Jeff Clark, Senior Precious Metals Analyst
SEP 27, 2017
Do you worry about money? Does it sometimes impede your sleep?
According to a recent survey, money worries are the second biggest cause of sleeplessness.
And that’s why Mike Maloney’s #1 Reason he owns gold and silver is… he sleeps better!
As Mike has outlined, he believes the foundation is laid for a perfect economic and monetary storm. His research shows that the greatest crash the world has ever seen will take place before the end of this decade.
Will his prediction come true?
On one hand, if Mike is correct, we’d experience financial Armageddon. At the other end of the scale, he could be completely wrong, although this would imply the government is correct, that the economy and markets and US dollar are fine, and there’s nothing to worry about (I know, don’t hold your breath!).
Between these two extremes, though, exists a bell curve of possibilities. And in the middle of that bell curve lies a higher range of probabilities. That means the extreme scenarios—the end of the world as we know it and the politician’s insistence that everything is fine—are unlikely to happen. But it statistically implies that something in the middle of those two extremes is very likely to happen.
The events that would accompany the middle portion of this bell curve would still be very nasty. The world wouldn’t end, but there would definitely be changes. And big change implies big disruptions to our economic, monetary and fiscal systems.
However these crises manifest themselves, gold and silver will see a sharp increase in their purchasing power.
Regardless of exactly how bad things get, history has demonstrated many times that gold and silver gain massive purchasing power during periods of upheaval.
And as an investor, you have to add this historical fact to your strategy: Most investments today are overvalued, so gold and silver will outperform all other asset classes.
Mike puts it his way:
• Great crisis = great wealth transfer = great opportunity!
And consider that gold is like NO other investment. Just look at its enduring characteristics…
Gold cannot be:
• printed (ask a miner how long it takes to find a deposit and dig it up)
• counterfeited (you can try, but a scale will catch it every time)
• inflated (can't be reproduced by a central banker or politician)
Gold cannot be destroyed by…
• fire (it takes heat of at least 1945.4° f. to melt)
• water (doesn’t rust or tarnish)
• time (coins remain recognizable after a thousand years)
Gold doesn’t need…
• feeding (like cattle)
• fertilizer (like wheat)
• maintenance (like printing presses)
Gold has no…
• time limit (most metal is still in existence)
• counterparty risk (remember Bear Stearns?)
• shelf life (it never expires)
As a metal, gold is…
• malleable (spreads without cracking)
• ductile (stretches without breaking)
• beautiful (just ask any bride)
As money, gold is…
• liquid (easily convertible to currency)
• portable (can hold $50,000 in one hand)
• divisible (can be used in tiny fractions)
• consistent (the same in any quantity, at any location)
• private (no one has to know you own it)
• hack-proof (no one can digitally steal your physical gold)
• uncorrelated (it rises when most other asset classes fall)
Gold is internationally accepted, has lasted for thousands of years, and no more of it is being made.
When the next set of crises come, regardless of what form they may take or how long they last, you can rest assured that the portion of your wealth denominated in physical gold is intact. There’s something to be said for being able to sleep well in the middle of a crisis.