If you’re somewhat new to the gold scene then this video is a must watch as it will give you a great run down on the subject. It’s a 90 minute presentation by Mike Maloney who wrote “Rich Dads Advisors: Guide to Investing in Gold and Silver“, one of the books on our recommended list (which you can see over to the right of this page).
This presentation covers much of what is written in the book including why Mike believes the price of gold will likely rise to $20,000 per pounce to account for all the paper currency that has been created to date.
See the 40:00 minute mark for the graph that illustrates how gold rose in paper currency terms in 1934 and again in 1980 to cover all the currency that had been created and how if it does this again (which it seems likely to be in the process of doing), how it would have to rise in dollar terms to $20,000. We’ve read many contrasting theories on the subject of what price gold may reach in paper currencies or rather how much the currencies will be devalued. But it is nonetheless true that in 1980 gold actually was briefly valued at greater than all the currency in existence and at that time the USA could have gone back onto the gold standard. This also marked the top of the bull market.
Here’s a quick run down of what’s covered in the presentation and at what point:
- How to profit from understanding wealth cycles (8:12 min)
- How currency is borrowed into existence and how the whole monetary creation process works (22:00 min)
- What he thinks is the likely path for the global economy in the coming years. Why he believes we have already had the threat of currency supplydeflation, which has been followed by a helicopter drop, followed by big inflation, followed by real deflation, and then very high inflation or even hyper inflation (33:00 min)
- Why we can’t steal prosperity from the future (46:43 min)
- Why he believes both stocks and real estate are headed for a global deflationary collapse. i.e. stock prices and house prices have to continue to fall (53:00 min)
- Why this decade a new monetary system is on the way. (1hr 6:16 min) He covers how the system has changed historically every 40 years and in particular the monetary system history of the past century.
- The differences between the 1970’s bull market in precious metals and today’s bull market (1hr 09:26 min). Including how most of the world’s population was excluded from the 1970’s bull market but gold still went up 24 times and silver 36
- How real estate -including here in NZ – remains in a bubble and is still due to burst (1 hr 13:55 min) and how precious metals will be the next great bubble
- How he expects silver to out-perform gold by a factor of at least 3.5 in the coming years (1hr 19:15)