Rich Dad's Advisors: Guide to Investing In Gold and Silver: Protect Your Financial Future: Maloney, Michael: 9780446510998: Books - Amazon.ca
Rich Dads Advisors Guide to Investing In Gold and Silver Protect Your Financial Future PDF epub
If you are looking for a way to protect your financial future from inflation, currency crisis, and economic collapse, you may want to consider investing in gold and silver. But how do you get started? What are the best ways to buy, store, and sell precious metals? And when is the best time to invest?
Rich Dads Advisors Guide to Investing In Gold and Silver Protect Your Financial Future PDF epub
In this article, we will review a book that answers these questions and more. The book is called Rich Dad's Advisors: Guide to Investing In Gold and Silver: Protect Your Financial Future, written by Michael Maloney, a precious metals investment expert and historian. This book will teach you everything you need to know about investing in gold and silver, from the history of money to the current market trends.
Why invest in gold and silver?
Gold and silver are not just shiny metals that people wear as jewelry. They are also forms of money that have been used for thousands of years. Unlike paper money, which can be printed by governments at will, gold and silver have a limited supply and cannot be created out of thin air. This makes them more reliable and durable as a store of value.
The economic cycles that make gold and silver the ultimate monetary standard
Throughout history, there have been cycles of economic expansion and contraction, driven by the creation and destruction of money. When paper money becomes too abundant, it loses its value due to inflation. This leads to a loss of confidence in the currency system, which eventually collapses. When this happens, people always turn back to gold and silver as the ultimate monetary standard.
Michael Maloney explains these cycles in detail in his book, using historical examples from ancient Rome, China, France, Germany, England, America, etc. He shows how every paper money system has failed, and how gold and silver have always preserved their purchasing power over time.
The signs of inflation and currency crisis
How can you tell if paper money is becoming too abundant and losing its value? There are some signs that you can look for, such as:
Rising prices of goods and services
Decreasing value of the dollar against other currencies
Increasing national debt and budget deficits
Lowering interest rates and quantitative easing by the central bank
Increasing social unrest and political instability
These signs indicate that the U.S. government is driving inflation by diluting our money supply and weakening our purchasing power. This means that the dollar is losing its status as the world's reserve currency, and that a currency crisis is looming.
The benefits of investing in precious metals
How can you protect yourself from inflation and currency crisis? One of the best ways is to invest in gold and silver. By doing so, you can:
Hedge against inflation and preserve your wealth
Diversify your portfolio and reduce your risk
Profit from the rising demand and price of precious metals
Take advantage of the tax benefits and privacy of owning physical gold and silver
Prepare for the worst-case scenario of a financial collapse or social chaos
Michael Maloney shows you why precious metals are one of the most profitable, easiest, and safest investments you can make, especially in times of economic uncertainty. He also shares his personal story of how he became a millionaire by investing in gold and silver.
How to invest in gold and silver?
Now that you know why you should invest in gold and silver, the next question is how. There are many different ways to buy, store, and sell precious metals, each with its own advantages and disadvantages. Here are some of the most common options:
Physical bullion
This is the most direct and simple way to invest in gold and silver. You buy physical coins or bars from a reputable dealer, store them in a safe place, and sell them when you want to. The advantages of this method are:
You have full ownership and control of your metals
You can easily verify the authenticity and purity of your metals
You can enjoy the tactile and aesthetic appeal of your metals
You can avoid counterparty risk and third-party fees
The disadvantages of this method are:
You have to pay a premium over the spot price when you buy or sell your metals
You have to pay for shipping, insurance, and storage costs
You have to deal with security issues and theft risks
You have to report your sales to the IRS and pay taxes on your gains
Exchange-traded funds (ETFs)
This is a more convenient and liquid way to invest in gold and silver. You buy shares of an ETF that tracks the price of the metals, such as GLD or SLV, from a brokerage account. The advantages of this method are:
You can buy or sell your shares anytime during market hours
You can trade with low commissions and spreads
You can leverage your investment with margin or options
You can avoid the hassle of storing and transporting physical metals
The disadvantages of this method are:
You do not own any physical metals, only paper claims
You have to trust the ETF provider to hold enough metals to back your shares
You have to pay annual fees to the ETF provider
You have to report your trades to the IRS and pay taxes on your gains
Mining stocks
This is a more speculative and risky way to invest in gold and silver. You buy shares of companies that mine or explore for precious metals, such as NEM or PAAS, from a brokerage account. The advantages of this method are:
You can benefit from the leverage effect of mining stocks, which tend to rise faster than the metals when prices go up
You can diversify your exposure to different regions, projects, and stages of development
You can participate in dividends, mergers, acquisitions, etc.
