Wednesday, February 21, 2018

The Coming Debt Collapse: The Case for $20000 Gold


Mike Maloney is the author of the world's best selling book on precious metals investing. Since 2003 he has been advocating gold and silver as the ultimate means of protecting wealth from the games played by our governments and banking sector.

In this 90 minute presentation he lays down his 'most likely' scenario for the global economy over the next decade... short term deflation, followed by big or even hyperinflation. 

Here you will learn the true definitions of inflation/deflation, the difference between currency and money, price vs value, 'Wealth Cycles', gold and silver accounting for the expansion of fiat currency, gold and silver supply and demand, the differences between the today's bull market and that of the 1970s, The Debt Collapse, and more.

- Source, Gold Silver

Sunday, February 18, 2018

Silver, Gold and Currencies Will be Revalued Overnight


Gold always accounts for an expanding fiat currency supply, either through a bull market that can last years as gold reasserts its value, or through a snap overnight revaluation as we've seen many times before in history. How will it play out this time?

- Source, Mike Maloney

Thursday, February 15, 2018

The Most Gold & Silver You've Ever Seen?


Have you ever seen this much gold in one place? In this video Mike Maloney shows the remarkable images coming out of Russia that are evidence of their recent surge in gold reserves. What do they see coming? Is this a subtle challenge to Fort Knox and their ongoing lack of transparency?

- Source, Gold Silver

Friday, February 9, 2018

Is This The Crash? Gold, Silver and Bitcoin Update


Is this the beginning of a major crash? Join Mike Maloney for his latest update where he analyzes the stock market, gold & silver, and bitcoin.

- Source, Mike Maloney

Sunday, February 4, 2018

Dow Peaking? The Quick Guide to Diversifying Your Stock Profits

It’s been a heck of a run.

The S&P has nearly quadrupled since its 2009 low. It currently ranks as the second-longest bull market in the last 140 years (top green bar).


Just as important as recognizing the frothiness of the current market is the fact that the stock market has always fluctuated between bull and bear markets. No bull market lasts forever—that will include this one.

Regardless of your personal outlook for the stock market, capturing some of your profits is only prudent given how long this market has been chugging higher. It’s also a way to build wealth, since you now have some money to build a position in other investments.

But what? Buying different stocks than what you own would expose you to the same frothy market. The current real estate market wouldn’t allow us to buy low. And loading up on bonds doesn’t really help since they pay next to nothing despite the bump in rates.

There’s actually a straightforward way to achieve true diversification…

The Secret to Effective Diversification

Many investors think they’re diversified because they own domestic stocks and foreign stocks. Or government bonds and corporate bonds. But that’s not real diversification because they’re essentially the same asset class and tend to rise and fall together.

The key to proper portfolio diversification is this:
Buy non-correlated assets

In other words, you want an asset class that tends to rise when others fall. It doesn’t do much good if all your investments rise and fall together.

So what assets might have a low correlation to stocks? In other words, what could you buy that won’t fall victim to the next bear market or recession?

The following 40-year study shows the correlation of gold to other common asset classes. The zero line means gold does the opposite of that investment half of the time. Figures below zero means gold moves in the opposite direction of that investment more often than with it (and vice versa if above zero).


You can see that historically, gold moves opposite of the US stock market more often than with it. They are thus considered negatively correlated assets.

This makes sense when you think about it… stocks benefit from economic growth and stability, while gold responds to economic distress and crisis. If the stock market falls, fear is usually high, and investors typically seek out the safe haven of gold. If stocks are rocking and rolling, the perceived need for gold from investors is low.

- Source, Mike Maloney's Gold Silver, Read More Here

Wednesday, January 31, 2018

Can I Buy & Sell Gold Without Paying Taxes?


If you feel a little daunted by the way gold is taxed, don’t fret. You’re not alone. Gold is a unique investment. Like any investment, it’s subject to some pretty complex tax rules. Add in the many ways you can own it and the complexity goes up. In this post, we’ll try to answer some of the common questions around taxes on gold & silver investments including:
  • Can you buy & sell gold without paying taxes?
  • How much gold can you buy without reporting it to the IRS?
  • What are the IRS requirements for investing in gold & silver?
  • Do you have to pay capital gains taxes on gold & silver investments?
  • Does GoldSilver report my investments to the IRS?
  • Do you have to pay taxes if you sell your gold jewelry?
Quick pre-emptive strike from the lawyers: We’re not providing tax advice here, just certain general information. We aim to be accurate, but cannot guarantee that all information here is accurate or current or covers every individual case, and we do not assume any obligation to update any of the information contained here. Always consult a CPA and/or an attorney on tax issues.

