Top 10 Reasons I Buy Gold & Silver - (FULL VERSION) Mike Maloney

as I've said many times before the economic crisis of 2008 was only a speed bump on the weight of the main event I believe that before the end of this decade there will be an economic crisis so historic that it will eclipse the crash of 1929 and the subsequent Great Depression I also believe that it is both unavoidable and inevitable because it is merely the free market releasing stored up energy from decades of economic manipulation yes bad things are going to happen but it could be the best thing that ever happened to you this Guy'd started out as the top 10 reasons to buy gold and silver and was originally drafted by some very good and well intentioned employees but when I read it something just didn't feel right it contained all the usual reasons that any precious metals dealer would point out as to why people should own gold and silver though they were all very good reasons to own gold and silver they weren't the reasons that I buy gold and silver so here you go a countdown of the top ten reasons that I buy gold and silver top 10 reason number 10 all the world's currencies are fiat and fiat currencies always fail 99.9 % of the world's population is unaware that we no longer use money we use fiat national currencies what is a fiat currency fiat currencies are faith-based they are national currencies that are not backed by anything of value like gold instead the government just declares that they have value and as long as the people keep believing they do have value and the people accept them for a while but here's the thing there have been thousands upon thousands of fiat currencies throughout history and they have all failed 100 percent no exceptions but there is a vast difference this time around since 1971 for the very first time in history all the world's currencies are fiat currencies simultaneous remember this as we progressed through the top ten all fiat currencies fail top 10 reason number 9 the current state of the global economy throughout history societies have swung back and forth from quality money to quantity currency and back again originally quantity currency took the form of debased coinage like gold and silver that has been diluted by adding cheap and abundant base metals such as copper then it took the deceptive form of national currencies that were initially backed by money in other words they were claim checks on gold but once these were established governments then change the laws to make fraud legal so they could print claim checks on gold that didn't exist the next step was to sever the connection between money and currency entirely back when we used real money gold would automatically balance all economies when one country would experience an economic boom they would import cheap goods from countries with depressed economies and lower wage rates the outflows of gold from the boom country would cause a deflation cooling the economy while the countries experiencing gold inflows would boom causing their labor rates to increase which in turn would cause the prices of their goods to rise this meant that trade imbalances would always automatically rebalance with gold government spending was also constrained if a government wanted to spend more than its income also known as deficit spending it had to borrow gold from the private sector if the government borrowed too much gold it would cause interest rates to rise which in turn would slow the economy which in turn would cause tax revenues to fall but the debt based global monetary system has allowed deficit spending and trade imbalances and bubbles to persist in balloon to levels unprecedented in all of history the credit debt bubble and the derivatives bubble threatened to take down the world economy the only comparison you could make is to take every great bubble in history times 1 million have it burst everywhere on the planet simultaneously it threatens to be a global financial nuclear holocaust the only survivors of which we'll be the owners of gold and silver top ten reason number eight a new world monetary system I am a firm believer that everything happens in waves and cycles when I was writing my book I discovered that every 30 to 40 years the world has an entirely new monetary system we have had four different monetary systems in the past 100 years the system we are on today is the US dollar standard it is an aging system that is way overdue for its own demise it is now developing stress cracks and will one day implode before the end of this decade history will repeat and just as in 1922 1944 and 1971 there will be an emergency meeting of economists and government representatives to hash out a new world monetary system it's normal no man-made system can possibly account for all the forces in the free market they get old they develop stress cracks and they implode but what is different this time around is that the last three transitions were baby steps from full gold backing to partial gold backing to less gold backing to no gold backing in each of these transitions the system we were transitioning from had a component that could never fail gold this time we will be transitioning from a system based on something that has always failed fiat currencies the key component to this transition from the US dollar standard to some new standard is of course the US dollar but the US dollar represents more than half of the value of all the world's currency a dollar crisis would cast doubts on all fiat currencies