By Mike Maloney

Especially when I was just starting out in the world of investing, I found it really useful to be able to draw on books like this one for guidance. As the title would suggest, this book is a ‘how to’ and ‘why to’ invest in gold and silver. Maloney wrote the book back in 2005, but don’t get put off by the publication date. The information you find here will never expire, because as you will read, history repeats itself. Even after his final predictions have materialized, the book can still be a useful resource for monetary history.

The Man Behind the Book

Mike Maloney was born in Willamette, Oregon, but grew up in Southern California. Throughout his adult life, he has been an inventor and serial entrepreneur. Currently, he owns a couple of very popular websites, GoldSilver.com and PersonalGain.com (formerly, wealthcycles.com). His passion for monetary history and precious metals has propelled him to speak at numerous investment conferences around the world and to write this book, which has gone on to be one of the highest selling financial books of its age.

Easy to Read, Ready to Action

Without a doubt, I would say that what has made this book so popular is that it’s easy to read. By saying that, I don’t want to take away from the fact that there’s a great deal of value to be gleaned from its pages. What I mean is that this isn’t the type of book where you need to put your game face on every time you crack it open, but it’s the kind of book you’ll look forward to reading, even after working all day.

Maloney breaks the book down into four key parts, Yesterday, Today, Tomorrow and How to Invest in Precious Metals, which makes it easier for even those with very little knowledge of the market to take away some really actionable information. Now, let’s dig into those sections a little:

‘Yesterday’

This section of the book begins with a very in-depth history of money and currency, which, as Maloney stresses, are two very distinct things. Especially if you’re trying to decide whether investing in precious metals is right for you, this section is a must because it sets up the key ideas found in the rest of the book, one of the most important being that history is destined to repeat itself.

Maloney illustrates market history through highly useful charts, graphs and explanations, and has assembled a glut of information from a variety of resources listed in the back of the book.

Another great source of information is the list of videos Maloney cites in The Hidden Secrets of Money. For some, this may provide the best opportunity for learning how the financial system works, and how it affects us. These videos can be viewed at PersonalGain.com or on Mike’s YouTube channel. Especially if it means you can reduce the amount of reading you need to do to really get a handle on this stuff, this is a great resource.

‘Today’

For this book, present day is 2005; a time which, as we know, was very different from today. That said, most of the major chapters in the recently published 2015 edition include updated information that’s really useful if you’re looking for the most current information or validation of the predictions Maloney makes throughout the book.

‘Tomorrow’

For all intents and purposes, this section of the book addresses our current financial market.

“I think that we are now at the point where, over the next couple of years, real deflation will set in. It makes no difference that Janet Yellen is the new Fed head, deflation is every central banker’s worst nightmare and I believe they will all overreact again, fulfilling the second half of my predictions.” ~Mike Maloney

This quotation was taken from the updated 2015 version, which, at least for now, appears to be at least half correct; commodities have been deflating since 2011 and probably the most important economic bell weather, oil, has seen a tremendous regression over the last year. Additionally, the Dow has plummeted to start the New Year, not enough technically for it to be considered a bear market, but there’s still a lot of time to fall.

In the first weeks of the New Year, there’s been a large decline in most major markets around the world. Could this be a repeat of 2008? Maybe. Maloney would probably say so and I bet he believes that even though the Fed raised rates in December, the Fed will have no choice but to lower rates and quantitative ease, once again.

“History repeats itself. When a civilization debases its currency supply, all that currency will once again come chasing that same tiny little pile of metal, and gold and silver will revalue themselves measured in those currencies. This will happen to the United States, just as it did to every empire in history.” ~Mike Maloney

This quotation represents Maloney’s grandest prediction; as you probably guessed, the end game for the global economy is tied to gold and silver, just like it has been throughout history. I have a hard time disagreeing with him…

Important Takeaways:

• Markets are cyclical, and the market is moving in favour of gold and silver
• Rising prices are a symptom of an inflated money supply
• After reading the chapter on How to Invest in Gold and Silver, buy yourself some form of bullion. Doing so is a great way to protect yourself and your family in any economic climate
• When we get to the point in the cycle where gold and silver are overvalued, you should sell to buy other assets
• One downside to buying gold and silver is the lack of cash flow

The Bottom Line

If you’re looking for a place to start your precious metals research, this is it. Then, be sure to check out the videos Maloney mentions and you’ve got a fantastic base from which to expand your reading.

Until next time,

Brian

 

Prosper!

By Chris Martenson, PhD, and Adam Taggart

 

The secret to achieving financial prosperity?

“When those hard times arrive, make sure you lose less than everyone else.” ~ Chris Martenson and Adam Taggart

Throughout history, the financial markets have thrown curve balls to those trying to predict their movements. Typically, even the most seasoned investors can’t tell you when something is going to happen, and because of this, Chris and Adam’s quotation is so very important; your portfolio’s resilience, and ultimately your life, can be turned upside down in a matter of minutes.

Prosper!, at a Glance

First and foremost, Prosper! is a book about resilience.  ‘Resilience’ is defined as the ability to recover from or adjust easily to misfortune or change ~Oxford Dictionary.  The misfortune or change discussed in this book involves three key topics: Economy, Energy and Environment.

