLIC podcast.


Yes, I realize that it's Friday but this week's schedule is such that this podcast could not be posted on Thursday. Additionally, this discussion with Alasdair is so valuable that I wanted to post it at the top of the TFMR homepage and leave it there all weekend.

My purpose in reaching out to my old friend, Alasdair, was to discuss these two recent research pieces. As gold and silver are progressing higher in our 2010+9 scenario (, it's important to consider the potential ramifications of both:

Many thanks to Alasdair for the generous donation of his time. Please be sure to listen and give this podcast your thorough consideration.



Aug 17, 2019 - 2:20pm

The World's Best Beef

Where's the Beef? Apparently, it's alive and well, and thriving in Japan. Let's begin with some background info on beef in Japan . . .

All Japanese cattle are called “Wagu”, (which essentially means “Japanese cattle”). There are four recognized breeds in Japan:

Japanese Black

Japanese Brown

Japanese Polled

Japanese Shorthorn

Since 90% of all beef sold in Japan is Japanese Black, we'll pretty much stick with that, acknowledging that the other breeds exist. Think of these different breeds like you would varietals of red wine – there's Cabernet Sauvignon, Pinot Noir, Syrah, and Zinfandel. The quality of the wine varies considerably within each varietal, based on where it's grown. It's generally recognized that a Cabernet Sauvignon produced in the Napa Valley (of California) is going to be superior to a Cabernet Sauvignon grown in the Central Valley (think Fresno, CA).

Likewise, various sub-areas of Japan have developed a reputation of producing beef of marked superiority. Some of these sub-areas include Matsusaka, Kobe, Yonezawa, Mishima, Omi, and Sanda. Further breaking down the categorizations, all beef is graded according to marbling, or fat content. The highest level of fat content is rated “A-5”, and is considered the best beef.

In many restaurants around the world, you see terms like “Wagyu” appear on their menus. That can merely mean that the breed of cattle from which the steak came was one of the four Japanese breeds – not necessarily that the beef came from Japan! Just like Cabernet Sauvignon can be grown in Chile, and still called Cabernet Sauvignon, Wagyu cattle are raised in Australia, the U.S., Canada, and other countries. It's not just about the label. Most “connoisseurs” will tell you that "the good stuff” never makes it out of Japan, and to get the full experience of what Japan's beef has to offer, you have to go there.

There's an old saying “The best thinks in life are seldom cheap.” Nowhere does that apply more than in talking about Japanese beef. As you move from simple “Wagyu” to a regional offering like “Kobe”, the price enters the steepening price curve we so hope to see in the metals! Moving up to “A-4” or “A-5” completes the parabolic move.

Then, of course, there's the actual preparation of the beef. The two main techniques employed in Japan for cooking Wagyu beef are Yakiniku and Teppanyaki. Yakiniku is like our typical charcoal grilling – meat cooked on a grill over an open flame (either gas, or wood coals). Teppanyaki is cooking on a hot, flat griddle – similar to the large griddles you see in breakfast cafes, where eggs, hashbrowns, and bacon are all being cooked simultaneously on a large flat surface. You basically chose a Japanese steakhouse based on the type of cooking method you wish to enjoy.

Originally, we had booked our “beef experience” at a restaurant in downtown Kobe that uses the Teppanyaki style of cooking. The oppressive heat we encountered in Japan caused us to change our daily routine to compensate, and we canceled our plans to visit Kobe. For our final night in Kyoto, we opted for a Yakiniku-style steakhouse. The Pound Steakhouse was located on the second floor of a building on the main street in Kyoto – Shijo-dori, which is quite close to the Nishiki Market.

The owner spoke excellent English, and he was able to both understand and accommodate my wife's gluten intolerance. There wasn't much decision-making here – we knew we wanted Kobe beef! We only had to decide on the cut of beef, the size, and the sides to accompany our steak. For the cut, I had heard that the sirloin was the cut of choice for most connoisseurs, and decided to go with that. I was presented with a board that had, pinned to the board, cards representing the five pieces of Kobe sirloin available for the night! As people were still entering for dinner (it was about 8:00pm), I didn't want to dawdle, and get throated out for the last remaining pieces.

That's when “sticker shock” set in . . . The steaks were all priced by the gram, with both the weight and the price (in Yen) displayed on the menu board. The cheapest (smallest) steak on the board was about $190. I didn't actually “do the math” until the next day, but the price-per-pound, based on that day's exchange rates, came to $301.00 per pound! That $190 bought us a “modest” (in size) steak that actually weighed just under 0.6 lb. Sharing the steak between us, that amounted to 4.8 ounces each. We accompanied the steak with side orders of asparagus, mushrooms, and garlic rice.