and the cascading effect of loss of faith could cause the rest of them to fall like dominoes the central bankers will try everything they can think of to keep the fiat game going but when everything they try fails they'll look around and say what worked before and once again the pendulum will swing back to quality money the only beneficiaries of this event will be gold and silver and those who own them top ten reason number seven gold and silver come with a central bank guarantee my book was written from 2005 to 2007 in it I said there would first be the threat of deflation this came true with the crisis of 2008 - which Ben Bernanke would overreact with a helicopter drop of currency this came true with the bailouts and qyz which would then cause an inflation this came true when the stock market's and real estate markets were inflated so far the Federal Reserve has not only lived up to my predictions but it has surpassed even my wildest nightmares they believe that they can fix things by running the printing presses but the tale does not wag the dog the free market is responsible for our prosperity it is the economy not the numbers they print on pieces of paper or conjure in computers so now that they have proven that massive currency creation doesn't work they're going to double down on it but it is the market that ultimately rules they are about to discover the horrific economic consequences of their reckless actions as I said in my book next there will be a real deflation a contraction of the currency supply they can not control this will happen when the credit debt bond fiat currency and derivative bubbles begin to implode the reaction of the world's central banks will be to print until deflation gives way which I believe will cause a hyperinflation but a hyperinflation doesn't even require a nation to print its currency into oblivion it only requires a loss of faith but never fear because periodically throughout history gold has revalued itself as it is bit up in price by the free market as people rushed back to it for safety this is when gold does an accounting of all the currency that's been created since the last time gold did count in doing so its purchasing power Rises exponentially it has always done this and I believe it always will top ten reason number six everything else is a scary investment by any realistic measure stocks have been in a super bubble for more than a decade now with valuations and yields in the danger zone while bonds are in the later stages of a 30-year bull market and real estate is still deflating from the biggest bubble in history dr. Robert Shiller of Yale University has compiled data on the stock market going all the way back to the Year 1880 his research concludes that by one measure the stock market has been in the bubble since 1998 and by his other measure it is far bigger and more extreme than any prior bubble including the stock market bubble of the roaring 20s that led to the crash of 1929 further research shows that the only reason the markets have been levitated to these levels is due to the Federal Reserve stimulus what will happen when increasing stimulus no longer works I wouldn't want to be invested in stocks when it finally implodes US Treasury bonds have been a great investment for more than 30 years but no bull market lasts forever in fact for the 37 years after World War 2 bonds were such a bad investment that by the end of the 1970s they had earned the nickname certificates of confiscation but that was back when countries were financially responsible now most countries on the planet run their finances like Greece and the United States of America is leading the way and as the world's central banks keep interest rates low it's caused bond investors to take extraordinary risk in search of a reasonable return we are now in a global bond bubble that Dwarfs anything in history I believe that this has made the bond market one of the most dangerous places to be invested in right now dr. Schiller is also the creator of the case-shiller home price index his data on real estate suggests that since the popping of the bubble in 2007 real-estate values have bounced back into a small bubble but what worries dr. Schiller most is that institutional investment firms have bought up as much as 30 percent of the homes that were foreclosed on since the crash of 2008 this has the potential of making real estate as volatile as the stock market if these firms ever decide to sell they can dump thousands of homes on the market all at once causing the 2008 real estate crash to look like the calm before the storm personally the thought of investing in real estate right now is downright scary so the stock market bonds and real estate are either in a bubble or have been in a bubble in the last decade gold and silver however haven't been in a bubble for more than 30 years and from my measure still appear to be less than halfway through their bull market the next great bubble will someday be gold and silver it's just their turn top 10 reason number 5 market psychology nobody can really understand the markets or the economy but you can get an inkling of what they're about if you understand what drives them greed and fear and the most entertaining part of monetary history is the study of their byproducts manias panics bubbles and crashes when you study these you quickly learn the meaning of the old saying the bowl climbs the stairs that the bear jumps out the window what it means is that it can take years to create a bubble