Here’s why it’s important to check with your certified public accountant about taxes on your gold investments...

• Rules can and do change. Getting it wrong can be very costly (not to mention the stress of dealing with the IRS).

• Your tax bracket and other personal considerations may make a difference.

• State capital gains tax rates vary.

• Those outside the US must adhere to their own country’s tax laws.

So, let us try to lay it out as clear as we can, by addressing the the two big topics: taxes and reporting…

Tax Treatment

There is a lot of conflicting and inaccurate tax information on the internet about taxes on gold and silver. And if you listen to the wrong sources, you can get hurt.

For example, we’ve found a few websites that claim the sale of American Silver Eagles is exempt from capital gains tax, based on an obscure law. While the law may read like you can sell gold and silver without paying taxes, that doesn’t mean it translates into practice with the IRS. In the case of the American Silver Eagle, it’s patently false.

Here’s what you need to know about taxes when you sell gold and silver…

Capital Gains Tax

The IRS considers precious metals a “collectible” for income tax purposes. Gains on collectibles held for less than one year are taxed as ordinary income - the same tax treatment as short term capital gains. Gains on collectibles that are held for more than one year are treated as long term and taxed at a maximum rate of 28%. So if you are in a federal tax bracket of 28% or greater, your net long-term gains from collectibles are taxed at 28%. If you are in a federal tax bracket lower than 28%, your net long term gains from collectibles are taxed at your regular rate. The “collectibles” designation includes most forms of investment grade gold and silver, including:

• All denominations of precious metal bullion coins and numismatic coins, bars, wafers, etc.

• Precious metal “rounds” and commemorative coins

• Certificates such as those from the Perth Mint

• Certain Exchange Traded Funds (ETF’s). Precious metal ETF’s are generally divided into three categories: physical-backed ETF’s structured as grantor trusts, such as the popular GLD. 

These ETF’s are generally taxed as collectibles. Second are securities “tied to” precious metals, such as mining stocks, mutual funds and mining ETF’s and Exchange Traded Notes. These are generally taxed as securities. Third are closed-end funds, which are also trusts which generally are treated as collectibles.

Again, talk to your accountant and/or lawyer to maximize your tax position before investing.

Sell any form of precious metal at a profit and the profit will be taxed at a federal rate of 28% or less. Sell any form of precious metal at a loss and it will be used to offset any capital gains you have.

Privacy & Reporting

One of the many advantages of owning physical gold and silver is that they can be private and confidential. There aren’t too many investments you can say that about today.

So naturally, we get a lot of questions on this topic. Maybe you’ve wondered yourself…

• Are my purchases private?

• What do you report to the IRS when I sell back to you?
Private and Confidential? Yes, But…

First, when it comes to privacy and confidentiality, there are two issues to consider: buying and selling.

When you buy precious metals in the US...

The transaction is almost always private. There is no reporting requirement from a gold dealer to the IRS of what we sold to you, unless BOTH of the following conditions exist:

1. The transaction(s) exceed $10,000; AND

2. Actual cash (or money orders, bank or certified checks, etc.) is used to make the purchase(s).

In this highly unlikely event, a dealer would be required to file a Form 8300 with the IRS, as well as a Suspicious Activity Report (SAR) with the Financial Crimes Enforcement Network (part of the U.S. Department of the Treasury), due to regulations under the U.S. Patriot Act and Anti-Money Laundering (AML) rules. 

Your transaction is also confidential. The payment methods on our website are all encrypted. We also do not sell your email address or any information about you whatsoever to any agency, public or private. 

One other exception: when you sell gold or silver inside an IRA, this triggers a reporting requirement from the custodian on what is called Form 5498, which discloses all of your IRA investments each year. 

This is ostensibly so the IRS can track your ‘basis’ and properly check your calculations for taxes owed at the time of withdrawal.

- Source, Mike Maloney's Gold Silver

Saturday, January 27, 2018

What Happens to Gold and Silver When the Stock Market Crashes?

