We are now in the Greatest Wealth Transfer in History

In this video, you’ll hear from Mike Maloney why we are currently in a huge wealth transfer, maybe the greatest one in history. Mike Maloney in this video explains why “wealth is never destroyed, it is only transferred.” This is a fundamental insight you need to retain and ask yourself in which camp you are currently with your (personal) assets : growing & preserving wealth vs losing wealth ?

Mike Maloney starts off by referring to a quote in the book “The great economic disorder”, written by Larry Bates in the 90’s. The quote he mentions is “wealth is never destroyed, it’s merely transferred”. One of the ideas in the book is that there is something coming up where all currencies could have a crisis at the same time. That would be the biggest wealth transfer in history. It that’s true, it means it’s at the same time the greatest opportunity in mankind. Fast forward to 2012, we see that the outlook described in the book, was entirely correct.

We all know in the meanwhile that this threat is currency debasement on a global scale and the great opportunity is to hold gold and silver. Mike Maloney explains that he has all his assets “invested” in physical gold and silver. He gives his personal view on other gold and silver related investments:

  • gold stocks and silver stocks > you should only invest in them with speculative capital, but be sure to subscribe to a trusted investment newsletter
  • gold coins and silver coins > it could work but you need to be careful as the value of numismatic collections can decrease even when the price of gold and silver are increasing
  • ETF’s like GLD or SLV (“paper gold and silver”) should really be avoided
  • leveraged products where each gold price or silver price movement is multiplied is also to be avoided

This is a particular time in history. In Weimar Germany during the hyperinflation, there was a similar wealth transfer. Mike Maloney explains that you were able to buy a whole city block with commercial property with only 25 ounces of gold. This time it’s much bigger though. If you know that currently only 1 on 1.000 people hold physical gold or silver and you know that the demand will come on a global scale (actually it’s already coming), you can conclude that the wealth transfer will be very big as well (much bigger than in Weimar Germany for example).

Courtesy : Mike Maloney from GoldSilver.com

 

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