#975 – The Expat Files: Gold Coins, Drug Culture, Seminars, and Pandemic Resilience

Automatically transcribed from the original recording; names and wording may contain errors.

[00:00] South of the border down Mexico way That's where I fell in love when the stars above came out to play and now that I wonder Hello there all you ex-pat wannabes I'm Johnny Mueller and you're listening to the expat files living in Latin America The show that tells you just what it's like to live work play and or retire down here in Latin America It's a mix of the good the bad the ugly and the great and it's all right here. So let's get started Let's take a few emails. This one comes from Andy says hi Johnny I know I'm a week behind but I just listened to your gold coin discussion You do know of course that US gold eagles are one ounce, but not

[00:46] 0.999 pure gold like Canadian maple leafs are yes They do contain one ounce of 24 karat gold that is pure gold along with some copper and silver for durability Of course and the US also issues gold buffalo coins 0.999 percent pure They also contain 10 ounces of 24 karat gold, but you knew that already, right? Yep, Andy, but I guess I didn't make that so very clear in the podcast today though Andy I think you made a typo there You said US gold buffaloes are 10 ounces of 24 karat gold I think you meant to say one ounce and of course smaller denominations exist too like half ounce and quarter ounce, etc Now in that show when I mentioned my top three favorite gold coins, you know simply because they're so

[01:34] Recognizable and convertible the world over I did not mention US gold buffalo coins For good reason to they are US coins very beautiful and 0.999 pure gold the problem is you don't see many of them in other parts of the world just in basically North America and The point is here to have gold coins that you can go anywhere with and someone will look at it and say hey That's where it's so-and-so just by checking the spot price What I mean is the average middle-class person on the street may have seen a Canadian maple leaf A US gold eagle or a cougaran or at least have heard about them or seen pictures of but it's a really good bet that the Average person on the street has never even heard of a US gold buffalo by the way, the design of those coins are exact copies of a buffalo nickel and

[02:23] Probably only you baby boomers and coin collectors out there. I've ever seen one of those because the last year they were minted was in 1938 although I do remember in the 60s and 70s once in a great while You see one turn up in your regular change in circulation, but it was beaten and worn. Oh, and here's a fun fact about gold coins Did you know that in? 1979 when the Canadians first started with those one ounce gold maple leafs at the time The only bullion coined around was the cougaran but get this in 2007 the Canadian mint struck six gigantic gold maple leaf coins just six of them with a nominal face value of a million bucks and they were actually worth over 3 million in melt value and Today if you had one and melted it down just for the pure gold, it'd be worth around 7 million bucks

[03:12] Sounds nutty. All right, but these six giant coins were around 20 inches wide more than an inch thick and weighed over 200 pounds apiece and like the smaller one ounce maple leaves were 99.99% pure and you know, that's weird enough, but even stranger in March 2017 one of those giant coins was stolen from the Bode Museum in Berlin and it's still missing though I'm sure it's been melted down because you could never pass that thing off or sell it to anybody They didn't know exactly what it was. The question is how'd they steal that thing? How'd they get it out of there? Weighed over 200 pounds. Did they roll it on its edge? You have to wonder why the Canadian mint would even make six of those things But wouldn't you love to have one? Of course, you could never admit it. You'd have to melt it down

[04:01] Oh, and by the way, here's a crazy fact that most people don't know either The Canadian gold maple leaf which started in 1979 always had the Queen of England Queen Elizabeth on it But for the first 10 years 79 through 89, it was a depiction of the Queen when she was 39 years old then in 1990 to 2004 they changed the coin by putting the 69 year old version of the Queen on it You know a little droopier little sag here and then in 2005 to present They've got the 79 year old version of that pompous old bag and man has gravity done a number on her If you ask me on that coin She's looking more sour and anal than ever though No matter how you feel about the Queen that should never stop you from accumulating those one ounce gold maple leaves

[04:47] But I digress as usual. Where were you? Oh, yeah Then we have the rest of Andy's email. He says Johnny life is good here in Nicaragua, and we're all mask-free Sure, glad I had my plan be together before all the real crazy Started by the way, I started buying gold and silver coins in the mid to late 70s myself Always went to a little coin shop in Santa Cruz, California I was a student at the time and everyone else going into that shop Looking for gold or silver coins were in their 60s 70s and 80s and I picked up on the fact that they loved the young Kid me with interest in gold and silver must have thought it was cute In fact, they used to let me go in the back of the shop and sort from the bags of junk silver digging through that stuff to find the best ones for my little purchases and then Johnny a few years later when the gold

