In this book I update where we are now with the economy, our debt situation as a country and its impact on the dollar, as well as expose new ways gold dealers rip-off their clients. But I also give my outlook on what gold will do this year and into the future. Below is a synopsis of the book.
Where does gold fit into a diversified investment? People have worked hard to accumulate wealth and can’t afford to make mistakes that would cause them to lose on their investments. All they want is some peace of mind with their investments moving forward; confident they are making the best investment decisions. Reading a book about investing in gold won’t give you all the answers you need on where to invest and that is why I wrote a second book called Illusions of Wealth which you can find on Amazon.com. That book is a reference guide for new or old investors, something you can refer back to time and time again on investment strategies you can profit from.
This book is the 2018 updated second version of the first book Buy Gold and Silver Safely first written in 2010. Times change and the investment climate changes with it along with monetary and political decisions which means the information about gold needs to be updated from time to time. But two things that don’t change are accumulated National Debt and gold. An ounce of gold is always an ounce of gold, but government always adds to the National Debt and the paper money called dollars will buy you less and less over time (also known as inflation).
The advice investors relied on in the past didn’t protect them from the 2008/2009 market decline. After that episode the stock market skyrocketed. President Barack Obama during his Presidential campaign called then current President George W. Bush “unpatriotic” for raising the debt limit from $4 trillion to $8 trillion. While in office, President Obama raised the national debt by $9 trillion. Some might question how patriotic that was, but this isn’t a political book, although politicians on both sides are responsible for today’s debt which is now north of $20 Trillion. It is a disease perpetrated on us by Congress that is out of control and can spread economic havoc at some point in the future. What President Trump or any future President can do is unknown, but can we really expect austerity? What insurance do you have to counter this potential monetary disaster when interest rates increase the interest on the debt to where Congress can’t help but inflate away their problems by printing even more money?
That insurance is gold.
Today people find themselves having recovered from one market decline but always asking, “is the next collapse around the corner?” Can my portfolio afford to experience another decline like we had in 2008/2009?
Financial advisors were never taught the significance of gold and silver in one’s portfolio. It’s no wonder, as the entire financial and educational systems are biased against gold and silver. I have even heard CNBC commentators ask the question; “What is gold?” But I also based this analysis on the books provided to Certified Financial Planners (CFP) candidates and the complicity of the media, government and Federal Reserve, who all want you to believe in a system that is flawed at its core because governments don’t stop spending but granted it has worked since 1971 when we went of the gold standard. Thinking about it another way, if President Bush throws $4 trillion into the economy and President Obama $9 trillion, there can be and has been some good that came out of it. But at what expense. For every action there is a reaction. And if you spend more money that what you have your credit card companies stop giving you credit. So what could go wrong with government spending more money than what they have? How long can they print money before everyone realizes that our money is not keeping up with the prices of things? How many of you even know what a super inflation can do to your portfolio? You don’t unless you lived in the 70’s. We’ve had quite a ride the last 40/50 year, but it won’t last.
But here is the key that most don’t understand about money and inflation. We here in the U.S. have a central bank called the Federal Reserve that has as a mandate to have 2% inflation. This means they want the price of things to go up by 2% a year. Your dollars have to grow by 2% a year to keep pace with this goal. In the 1970’s, after Nixon took us off the gold standard, dollars couldn’t keep up with inflation, but gold did. The crazy part about this mandate though is in 10 years you must pay 20% more for things than today if they maintain their mandate. Why would anyone want to do that? The answer is so the Federal Reserve System works to benefit them, not you. It’s how our whole monetary system works which you’ll learn later in this book and how gold can counteract their monetary mayhem policies of inflation targeting.
Our financial system is based on blind faith in a piece of paper that has 46 short years of existence without a relationship to gold. Let that sink in for a moment.
All Central Banks in the world hold gold to give the illusion that the currencies they print are backed by gold. If all Central Banks hold gold, why is it mocked by CNBC as “just a shiny rock?”
CNBC commentators can’t even get that last statement straight, as gold isn’t even a rock, but a metal; a “precious” metal with over 5,000 years of history being utilized as money all over the world. The same can be said of silver, as it has a similar history as money.
This may come as a shock to most gold bugs out there; gold is just a shiny metal. That’s right, bury it in your backyard 10 years ago, dig it up today, clean it up, and it’s still a shiny metal. But that metal is worth much more today as it was 10 years ago. Why? Because it’s what the shiny metal is priced in—U.S. dollars—that matters.
It is only the value of the U.S. dollar that has changed. Gold didn’t change. A higher gold price exposes the weakness of the dollar, or the lack of belief in the future of the dollar’s purchasing power.
The weakness or strength of the dollar relies solely on the collective views of the crowd. At one time the crowd believed tulips were as good or better than gold. Then the bottom fell out. Some in that crowd think Bitcoin can go to 100,000 or more. But bitcoins for the most part, cannot act as money, are typically illiquid and way to volatile for most investors. However, there is merit here. I’ll explain more through a company called Goldmoney Inc. (Symbol TSX: XAU) that is listed on the Toronto Stock Exchange and allows you to invest in and transact in both physical gold/silver and some cryptocurrencies. First of its kind.
Even if this book convinces you to buy gold, you still are in danger of not knowing what to buy. The gold market is filled with sharks and charlatans who are out to rip you off. You see their ads on television and hear them on the radio or find them through searches on the internet where they manipulate Google’s algorithms to be in the top 10 searches, so you’ll click their link or pay a ton for ads on searches for “buy gold” and what not. Investors need to take some responsibility for their financial future and get educated on gold and silver before diving in. Naturally, this book, Buy Gold and Silver Safely, provides answers by explaining why gold and silver need to be a part of everyone’s portfolio and helping people learn about buying the right gold and silver products and avoid the high commission that unscrupulous dealers charge, taking advantage of those who know very little about buying precious metals.
If everyone read this book, these companies would simply go out of business. That’s my goal in writing this book, to stomp out those who try to rip you off and get investors to buy the low commissioned gold that can see profits grow for them, not the gold dealer. But first, it discusses why gold needs to be a part of your portfolio.
One thing you know about Doug Eberhardt as a writer, is he always tries to tell it like it is and bring awareness to the investor so they know what they are doing before they are doing it, and time their decisions on when to buy metals. But also it’s important to know why gold makes sense for a diversified portfolio. A lot has happened in 8 years since the book was first written. A lot is coming down the road for the U.S. economy that most will not be prepared for.
The book is available here on Amazon.com.
When it comes time to buy precious metals, please consider us as our goal is to simply undercut everyone else in price. You can visit our online store here.
The Buy Gold and Silver Team
Doug Eberhardt is a 28 year financial services veteran and precious metals broker selling gold and silver at 1% over wholesale cost. Doug has written a book to help investors understand how gold and silver fit into a diversified portfolio, how to buy gold and silver, and what metals to buy. The book; “Buy Gold and Silver Safely” is available by clicking here Contact phone number for Buy Gold and Silver Safely is 888-604-6534
Commodity Futures Trading Commission Futures and Options trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don’t trade with capital you can’t afford to lose. This is neither a solicitation nor an offer to Purchase/Sell futures or options. No representation is being made that any account will or is likely to achieve gains or losses similar to those discussed in this outlook. The past track record of any trading system or methodology is not necessarily indicative of future results.
All trades, patterns, charts, systems, etc. discussed in this outlook and the product materials are for illustrative purposes only and not to be construed as specific advisory recommendations. All ideas and material presented are entirely those of the author.