but only days or weeks for it to burst this is because when it comes to greed and fear fears by far the more powerful emotion gold and silver are sometimes the exception to this rule because they can rise as fast as lightning in a panic in the golden bull market of the 70s it took nine years for gold to rise from $35 to $400 but once a panic out of dollars to the safe haven of gold began to develop it only took 33 trading days for it to more than double rocketing to 850 dollars but actually it was only a very small percentage of the population that was panicking out of dollars in the 70s this time I think it'll be everyone where do you think gold and silver would be headed if my reasons 10 through 6 come to pass top 10 reason number 4 this time it really is different the differences between the precious metals bull market of the 70s and the great gold and silver rush of today are vast in the 1970s only two major exchanges one in London and one in the u.s. set the price of gold so it was only North America and Western Europe about 10% of the world's population that could participate in that great Gold Rush this time it's the entire planet in the 1970s the number of investors in state-run economies like Mao's China or the USSR was zero now those countries are home to more than 100 billionaires each much of the rest of the world lived in extreme poverty today there are almost 1500 billionaires in the world living in more than 50 countries every country on the planet has expanded their currency supplies about tenfold since the 1970s so each potential investor has 10 times the currency and within each population there has been the extraordinary development of the investor mindset in the 1970s we were a planet of savers but then as nations around the world abandoned gold and silver as money and adopted fiat currency inflation raged punishing savers and rewarding investors and speculators then we had the tech bubble of the 90s and everybody became a stock trader then we had the global real estate bubbles and everyone became a real estate investor or flipper for more than 30 years saving has been punished and investing and speculating has been awarded the result is that there are many many times more people likely to invest in gold and silver this time around the number is very hard to project but I would guess it's somewhere between 10 and 100 but possibly even as many as 1000 times more people with an investor mindset remember that in the state-run economies more than half the world's population there were no investors and today China is in the midst of an investor driven real estate hyper bubble so that's 10 times the people each with 10 times the currency and within each population there is somewhere between 10 and 1000 times the number of people with an investor mindset that's somewhere between 1,000 and 100,000 times more currency that will someday come chasing gold and silver this time around yes this time it really is different top ten reason number three gold and silver should buy a whole lot more there's an old myth that in ancient Rome an ounce of gold could close a man from head to toe with a toga sandals and a belt and that today a man can still clothed himself in a suit shoes and belt for the price of an ounce of gold people claim that this has always been the case nothing could be further from the truth before the Federal Reserve was created you could buy an outfit with an ounce of gold but by the end of the Roaring Twenties due to inflation you couldn't then by the beginning of the Great Depression because of deflation you could but by 1970 an ounce of gold would only buy the shoes then just ten years later it would buy a top-notch suit very fine shoes and a great belt but by 2001 it could only buy a shoddy suit cheap shoes and a crummy belt yes gold has always been worth something but it has always zigzagged in a range of purchasing power however this myth is based on a true fact humans mined gold at about the same rate that they make babies so there is relatively the same amount of gold per person on the planet today because there was an ancient Rome so let's dissect the myth of the Roman suit to see why Gold's purchasing power has varied and what it could be in the future the gains and efficiencies made since ancient Rome are mind-boggling to make a toga required cotton to be planted tended picked and separated from the seed by hand then the cotton had to be hand washed combed and spun taking someone weeks to make enough thread for a toga then the thread was dyed with colors that were hand mined or harvested the cloth was then hand-woven cut and stitched into a toga the shoes and belt were equally labor-intensive today with factory farming cheap fuel modern irrigation and pesticides it's possible to ten thousands of acres planted at densities never before imagined giant combines drive through the fields plowing the dirt and sowing the seeds in one pass at harvest time specialized combines pick the cotton and other machines separate the seed with factory ranching efficiency is the same story with thousands of sheep being tended and shorn in production line fashion then trucks deliver the cotton or wool to where it's washed combed and spun into miles of thread in minutes then dyed with cheap mass production dyes and woven into miles of cloth by machines again in minutes then the cloth is stacked many layers thick and a computer-guided Shearer cuts out dozens of each of the parts of the suit in a single pass the parts go to an assembly