The book begins by describing each of the topics and their main themes. Beginning with Economy, exponential growth is the driving force in the destruction of our modern economies; government debt grows each year, leading to what many people predict will be the end of the fiat currency regime.  Next, with Energy, the world’s dependency on oil will eventually break when we reach the peak. Finally, with Environment, as the world’s population continues to grow exponentially, our resources will be pushed to their limits as fossil fuels are used up, water aquifers are drained and our plants and animals are pushed closer and closer to extinction. Okay, sounds a little dismal, doesn’t it? Push on and keep reading, because the authors reveal how it is that people can actually weather such seemingly terrible situations, and in fact, make them work in their favour.

In this chapter and many of the others, Chris and Adam link back to their ‘Crash Course,’ which can be found on You Tube or at peak-prosperity.com. The Crash Course is a very in-depth, technical look at the topics that are touched on in Prosper!  If you have not read the book, Crash Course, or viewed the information on the website, I’d highly recommend that you do so before or while reading Prosper! because it will give you a better idea of the writers’ perspective.

Reflecting on the issues they outline, ask yourself ‘how would it affect my life…

… if the stock market crashed?’

• ‘Is my net worth tied up completely in stocks? What percentage?’
• ‘What type of stocks do I own?’

…if we ran out of oil, or more likely, if oil became too expensive for my normal consumption?’

• ‘How often do I drive my car? Where do I go? Why do I go?’
• ‘How do I heat my home? (if you live in the northern hemisphere)’

…if we ran out of water?’ (if you live in California, this may be a very pertinent question)

• ‘How long could we last?’

These are just some of the questions that the book will prompt you to ask yourself. If you don’t like the answers to the questions, you definitely need to read on.

Taking Action

It’s one thing to agree with Chris and Adam about the imminent dangers they discuss, but responding to what they say by taking action is something entirely different. The later chapters of this book will help you understand what causes inaction and how it can be overcome.

After getting you into the mindset of taking action, Chris and Adam break a resilient life down into 8 forms of capital: Financial, Living, Material, Knowledge, Emotional, Social, Cultural and Time. These sections are explained in depth in the remaining chapters, one at a time, and will certainly encourage introspection.

When it Comes to Resilience, Do You Measure Up?

In the book, they mention a resource that’s worth noting; an assessment tool they’ve included on their website which will give you an idea of where you stand in terms of the pursuit of a more resilient life. Check it out:

Making Mistakes

“When we fail, we need to conjure our inner Edison to remind us that the only true failure lies in failing to try. We must remember that the goofs, the glitches, the curve balls – the mistakes – are our milestones to mastery.” ~Chris Martenson and Adam Taggart

“Mistakes are great, the more I make, the smarter I get.” ~R. Buckminister Fuller

Chris and Adam’s analogy can be applied to anything in life, really. Whether it be the junior resource sector or the mainstream market, you will make mistakes, but you can’t let it dissuade you from speculating or investing. Identify where it is that you went wrong and get back on the horse!

Understanding Your Narrative

Within the Emotional Capital chapter of the book, Chris and Adam touch on something that’s been expressed by a lot of successful speculators; the need to understand your narrative. What does this mean? Here’s an example:

Two speculators buy a junior gold mining stock on the same day, at the same price and in the same quantity. One week later, this stock, for no obvious reason, plummets 30%.  The first speculator sees the drop and sells right away, thinking to themselves, “the market is against me, I’m never going to make money at this.”  The second speculator sees the drop and buys more. With no news to support the decline in the price of the stock, they think to themselves, “Mr. Market loves me and I’m going to make A LOT of money.”

Putting Your Narrative to Work for You

Okay, this example might be pretty simplistic, but it illustrates my point nonetheless. This narrative shift between the two speculators is what will separate someone who succeeds from someone who will lose everything. As Rick Rule puts it, you’re either a contrarian or a victim, it’s your choice.  This doesn’t mean that you double-down on stocks that have dropped, it means that you have to base your decisions on rational, logical truths. Don’t let your emotions take over and make your decision for you.

Some of you may never be able to do this. The most important step you can take, then, is to recognize this (hopefully early on), and if you still want to speculate, use a professional broker to manage your money. You’ll be a lot further ahead, not to mention you’ll save yourself from a lot of sleepless night!

A Book for Today’s World

This book isn’t your stereotypical finance book, as it’s as much about personal resilience as it is financial resilience.  That said, I completely agree with Chris and Adam when they say that, overall, prosperity is derived from the 8 forms of capital they discuss. The more complete your 8 forms of capital are, the more resilient you will be to any type of change that comes along in life.

I highly recommend this book to everyone, no matter their situation or stage in life. Its message isn’t just relevant for the speculators and investors who may be Chris and Adam’s typical audience, its message is applicable for anyone living in this day and age.

If you’re ready to make change work for you by discovering how to critically assess your current way of living and investing, and learning the steps you need to Prosper, click the link and check out this book. You’ll be happy you did.

 

Until next time,

Brian