Guide to Investing in Gold & Silver Review

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