Due to the interest that the Permanent Portfolio and the books read by Harry Browne have aroused in me, I acquired Guide to Investing in Gold and Silver in order to investigate what is supposedly necessary to know to make a profit from buying gold and silver goldco reviews. Written by Michael Maloney, and edited by Robert Kiyosaki’s Rich Dad Advidsors series, the book takes you on a journey through the history of economic crises and their relationship to gold, and how we can read business cycles by studying metals. Precious and its relationship with the rest of possible assets.
The guide is divided into four main parts:
1. Yesterday. In the first part, economic cycles, crises and the relationship of currencies with gold and silver are studied. It is argued that the money we know, the banknotes, are debt from the moment the central bank creates it, debt that turns into a snowball as it passes through the state, which sells it more expensively to financial institutions and savers, financiers who resell them to consumers, …, and so on until we reach the current unsustainable point, in which the only real money seems to be the precious metal. Thanks to the understanding of asset bubbles in particular and their relationship to gold, the transfer of wealth becomes more understandable.
2. Today. The second part studies the current collapse of countries and their currencies. Deficits and debts that the author thinks impossible to fix , which will give rise, always according to Maloney, to one of the most spectacular promotions of the same type of asset in all history, and that asset is the precious metal. (The book was written in 2008)
It also studies the damage that real inflation is inflicting on the citizens of capitalist countries, which makes sustained increases such as the one experienced by equities between 2003 and 2007 are, in reality, a loss of purchasing power.
3. Tomorrow. This third part deals with the way in which the information contained in the first two sections can help us understand what will happen in the future (this financial witch tinge makes me nervous). What’s coming is called by Maloney as The Perfect Financial Storm. He advises you on how to avoid it.
4. How to invest in precious metals. Advice on buying gold and silver and the ideal formats to do it. The author defends that precious metals are the only assets that take the investor out of the middle class, since only they have the ability to be out of the Status Quo of the financial system. This chapter gives the basic notions to acquire them, although it does not discover anything new.
To end with this summary, I will tell you that it is a book that has awakened mixed feelings in me. On the one hand, it has been very interesting for me to read about the historical information it offers, doing it in an entertaining and very illustrative way. I think you learn to value gold in a more complete context, rather than just looking at its chart in US dollars. But on the other hand, Maloney’s speculative style and his apocalyptic predictions sound like “some of us have bought gold at $ 300 and we want to screw it up to $ 6,000.