A Guide to Investing in Gold and Silver  
Mike Maloney 

Summary

Pretty self explanatory - how to invest in gold and silver. Particularly relevant for where we are in 2022.

Notes

Gold and silver always revalue themselves against currency

Currency is not money, gold/silver is

Fiat currency is arbitrary currency decided by governments (all currencies are fiat)

With inflation, everything gets more valuable except currency

‘The farther backward you can look, the farther forward you are likely to see’ - Churchill

Tulips, John Law, the Mississippi Bubble and Weimar Republic

During a financial bubble or crisis, wealth is not destroyed just transferred

The US Fed is a private institution that’s never been audited or has any oversight and is owned by the world’s largest banks

Bank runs and economic crises are enormous deflationary events

Roosevelt signed an executive order banning gold ownership in 1933

‘Men, it has been well said, think in herds. It will be seen that they go mad in herds while they only recover their senses slowly and one by one.’ - Charles Mckary

Price means nothing, value is everything

If all assets are going up, it means the dollar is going down

Even though asset prices are going up, the value is falling as the currency gets debased

An investor can achieve superior results during inflationary environments - buy gold and precious metals

The free market always wins: once governments dump US treasuries in the market, the dollar collapses and a world wide depression could occur

Whether deflation, inflation, stagnation or hyperinflation, gold and silver always rise

Debt can become disastrous during deflation

Debt levered real estate is a fantastic way to grow assets in hyperinflation

Gold silver ratio:

• If b/w 50-80, buy both
• If above 80, buy silver
• If below 50, buy gold

Everything happens in cycles and you won’t get reversal till the pendulum fully swings the other way

Always pay attention to P/E and gold:Dow ratio. If overvalued, buy gold. If undervalued, buy stocks

• Dow undervalued when less than 4 oz of gold
• Fair value = 6-7 oz of gold
• Overvalued when more than 10 oz of gold

Buy gold/silver now to buy real estate later

Winnings could be unbelievable if/when gold/silver properly revalues

Don’t trust the ETFs for investing, only trading

Investing in precious metals is the safest place in any environment

Never trade based only on technical analysis

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