E36: Gold vs Black Gold: A Wealth-Building Matchup

Cash Flow Fight Club

Tired of trading your time for money? Learn how to put your cash to work for you! Tonight we've got the ultimate masterclass on generating passive income through hard assets. Tune in for an epic matchup between two heavyweight investment strategies - precious metals and oil & gas production.

Experts Ben Nadelstein of Monetary Metals and Rey Trevino of Pecos Country Operating go head to head in this episode of Cash Flow Fight Club to discuss how both gold and oil can be used to generate life-changing wealth and passive income. Listen in for insights on unlocking the cash flow potential of hard assets through leasing and private placement deals.

Here are some power takeaways from today’s conversation:

00:00

01:23 - About Ben and Rey

09:46 - Generating monthly returns from precious metals

11:48 - How gold and silver leasing works

17:43 - Why gold holds value

19:55 - Understanding gold bonds

20:44 - Storage fees for physical gold

23:43 - Investing in oil production capabilities over the long term

32:42 - Returns on precious metals vs. oil & gas

43:06 - Analyzing potential risks and benefits

1:02:12 - The future of oil and gas

1:07:33 - Who wins today’s matchup?

Episode Highlights:

[09:46] Generating Monthly Returns from Precious Metals

Ben explains how Monetary Metals is unlocking the cash flow potential of gold and silver through their unique leasing programs. Traditionally, precious metals are seen as static holdings. But through their innovative model, clients are able to rent out their gold and silver inventories to businesses. They’re able to generate monthly returns without having to worry about price fluctuations. By eliminating the risks and costs normally associated with ownership, Monetary Metals has found a way for even small investors to earn interest on their holdings paid back in physical ounces of gold and silver itself.

[23:43] Investing in Oil Production Capabilities Over the Long Term

Rey explains that a typical producing well is capable of generating oil for 30 years. This underscores how those who invest in Pecos Country Operating through its private placement deals have the potential to see investment returns not just over the short or medium term, but for decades into the future. By tapping into multi-decade production from successfully drilled wells, investors are able to benefit from a wealth-generating asset that continues paying them month after month for generations.

[32:42] Returns on Precious Metals vs. Oil & Gas

While both precious metals and oil & gas investments have the potential to generate strong returns, there are some key differences in the return profiles:

Precious metals leasing through Monetary Metals aims to provide a more consistent, lower-risk return in the 2-5% range annually through interest paid in physical gold/silver.

Oil & gas private placements with Pecos Country Operating take on more project-based risk but also offer potentially higher returns, with Ray citing examples of 40-100% returns in the first year and a goal of recouping investments within 12 months.

[1:07:33] Why Oil & Gas Took Home the Gold

Black gold was named the champion for this matchup based on its potential for higher overall returns within shorter timeframes, backed by valuable tax benefits that can further boost after-tax gains. While both investments have merit, oil & gas private placements offered by Pecos Country Operating edged out precious metals leasing due to cited examples of 40-100% first-year returns and the longevity of income over 30+ years from individual productive wells, mitigating risk through their focus on established, revenue-generating assets.

Resources Mentioned:

Monetary Metals

Pecos Country Operating