We ordered the steak “medium rare”, and it came to the table perfectly cooked. It had quite a wide strip of fat along the top edge, which was a bit disappointing, when you're paying over $300/lb. for that fat! Then came that first bite of steak. It was incredible to imagine how it was even possible to pack so much pure beef flavor into that morsel! Just as you reduce a sauce by prolonged simmering to concentrate the flavor, this beef had that same intensity. In this case, it was the meticulous raising of the cattle, and the handling of the meat which provided that level of greatness.

Then there was the matter of that fat. I cut a small piece, and took a bite. It was like beef-flavored butter! It was so smooth, so meltingly good, and had the same flavor as the beef – albeit much more richness. Wow. This was another food experience (like the coffee) to withdraw inside yourself, and just savor every taste for the greatness of the experience that it was. The sides accompanied the steak perfectly – adding sidenotes and textures, but not distracting from the main event. It really couldn't have been any better.

Until dessert. The Japanese couple at the next table, who had finished and left long before we did, had enjoyed an interesting looking dessert, and I inquired as to what they had ordered. After the description, we ordered the same thing. They say that inspiration comes in the simplest forms. What we each received was a bowl of strawberries. They had been sliced paper thin, and were still frozen (I couldn't figure out whether they were frozen and then sliced, or sliced and then frozen). Accompanying them was a small pitcher of sweetened condensed milk. That's it.

Talk about a marriage made in Heaven! It was mind-boggling how such a simple, no-brainer that anyone could have thought of, could be so delicious. And the lightness of the dessert was a perfect ending to the richness and intensity of the steak. A 5 oz. steak and a bowl of strawberries for $115.25 and I felt like I'd just gotten the deal of a lifetime! Just perhaps, it was . . .

Angry Chef
Aug 17, 2019 - 1:36pm

There Is a Wall of Fire Shortly Ahead Set by a British...

...Arsonist — Will You Walk Through It?

Everybody should read this brief article and try to understand what is happening. You may not like Trump..and there are plenty of reasons not to. But the other option was complete anhilation of your Country.

"The British Commonwealth, under the Queen as sovereign, comprises over 31% of the world’s population and one in three countries in the world. It controls international organized crime, the drug trade, and fostered and promoted Islamic terrorism as a force for hybrid warfare and regime change. It has deeply infiltrated the foreign policy institutions of the United States and our leading universities since the end of World War II, resulting in British-originated ideas, such as the post-industrial society and anthropogenic climate change, becoming hegemonic in our society, destroying our commitment to science and ravaging the rational potential of young minds ".

Aug 17, 2019 - 1:25pm

Form 8621

Thanks for posting, I have never heard about it and hold pslv.

Aug 17, 2019 - 11:05am
Aug 17, 2019 - 11:03am

paradigm shift

Here's that phrase again, "paradigm shift".

Keiser Report 1424
Aug 17, 2019 - 10:29am


I have these in my IRA and 401(k). So no tax forms needed😁

Aug 17, 2019 - 10:14am

Going long Treasuries and US tax info about CEF, PHYS, and PSLV

There are ETFs with different Treasury bond durations:

  • TLT: 20+ years
  • TLH: 10-20 years
  • IEF: 7-10 years
  • IEI: 3-7 years
  • SHY: 1-3 years
  • BIL: 1-3 months
  • TIPS: inflation-protected

If you think interest rates will continue to decline, TLT offers the most upside (and downside if you're wrong).

My previous post mentioned having equal 20% weightings in bullion, a broad range of stocks, quality bonds, and cash, with the other 20% for speculation. The first four can easily be implemented using the ETFs PHYS, SPY, TLT, and BIL.

US taxpayers need to be aware that CEF, PHYS, and PSLV are PFICs. If you own one without filing IRS Form 8621 each year, your capital gains will be taxed using the highest income tax bracket (37%), and it might even be worse.

You should have a tax specialist prepare Form 8621 the first time, after which you may be able to handle it yourself. You can also avoid the problem by holding the PFIC within a tax sheltered account, such as an IRA.

If you file Form 8621, normal capital gains rates apply. This means that CEF, PHYS, and PSLV should be taxed at long-term rates if held for over a year, not the 28% "collectibles" rate that applies to bullion, GLD, and SLV.

Aug 16, 2019 - 11:07pm

Modern Survivalist Currency Crisis Ongoing | Fernando “FerFAL”

Modern Survivalist Currency Crisis Ongoing | Fernando “FerFAL” Aguirre
Aug 16, 2019 - 9:23pm
Aug 16, 2019 - 9:02pm

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