Many investors hold gold and silver to hedge against various crises. But does this hedge hold up during stock market crashes? It’s a common assumption that gold and silver prices will fall right along with the market. And if that’s the case, wouldn’t it be better to wait to buy them until after the dust settles?

Before formulating a strategy, let’s first look at price data from past stock market crashes…

The Message from History

I looked at past stock market crashes and measured gold and silver’s performance during each of them to see if there are any historical tendencies. The following table shows the eight biggest declines in the S&P 500 over the past 40 years, and how gold and silver prices responded to each.

[Green signifies it rose when the S&P crashed; red means it fell more than the S&P; and yellow denotes it fell but less than or the same as the S&P.]

What Happens to Gold And Silver During Stock Market Crashes


There are some reasonable conclusions we can draw from this historical data.

1. In most cases, the gold price rose during the biggest stock market crashes.

Notice this was regardless of whether the crash was short-lived or stretched over a couple years. Gold even climbed in the biggest crash of them all, the 56% decline that lasted two full years in the early 2000s. It seems clear that we should not assume gold will fall in a stock market crash—just the opposite has occurred more often.

You’ll recall that gold did fall in the initial shock of the 2008 financial crisis. This is perhaps why many investors think gold will drop when the stock market does. But while the S&P continued to decline, gold rebounded and ended the year up 5.5%. Over the total 18-month stock market selloff, gold rose over 25%. The lesson here is that even if gold initially declines during a stock market collapse, one should not assume it’s down for the count. In fact, history says it might be a great buying opportunity.

2. Gold’s only significant selloff (-46% in the early 1980s) occurred just after its biggest bull market in modern history.

Gold rose over 2,300% from its 1970 low to the 1980 peak. So it isn’t terribly surprising that it fell with the broader stock market at that point. We have the opposite situation today. Gold has just exited one of its worst bear markets in modern history—a 45% decline from its 2011 peak to its 2016 low.

3. Silver did not fare so well during stock market crashes.
In fact, it rose in only one of the S&P selloffs (and was basically flat in another one). This is likely due to silver’s high industrial use (about 56% of total supply), and that stock market selloffs are usually associated with a poor or deteriorating economy. However, you’ll see that silver fell less than the S&P in all but one crash. This is significant, because silver’s high volatility would normally cause it to fall more. Also notice that silver’s biggest rise (+15% in the 1970s) took place amidst its biggest bull market in history. It also ended flat by the end of the financial crisis in early 2009, which was its second biggest bull market. In other words, we have historical precedence that silver could do well in a stock market crash if it is already in a bull market. Otherwise it could struggle.

The overall message from history is this:

• Odds are high that gold won’t fall during a stock market crash. Silver might depend on whether it’s in a bull market.

So, why does gold behave this way?

Gold’s Yin to the Stock Market’s Yang

The reason gold tends to be resilient during stock market crashes is because they are negatively correlated. In other words, when one goes up, the other tends to go down.

This makes sense when you think about it: stocks benefit from economic growth and stability; gold benefits from economic distress and crisis. If the stock market falls, fear is usually high, and investors typically seek out the safe haven of gold. If stocks are rocking and rolling, the perceived need for gold from mainstream investors is low.

Here’s the historical data. This chart shows the correlation of gold to other common asset classes. The zero line means gold does the opposite of that investment half of the time. If it’s below zero gold moves in the opposite direction of that investment more often than with it (and vice versa if above zero).

Stocks Have a Negative Correlation to Gold


You can see that on average, when the stock market crashes, gold has historically risen more than declined. Gold has also historically outperformed the cash sitting in your bank account or money market fund. Even real estate values follow gold only a little more than half the time.

This is practical information for investors:

• If you want an asset that will rise when most other assets fall, gold is likely to do that more often than not.

This doesn’t mean gold will automatically rise with every downtick in the stock market. In the biggest crashes, though, history says gold is more likely to be sought as a safe haven. So, if you think the economy is likely to be robust, you may want to own less gold than usual. If you think the economy is headed for weakness, then you may want more gold than usual. And if you think the economy is headed for a period of upheaval, you may want to own a lot.

There’s one more possibility we have to consider…

What if the Stock Market Doesn’t Crash?

