Listen Here
Stephen is the CEO of GoldCore, one of the oldest gold and silver dealers in the market today that has turned over $1 billion in transactions and manages $300 million in assets for their clients. After Stephen received his degree at Portobello Business College in Dublin, Ireland, he held financial and trading positions in New York City, before joining Goldman Sachs as a Sales Trader in Equity Derivatives.
When he returned to Ireland to put his experience in trading, risk, and financial markets at Goldman to good use, his entrepreneurial drive led him to establish his own financial services firm at GoldCore where they advise clients on gold, silver purchasing and storage.
Stephen bravely traveled to Wall Street in the 90s and stood out as a financial disruptor at the technology department. Stephen drew upon his mother’s impressive entrepreneurial spirit, which enabled him to powerfully protect their capital while learning invaluable skills along the way.
Stephen advocates for gold and silver investing as the key to protecting wealth. He explains that while often overlooked, gold has immense value – it’s more than just a commodity; it is money! Understanding its current market perspective today can be an advantageous strategy in increasing one’s finances.
Don’t miss out on this wonderful episode with Stephen!
In This Episode
- Getting to know Stephen and how his journey started.
- Stephen’s perspective on gold and where we are heading today.
- Understanding the process to buying gold
- Security Protocols for the vaults
- What’s the process to invest in GoldCore
Welcome to today’s show on Wealth Strategy Secrets. We’re joined by Stephen Flood, the CEO of Goldcorp, one of the oldest gold and silver dealers in the market. Goldcorp has facilitated over $1 billion in transactions and manages $300 million in assets for its clients. After earning his degree from Portobello Business College in Dublin, Ireland, Stephen began his career in finance, holding various financial and trading positions in New York City before joining Goldman Sachs as a sales trader in equity derivatives.
Upon returning to Ireland, Stephen aimed to leverage his experience in trading, risk management, and financial markets at Goldman. His entrepreneurial spirit led him to establish his own financial services firm, Goldcorp, where they advise clients on purchasing and storing gold and silver. Stephen is married and has three energetic boys. In his free time, he enjoys outdoor activities and resides in the scenic rural Dublin mountains, where he loves mountain walking, swimming, and biking with his family.
Stephen, welcome to the show! It’s great to have you here, Dave.
Thanks for having me!
I know it’s a bit late for your time in Dublin, but let’s kick things off. For those in the audience who might not be familiar with you, could you share a bit about yourself and how your investment journey in gold began?
I’d like to say it was all part of a plan, but it wasn’t. My interest in financial technology and the markets was somewhat accidental. I’ve always been fascinated with building systems that perform complex calculations safely and efficiently. I found my way to Wall Street in the mid-nineties, starting with Bankers Trust, where I worked in the technology department, rolling out a new global general ledger for the bank. This role allowed me to engage with various product groups and experienced professionals, learning to redesign business processes and generate new reports using this innovative technology. It was an incredible introduction to the world of finance.
I experienced everything from Latin American markets to equity arbitrage and bond trading, including the booming market for mortgage-backed securities. I loved the atmosphere of Wall Street—the blend of technology, the back office, and the middle office. It was an exciting place to be a young man in my twenties. Eventually, I transitioned into the middle office and then to the trading desk at Goldman Sachs, another enriching experience that deepened my understanding of risk management, trading, sales, and hedging, alongside the client side of the business.
After some time, I returned to Ireland. An old school friend, Mark, had established Goldcorp, and I joined him as a 50/50 partner a few months after its inception. I applied everything I’d learned on Wall Street to help build the systems and backend of the company, growing the business one client at a time. We became the leading bullion dealer in Ireland and one of the largest in the UK. Now, we’re setting our sights on the United States market.
Mark sold his share of Goldcorp over two years ago, after 17 years of working together, which was a significant moment for me. Since then, I’ve built a strong team, and we’ve expanded our operations greatly, earning a stellar reputation for client service, technology, execution, and risk management. We’re very careful about how we conduct our business and refine our craft.
We are all about delivering value to the client and providing a great experience. Did you have any lightbulb moments in creating your wealth strategy and vision for yourself and your family? What drives you?