[05:39] Boom took off all of a sudden the hippies started showing up at the shop with their backpacks full of cash Converting their drug sales into gold Yep, that was the state of money laundering on a local level. Those were the days Anyway, Johnny. Thanks for everything you do and stay well signed expat Andy from Nicaragua. All right, Andy Thanks for that little blast from the past though I have to say when I was a kid checking out that little pawn shop I used to go into all the time I never saw any hippies coming through with backpacks full of cash There wasn't that kind of money laundering going on not that I could see I think simply because In the middle west we didn't have a climate for growing good wheat. I used to call it ditch weed or dirt weed I remember it used to grow on the sides of the roads Really didn't do anything but give you a sore throat

[06:26] Back then all the real dealers were selling stuff like Panama red and Michimacán Which none of us even knew back then was a state in Mexico And then there was sensimia none of us back then ever figured out it was actually two words sin Samia it wasn't one big long word sensimia sin means without and Samia means seeds So sensimia just meant without seeds in Spanish, of course Some of us thought it meant some exotic tropical location, but it just went without seeds The that's how much Spanish we knew back then pre Taco Bell At least when Taco Bell came in we learned some Spanish words on the menu Now personally, I wasn't into marijuana much at all Never bought the stuff though. It was around everywhere

[07:11] Especially since in those high school and college days No party was complete without the smell of ditch weed along with jugs of sangria ripple boons farm Wapatuli and Mickey's malt liquor now I played in a rock band every weekend So drugs were everywhere too though I didn't much partake at all because that was always kind of a nervous control freak I didn't like being out of control and I still don't and I definitely didn't drink because that provoked migraines And man those were killer though and frequently when I did take a hit Yes, I did inhale but all you Democrats for Clinton didn't right? So once again, the reason why I occasionally bring up this gold and silver thing It's because if you're truly gonna have a plan B and get the hell out of dodge You have to set yourself up financially for any possible contingency

[07:59] In other words when the fiat economy crashes and it will you have to hedge yourself And for all of you out there who think the US dollars invincible and all Latin Americans think so, you know But really they're beyond clueless when it comes to economics That said remember since 1913 and the initiation of the Federal Reserve Act the US dollar has lost 96% of its purchasing power. In other words, you could buy for 4 cents back in 1913 What cost you a dollar today? Besides that every single fiat currency ever created since the invention of the printing press Started out at full value and went to zero and the very recent ones that haven't made it to zero yet are well on their way That's why you should have some silver and gold not ingots, but bullion coins

[08:45] You heard me talk about that on the last show Plus some Bitcoin and crypto and of course some fiat cash at home to tide you over in case of a banking emergency You should have six months or more of available cash stashed and it's recommended to have a house or some land in a foreign jurisdiction because it's true if you have some land or real estate up in the States, it's not really yours even if you've got no mortgage just Try not paying your property taxes for two years and you'll really see who owns your property That's besides the fact if you have a land or real estate in the US any kind of court order state local federal Or the IRS can lock up your property making it impossible for you to sell Whereas if you have land or property in a foreign country specifically Latin America If you fail to pay your property taxes, the state will never take your property or put it up for sale

[09:35] It's just that if you don't want to sell the place You won't be able to get a clear title until you pay your back taxes Which by the way are a tiny fraction of property taxes you pay up in the States So your safety net is gold and or silver six months or so worth of fiat cash Bitcoin and or other cryptocurrencies and real estate or land in a foreign country And if you've got that under your belt Then all you've really got to do to get the hell out of Dodge is make the move Oh and about all you listeners out there who aren't novices when it comes to Bitcoin and cryptocurrency Yeah, really should have some but you got to start somewhere and the best place to start is with our own captain mangoes Bitcoin and cryptocurrency course for beginners. Yep. If you sign up with him He'll take you by the hand and walk you through all the necessary steps

[10:20] Including buying and setting up your hardware wallet and nano or a treasure He'll show you how to buy and store your crypto how to buy things directly with crypto how to get a mastercard or a visa Debit card that's directly attached to your crypto account and more importantly how to keep your crypto completely safe and you anonymous So if you're in any way confused about crypto and believe me if you do a search on the internet you will be confused You'll see so many articles and blogs and here's so many catchphrases and so much crazy jargon You won't know where to start and that's where captain mango comes in He's been doing the crypto thing practically daily for more than six years now And when he first started he had no experience in programming or computers at all And now he's a cryptocurrency expert and he still has zero experience with programming because you don't need it to be a crypto expert