It’s not always easy to predict if stocks will fall off a cliff, so what if they don’t? Or what if the market is just flat for a long period of time? You might think that’s unlikely, given the number of risks inherent in our economic, financial, and monetary systems today. But look at the 1970s—it had three recessions, an oil embargo, interest rates that hit 20%, and the Soviet invasion of Afghanistan. Here’s how the S&P performed, along with gold.

Gold Rose 2,328% Trough to Peak, While the S&P 500 Was Flat



The S&P basically went nowhere during the entire decade of the 1970s. After 10 years it was up a measly 14.3% (excluding dividends). Gold, on the other hand, posted an incredible return. It rose from $35 per ounce to its January 1980 peak of $850, a whopping 2,328%.

In other words, gold’s biggest bull market in modern history occurred while the stock market was essentially flat. That’s because the catalysts for higher gold were unrelated to the stock market—they were more about the economic and inflationary issues occurring at the time. We have to allow for the possibility that this happens again: citizens are drawn to gold for reasons unrelated to the performance of the S&P.

The Investor’s Best Strategy


Anything can happen when markets are hit with extraordinary volatility. But regardless of what stocks might do, is it wise to be without a meaningful amount of physical gold and silver in light of all the risks we face today? I don’t think so.

Perhaps the ideal solution is to have a stash of cash ready to deploy if we get another big decline in precious metals—but also have a stash of bullion already set aside in case the next crisis sends gold off to the races.
- Source, Jeff Clark via Mike Maloney's Gold Silver

Tuesday, January 23, 2018

This Amazing Chart Shows Bitcoin Investors Diversifying Into Gold and Silver


Over the last year we've seen a strong trend develop at Gold Silver, more and more bitcoin investors are diversifying into precious metals by buying gold and silver with Bitcoin... 

In this latest video, Mike Maloney explains why he feels this is happening, and why it is a good thing.

- Source, Mike Maloney's Gold Silver

Tuesday, January 9, 2018

Bitcoin VS Gold: Which is the Better Investment Going Forward?


Whether or not you’re more enthusiastic about investing in tangible assets or cryptocurrency, one thing is for certain: government sanctioned fiat currency is in trouble.

Since early 2017, Bitcoin has risen in price from less than $1,000 to nearly $20,000.

Those returns would make any investor smile.

Many crypto supporters think gold is obsolete. Some gold bugs shun the crypto craze as the latest fad.

Mike Maloney thinks they’re both wrong.

As he points out in his new episode of Hidden Secrets of Money, which follows his three-year journey into investigating the cryptocurrency field, he expected to find nothing but a digital payment system. Instead…

“What I found is a technology that can revolutionize the planet.” -Mike Maloney, HSOM 8

But the crypto craze has raised some questions and concerns, especially as it relates to gold and silver. Here’s a brief Q&A to the most common topics we see come up…
Reasons to Invest in Bitcoin and Gold

Cryptocurrencies offer users another way to opt out of the current monetary and banking system, and that can be enticing. The technology is also exciting, especially for those that are more techno-savvy.

The more recent reason for their popularity, of course, has been the surge in prices. Some people have become millionaires from their early investments, and that has spurred others to get involved, driving up the price and the number of cryptos in existence.

Many people choose to invest in bitcoin for the same reasons they invest in gold and vice versa.

Bitcoin and precious metals share many of the same appealing characteristics:

As Mike says…

“The reason people buy bitcoin and cryptos is the same why people buy gold and silver. It’s an alternative to all the fiat currencies that are being printed into oblivion on this planet right now. And they eliminate the need for third party trust—you don’t have to trust somebody else with your bitcoin, you’ll only have to trust yourself. You don’t need to trust somebody else with your gold and silver, you have to trust yourself. So the reasons are the same.”

They’re also both outside the banking system (though that would change if banks adopt the technology).
What is Bitcoin?

In October of 2008, an unidentified person- or perhaps group of people- using the alias Satoshi Nakamoto published a whitepaper detailing a new form of currency. They called it Bitcoin.