I suppose if I look back to my childhood, my family was relatively well-off by Irish standards. However, we lost a significant amount of our wealth due to economic circumstances. In the 1980s, many people faced financial hardships, and we were no exception. I experienced both the ups and downs of financial stability firsthand.
During my teenage years, my mother, Eilish—who has since passed away, God rest her soul—decided to return to work and started her own business. She taught me invaluable lessons about entrepreneurship, particularly the importance of preserving capital and understanding the distinction between capital expenditures (CapEx) and operational expenses (OpEx).
She instilled in me the mindset of making capital work for you rather than living off it. I’ve always remembered the importance of protecting capital, managing debt wisely, and ensuring that we differentiate between CapEx and OpEx. Those lessons have shaped my approach to life and business. Today, we operate a strong company with a solid balance sheet, carefully managing our finances.
The income generated from our products and services supports our operations, allowing us to grow our capital continually. We’re judicious in our spending and always evaluate the return profile of our investments to maximize the value of our assets. I learned these principles from her, and they remain a crucial part of my philosophy.
Can you tell us a bit about gold? Let’s discuss the fundamentals of gold before diving into what Goldcorp is doing differently. Our audience consists largely of high-net-worth entrepreneurs interested in multiplying and protecting their wealth.
Let’s start with the theory behind gold. For instance, we could discuss when Nixon took us off the gold standard and how gold is perceived today, especially as we record this in late 2022 with so much happening in the world. Where does gold stand today? What’s the background?
It’s a fascinating story. First and foremost, it’s essential to remember that gold is money. It’s the only form of money that has truly stood the test of time. This isn’t due to some romantic attachment to the metal; it’s because gold is rare, indestructible, and consistently valued across cultures and time. Throughout history, every civilization has recognized gold as a form of money.
What has happened over the last few hundred years, particularly since 1972 when the gold window closed to the dollar, is that gold shifted from the center of international commerce. Gold was trusted universally; it didn’t matter what language you spoke or your origin.
Settling accounts in gold was always acceptable to the other party, which made it the backbone of international monetary economics. This remains true today. Central banks still use gold as a backstop to their currency operations, not because they have a particular fondness for gold, but because in extreme circumstances, gold is universally accepted.
However, in recent times, gold has moved to the sidelines of popular monetary economics. While it’s no longer a direct part of our current currencies—like the euro, pound, or dollar—it remains a critical asset as long as the financial systems operate smoothly.
Governments are not currently abusing their currency creation powers, and people are generally represented and taxed fairly. However, over the last 12 to 15 years, that contract with the public has been broken by central bankers. For political reasons—there’s no economic logic to it—they have chosen to print money and debase currencies. This is a significant issue.
Gold is money. It is the only form of money that has stood the test of time and is accepted in all cultures as a unit of measure.
The implication is that the value of your house, when measured in dollars, isn’t necessarily rising as fast as you might think. While the amount of dollars being printed and the number of houses priced in those printed dollars are increasing, this creates an illusion of asset growth and wealth creation. In reality, it’s a sleight of hand. The monetary base is being expanded and debased relative to hard assets.
Statistically, if you look at resources like the debt clock—an excellent tool that I recommend everyone check out—you’ll see that the average industrial wage in the United States in the year 2000 was about $34,000. Since then, it has only increased to around $38,000—an increase of just $4,000 to $6,000 over 22 years, which is not significant.
In contrast, the average house price has nearly doubled, going from around $180,000 to about $400,000. The average car price has also increased two- or threefold, while wages have remained stagnant. This trend represents real impoverishment for the average working man and woman.
This situation is not a natural phenomenon. On the other hand, gold has seen significant appreciation. In 2000, the price of gold was approximately $250 to $300 an ounce, and it is now around $1,800—an increase of roughly sixfold. This rise isn’t just about gold becoming more valuable; it reflects the decline in the value of the dollar and other fiat currencies, which are not backed by tangible assets but merely the promise of a government. These fiat currencies have been abused by central bankers.
Despite claims of independence, central banks are not separate from political influence. They operate on behalf of the government of the day and implement its policies, functioning much like a public relations group that prints money. Once you begin printing money, it becomes nearly impossible to stop—like opening Pandora’s box; there’s no going back. The only way to address this issue is through a reset, a new currency, or a constitutional change that prevents such actions.