plant where workers who specialized in making the left sleeve or the right leg and such do so at amazing speed workers that can turn out dozens of suits per day do the final assembly also at a blazing rate then it's shipped to a store where you can pick from dozens or even hundreds of styles colors and sizes and it's a similar story at the shoe factory that spits out a pair of shoes every few seconds and the belts that come off the production line by the thousands the end result is that the time value the Roman outfit most likely measures in months of human labor whereas the modern suit contains only a few hours this is true of all the other stuff in society as well when it comes to the time value contained in stuff everything today is on sale for a tiny miniscule fraction of what at once cost and as proof to support my thesis I offer this today a good percentage of the world's population has maybe a hundred times more stuff than 99% had 2000 years ago think about it you are surrounded with furniture cellphones computers TVs refrigerators grocery stores cars planes hotels restaurants a great bed to sleep in at night and just about anything else you want by contrast 2,000 years ago with the exception of the ruling class most people made a subsistence living barely able to afford the things they needed to survive in many cases a great bed or a pair of shoes where extravagances they would not experience in their lifetimes so if this is true and it is then why is gold's purchasing power so low if there's so much more stuff per person but the same amount of gold per person shouldn't an ounce of gold buy many many many times more stuff than it does today absolutely emphatically yes it should then why doesn't it because of the other big factor in busting this myth in ancient Rome if you wanted to save some of your wealth for the future there was only one asset available for you to save your purchasing power in real money the gold and silver coins that made up their money supply today if you want to save some of your wealth through the future you do so with financial assets such as stocks and bonds and maybe a tiny portion of currency in a checking account these highly liquid assets actually compete with gold and silver as a place to store your wealth they all dilute each other's purchasing power in ancient Rome there was only one place to store your wealth today there are thousands so that's the answer with technology machinery and super cheap energy we've become a thousand times more efficient at producing stuff and at the same time we've created a thousand times more ways to store the gains in purchasing power that gold should have made due to man becoming so much more efficient at making stuff have been almost exactly offset by the proliferation of alternative liquid financial assets in which to store that wealth if it weren't for all those competing currencies and alternative financial assets gold would buy many many times more stuff so what happens to those alternate financial assets and the inevitable market crash that lies out there in the future those trusted financial assets suddenly become hocus-pocus voodoo financial assets as their value evaporates just like those Triple A rated mortgage-backed securities did in the crash of 2008 what happens to fiat currencies in the coming currency crisis all those currencies become hot potatoes that nobody wants causing hard assets like gold and silver to be bit up to the moon either way gold would buy a whole lot more stuff someday in the near future today there is about $40,000 worth of liquid financial assets per person versus only $200 worth of investment grade gold that's a 200 to 1 ratio that means that in a crisis if just 10% of the wealth invested in those alternative financial assets were to come chasing gold its price would rise 20 fold the moral of this story is if you want to buy 20 suits shoes and belts a few years from now buy an ounce of gold today taken separately any one of these reasons is a compelling case for gold and silver but if you look at them all together and you take into account that for the very first time this gold and silver rush is going to be global you realize that these reasons aren't just additive but they multiplied upon one another therefore my top 10 reason number two is it's all happening at once and this time it's global so there's more stuff per person than at any time in history but the same amount of gold and competing currencies and other assets have diluted Gold's purchasing power today there's 200 times more wealth stored in these compete assets than there is in gold and if only 10% of that wealth comes chasing gold its price will rise 20 fold and in the crisis I see coming it's going to be a lot more than just 10% the world is now in uncharted territory budget deficits trade deficits and government debt have ballooned to lethal levels real estate stocks and bonds are all in bubbles and the credit debt and derivatives bubbles threatened to take down the world economy it took years to create these bubbles but it will only take days or weeks for them to burst and all bubbles eventually burst in the inevitable crash and currency crisis that are bearing down on this most trusted investments will probably evaporate while gold and silver are pushed into hyper bubbles because when it comes to greed and fear fear is by far the more powerful emotion and in a crisis fear is what drives investors today there are 10 times the people each with 10 times the currency and