In this video Mike Maloney author of the Rich Dad’s Advisors: Guide to Investing In Gold and Silver: Everything You Need to Know to Profit from Precious Metals Now talks about why you should be investing in Gold and Silver. Mike talks about the investing, QE programs, stock market, commodities, oil and the precious metals.
Precious Metals Investing – Mike Maloney – Rich Dad’s Guide
This is a long video – about an hour and a half but it is very well researched and comprehensive examination of the case for precious metals. Mike discusses supply and demand, silver prices, gold prices, the gold to silver ration and the gold to Dow ratio among other topics. He discusses how the FED and banks create money out of debt and the various programs they have instituted like the Quantitative Easing programs in a desperate attempt to stave off results they don’t want which will make the eventual crisis even more severe.
Mike talks about the Dow Gold ratio. By looking at the Dow-Gold ratio, other commodities and the precious metals you can see that they follow wealth cycles and by taking advantage of the wealth cycles you can dramatically increase your profits.
Mike talks about the spot price of silver which is basically trading in IOU’s. You can buy IOU’s that aren’t backed by any precious metals. Large banks like JP Morgan use these strategies like naked shorts to crash the market and then buy the IOU’s back at a lower price. They fleece the public for hundreds of millions of dollars. However there have been periods when they drove the prices too low and it lead to shortages.
The world has 6.6 billion people and about 2.2 billion ounces of gold. That’s only about 1/3 of an ounce of gold per person. Silver is even rare there is only about a 1/14 of an ounce of silver per person.
Right now you can get a lot of silver for your paper fiat money.
Gold deposited in a vault is money. The currency issued by the government was only a claim check on the money (gold) deposited in the vault. Today’s currency doesn’t even have that backing.
When you or I write a check we have to make sure that we have enough money to cover that check. However the government does not have to have the money in the vault to back up the fiat currency they issue.
Fractional reserve lending means they only keep a fraction of the money in you account. They only have to have $10 of your money and they steal the rest of your money to loan to other people – and of course they make money by loaning out your money.
The whole currency system is imaginary and if anyone starts to question the value and doubt the fiction it is all over. The system will crumble.
In 2006 the Fed started hiding critical data, the M3 money supply figure that most commentators used, claiming that it was too expensive to tabulate that data.
However since the M3 money supply is made up of components that are still produced you can go to sites like www.shadowstats.com
With Quantitative easing they have done away with the open market shell game that they have used to hide the facts.
We can’t steal prosperity from the future forever. We are creating currency by borrowing currency into existence.
By using bonds that might be up to 30 years you are borrowing prosperity out of the future. In the future banks will skim off the purchasing power from the future.
The crash of bubbles is a natural market function of the market seeking to reprice to fair value. We are in the midst of a worldwide credit bubble. There are examples of these real estate bubbles crashing around the world.
But what happens when the FED and world central banks see this happen? They try to pump everything up and don’t realize it is just making things worse later.
Ever since the FED was established we have been living a lie. You can’t have free markets without having free market money. You can’t have a small group of men determining what currency is and what the cost of currency is that is not a free market.
Every 30 to 40 years we have a new currency system. People don’t realize the jeparody their wealth is in in this decade.
In this decade there is going to be a meeting of world leaders trying to decide what to do when the dollar crashes. They are already meeting.
Before the 70’s when Nixon took us of the gold standard and the ERISA act came into effect people were savers because you could save 10% of your salary and depend upon being able to retire and live on your savings. Now we have the development of the investing mind set. So we have had a series of bubbles crashing as people chase one bubble after another.
Silver is the second most used commodity used in industry after oil. There are 10,000 industrial uses for silver. Today there is actually about one fifth the amount of invest-able silver compared to gold.
Mike says,”This is the greatest wealth transfer in history. If the crash occurs and you are not prepared you have no one to blame but yourself.”
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