It’s crucial to remember the role of gold in this context. James Turk, a well-known figure in the gold community and the owner of GoldMoney, has written extensively about this topic. He discusses the U.S. Constitution and the significant role gold played in it, particularly regarding the prohibition of excessive money printing, a principle that has been reinterpreted in recent years.
What he mentioned is that gold allows individuals to opt out of the system by exchanging their dollars for gold, which cannot be printed. This means they can effectively remove themselves from the monetary system and protect their after-tax income and savings from inflation caused by excessive money printing. This is gold’s role in a portfolio—it provides an opportunity for financial sovereignty, shielding individuals from the consequences of reckless monetary policies.
Well said. Where do you think we currently stand regarding money printing and the Federal Reserve’s attempts to control inflation? It seems out of control, doesn’t it? It’s highly politicized, right? If they continue to raise interest rates, there has to be some kind of ceiling, doesn’t there?
Absolutely. The Fed is responsible for creating this inflation. I can’t understand why those who created inflation are now tasked with controlling it. It was never part of the plan for them to generate such a high level of inflation. They tell people not to give their workers raises, to try not to spend so much money, and to hold onto their cash, all while they print more to cover public spending deemed politically expedient via the Treasury market or through bond buybacks in the open market. It’s appalling. The average person is largely unaware of what’s happening.
They are being misrepresented, and the Fed is the last institution on Earth that should be trusted with managing currencies. This issue extends beyond the Fed to central bankers worldwide; they are the last people we should trust in this capacity. The individuals running these central banks are often subject to regulatory capture, meaning that after their terms at the central bank, they move into lucrative roles in private banks and investment funds, participating in speaking engagements and writing books, thereby enriching themselves. They play the game with special interests, and they are not elected officials, nor are they held accountable by the public.
As a result, their policies often run counter to the interests of the general public. Currently, central banks have created approximately $20 trillion in new money, contributing to inflation, which is a dangerous situation. Inflation erodes purchasing power. It doesn’t take long for the average person to realize that their expenses exceed their income, leading them to cut back on shopping, vacations, and even credit. When this happens, a negative feedback loop begins—no one spends, jobs are lost, production decreases, and systemic damage occurs in the economy. Their solution to this problem is to raise interest rates, which only increases the burden on companies and households in terms of debt. This is not the right approach.
The correct solution is to stop printing money, stabilize the economy, and then gradually cool it down. However, those who created this problem may not be trusted to provide an effective response. I heard that Powell has a net worth of about $100 million. He would likely become quite unpopular if he continues to raise interest rates, along with his entire circle.
Indeed, the biggest player in this scenario is the federal government. Their debt levels are extraordinary. Even though they want to raise interest rates to curb spending and cool the economy, this could trigger a significant bond crisis within the U.S. government bond market. Currently, U.S. bonds are the least bad option internationally.
But what if China were to introduce its international renminbi currency with a more stable debt profile than that of the U.S. government, backed by gold, oil, or some other commodity? This could pose a substantial existential threat to the dollar and its global dominance, which is an extraordinary privilege.
I anticipate some serious international turmoil ahead. For emerging markets or European countries issuing debt or purchasing energy supplies in oil and gas, there may be a growing incentive to start paying for those in renminbi, particularly if it proves to be more stable and backed by gold in reserves. This scenario appears increasingly plausible, indicating that changes are needed quickly, as a crisis seems to be brewing.
I completely agree. Regarding the process of actually buying gold, what options are available? There are different forms of gold investment. You can purchase physical gold as a hard asset, or you can invest in gold ETFs. Can you help the audience understand the various ways to purchase gold and the pros and cons of each?
We can categorize the gold-buying public and companies into two groups: investors and speculators. Speculators are those who invest based on short-term cycles, looking to buy low, hold briefly, and sell quickly to gain pure exposure to the underlying asset.
So they’re not particularly concerned about how the exposure is given to them. They’re quite comfortable with proxy instruments such as derivative contracts, options contracts, and futures contracts—things that may carry a higher degree of counterparty risk but are very inexpensive to operate. These are essentially ledger or accounting entries.
