Book Summary: A Guide to Investing in Gold and Silver – Written by Michael Maloney

It’s a great education book about real money. Mike reviews the strong principles of money that have endured throughout human history. One thing is consistent and that is that Gold and Silver are real money. In today’s fiat world, gold and silver are the tools you can use to preserve and protect your wealth. Mike reviews the differences between currency, real money and fiat money. Fiat currency is basically paper money that protects nothing. We will explain in more detail whether this is risky and the average investor should at least understand the importance of reliable currencies that are underestimated and inflated. With the economic catastrophe of 2008, along with Ireland, Greece and other failed countries, we need to educate ourselves as small investors in order to protect ourselves.

Why is it important to me?

This is important because the biggest transfer of wealth is happening right now and that transfer is moving away from America and not to us. This should be a priority if you want to protect yourself and your family.

A lot of things are happening but 90% of the general public doesn’t really understand it. It’s understandable because the noise between the political leaders of CNN and Fox News diverts real problems. The real problem is this: The Federal Reserve is a private entity that is not regulated and audited. They control the financial system. These guys are the main royal authors who run the country in the background. Thomas Jefferson was admitted to be against a central bank in the United States. For more information on this topic, you can listen to Ron Paul. He’s a Texas congressman on all of these things.

The big changes we’ve seen from the internet boom to the housing boom have been a direct consequence of the Fed. A lot of people don’t know that and some will say it’s wrong. The Fed has kept interest rates artificially low, which has created an inflated housing market. Quiet debts to equity and the massive destruction of financial instruments and other weapons known as CDO and MBS nearly killed the country. Financial education is necessary for these little boys to have a chance. Read this book to open your eyes. One thing that is not said in the mainstream media and is stronger than Terrorism is that if the dollar is lost as a world reserve currency, our total standard of living will be reduced by at least 25%. Right now it’s already tough for 85% of American families. Another transfer of wealth could put the last nail in the coffin. Educate yourself.

There is a lot of information in Mikel’s book. The history of currency underestimation is explained in every major empire, including the Persians, Greeks, Romans, British, and now Americans. Currency cuts, inflation and taxes are the thieves of wealth. If your money is a candle, taxes and inflation are flames that ignite at both ends.

1. Invention – I am not a person of condemnation and gloom. I believe in the strength and determination of the American people. This still does not hinder us all from being educated and the only way to change is from the bottom up. There is no top-down government that can benefit the country in this light. It is the iron horse invention of the American people that will solve our financial problems.

2. Gold and Silver – Gold has been around for over 5,000 years. She has also been known as her red sister Silver. The ratio between the two has historically been 16-1. Personally, I have seen that in the last year the spread has dropped from 80 to 1 to 1 and returns from 40 to 1. What this means is 40 ounces of silver for an ounce of gold. So silver is $ 35 once and Gold is $ 1,500 per ounce. Now – check the reality. Warren Buffett does not invest in Gold. If you’ve been following any of my book summaries, you know I’m a Buffett fan, so let’s see this one. Basically, Buffett says that if he owned all the Gold in the world he would have a 67-foot gold cube (height, width, length by the time you start in major math). He could soften and kiss her and sleep on top of her. Instead of a gold cube, it could have half the U.S. farmland plus 7 Exxon Mobiles plus a trillion dollars in cash. He preferred to take the latter as I did. Basically, Buffett argues that Gold is NOT USEFUL. I agree with him. The silver in the hand is different. Buffet has had silver in the past and can still hold it. Silver has usability because it is used in mobile phones, computers, smart devices, and medical devices. That’s why I love Silver as a resource for saving.

3. Cash Flow vs. Capital Gains – We don’t want to fall into the theory of the big fool and invest in capital gains. As it is truly contradictory, Silver is an investment in capital gains. However, you need to look at all investments from a synergistic perspective. This means that we want investments to flow out of cash flow, but we also want to increase our savings. Robert Kiyosaki says savers are losers. This return means that if you hold on to the dollars, you are losing out due to inflation and falling currencies. That way, you can save your savings in Silver.

Now let’s talk about having “real money” as a protector of wealth. Note: Educate yourself, I’m not saying go out and invest in silver and gold today. I’m saying educate yourself. I invest in silver personally and will continue to do so, but it is highly variable, so you need to be educated. Also, I am not a financial planner and I do not give advice, please do your homework. My goal is to help with that homework.

1. Mountain of Debt – This book was written in 2007 before the subprime accident. Even then the US was buried in the mountain of debt. Since then, the Fed has HIRED the money supply. Thus, this mountain became Mount Everest. This has happened in the last 3 years and that is why the dollar is the lowest ever in 2011.

2. Unfunded liabilities – Social Security, Medicare, Medicaid ……… These unfunded liabilities increase the problem along with the mountain of debt. When you try to give something to someone and then take it away, all hell breaks loose. Look at GM. They went bankrupt, got a government bailout and had to give up all unfunded responsibilities in order to survive. Now they are doing pretty well but the little boy lost his pensions and medical care. Educate your friends. Don’t let other people manage your money … The same will happen with unfunded liabilities with the US. Start planning NOW.

3. Derivatives – We’ve touched on this before, but in summary, here’s what happened in the decay of subprime. About 100 people sat in the rooms and decided to sell MBS (Mortgage Protected Securities) to investors. The problem was, they collected the crumbs and sprayed them with steam and sold them as a triple A tool. Qualifying agencies and the leadership of these companies should be judged. What happened was that a 1-2% move in values ​​could wipe out companies because Leverage was so deep. These guys were taking advantage of billions to earn tens of millions. There are too many zeros for this to work in the long run. As we now know, this was not the case.

In short, what does all this mean? This book and others like it will help you control your destiny. It is recommended that you hold 10% of your assets outside the financial system. This means that there is no risk of opposing parties. When you put all your money in the bank and run in the bank and it fails, the bank is the opposite. Having physical gold and silver as real money eliminates the risk of opposing parties.

I hope you found this short summary useful. The key to any new idea is to practice it in your daily life until it becomes a habit. Habits are created in just 21 days.

One thing you can take away from this book is EDUCATION. Please open your eyes and spend a few minutes each day educating yourself. You will be glad you did.