[11:10] So if you want to get on board with captain mangoes crypto course It's highly recommended and again, I make not one cent by telling you about this Send me an email the expat files at gmail.com. Oh, and remember it's a one-on-one hand holding course So it's tailored specifically to you. It's not in any way a canned course with a stack of reading material It's all about hands-on practical use of cryptos now, you know, most people think that crypto is tailor-made for nerds and geeks Well, that's not the way it is anymore. It used to be like that, but it's been simplified for the average user So give it a try at least have a skype Or what's up with captain mango so he can help you figure out your individual crypto needs in other words fill in your knowledge gaps Oh, and by the way, captain mango is not just some material guy floating around in the ether somewhere on the net

[11:59] Or in the cloud you'll see if you come down to my expat insider seminar He's a real guy and he'll be hanging with us the whole time and if you show up at the seminar You'll be meeting some other really cool characters, too That is expats and gringos were living down here in Latin America and enjoying the hell out of it Many of them who came down to some of my earlier seminars and never left So when people ask me Johnny, what are the advantages of coming down to the seminar? I never say it's the information I lay on them, although that's a big part of it But you see to me and to most expats and gringos you ask who've taken the seminar They'll tell you the top two things that got out of it we're number one the chance to meet and hang with our seminar lawyer who can help you out in so many ways and Because he's with us the whole week day and night

[12:46] You'll get to permanently bond with him and he'll end up being your friend I guarantee it and really when you think about it Isn't it nice to have a lawyer who's your friend a guy you can call up any time night or day? And he'll be there for you not just as a client but a real friend and the second big advantage number two Previous seminar attendees are always so grateful that they met up with my network That means that when any particular question comes up even where to shop or who to do business with What's the best internet service? What kind of rent should I be paying in this particular area? Etc. Etc. The thing is once you've gotten out of dodge, there are a hundred little things you're gonna need 101 questions too So then when you have a question or two or ten You want to take a chance and go on the internet and try to find a solution

[13:33] I mean, we all know how trustworthy the internet is and all those idiots on fake book and twaddle Oh, if you got questions, you'll get answers. All right, but you don't know them and they don't know you who you gonna trust Of course, you could always find answers in expat gringo bars There's always an available seat at the bar next to a sunburn washed out gringo Just start buying some tequila boiler makers and he'll talk your ear off. He'll give you answers. All right Hey, you know when I first got down here to Latin America I was that clueless gringo myself and there wasn't even an internet to give me fake answers to real questions I wandered into quite a few of those expat gringo bars, too You know, they've got them in every Latin American town and city both on and off the tourist trail Oh and you better believe it every sunburn greasy haired scruffy gringo in there

[14:18] We'll give you his expert opinion on everything. You just got to buy him a drink The question is what are all those gringos doing in a bar half drunk at two in the afternoon? Do you want to model your expat life after them? If not, why would you want their opinion on anything? What are they doing sitting in a dingy hole in the wall when there's a lush tropical paradise outside? I mean really isn't that why they came down to Latin America in the first place? To enjoy a free less complicated life in a tropical paradise If that's every fresh green gringo stream, why is it that in every expat gringo bar you walk into? You see basically the same motley crew of characters And really if you sit down and talk to some of these guys, you'll find out a lot of them are just lazy ass unmotivated types So then how'd that happen?

[15:04] Well, that's because most gringos and expats who come down alone without any network without knowing anyone who could set them straight And part some wisdom and give them the right answers Well, some fall in with these guys at the gringo expat bars It's easy to do especially if you're alone don't know anyone and you don't speak much Spanish and oftentimes before you know it You've turned into one of them yourself Man, I can't tell you how many times I've seen that happen though so far It hasn't happened to any one of my expat seminar attendees knock on wood And I'll tell you why it's because they've got boots on the ground a network and some people to lean on Oh and speaking of the next seminar, you know, we're holding off till January 2021 That's when the next seminar will launch and I'll tell you already I know it's gonna be a full house so to reserve your spot and it's limited to 25 people

[15:52] I suggest you head on over to expat plan B comm click on the seminar link and sign up as soon as you can Oh, and remember, there's a three payment plan with no extra charge for spreading it out So head over to expat plan B comm check out the itinerary etc and get in on the early bird discounts Alright enough said about that next, you know, I have to mention I've been getting a lots of emails lately from expats living throughout Latin America Reporting on the conditions with the covids and the lockdowns in their particular Latin American plan B cities and countries and basically they're all telling me Sort of the same thing there are lockdowns and restrictions and they come and go stores will open then they'll close You'll see social distancing one moment in the next moment None you'll see ten people walking across the street with masks