On the other hand, investors view gold for its various qualities, considering it a safe-haven investment that forms part of a diversified portfolio. They look at gold for scenario risk purposes, meaning if a major market event occurs, such as a Lehman Brothers moment, and they find their assets locked up for a period, they want something that will mitigate the impact of that correction. That’s where physical bullion comes in.
It’s important to have actual physical gold, not just ETFs or mining shares because its value is independent of the financial system. It doesn’t rely on large institutions like BlackRock or other major custodians or fund managers. Physical gold exists outside of the financial system and is valued based on its intrinsic qualities, which is crucial.
Our clients typically fall into this second category; they own gold for that purpose. We educate people about their options. We conduct strategy calls to understand their situations and determine what might work for them. If we’re not a fit, we’ll let them know. However, if we are, we guide them through various options, which might include one-ounce coins, one-ounce bars, larger bars, or kilo bars.
“Good delivery” bars are the ones you might recognize from movies like James Bond or The Italian Job. Depending on their needs, we create an investment plan for them, including where they will store their gold. We have vaults located around the world, so if the United States becomes compromised, it’s beneficial to know you have gold in Switzerland or some in London or Singapore, spread globally. If one of those markets becomes unstable, you can relocate your gold in advance.
We serve as a clearinghouse of ideas and risks, with thousands of customers providing us with information that we analyze and share with our audience through our YouTube channel and updates. There’s a continuous dialogue; we act as the watchers on the wall.
We strive to ensure clients have segregated allocated gold, which is crucial because it means you’re not buying into a general pool of gold. With our storage program, you’ll have a specific bar with a serial number on a shelf in Zurich or whichever vault you choose. You can log onto the Goldcorp platform to see your bars listed there in real time, 24/7. Additionally, you can access the vaulting company’s system independently of Goldcorp, entering your account number to view your bars as recorded by them in that vault.
This provides you with a real-time reconciliation of your physical gold and keeps you informed of its location. If you want to sell it, most people do so through us, though they often feel apologetic because selling is the last thing they want to do. Alternatively, you can sell it to another dealer or take delivery of it yourself.
We also conduct annual checks and have insurance certificates issued. Our auditors regularly check and validate all the bars stored in the vaults against what we claim is there, ensuring everything aligns with what the vault confirms. We typically spot-check the bottom 50% and the top 50% of the inventory per vault.
It’s a very thorough and client-friendly process, emphasizing the importance of having tangible assets in a portfolio. Interestingly, we hope that if you buy gold, its value goes down. This scenario often indicates that the rest of your assets are likely to appreciate, which is ideal. However, if gold’s value increases, it may suggest that other assets in your portfolio are struggling. This illustrates the diversification benefits of gold—it helps spread your risk and provides value in turbulent times.
In terms of physical security protocols at the vaults, they are extremely stringent. Many of them collaborate with central banks and work closely with pillar banks to ensure the highest levels of security.
In some of our markets, we work with cash-in-transit services and store valuable items like famous paintings and diamonds. These facilities prioritize physical security and are located in reinforced buildings, often hidden away in plain sight—typically in nondescript industrial buildings. However, they are equipped with very high-security measures.
In certain markets, there are armed security personnel, and the facilities are comprehensively insured. Importantly, the gold you store through Goldcorp is not on our balance sheet or the vault’s balance sheet; it belongs to you as the customer. This means it’s not at risk if either we or the vault were to go out of business.
That makes sense. Regarding the countries where the vaults are located, I know some proponents suggest keeping physical gold in the same country as the owner. For example, if you’re a U.S. citizen, you might prefer a vault in the U.S. What are your thoughts on that?
I believe it largely depends on personal preference. Many of our U.S. clients perceive the biggest risks to be from the federal and state governments, as well as potential financial contagion within the markets. As a result, they prefer to store their haven asset in the safest possible location. We provide a list of about 11 vaults worldwide, allowing clients to choose based on their preferences. The most popular choice is Zurich, Switzerland, which has a long-standing reputation for respecting asset ownership and upholding the rule of law.
We also offer storage in the United States and the option to ship gold directly to people’s homes or businesses. I recommend diversifying your holdings: keep some gold at home—safely stored and discreetly kept—have a portion available for quick access through FedEx or UPS, and maintain the bulk of your holdings in an international storage location. We even have vaults in the Cayman Islands and Utah.