You can avoid the hassle of storing and transporting physical metals
The disadvantages of this method are:
You have to deal with the volatility and risk of mining stocks, which tend to fall faster than the metals when prices go down
You have to research and analyze the financial and operational performance of each company
You have to pay commissions and fees to the brokerage firm
You have to report your trades to the IRS and pay taxes on your gains
Other options
There are some other ways to invest in gold and silver, such as futures, options, certificates, digital currencies, etc. These are more complex and sophisticated methods that require more knowledge and experience. They may offer higher returns or lower costs, but they also involve higher risks and challenges. Some of these methods are:
Futures and options: These are contracts that give you the right or obligation to buy or sell a certain amount of gold or silver at a certain price and date in the future. They allow you to hedge your position or speculate on price movements.
Certificates: These are documents that represent ownership of a certain amount of gold or silver held by a bank or a vault. They allow you to avoid storage and delivery costs, but they also expose you to counterparty risk and fees.
Digital currencies: These are online platforms that allow you to buy, sell, and store gold or silver using digital tokens or units. They allow you to access your metals anytime and anywhere, but they also depend on the security and reliability of the platform.
When to invest in gold and silver?
Once you decide how to invest in gold and silver, the next question is when. The best time to buy and sell precious metals depends on various factors, such as market conditions, trends, indicators, etc. Here are some tips to help you time your investments:
The four phases of the precious metals cycle
According to Michael Maloney, the precious metals market goes through four phases that repeat over time. These are:
Accumulation: This is when smart investors start buying gold and silver at low prices, anticipating a rise in demand and value.
Markup: This is when more investors join the trend and push the prices higher.
Distribution: This is when smart investors start selling their gold and silver at high prices, anticipating a decline in demand and value.
Markdown: This is when more investors follow the trend and dump their gold and silver at lower prices.
The best time to buy gold and silver is during the accumulation phase, when prices are low and undervalued. The best time to sell gold and silver is during the distribution phase, when prices are high and overvalued.
The indicators to watch for
How can you identify the different phases of the cycle and know when to buy or sell? There are some indicators that you can use, such as:
Technical analysis: This is the study of price patterns, trends, charts, etc. It can help you determine the direction and strength of the market movement.
Fundamental analysis: This is the study of supply and demand factors, such as production, consumption, inventory, etc. It can help you determine the value and potential of the market.
Sentiment analysis: This is the study of market psychology, emotions, opinions, etc. It can help you determine the mood and behavior of the market participants.
By using these indicators, you can spot opportunities and signals to enter or exit the market at optimal points.
The pitfalls to avoid
Investing in gold and silver can be rewarding, but it can also be challenging. There are some pitfalls that you should avoid, such as:
Buying or selling based on emotions or impulses
Following the crowd or the media without doing your own research
Chasing after quick profits or losses without a long-term strategy
Ignoring risk management or diversification principles
Falling for scams or frauds that promise unrealistic returns or guarantees
By avoiding these pitfalls, you can increase your chances of success and avoid unnecessary losses.
Conclusion
In conclusion, investing in gold and silver can be a great way to protect your financial future from inflation, currency crisis, and economic collapse. But you need to know why, how, and when to invest in precious metals. This article has given you a brief overview of the main points of the book Rich Dad's Advisors: Guide to Investing In Gold and Silver: Protect Your Financial Future by Michael Maloney. This book will teach you everything you need to know about investing in gold and silver, from the history of money to the current market trends.
If you want to learn more, we highly recommend that you get the book and read it for yourself. You can get the PDF or epub version of the book online from various sources, such as Amazon, Google Play, etc. You can also get the audio version of the book if you prefer listening to reading.
Investing in gold and silver can be one of the best decisions you ever make for your financial future. But you need to act now, before it's too late. Don't miss this opportunity to secure your wealth and prosperity with precious metals.
FAQs
Here are some frequently asked questions about investing in gold and silver with brief answers:
How much gold and silver should I invest in?
There is no definitive answer to this question, as it depends on your personal goals, risk tolerance, budget, etc. However, a general rule of thumb is to allocate 10% to 20% of your portfolio to precious metals.
What is the best way to store my physical gold and silver?
There are different options for storing your physical gold and silver, such as home safes, bank vaults, private vaults, etc. The best option for you depends on your preferences, security, convenience, cost, etc. You should weigh the pros and cons of each option and choose the one that suits you best.
What is the difference between gold and silver?
Gold and silver are both precious metals that have been used as money for thousands of years. However, they have some differences that make them suitable for different purposes. Gold is more scarce, stable, and valuable than silver. It is mainly used as a store of value and a hedge against inflation. Silver is more abundant, volatile, and cheaper than gold. It is mainly used as an industrial metal and a speculative asset.
Should I buy gold or silver?
Both gold and silver have their advantages and disadvantages as investments. The best option for you depends on your goals, risk appetite, time horizon, etc. However, a balanced approach is to buy both gold and silver in a ratio that reflects their historical or market value. For example, you can use the gold-to-silver ratio (GSR) to determine how many ounces of silver you can buy with one ounce of gold.
Where can I find more information about investing in gold and silver?
There are many sources of information about investing in gold and silver online, such as websites, blogs, podcasts, videos, etc. However, not all sources are reliable or accurate. You should always do your own research and verify the credibility and quality of the information before making any investment decisions.
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