[16:40] And then you'll turn the corner and see five people who don't have masks at all with no one looking at you sideways or saying You're going to a bank or a fast food joint and there'll be a reticop at the door checking your temperature with one of those little Infrared pistols he'll squirt some of that sticky icky gel on your hands make you step in some kitty litter box full of disinfectant And suddenly you become a bona fide valid customer when just a few seconds ago. You were a deadly germ infected risk Then after all that you might just walk into a hardware store right next door where there's no social distancing People aren't wearing masks at all or they've got a mon But they're pulled down around their necks not covering their mouth or nose at all by the way that sticky icky gel that stuff to me It's more unsanitary than not using it at all when you apply that stuff

[17:28] Aren't you just kind of spreading the bacteria around kind of like when you were a little kid you had dirt on your face your mom Would lick her fingers and rub it off didn't you just hate that by the way? Why'd they have to make that gel the consistency of snot was that really necessary and when you touch it your hands are pretty much? Permanently moist and sticky from there after everything you touch is gonna glom on to it and everything you know has dust viruses and bacteria On it, but no one ever gives a thought to that because the government, you know must be smarter than we are, right? So anyway as mentioned I'm getting all kinds of emails from expats and gringos living in various cities and towns throughout Latin America Reporting in on what's happening. I've got people checking in from Ecuador, Panama, Belize, Costa Rica, the DR, Honduras,

[18:13] Guatemala, Mexico even Suriname, you know, that's a country a tiny country in South America Most people can't even spell it much less find it on a map. Anyway, I'm hearing pretty much the same thing For example in the very touristy towns in Mexico and Costa Rica gringos and expats and even locals with businesses I've been wiped out. However, when off the gringo tourist trail, of course, there are business shutdowns there, too But you see a non gringo non touristy areas when those businesses open whether it be an auto parts store dress shop or shoe store They do get customers Whereas on the tourist trail since tourism is dead in the water even when businesses bars and restaurants are open There are no clients So bottom line if you're a gringo on the gringo tourist trail or even slightly on the gringo trail and you depend on

[19:00] Tourism and other gringos and foreigners to patronize your business. You are definitely screwed However, if you chose to live work play and or do business off the gringo tourist trailer slightly off the trail Therefore it stands to reason that most of your clients will be locals Chances are you'll survive and bounce back now for one thing you longtime listeners No, I really never promoted gringo is coming down with the express purpose of being landlords or owning and operating A B&B or a mom-and-pop hotel, although in normal times it would make good sense. These aren't normal times I always knew we'd be headed for a huge financial and real estate bust It's true. You've heard me say many many times that when there's a downturn the first industry to suffer is tourism That's why personally I never got involved in being a landlord here in Latin America myself

[19:48] Now that's not to say you shouldn't buy or build your house or homestead your dreams I've done it myself a half dozen times in different Latin countries But believe me, I never thought it was a good idea to become a landlord or a hotel operator knowing in a downturn Tourism is fragile and now unfortunately, it's all playing out right in front of us Oh and one more thing you've often heard me say that I much prefer an internet business to any brick-and-mortar business, too That's playing itself out as well, especially now if you have a brick-and-mortar business You're still paying rent utilities maintenance and chances are your doors are closed or your hours are limited and you've got no clients Whereas with an internet business even if your client base drops off you have almost no overhead But you knew that already, right?

[20:35] All right So speaking of gringles and expats who've been reporting in since we focus quite a bit on Central America and Guatemala in particular Because that's where we usually hold seminars. I'd like to read this email that came in from mr K who came down to one of my seminars and never went back to the states. He's reporting in from Antigua, Guatemala Now for those of you who don't know much about Antigua, Guatemala It's a rather small town of 30 to 40 thousand people, but it's a UNESCO world heritage site Just a beautiful little town with over a hundred Colonial buildings that date back to the Spanish conquistadores In fact, it used to be the capital of Central America before the countries were carved out and after a few earthquakes one of the biggest ones in 1776 how can you forget that date the people just up and left because many of the buildings the churches cathedrals, etc

[21:25] Were shattered but now because it's been preserved and it's a UNESCO World Heritage Site It has become Guatemala's number one tourist destination Even though it's in no way like your average tourist destination like Cancun or Costa Rica What I mean is it's a place that's got very low-key tree-hugging echo tourism In other words young adults parents and couples come down without their kids people looking to check out the colonial sites climb Volcanoes tour the Mayan ruins which are everywhere and or enroll in one of the many Spanish schools or Spanish immersion programs Many people come to Antigua, Guatemala just to learn their Spanish That's why I first went there by the way now as mentioned Antigua, Guatemala, and I lived there two years myself many years ago It's the epicenter of tourism for Guatemala