somewhere between 10 and 1,000 times the number of people with an investor mindset than in the last great gold and silver rush that's somewhere between 1,000 and 100,000 times more currency that will come chasing gold and silver this time around for the very first time in history all the world's currencies are fiat and fiat currencies have always failed couple that with the facts that every country on the planet is creating currency on a suicidal scale never before imagined that every 30 to 40 years the world has an entirely new monetary system that we are overdue for the transition to a new monetary system right now and you now have the recipe for a cataclysmic economic event that will be the greatest wealth transfer in history it can either impoverish you or it can enrich you beyond your wildest dreams knowingness you think I would take every spare unit of currency I can get my hands on and buy gold so why don't I because silver is undervalued compared to gold so I buy both but I buy mostly silver and finally top ten reason number one I sleep better as I said at the beginning of this article I believe that an economic crisis of historic proportions is headed straight at us and there is no avoiding it never before have all the government's on the planet simultaneously laid down the foundation for the perfect economic storm I believe that there will be a global fiat currency crisis that will cause the bubbles in stocks bonds and real estates to burst simultaneously this will result in the greatest economic crash the world has ever seen things could get pretty bad the possibilities range from my being completely wrong to total economic collapse and a financial Armageddon from which we never recover toward the bad end is the possibility of the failure of the monetary system which could cause rioting and a disruption of the food supply but in any range of possibilities there is something called a bell curve of probabilities what that means is that either of the extremes also called the tail risks are very unlikely to happen but that something in the middle is very likely to happen believe it or not I am NOT a doomsayer but nor do I believe the government when they tell me everything is going to be alright I think it's going to be something in the middle yes I believe it's going to be the greatest crash in history but I have great hope man is an amazing species we have a resilience and ability to adapt and bounce back from anything yes banks could fail but new more efficient ones would take their place yes the world monetary system could collapse but this could be a good thing if we could just make fraud theft and conflicts of interest illegal for the financial sector like it is for the rest of us and if we could just leave the free market alone and stop manipulating and meddling with it it would quickly provide us with a new efficient stable and honest monetary system that would increase the prosperity and standard of living for everyone yes the stock bond and real estate markets will probably crash and for those who are unprepared it will be devastating but if it's going to happen anyway and if there's nothing I can do about it then I may as well try to figure out how to turn this catastrophe fie into the best thing that has ever happened to me as I have said many times there are these brief moments in history where the safest asset class gold and silver the safe haven to protect your wealth for the last five thousand years simultaneously become the asset class with the greatest potential gains in absolute purchasing power in periods of crisis gold and silver are the asset class that outperform all others this decade will see the greatest financial crisis in history that means it will also be the greatest wealth transfer in history and that means it is the greatest opportunity in history how have I prepared for the range of possibilities I've been accumulating precious metals since 2002 to me this relieves a lot of anxiety and now I've purchased a supply of emergency food I've given one of these assortments to each of my family members my best friends and all of my employees this has relieved most of my remaining anxiety how do I sleep at night very well thank you so now that you know why I buy gold and silver I'd like to show you how to buy gold and silver before you buy an ounce of gold or silver for yourself I want to send you a free copy of my book guide to investing in gold and silver it tells you everything you need to know about owning gold and silver including where to store it the pitfalls to avoid how this industry works and which bullion products I buy for myself I'm proud to say it's the best-selling book on precious metals investing of all time I've just released a fully updated version and it's yours absolutely free all you have to do to get it is to follow the link below and tell me where to send it enjoy the book please share this video and thanks for watching

Channel: GoldSilver (w/ Mike Maloney)

Views: 780,211

Keywords: gold, silver, gold and silver, mike maloney, buy silver, buy gold, silver bullion, bitcoin, invest, money, bullion, precious metal, precious metals, hidden secrets, Hidden secrets Of Money, 500oz, top 10, top 10 reasons i buy gold silver, trump, bubble, animated, fiat, currency, stocks, real estate, economy, boom, economics, ethereum, monetary system, dollar, federal reserve, free market, crypto, cryptocurrency, Bitcoin, Blockchain

Id: FI7NnOg2rxo

Length: 29min 26sec (1766 seconds)

Published: Wed Sep 13 2017