Mike Maloney: The Top 10 Reasons I Own Gold and Silver [New Video Series]
-- Published: Wednesday, 13 September 2017 | Print | Disqus
When the average investor thinks about gold, they may view it as an inflation hedge. Or maybe as crisis insurance. Or perhaps solely as a portfolio diversifier.
These are all good reasons to own gold—but those are always good reasons to buy precious metals. Mike Maloney’s reasons to own gold and silver at this point in history are very different than what passes as standard arguments.
Given the monetary and economic risks present today, and the types of crises Mike believes are coming, he wanted to share his personal reasons with everyone. And he has a brand new video that details them:
They center around a perfect storm of worldwide trends that are set to explode simultaneously—and push gold and silver into hyper-bubbles.
Let’s count down the Top 10 Reasons Mike Maloney owns gold and silver…
#10: All Fiat Currencies Eventually Go to Zero—and All Currencies Today Are Fiat
Since the year 1500, a whopping 617 fiat currencies have become worthless. About a quarter of those was due to hyperinflation.
The message from history is very clear: No fiat currency has lasted forever. Eventually, they all fail. And today they’re all made of paper, backed by nothing.
Mike owns physical gold and silver because they are money, and every fiat currency today is not.
#9. The Current State of the Global Economy
Debt, deficit spending, derivatives, and trade imbalances are at levels unprecedented in all of history.
As bad as worldwide debt levels are, total derivatives exceed $1.2 quadrillion. This precarious bubble threatens to take down the world economy. This factor alone could wipe out your wealth overnight. Gold and silver, on the other hand, will soar in that scenario.
#8: The World Has Formed a New Monetary System Every 30-40 Years—And the US is Overdue
The average lifespan of all fiat currencies since 1500 is 40 years. The US dollar has been “fiat” since 1971 (when Nixon ended gold convertibility), currently 46 years.
And since all currencies are fiat, the global financial system is more vulnerable than it has ever been. The global reset will affect the entire world—all 180 currencies in use today—because the US dollar represents over half of all currency in circulation. With this kind of dominance, faith in all fiat currencies could fail once the dollar falls.
#7: Gold and Silver Come With A Central Bank Guarantee In a desperate attempt to stem the crisis, government officials around the globe will flood the world with currency and push the purchasing power of gold and silver exponentially higher. Their efforts won’t work and—depending on how much they print—could easily tip us into hyperinflation.
Regardless of the culture or time period, currency dilution has repeatedly resulted in much higher gold and silver prices.
#6: Everything Else is a Scary Investment
The broad stock market has more than tripled since its 2009 low… government bonds have been in a bull market for 36 years and represent one of the biggest bubbles in history… and real estate values now exceed their 2006 peak, one of its biggest bubbles in history.
Gold and silver prices are roughly one-third and two-thirds below their 2011 highs, respectively. They are the only truly undervalued asset class left today, and will soar when other major investments crash.
#5: Market Psychology
Greed can drive an investment to bubbly highs. But fear will drive the next bubble in gold, because asset bubbles will pop with terrorizing speed and mercilessly wipe out most wealth. As a natural result, investors will seek refuge in precious metals.
The base psychology of every investor—fear—will push gold and silver into the next great bubble.
#4: This Time It Really Is Different
Gold’s biggest bull market in history (1970 to 1980) saw the price rise 2,328%, and silver 3,105%. But only two regions participated at that time (North America and Western Europe), meaning there were far fewer investors than today. In addition, there was much less currency chasing after gold and silver then.
Today it’s just the opposite. Mike estimates there will be as much as 100,000 times more currency trying to crowd into the gold market (see how he gets to that figure in Reason #4).
#3: Gold and Silver Should Buy a Whole Lot More
Gold and silver are tiny markets. On a per person basis, there is approximately $40,000 of liquid financial investments today, but just $200 of investment grade gold.
If 10% of those assets were to buy gold, the price would rise 20-fold! It will take only a small amount of investment dollars rushing into the gold and silver markets to push their prices much higher.
#2: It’s All Happening at Once, and This Time It’s Global It’s a sobering realization when you add up all the circumstances present today:
• There is 200 times more wealth stored in other assets, and if only 10% of those dollars chase gold its price would rise 20-fold. • Budget deficits, trade deficits, and government debt have all ballooned to lethal levels. • Stocks, bond, and real estate are all in bubbles • Credit, debt, and derivatives are also in bubbles, and all bubbles eventually burst. • The safety of most “trusted” investments will evaporate in the crises ahead, and the resulting fear will push people into gold and silver. • Today there are 10 times more people, each with 10 times more currency, and at least 10 times more people with an “investor mindset” than in the prior gold and silver mania. • For the first time in history, all the world’s currencies are fiat—and no fiat currency has lasted. • Every 30-40 years the world has a new monetary system. The last one was formed in 1971, so we’re overdue.
It’s not difficult to see that in the scenarios Mike sees playing out, gold and silver will not just be one of the few assets left standing, their values will soar.
And the #1 reason Mike Maloney owns gold and silver…
#1: He Sleeps Better!
If Mike is even half right about what’s ahead, the coming events will be, for many people, hard to handle emotionally. And that’s Mike’s #1 reason he owns gold and silver: they will protect his finances in a period of crashing markets, economies, and currencies.
The crises ahead will be emotionally trying. Buying gold and silver now is one of the wisest financial moves you can make.
What does Mike buy? He’s currently buying more silver than gold, since it is more undervalued.
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