[22:13] Which is not saying much because Guatemala is considered off the gringle tourist trail But even Latin countries off the tourist trail attract a certain small number of tourists to give you an idea how popular Guatemala is As a tourist destination I just saw a list that had the hundred foreign sites You should see before you die and get this Guatemala showed up on that list at number 100 with the recommended site Antigua by the way The second most visited tourist site in Guatemala is the lake at its land region the most beautiful lake in the world However, the lake did not make the top 100 list. All right, that said here's our update from mr. K on what's happening in Antigua, Guatemala I'll paraphrase this he says Johnny. I'm in Antigua, Guatemala right now. There are a million stories from here Personally, I've been lucky so far. I have two clients. I work for online

[23:03] I've been busy. I've been pondering what to do next though post covid wondering which businesses will thrive here When will it all end personally as far as making money? I think the year is shot I'll tell you what it's like for businesses here in Antigua so many of my friends and associates all local and Expat restaurant owners are screwed many are trying to find out a magic way to stay afloat But there's no magic to be found Some have opted to sell snacks nuts and jams and jellies etc As opposed to their lattes and sandwiches on their pre covid menus. It's a slow death for many businesses Like most of the world Antigua's businesses have been going out of business not just the hostels hotels and restaurants But tiendas offices and more in fact the famous cigar bar that you frequent yourself Johnny is closed

[23:54] But I don't know if it's for good I've noticed more and more closures quite visible especially at the beginning of this month though many of the businesses that do remain open Perplex me they have no customers. How do they do it? It really makes me wonder how for antique stores all close to each other stay open at all The clothing stores have no customers but are always open and there's a rent collapse too at this time Most businesses and some tenants are paying just 50% of their pre covid rent prices All right, me Johnny here to butt in for a second You listeners probably remember me saying a couple of months ago already This is a great time to renegotiate your rent and it looks like that's exactly what people are doing Anyway, mr. K says Johnny social distancing at the market here is non-existent and has been

[24:45] Non-existed from the beginning yet all the vendors seem to be there However, some venues require masks hand sanitizers and a wet welcome mat with some gated communities Requiring the spraying of your vehicles tires. I guess according to the government the covid virus loves rubber So what's next will they be spraying condoms too? I don't get it I wear gloves when I need to go to multiple places to avoid the many applications of that sticky icky hand sanitizer Man, mr. K. I'm with you there a hundred percent Then he says a select crowd of people have been partying like crazy here in Antigua They're throwing a number of semi-private events with people from various parts of Guatemala, but mainly Guatemala City Yet this family members brought covid test kits for the party master and he along with his friend both tested negative

[25:36] It's hard to know what that means at all given the information about the tests, etc Wealthy people have been flying their helicopters to and from their beach houses with assorted surgically enhanced Venezuelans and gringas too though, that's normal And for the very first time since this started people here actually know someone who knows someone who tested positive or passed away from it Though mostly in the big city So I'm told some of the really poor people here have white flags and many locals and expats give food to them Though there are scammers and we know of one person with a flag who has food but collects free stuff daily There is one in every crowd Oh and Johnny the only restaurants getting by have been ones that have been open illegally allowing customers to sit in the back area Or courtyard often without masks yet

[26:23] None of the people have been sick in any way as you might expect some imported items are out of stock Though despite all of the above people are calm and pleasant. Oh, but Johnny there are Opportunities for example a friend of my father just imported over a million gallons of cleaner from Honduras With the intent to sell it in the US at a fair price. Why well because under the current state of emergency in the US The government has confiscated many of these items and are hoarding them or reselling them for a higher price in the states Apparently all that stuff gloves masks sanitizing cleaners, etc Are hard to get in the US right now My father in the States knows a number of people highly interested in these types of deals Meanwhile because of the US government supply chains are all screwed up. So according to my dad

[27:11] There are great opportunities and many deals waiting to happen So anyway, there you have it a report from mr. K and Antigua Guatemala Who's in the food service and restaurant business and his report pretty much reflects All the other emails I'm getting from towns throughout Latin America So there you have it more proof that an internet business is the way to go You've been listening to the expat files living in Latin America If you need some help with your own plan B We can schedule a one-on-one phone or Skype consult Just send me an email the expat files at gmail.com And if you want to get on the waiting list for my next week long expat insider seminar in Central America Where you're guaranteed to get a two to five year head start on your plan B Send me an email the expat files at gmail.com