If you had invested $100,000 in the S&P in 1984, you would have had $914,000 in 2000. The same invested in gold would give you $78,000. But that is not how it works anymore. If you invested $100,000 in the S&P in 2000, you would have $145,000 as of December 31st, 2016. The same investment in gold would give you $410,000.

We have been programmed to believe that the best strategy is to invest in the stock market and to ‘buy and hold.’ This is a great advice when markets are going higher and tend to do so over time. However, in markets that come crashing down, this can be a devastating choice. We no longer have markets that simply go up over time. Over the past 16 years, our markets have collapsed twice and may now be better described as going through cycles of ‘boom and bust.’ We believe that we are in a new environment that necessitates new strategies. In the growth environment like the 80’s and 90’s, it made sense to buy and hold stocks. In the high debt environment we have experienced for the last 16 years, the best buy and hold investment has been and will likely continue to be gold.

A $1 in 1971 is worth only $0.03 today due to inflation.

The amount of real tangible assets backing the current $17 trillion of US debt is virtually nothing but a promise.

At the time of 08/09 crash, the backing of the US Dollars in gold had diminished from 10% (stable and safe) to measly 0.76% and the debt has doubled since then. Covering the current money supply of $17 trillion with gold at reasonable rate would mean that the US have to revalue gold to over $40,000 per ounce (it is currently $1217 on July 15, 2017). Even though this looks unrealistic, a 400-500% increase should not be ruled out. This opportunity for us is huge right now.

Any currency that is not backed up by a tangible asset is called a ‘Fiat’ currency. Fiat currencies have a typical life of about 40 years as history has shown us. The current US dollar is on its 46th year. As the Fiat currency goes to zero value as it did before many times, the wealth transfers to real money, gold. That is why there were more millionaires during the great depression than during any other period. If we get this right, our financial future is secured beyond imagination. All the wealthy are rushing to be ahead of this curve, you should be too.

Bank Failures: In Cyprus during what is termed as ‘bail-in’, the depositors lost 47% of what is over 100,000 Euros in their accounts, no questions asked. The depositor is an unsecured lender to the bank. Can this happen in the USA? Yes. The FDIC holds only 1.5% of all deposits by law. In the UK it is only 0.4%. In the event of a bank collapse such as the one in 2008/2009, the losses will be assigned to the shareholders and the unsecured depositors. Cyprus was just the beginning.

All the big hedge fund managers, all the big countries including the USA and all the upper elite of the society are moving out of the paper money and into the ‘currencies of King’, Gold.

China and Russia have set up trade agreements to trade in Gold circumventing the US dollar.

In the state of Utah, gold and silver are legally accepted as currencies.

While this is happening, US Federal reserve will continue to run the press of printing money inflating the dollar pushing the price of gold to the moon.

And in-fact, using the exact $850 high of January 21st 1980, the price should be around $10,823.70 per ounce as of 2014, inflation adjusted.

Silver would need to hit $568 an ounce to meet the previous inflation adjusted high of $48.70 in 2011.

Here are the facts and suggestions:

• You can buy physical gold, platinum and silver bars or coins from trusted vendors and store them.
• You can buy ETFs such as GLD and SLV that are backed by physical gold and silver by the ETF management in your brokerage account. This is ideal for IRA (individual retirement account) because IRS allows this and a reasonable cash flow of 1 to 2% per month is possible by using option strategies. This regular cash flow compounds at 12 to 24% per year on top of capital appreciation. God forbid, if the fiat currency were go to zero, the gold and silver goes to the moon, making the account holders to become instant millionaires overnight!
• There’s a huge hedge in place here because there’s no way, unlike a stock, that the metals can go to $0.
• The US debt is approaching 25 trillion dollars and the price of gold correlates positively with debt. The price of gold is actually undervalued right now.
• Physical gold is a good place to put money these days – Alan Greenspan
  Paper money eventually returns to its intrinsic value, zero – Voltaire
• Best Scenario: If Gold & Silver go up by this magic amount of 3x (which has simply been plucked out the air by Guru’s, commentators and speculators alike, I mean it could just double or go up 5x, who knows?) but let’s stick with 3x…
  Every $10,000 grows into $418,240.86, that’s an ROI of 4,182% over 10 years.
  See why this could be a favorite method of investing in Gold and Silver?
• Gold can be taken out of the IRA as in-kind gold without the need for liquidation thereby avoiding taxes on income. The gold can be inherited outside the IRA as part of the estate and may receive different tax treatment called ‘stepped-up’ treatment.
• It removes all the risks from Gold & Silver, allows you to protect your wealth, profit hugely, cash-flow it and take advantage of the coming wealth transfer…
• Disclosure: I have physical gold, silver and platinum with American Estate and Trust. I also have GLD ETF in my brokerage account and use options to generate monthly cash flow. You can too!
• Recommended Reading: Rich Dad’s Advisors: Guide to Investing in Gold & Silver: Protect Your Financial Future, book by Michael Maloney