That’s good to know. Now, let’s discuss allocation. Do you have any guidelines or metrics that you recommend to clients regarding how much of their portfolio should be allocated to physical gold?
I think individuals must choose the right allocation based on their stage in life. As one age, their risk tolerance may decrease, and maintaining capital becomes more important—it’s about the return on capital rather than the return on capital. When younger, individuals might take on more risks. A common adage on Wall Street suggests putting about 10% of your portfolio into gold and hoping it doesn’t perform well; if gold is rising, it usually means other assets are declining.
As a starting point, I recommend that around 10% of your net worth, outside of your home and business, should be in precious metals. Ideally, this should be in physical gold stored on a segregated and allocated basis. Depending on personal security arrangements, some of it could be kept at home.
Having physical gold at home makes sense, particularly if there’s a compromise in the international or domestic monetary system, or if banking services become unavailable. Many people rely on their phones to manage their accounts and make transactions, and cash usage has declined. In such scenarios, having some physical money, like gold, is quite practical. You might consider keeping a month’s worth of expenses in gold and some cash at home.
That makes sense. If someone is interested in purchasing gold, what is the process for working with your company?
We’ve been around for 20 years now, and we’re proud of reaching this milestone. Over the years, we’ve developed several guidelines for gold ownership and what newcomers should know. We’ve created a special website for this purpose: goldintheusa.com, which provides honest advice for first-time buyers without any sales gimmicks.
You can download a guide there. Of course, there are many reputable dealers to choose from, but we believe we’re the best in the industry due to our client-centric approach. To become a client, you would open an account at goldcorp.com, upload your identity documents, and fund your account via wire transfer or credit card.
We can schedule a strategy call if you’d like, but if you prefer, you can go straight to purchasing a key bar or whatever you need in Zurich or Singapore in just a few minutes. We pride ourselves on settling transactions quickly, ensuring that those bars are on the shelf or shipped out to our customers without delay. Our clients appreciate our efficiency.
They value our systems and processes. We’ve been asking every customer to rate their experience, and we’re proud to say that we have a 4.9 out of 5-star rating across 3,000 reviews since 2012, which is exceptional. This rating places us among the best in the industry. We focus on being client-centric, so I recommend downloading our guide and reading it before proceeding.
I advise being cautious with bullion dealers that frequently advertise on television. These dealers might bait and switch, offering something that seems too good to be true, only to upsell you to something far more expensive. Make sure you’re not purchasing overpriced gold products with high premiums. The premiums should be low and reasonable.
Additionally, if you’re pushed toward buying rare coins without having the expertise to evaluate their value, be wary of the resale potential. There are unscrupulous individuals in the market, so it’s crucial to do your research and avoid being pressured into a purchase. None of the staff at Goldcorp receives sales commissions; instead, we’re rewarded based on the overall success of our company and customer satisfaction. We evaluate this as a team every month, and we’re committed to maintaining strong relationships with our clients. Most of our business comes from word-of-mouth, which speaks volumes.
To wrap up, Stephen, if you could give our listeners one piece of advice to accelerate their wealth trajectory, what would it be?
I believe you should become an expert in an area that genuinely interests you—something that you can provide value in and for which people are willing to pay a premium. This requires doing your homework, getting educated, and honing your expertise. It’s also essential to communicate effectively so that as many people as possible know what you do and the value you bring.
Once you establish yourself as an expert, people will seek you out because they know they will receive genuine value from you. Your reputation will drive your business forward, so make it easy for others to engage with you—through a great website, clear communication, competitive pricing, and seamless onboarding. At Goldcorp, we excel in providing precious metals, and I believe no other dealer comes close to what we offer. Our clients consistently achieve excellent outcomes, and that’s how we build our wealth.
If people want to reach out to you or learn more, what’s the best way to do that?
They can connect with me on LinkedIn, and I’m always available to offer advice. Any entrepreneurs starting out can contact me—I’m happy to help. You can also visit our website at goldcorp.com and contact us there, and I’ll get back to you.
Thank you so much for your time, Stephen. I enjoyed our conversation; it provided a lot of valuable insights for investors. There’s plenty to consider when it comes to their portfolios.
Thank you for the opportunity to speak with you and everyone else.