Less than a year later, an open source software was released to the public in 2009.
The problem:

Nakamoto’s whitepaper identifies a clear problem with the world’s current monetary system:

Commerce on the Internet has come to rely almost exclusively on financial institutions serving as trusted third parties to process electronic payments. While the system works well enough for most transactions, it still suffers from the inherent weaknesses of the trust based model. Completely non-reversible transactions are not really possible, since financial institutions cannot avoid mediating disputes. The cost of mediation increases transaction costs, limiting the minimum practical transaction size and cutting off the possibility for small casual transactions, and there is a broader cost in the loss of ability to make non-reversible payments for non-reversible services. With the possibility of reversal, the need for trust spreads. Merchants must be wary of their customers, hassling them for more information than they would otherwise need. A certain percentage of fraud is accepted as unavoidable. These costs and payment uncertainties can be avoided in person by using physical currency, but no mechanism exists to make payments over a communications channel without a trusted party.

Satoshi makes the argument that:

What is needed is an electronic payment system based on cryptographic proof instead of trust, allowing any two willing parties to transact directly with each other without the need for a trusted third party

The Solution and How it Works:

Cryptocurrencies like Bitcoin allow people to transact with each other, using the internet, anywhere on earth.

When Nakamoto introduced the concept in his 2008 whitepaper, he wrote:

A purely peer-to-peer version of electronic cash would allow online payments to be sent directly from one party to another without going through a financial institution. Digital signatures provide part of the solution, but the main benefits are lost if a trusted third party is still required to prevent double-spending. We propose a solution to the double-spending problem using a peer-to-peer network. The network timestamps transactions by hashing them into an ongoing chain of hash-based proof-of-work, forming a record that cannot be changed without redoing the proof-of-work. The longest chain not only serves as proof of the sequence of events witnessed, but proof that it came from the largest pool of CPU power.

- Source, Gold Silver

Friday, January 5, 2018

Answered: Cryptos VS Gold and Silver


Gold or Cryptos?

That’s actually the wrong question, as Mike Maloney points out in his new episode of Hidden Secrets of Money. This movie-quality production follows his three-year journey into investigating the cryptocurrency landscape. He expected to find nothing but a digital payment system. Instead…

“What I found is a technology that can revolutionize the planet.”

Gold and cryptos have some strong similarities. But they also have some key differences, which is the reason Mike holds both.

The crypto craze has raised some honest questions and concerns, especially as it relates to gold and silver. Here’s a brief Q&A to the most common topics we see come up…

Why Have Cryptos Become so Popular?


Cryptocurrencies offer users another way to opt out of the current monetary and banking system, and that can be enticing. The technology is also exciting, especially for those that are more tech-savvy.

The more recent reason for their popularity, of course, has been the surge in prices. Some people have become millionaires from their early investments, and that has spurred others to get involved, driving up the price and the number of cryptos in existence.

Why Did Mike Make an HSOM Episode About Cryptos and Not Gold & Silver?

The Hidden Secrets of Money series has been about money and currency, in all of their forms. Cryptocurrencies are the latest form. Over his three-year journey, he came to understand how revolutionary the technology is, as well as how it could impact on our freedom and prosperity.

What’s happening in the crypto sector can’t be ignored. Mike is simply encouraging everyone to understand the technology behind this revolution, and how it might figure into your future. The price of bitcoin gets a lot of headlines, but the technology behind the cryptos is not a fad, and won’t disappear. Mike encourages everyone to investigate how it will have a place in our society going forward.

Why Are Some Gold Bugs Excited About Cryptos?

Because they have some things in common, and serve some overlapping purposes. As Mike says…

“The reason people buy bitcoin and cryptos is the same reason why people buy gold and silver. It’s an alternative to all the fiat currencies that are being printed into oblivion on this planet right now. And they eliminate the need for third party trust—you don’t have to trust somebody else with your bitcoin, you’ll only have to trust yourself. You don’t need to trust somebody else with your gold and silver, you have to trust yourself. So the reasons are the same.”

They’re also both outside the banking system (though that would change if banks adopt the technology).

What are the Advantages of Gold? And Cryptos?

Gold still holds some distinct advantages over cryptos…
A physical gold Eagle in your hand is a tangible form of wealth, while cryptos are essentially ether that rely on electricity and the internet. Cryptos can be hacked (and many have); a gold Eagle cannot. A gold Eagle can get wet; your USB drive gets wet and there goes your cryptos.

