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Silver & Gold At 5000 Year Low

Dan Rubock - 
DEC 9, 2014

"The upside is still enormous, but as time goes on I get more and more worried about our freedom and how disastrous this thing will be when it finally bursts because of the amount of stored energy" - Mike Maloney, December 2014

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Mike Maloney: But you know I’d like to sort of leave people with this: If you really analyze it gold and silver are really at a 5,000 year low. They have been either our money or connected with our currency backing our currencies for 5,000 years and they’ve -- governments have slowly sort of weaned us off gold and silver and for the last 43 years is the first time in all of human history that gold and silver are not either our money or backing our currency. They have no connection with the global monetary system other than people like Ben Bernanke say it’s tradition to hold it for some reason central banks are buying it. But at the same time after it went into a tiny little bubble in 1980, the world experienced a brutal bare market that lasted 20 years and by the year 2000 investors gave up on it; so here you don’t have any country on the planet wanting it or using it as their money. And no investor wanted it by the year 2000. And at the same time we were in the NASDAQ bubble on such there was no time in human history that paper assets were as over valued and loved as during the tech bubble and the dot com bubble.

And so gold and silver are just — they’re still just re-asserting themselves. If you look at gold as a percentage of global financial assets it’s still miniscule, it’s not even on the radar and when you see a financial commentator say that gold is in a bubble -- to be in a bubble people have to own it. And if you talk to your neighbors about gold and silver most people will find that almost nobody actually owns any substantial amount of gold and silver. They don’t -- the percentage of their portfolio that’s in gold and silver is either none or they might have a few trinkets here and there. So the upside I believe is still enormous but it isn’t -- as time goes on I get more and more worried about our freedom and how disastrous this thing will be when it finally bursts because of the amount of stored energy. And the more they put the inevitable day of reckoning off by currency creation and zero interest rates or negative rates the worse it’s going to be.

Chris Martenson: I totally agree with that; that’s been my concern all along is that again we’re going to jump off the 20th rung of the step ladder instead of the third rung and it’s just going to be that much more painful all because we didn’t want to admit what was completely obvious. To anybody who is a student of history and in particular looks at where we actually are in this particular narrative right now, fiat currencies have always failed for the same reasons and it’s not a math reason, there’s no reason they can’t work. But they fail for human reasons; the same reason that debasing coinage didn’t work in Roman times or printing money didn’t work in Weimer times or electronically making scrillions of zeros in current times on computers. It’s all the same human reason which is “Gosh wouldn’t it be great if we could just cover up our prior policy errors by just printing a few things right now and my career will be good”, that’s just how humans are. So my belief --

Mike Maloney: As politicians to get elected they’ve got to promise people something for nothing.

Chris Martenson: Yep, so my bearishness as people call it, “Why are you so down on all this”? And I’m like I’m not down on anything, I’m actually very bullish on the idea that humans are constant; they don’t change [Laughter].

Mike Maloney: I just hope we learn from our mistakes.

Chris Martenson: Well there’s always a hope in that; so we’ve been talking with Mike Maloney. He is the founder and owner of and the author and producer of The Hidden Secrets of Money, a fantastic series; you got to watch it. Because if you want to know where we’re going, you got to know how we got here. To do that you have to know our history. Hidden Secrets of Money will give you all of that and more; Mike it’s just such a fantastic series. Thank you for producing that.

Mike Maloney: Thank you very much for having me; it was great.

Chris Martenson: All right well we’ll have you on again and thank you so much for your insights today.

Mike Maloney: Okay.