Hello, Steven here, and thank you for reading my article. If you’re looking for a review of Mike Maloney’s best-selling book, “Guide to Investing in Gold and Silver,” you’ve come to the right place.
The book is part of Robert Kiyosaki’s “Rich Dad” series of books on money management and wealth building, and was published in 2008. It is the best-selling book on investing in precious metals never published. The author is the CEO and founder of GoldSilver.com.
Divided into 4 sections, the book focuses respectively on the history of money, the current situation of the monetary system, the probable development of the situation and the different ways of obtaining gold and silver, including understand the pitfalls to avoid.
The book begins with the monetary systems of the ancient world, and the reader will soon realize that the saying “there is nothing new under the sun” applies to the history of money as to everything else. The reader is guided through the debasement of currency in ancient Rome, and its origins in the politicians’ promises of spending to gain popularity, but which could never be fulfilled.
The original gold and silver coins were made smaller, degraded by mixing them with lower value metals, and remelted with higher values engraved on them. This served to increase the supply of money, but had the effect of making each unit of money less valuable. More recently, the book describes the classic gold standard period from the 19th century to World War I, the Bretton Woods gold standard illumination system after World War II, and the end of the convertibility of the US dollar in gold by President Nixon on August 15, 1971.
Regarding the current situation, Mike argues that the value of most financial assets has fallen since 1999/2000, which was both the bottom of the gold market and the top of the stock market. It was during this time that paper assets were most coveted and the real currency of silver and gold was most neglected. Although the price of paper assets may have risen in nominal terms, in reality their decline in value has been masked by inflation.
The book discusses skyrocketing government deficits and liabilities, and how these are financed by the increase in the money supply. Mike argues that the market cycle is turning away from paper assets and favoring the historical currency of gold and silver.
The fourth section contains a comprehensive overview of ways to buy precious metals, including pitfalls to avoid.
The book was easy to read and informative, and I would recommend it both specifically as a guide to precious metals, and more generally to improve people’s financial education.