Bitcoin and other cryptos are too volatile to serve as a real currency. That may change at some point, but gold has been a stable, long-term store of value for literally thousands of years. Gold has a proven track record of value; cryptos do not. As Mike says, “Cryptos are a speculative and wild ride, but gold is proven.”
Gold is undervalued right now; cryptos are in a bubble. If you’re looking for an investment edge, there it is.

There are a couple advantages that bitcoin and other cryptos have over gold.

Cryptos offer the ability for immediate electronic exchange. They can serve as a payment system.

Cryptos are probably easier to transport, especially in large quantities. Though it’s even easier to move gold around with our new Storage program.

Mike has a clear message to both crypto holders and gold holders:

“I would encourage every precious metals investor to investigate bitcoin and the other cryptocurrencies, and I would encourage every bitcoin and cryptocurrency user and investor to investigate precious metals. I’m going to hold both.”

Should I Buy Bitcoin and Other Cryptos Now?

We don’t like giving investors personal advice, but we are happy to share what we’re doing.

No, we are not buying bitcoin now. It’s clear the price is in a bubble, and a sure way to get hurt is to chase an asset that’s in runaway mode. In fact, Mike has been selling some of his bitcoin to buy gold and silver. That’s because cryptos are overpriced and precious metals are underpriced.

Because of gold’s role as money throughout history, and due to the elevated risks inherent in the financial system right now, we’re convinced the next big asset bubble will be gold and silver. Mike feels no differently than he has all along:

There will be a monetary reset, and gold and silver will soar in that turbulent and scary time. This monetary shift is not far off.

If you don’t have a meaningful portion of your assets in mankind’s oldest form of money, we highly recommend you follow our lead and buy gold now.

Will the Price of Bitcoin and Other Cryptos Stay at These High Levels?

Bitcoin is officially the biggest asset bubble in recorded history. No bubble has lasted forever. This is not our opinion; it is a well-documented historical fact.

What we don’t know is how high the price will rise in the meantime, how far it might fall, nor when all this will happen. But it’s probably not too far away, given the mania type rise.

Frankly, the crypto markets remind us of the Nasdaq in 1999. Dot-com stocks were all the rage; prices rose exponentially, and many had no earnings. Stories abounded of people quitting their jobs and taking out home equity lines to trade tech stocks. These same things are happening today—which should serve as a word of caution.

It is probably not a good investment strategy to chase an asset that’s in a bubble. There will be opportunities to invest in the crypto sector in the near future, so for now we recommend focusing on your education of this growing sector.

One advantage to buying gold now is that when crypto prices do crash, gold can serve as a buffer against that event, just like it has against stock market crashes. Bottom line, gold should be seen as a strategic asset that can weather whatever storm is coming.

- Source, Jeff Clark via Mike Maloney's Gold Silver

Tuesday, January 2, 2018

Predictions for 2018: Cryptocurrency, Stocks, Gold and Silver


Join Mike Maloney for his latest report on what he expects for 2018. Bitcoin, stocks, gold, and silver are all covered in this in-depth look at today's financial climate... strap in because this is not going to be pretty, unless you are precious metals or crypto currency investor.

- Source, Mike Maloney via Gold Silver

Saturday, December 30, 2017

The Crypto Currency Revolution Doesn't End With Bitcoin


Today, mankind stands at a crossroads, and the path that humanity chooses may have a greater impact on our freedom and prosperity than any event in history. 

In 2008 a new technology was introduced that is so important that its destiny, and the destiny of mankind are inextricably linked. It is so powerful that if captured and controlled, it could enslave all of humanity. But if allowed to remain free and flourish - it could foster unimaginable levels of peace and prosperity. 

It has the power to replace all financial systems globally, to supplant ninety percent of Wall St, and to provide some functions of government. It has no agenda. It's always fair and impartial. It can not be manipulated, subverted, corrupted or cheated. And - it inverts the power structure and places control of one's destiny in the hands of the individual. 

In the future, when we look back at the 2.6 million-year timeline of human development and the major turning points that led to modern civilization - the creation of farming, the domestication of animals, the invention of the wheel, the harnessing of electricity and the splitting of the atom - the sixty year development of computers, the internet and this new technology will be looked upon as a single event... a turning point that will change the course of human history. 

It's called Full Consensus Distibuted Ledger Technology, and so far its major use has been for cryptocurrencies such as Bitcoin....but its potential goes far, far beyond that.

- Source Gold Silver